Kennametal Q4 sales, adjusted EPS fall short of expectations
Overview
Kennametal Q4 sales fall 5% to $516 mln, missing analyst expectations
Adjusted EPS for Q4 at $0.34, below analyst estimates, per LSEG data
Co achieved $65 mln in annualized run-rate pre-tax savings since FY24
Outlook
Kennametal expects Q1 sales of $465-$485 mln
Company anticipates FY26 sales of $1.95-$2.05 bln
Kennametal projects Q1 adjusted EPS of $0.20-$0.30
Company forecasts FY26 adjusted EPS of $0.90-$1.30
Result Drivers
MARKET SOFTNESS - Persistent market softness impacted sales, per CEO Sanjay Chowbey
TARIFF IMPACTS - Increased tariffs contributed to lower operating income
RESTRUCTURING SAVINGS - Achieved $65 mln annualized run-rate pre-tax savings since FY24
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Miss | $516.45 mln | $527.90 mln (8 Analysts) |
Q4 Adjusted EPS | Miss | $0.34 | $0.39 (9 Analysts) |
Q4 EPS | $0.28 | ||
Q4 Net Income | $23.12 mln | ||
Q4 Gross Profit | $145.66 mln | ||
Q4 Operating Income | $31.37 mln | ||
Q4 Pretax Profit | $30.37 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy."
Wall Street's median 12-month price target for Kennametal Inc is $22.50, about 11.7% below its August 5 closing price of $25.13
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago
Press Release:
