Kennametal said Wednesday that its sales increased by over 40% in its latest fiscal quarter — while its profit nearly tripled and earnings jumped nearly 10-fold.
The manufacturer of cutting tools and engineered components reported sales of $736.6 million in its fourth quarter, which represented a 43% increase compared to the same April-June window last year.
The company’s profit rose from $145.7 million to $433.6 million over that span, while operating income soared from $31.4 million to $302.9 million year-over-year — translating to an operating margin that went from 6.1% to 41.1%.
Kennametal officials said that the jump in operating income stemmed from “favorable timing of raw material-related pricing,” as well as higher sales and production volumes, savings from restructuring efforts, tariff surcharges in its metal cutting segment, and other pricing factors. The company’s net income climbed from $23.1 million to $229.5 million, and officials highlighted record adjusted quarterly earnings $2.96 per share.
Sales were up 24% in Kennametal’s metal cutting segment, while its infrastructure division saw a 73% increase. For the full fiscal year, Kennametal’s sales rose by 20% to $2.36 billion.
"Our team delivered strong fiscal 2026 results, reflecting volume from improving market conditions and our strategic growth initiatives," Kennametal President and CEO Sanjay Chowbey said in a statement. "We achieved record adjusted EPS this quarter through decisive pricing actions in an unprecedented tungsten environment, volume growth and cost improvement efforts."
The company’s initial outlook for its 2027 fiscal year anticipates annual sales of between $3.33 billion and $3.45 billion and adjusted earnings of $4.15 to $5.15 per share. It expects first-quarter sales of $745 million to $775 million.
Chowbey said that company leaders were “encouraged by the volume trends we have seen across several end markets and expect those improving conditions, along with our strategic initiatives, to continue to drive sales growth throughout fiscal 2027.”
Kennametal also announced recently that it would soon have a new chairman: Bill Lambert plans to retire from the company’s board at the conclusion of its annual shareholders meeting in late October. Joe Alvarado, the chair of the board’s nominating and corporate governance committee, was named his successor.
