JP Morgan maintains Kennametal at Underweight, lowers price target to $27 from $30

Kennametal (KMT) reported negative $212M free cash flow in Q1, driven by working capital needs and higher tungsten prices. Inventory value tripled in 18 months due to tungsten costs. The company paused share buybacks due to cash flow pressures. For fiscal 2027, KMT expects $5-$6 adjusted EPS, assuming tungsten prices stay at $2,700. Q2 sales are forecasted at $785M-$815M with adjusted EPS of $1.20-$1.50.

Kennametal Inc (KMT) reported Q1 2027 earnings, citing infrastructure volume declines due to pricing pressures, China mining slowdowns, and higher tungsten costs. Free operating cash flow was negative $212 million. The company expects price/cost headwinds to extend into Q4, with a projected $2.62 EPS headwind. Share repurchases are paused. CEO Sanjay Chowbey outlined strategies to achieve long-term EBITDA margin targets, including volume growth, strategic pricing, and cost improvements.

Kennametal (KMT) reported Q1 FY 2027 earnings above mid-range expectations, driven by price trends, cost timing, and volume growth in Metal Cutting. The company projected FY 2027 adjusted EPS of $5-$6 and a long-term EBITDA margin target of 16%-19%.

Kennametal Inc. reported Q1 2027 earnings, highlighting volume growth in aerospace and energy, but a decline in infrastructure due to pricing and a China mining accident. The company reaffirmed its long-term EBITDA margin target of 16% to 19%, despite higher tungsten costs. Fiscal 2027 EPS outlook is $5 to $6, with infrastructure recovery expected in the second half. Management discussed strategic initiatives and risks, including tariffs and currency losses.

Kennametal reported 2026 Q3 revenue of $768.19M, up 54.3% YoY, with net income at $274.46M and EPS at $3.48. Growth was driven by Metal Cutting and Infrastructure sales, while higher tungsten prices increased inventory. Share repurchases remain paused.

Kennametal (KMT) reported Q1 2027 sales and earnings above outlook, driven by tungsten pricing and metal cutting volume growth. Infrastructure volumes declined, but aerospace and energy sectors showed progress. EPS rose to $3.48, up from $0.34 YoY, with EBITDA margin at 51.9%. Free cash flow was negative $212M due to tungsten costs. The company updated its EPS outlook and plans to improve cash conversion.