Overview

* Kennametal ( KMT ) 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 ( KMT ) expects Q1 sales of $465-$485 mln

* Company anticipates FY26 sales of $1.95-$2.05 bln

* Kennametal ( KMT ) 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/Mis Actual Consensu

s s

Estimate

Q4 Sales Miss $516.45 $527.90

mln mln (8

Analysts

)

Q4 Miss $0.34 $0.39 (9

Adjusted Analysts

EPS )

Q4 EPS $0.28

Q4 Net $23.12

Income mln

Q4 Gross $145.66

Profit mln

Q4 $31.37

Operatin mln

g Income

Q4 $30.37

Pretax mln

Profit

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 ( KMT ) 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:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)