Kennametal Beats Q2 Estimates With $736.6 Million Revenue as Analysts Press on FY27 Earnings
Updated
Updated · Yahoo Finance · Aug 14
Kennametal Beats Q2 Estimates With $736.6 Million Revenue as Analysts Press on FY27 Earnings
1 articles · Updated · Yahoo Finance · Aug 14
Summary
$736.6 million in Q2 revenue and $2.96 adjusted EPS both topped estimates, while Kennametal guided Q3 revenue to $760 million and FY27 EPS to $4.65 at the midpoint.
Management said elevated tungsten costs drove price increases that boosted results, alongside demand from aerospace, defense, energy and AI data centers; operating margin jumped to 41.1% from 6.1%.
Analysts focused on how much of that strength is sustainable: CFO Patrick Watson said normalized EPS is about $1.64 after stripping out price and raw-material effects, with the first half benefiting more from those tailwinds.
Kennametal also said it did not face an outright tungsten shortage, expects a $0.39 raw-material tailwind to be concentrated in the first half of FY27, and still targets mid-teens EBITDA margins exiting the year.
Despite $27 million in restructuring savings, free cash flow remained pressured by higher working capital tied to raw-material prices, helping explain the negative market reaction after the headline beat.