Kennametal reported second-quarter fiscal 2026 earnings per share of $0.47, a year-over-year increase of 89% compared to $0.25 in Q2 FY25. This result exceeded the consensus analyst estimate of $0.35 by 34%. Net income grew to $36.8 million, up from $19.5 million a year earlier, reflecting both improved operational efficiency and disciplined cost management across its Product Technology and Industrial segments.

Total revenues for the quarter reached $530 million, representing a 10% increase over Q2 FY25’s $482 million. China and North America were standout regions, with sales rising 14% and 11% respectively. Automotive tooling demand strengthened by 12%, while industrial end markets such as aerospace and energy equipment saw revenue gains of 8% and 9% year-over-year, demonstrating the benefits of Kennametal’s diversified customer base.

Adjusted gross margin expanded by 210 basis points to 37.8%, driven by higher plant utilization rates and favorable product mix, particularly in high-margin carbide tooling. SG&A expenses declined by 2% as a percentage of sales, due in part to streamlined administrative processes and reduced freight costs. Adjusted EBITDA margin improved to 16.4%, up from 13.7% a year ago, underscoring the impact of ongoing lean initiatives.

In light of stronger-than-expected first-half results, Kennametal raised its full-year fiscal 2026 adjusted EPS guidance range to $1.75–$1.85 from $1.60–$1.75 and now anticipates revenue growth of 6–8% versus prior 4–6%. The company projects full-year adjusted free cash flow of at least $120 million, up from previous guidance of $100 million, supported by lower working capital requirements and continued operational improvements.