Kennametal Posts $58.2M Q3 Profit on $592.6M Revenue, Raises Guidance
KMT•Kennametal Inc. reported Q3 profit of $58.2 million, or $0.75 per share ($0.77 adjusted), on revenue of $592.6 million, exceeding analyst estimates and raising full-year EPS guidance to $3.75–$4.00. Management credited margin expansion to tungsten price rises from ~$900 to $3,000 per ton and vertical integration advantages.
1. Q3 Financial Performance
Kennametal posted Q3 profit of $58.2 million, or $0.75 per share ($0.77 adjusted), on $592.6 million revenue, surpassing analyst estimates of $0.68 EPS and setting full-year EPS guidance at $3.75–$4.00 with revenues of $2.33–$2.35 billion.
2. Margin Expansion Drivers
Management attributed significant margin expansion to favorable raw material timing as tungsten prices surged from around $900 to $3,000 per metric ton and emphasized the benefits of vertical integration in maintaining supply and capturing competitor share.
3. Growth Trends in Key Markets
Volume growth was led by share of wallet gains in aerospace and defense accounts and momentum in energy driven by AI-related power generation initiatives, reflecting strategic execution on growth initiatives.
4. Facility Closure Timeline Shift
Kennametal deferred planned facility closures to prioritize near-term growth opportunities over restructuring, indicating a strategic shift to capitalize on current market dynamics.
