KMT
Kennametal Inc.

Kennametal Inc.KMT

Industrials · Tools & Accessories
23.00USD
-0.95%
Nov 09, 2026
KMT overview ready
Processor and recycler of tungsten-carbide tools for aerospace and defense
Kennametal is a downstream processor and recycler of tungsten-carbide materials and a supplier of precision cutting tools, wear components, metallurgical powders, and certain defense/aerospace hard-material applications.
Primary theme is improving
Diversified Industrials is improving (+8.5pp vs SPY over 21 sessions; 16 of 24 members ahead of SPY).
Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Fair valuation
The price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.
Mixed fundamentals
Ev / ebitda is strong, while free cash flow yield is weak.
Primary risk
Volatility in tungsten raw material prices.
Market Nov 6Filing Sep 30Price action Nov 8Research Jul 21

Conviction Level

PriceAction3.4BusinessPerformance9.0BusinessQuality6.1Valuation3.5ThemeMomentum7.0Accelerating — Revenue growth has accelerated across 4 consecutive quarters, rising from +9.8% to +54% year over year. Diluted EPS growth has strengthened to +1060% year over year ($3.48), up from +83%. — Accelerating describes growth momentum measured in recent filed quarters. It is not proof that the acceleration will continue.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
+8.5pp
Theme return
+3.5%
Beating SPY
16 of 24
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$1.8B
Avg Volume (60D)
1.5M
60 sessions
Revenue Growth YoY
+19.8%
FY2026 vs FY2025
Gross Margin
+50.6%
Trailing twelve months
Operating Margin
+31.0%
Trailing twelve months
Free Cash Flow Yield
-16.2%
Distance from 200DMA
-32.8%
Next Earnings
2027-02-03
P/E
3.0x
EV / EBITDA
2.7x
EV / Sales
1.0x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Accelerating

Revenue growth has accelerated across 4 consecutive quarters, rising from +9.8% to +54% year over year. Diluted EPS growth has strengthened to +1060% year over year ($3.48), up from +83%.

Latest reported: Q1 FY2027, ended Sep 30
Revenue growthAccelerating
+54%
$768M in Q1 FY2027 · YoY
YoY growth, last 4 quarters
  1. +9.8%
  2. +22%
  3. +43%
  4. +54%
Earnings growthAccelerating
+1060%
Diluted EPS $3.48 vs $0.30 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. +91%
  2. +83%
  3. +939%
  4. +1060%
Gross marginExpanding
66.8%
+35.8 pp YoY
Profit is not fully converting to cash

Business Quality

6.1 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Both valuation perspectives agree this company is cheap. The published stance is held at fair because no positive free cash flow behind the low multiple.
Kennametal Inc. has a Fair valuation stance because the price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.

Company Research

Thesis
Kennametal is a downstream processor and recycler of tungsten-carbide materials and a supplier of precision cutting tools, wear components, metallurgical powders, and certain defense/aerospace hard-material applications. Its exposure is real but is less direct than that of a primary strategic-metal producer.
Opportunity
Moderate opportunity
Defense, aerospace, energy, and industrial-manufacturing demand for qualified strategic metals, hard materials, recycling capacity, and engineered material components outside fragile foreign supply chains.
Key risk
Volatility in tungsten raw material prices.

Economic classification

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Business & Markets

Industrials · Tools & Accessories
What they do

Kennametal Inc. develops and applies tungsten carbides, ceramics, and hard materials worldwide, operating through Metal Cutting and Infrastructure segments that supply precision tools and wear components to industrial manufacturers.

How it earns

Transactional sales of cutting tools, wear parts, and engineered materials primarily through direct sales and distributor networks.

Products & services
Precision cutting tools
Wear components
Metallurgical powders
Hard-material solutions
Customers & end markets
Aerospace and defense manufacturers
Industrial equipment producers
Automotive and truck manufacturers
Market position

Established leader in precision cutting tools and engineered hard materials with recognized brands like Kennametal and WIDIA.

Demand drivers
High cyclicality

End markets such as aerospace, automotive, and industrial manufacturing are sensitive to economic cycles and capital spending.