Kennametal stock gains 1.49 percent as cash flow stays negative

Published on 10/06/2026 at 15:53 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Kennametal stock advanced on October 6, 2026, while its fiscal Q4 sales reached USD 737 million after a 43 percent increase. Operating cash flow was negative USD 4 million for fiscal 2026.

KMT, US4891701009, Illustration mit AI erstellt.

Kennametal Inc. (ISIN US4891701009) was trading at USD 33.35 on the NYSE on October 6, 2026, up 1.49 percent at 9:51 a.m. ET. The move follows fiscal Q4 2026 results that combined record adjusted earnings with a sharp cash flow reversal, as Yahoo Finance reported on September 16, 2026.

Record earnings meet cash pressure

Kennametal reported fiscal Q4 2026 sales of USD 737 million, up 43 percent from the prior-year quarter, while adjusted EPS reached a record USD 2.96. The same report showed fourth-quarter operating margin at 41.1 percent, compared with 6.1 percent a year earlier, giving the earnings improvement a clear operational dimension.

The full-year comparison is similarly strong on the income statement. Fiscal 2026 sales reached USD 2.36 billion, up 20 percent from USD 1.97 billion in fiscal 2025, while adjusted EPS for the year reached USD 4.57, according to Yahoo Finance.

Working capital changes the picture

Profit growth did not translate into stronger operating cash generation. Fiscal 2026 operating cash flow was negative USD 4 million, down from positive USD 208 million in fiscal 2025, while free operating cash flow moved to negative USD 79 million from positive USD 121 million.

The pressure was tied to working capital, including higher inventory values and advance payments for tungsten supplies. Fiscal 2027 adjusted EPS guidance spans USD 4.15 to USD 5.15, while annual sales guidance stands at USD 3.33 billion to USD 3.45 billion, a range that leaves execution and raw-material costs central to the next report, Yahoo Finance said.

Analyst targets stay below the quote

The analyst picture remains cautious. Investing.com lists 8 analysts at a consensus Sell rating, with an average 12-month target of USD 32.43, a high target of USD 38 and a low target of USD 27 as of October 6, 2026.

That average target sits below the USD 33.35 intraday quote, while the stock remains between its USD 20.38 52-week low and USD 43.81 52-week high. The market is therefore weighing exceptional earnings growth against the cash demands of tungsten procurement.

Next earnings date is November 2

Kennametal was trading at USD 33.35 on the NYSE on October 6, 2026 at 9:51 a.m. ET. The company is scheduled to release its next earnings report on November 2, 2026, according to Investing.com.