New York, Feb 4, 2026, 15:51 (EST) — Regular session
- KMT shares jumped roughly 7.5% in afternoon trading following Kennametal’s upgrade to its full-year outlook
- The toolmaker cited customer “buy-ahead” linked to tungsten prices alongside slight gains in end-market demand
- Traders are closely eyeing if the pull-forward will sustain into the next quarter and its impact on cash flow
Kennametal shares surged Wednesday following an upward revision of its full-year forecast. The cutting-tools maker cited a quarterly beat, boosted by customers rushing to buy before price adjustments related to tungsten. The stock climbed $2.67 to $38.43 in afternoon trading.
This matters because Kennametal operates near the factory floor. Investors want clearer evidence that short-cycle industrial demand is holding steady, not just fluctuating from one quarter to the next.
There’s a catch behind the quarter’s strong numbers. Management noted that some customers “bought ahead,” placing orders early to avoid rising prices. That boosts sales for now but risks a slowdown down the line.
Kennametal reported a 10% jump in second-quarter sales to $530 million, with earnings per share hitting 44 cents. Adjusted EPS, excluding special items, came in at 47 cents. The company raised its fiscal 2026 outlook, projecting adjusted EPS between $2.05 and $2.45 on sales ranging from $2.19 billion to $2.25 billion. For the third quarter, it expects adjusted EPS of 50 to 60 cents and sales between $545 million and $565 million. CEO Sanjay Chowbey noted volumes were boosted by “buy-ahead” activity linked to tungsten pricing. Year-to-date free operating cash flow slipped to $38 million from $57 million. The board also declared a $0.20 quarterly dividend, payable Feb. 24 to shareholders of record Feb. 10. 1
Margins also saw a boost. Operating income jumped 66% to $53 million, with adjusted operating income up 68% to $56 million. Kennametal pointed to pricing moves, tariff surcharges (extra fees to cover import taxes), and restructuring savings as key drivers, alongside a favorable spread between pricing and raw material expenses. 2
According to TheFly, analysts were looking for adjusted EPS of 38 cents on roughly $522.9 million in revenue. 3
On Wednesday, Kennametal filed an 8-K with the SEC, including its full earnings release as an exhibit. 4
The broader backdrop has shifted slightly. The Institute for Supply Management reported its Manufacturing PMI climbed to 52.6 in January — marking the first expansion in a year — driven by a surge in new orders. 5
Kennametal stood out as the broader market faltered: the S&P 500 ETF slipped roughly 0.2%, and the Nasdaq-tracking QQQ dropped around 1.4% in late afternoon trading.
But the buy-ahead effect works both ways. Once customers have stocked up, volumes can slow down as tungsten prices shift and tariff-related expenses filter through. The company has also pointed out that working capital — particularly inventory — has weighed on cash flow.
Kennametal produces metal-cutting tools and wear-resistant components for aerospace, defense, earthworks, energy, and several other sectors. The company runs two main segments: Metal Cutting and Infrastructure, with a strong dependence on tungsten carbides and other durable materials. 6
