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Kennametal to Report Q1 Earnings: What's in the Cards?

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Key Takeaways

  • Kennametal expects Q1 revenues of $780.6 million, up 56.7%, and adjusted EPS of $2.66.
  • Metal Cutting and Infrastructure growth is driven by share gains, pricing and project wins.
  • Product investments may support growth, while rising costs and a stronger dollar pressure earnings.

Kennametal Inc. (KMT - Free Report) is scheduled to release first-quarter fiscal 2027 (ended September, 2026) results on Nov. 4, before market open.

The Zacks Consensus Estimate for the company’s first-quarter fiscal 2027 revenues is pegged at $780.6 million, suggesting an increase of 56.7% from the year-ago quarter’s reported figure. The consensus estimate for the company’s adjusted earnings is pinned at $2.66 per share, indicating a more than 100% increase from the year-ago quarter’s reported number. 

The consensus estimate for the company’s fiscal first-quarter earnings has increased 1.5% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 29.3%.

Let's see how things are shaping up for KMT this earnings season.

Factors to Note

Share gains, higher aerospace build rates and project wins in the energy end market are likely to have supported the Metal Cutting segment in the fiscal first quarter. The consensus mark for the segment’s to-be-reported quarter’s revenues is $440 million, implying a 41.5% increase from the year-ago reported number.

Incremental pricing, share gains and project execution across several end markets are expected to have aided the Infrastructure segment in the first quarter of fiscal 2027. For the fiscal first quarter, the Zacks Consensus Estimate for the segment’s revenues is pegged at 344 million, indicating an 84% increase from the year-ago reported figure.

Kennametal’s investments in product development, digital capabilities and higher-growth applications are expected to have bolstered the company’s performance in the to-be-reported quarter.

However, the increasing cost of sales due to escalating input costs and rising research and development expenses are likely to have dented KMT’s bottom line in the to-be-reported quarter.

Given the company’s extensive geographic presence, its operations are subject to global political risks and foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt Kennametal's overseas business in the to-be-reported quarter.

Kennametal Inc. Price and EPS Surprise

Kennametal Inc. Price and EPS Surprise

Kennametal Inc. price-eps-surprise | Kennametal Inc. Quote

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for KMT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: Kennametal has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.66 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: Kennametal presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.

Stanley Black & Decker, Inc. (SWK - Free Report) has an Earnings ESP of +1.10% and a Zacks Rank of 2 at present. The company is slated to release third-quarter 2026 results on Nov. 4.

Stanley Black’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 23.3%.

W.W. Grainger, Inc. (GWW - Free Report) has an Earnings ESP of +1.44% and a Zacks Rank of 3 at present. The company is slated to release third-quarter 2026 results on Nov. 4.

W.W. Grainger’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.9%.

Eaton Corporation plc (ETN - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank of 2 at present. The company is scheduled to release third-quarter 2026 results on Nov. 3.

Eaton’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 1.3%.

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