Kennametal Inc. (NYSE:KMT) delivered fiscal second-quarter results on Wednesday that came in ahead of market expectations and prompted the company to lift its outlook for the full year, sending its shares higher in premarket trading.
The industrial technology group’s stock rose 2.49% before the open following the announcement.
For the quarter ended December 31, 2025, Kennametal reported adjusted earnings of $0.47 per share, well above the analyst consensus of $0.37. Revenue totaled $529.5 million, exceeding expectations of $522.6 million and marking a 10% year-on-year increase on both a reported and organic basis.
“We are pleased with our second quarter results, which exceeded the high end of our sales and adjusted EPS Outlook, driven by volume in the quarter, largely from buy-ahead in response to the tungsten pricing environment and modest improvement in certain end markets,” said Sanjay Chowbey, President and CEO.
Operating income surged 66% to $53 million, while adjusted operating income climbed 68% to $56 million. Within the business segments, Metal Cutting sales increased 11% to $331 million, and the Infrastructure segment recorded an 8% rise in sales to $198 million.
Following the strong quarter, Kennametal raised its fiscal 2026 guidance. The company now expects full-year sales of $2.19 billion to $2.25 billion, above the prior consensus estimate of $2.13 billion. It also lifted its adjusted earnings per share outlook to a range of $2.05 to $2.45, significantly higher than analyst expectations of $1.66.
For the third quarter, Kennametal forecasts revenue of $545 million to $565 million and adjusted EPS of $0.50 to $0.60.
Management pointed to favorable pricing relative to raw material costs—particularly within the Infrastructure segment—along with stronger volumes and roughly $8 million in additional restructuring savings as key drivers of performance.
“Looking ahead, we remain focused on driving above market growth, improving our cost structure and shaping a smarter portfolio to deliver long-term value for shareholders,” Chowbey added.
The company also announced that its Board of Directors approved a quarterly cash dividend of $0.20 per share, payable on February 24, 2026, to shareholders of record as of February 10, 2026.