Kennametal Reports Q1 Fiscal 2027 Revenue Growth Driven by Raw Material Pricing
Kennametal Inc. posted a 54 percent revenue increase to $768 million in the first quarter of fiscal 2027, buoyed by favorable raw material pricing and higher volumes in its Metal Cutting segment.
Kennametal Inc. reported $768 million in sales for the fiscal 2027 first quarter, marking a 54 percent increase year-over-year. The company attributed the growth to strong performance in its metal cutting division and timing advantages in raw material costs, resulting in record diluted earnings per share of $3.48 for the quarter.
While operating income surged to $379 million, the company’s operating cash flow turned negative at $201 million. This liquidity pressure stems primarily from record-high tungsten prices, which necessitated increased investment in inventory and supplier advance payments. CEO Sanjay Chowbey stated that despite these working capital demands, the company remains focused on its strategic growth initiatives in aerospace, defense, and power generation.
Looking ahead, Kennametal has raised its full-year adjusted EPS guidance for fiscal 2027. The company continues to target an adjusted EBITDA margin range of 16 to 19 percent in a stable tungsten price environment.