Kennametal (KMT) shares plummeted 23.12% in pre-market trading on Wednesday following the release of its fiscal 2025 fourth-quarter results that fell short of analysts' expectations. The industrial materials and tooling manufacturer reported disappointing earnings and provided a cautious outlook, triggering a significant sell-off.

The company's Q4 adjusted earnings per share (EPS) came in at $0.34, missing the analyst estimate of $0.39. Sales for the quarter were $516.448 million, also falling short of the expected $527.9 million. These results underscore the challenges Kennametal faced in the last quarter of its fiscal year, including ongoing market softness, tariff impacts, and unfavorable foreign exchange fluctuations, as noted by CEO Sanjay Chowbey.

Adding to investors' concerns, Kennametal provided weak guidance for fiscal 2026. The company expects full-year sales of $1.95 billion to $2.05 billion and adjusted EPS of $0.90 to $1.30, both below analyst projections. For the first quarter, Kennametal anticipates sales of $465 million to $485 million and adjusted EPS of $0.20 to $0.30, also shy of analyst targets. This cautious outlook suggests that the company expects market headwinds to persist, further pressuring the stock price.