By Dean Seal
Shares of Kennametal sank after the company issued soft fiscal 2026 guidance with expectations for market headwinds to persist.
The stock was down 22% at $19.70 in premarket trading. Shares are on track to open in negative territory year-to-date.
The tool maker said it expects $1.95 billion to $2.05 billion in sales for the fiscal year ahead, along with adjusted earnings of 90 cents to $1.30 a share. Analysts polled by FactSet had been projecting $2.02 billion in sales with $1.44 a share in adjusted earnings.
Chief Executive Sanjay Chowbey said the company has been responding to ongoing market softness, tariff impacts and unfavorable foreign exchange fluctuations.
Kennametal anticipates $465 million to $485 million in sales and 20 cents to 30 cents a share of adjusted earnings in the fiscal first quarter that started July 1, shy of analyst targets for $488 million in sales and 29 cents a share in adjusted earnings.
For the most recently completed quarter, the company posted a profit of $21.6 million, or 28 cents a share, compared with $37.2 million, or 47 cents a share, in the year-earlier quarter.
Stripping out one-time items, adjusted earnings were 34 cents a share, below analyst estimates for 39 cents a share.
Sales fell 5% to $516 million, more than $10 million lower than analysts had been forecasting, according to FactSet.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
August 06, 2025 08:29 ET (12:29 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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