Kennametal (KMT) shares plummeted 9.47% 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 IBES 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.

Adding to investors' concerns, Kennametal provided guidance for the first quarter of fiscal 2026 and the full year that suggests continued headwinds. The company expects Q1 adjusted EPS to be between $0.20 and $0.30, with sales ranging from $465 million to $485 million. For the full fiscal year 2026, Kennametal projects sales of $1.95 billion to $2.05 billion and adjusted EPS of $0.90 to $1.30. These forecasts indicate potential ongoing pressures on the company's performance, likely contributing to the sharp stock decline.