Kennametal swings to $342.4M net income (+268%) on raw-material pricing timing, but inventory surge turns operating cash negative

Filed August 12, 2026 · Period ending June 30, 2026 · Compared to 10-K Aug 12, 2025 · ~2 min read

Key Changes

• high

  Net income surged 268% to $342.4M ($4.42 diluted EPS vs $1.20 prior year) as operating income more than tripled to $472.5M (20.1% margin vs 7.3%), driven by ~$316M favorable timing of raw material-related pricing versus costs.

  MD&A: Operating Results verify on EDGAR →
• high

  Operating cash flow turned negative at -$4.0M (vs +$208.3M prior year) as inventory doubled to $1,108M from $538M—a $593M build driven by rising tungsten prices and strategic vendor advances to secure supply.

  MD&A: Cash Flow & Notes: Balance Sheet verify on EDGAR →
• high

  Infrastructure segment margin surged from 7.8% to 29.2% (operating income +$221M to $279.9M) on ~$304.6M raw material pricing timing benefit; Metal Cutting margin nearly doubled to 14.0% from 7.1% (operating income +$109M to $195.6M).

  MD&A: Segment Results verify on EDGAR →