Kennametal Earnings Call Transcripts
Fiscal Year 2026
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Q3 delivered strong sales and EPS growth, driven by price realization, volume gains, and strategic share capture amid unprecedented tungsten price increases. FY26 outlook was raised, with continued margin expansion and working capital pressure expected due to tungsten volatility.
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Second quarter results exceeded expectations with 10% organic sales growth and higher margins, driven by pricing actions and restructuring savings. Full-year sales and EPS outlooks were raised, reflecting strong execution and resilience amid volatile tungsten prices.
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First quarter saw 3% organic sales growth, margin improvement, and raised full-year guidance, driven by project wins, pricing actions, and restructuring savings. Key end markets like aerospace, defense, and power generation showed strength, while cash flow was impacted by higher tungsten costs.
Fiscal Year 2025
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Sales and earnings declined year-over-year amid broad market softness, with restructuring and cost actions partially offsetting lower volumes. FY26 guidance anticipates flat to slightly lower volumes, margin improvement from cost savings, and continued growth in aerospace and defense.
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Sales declined 6% year-over-year, but adjusted EPS rose to $0.47, driven by tax credits and restructuring savings. FY2025 sales are expected between $1.97B–$1.99B, with EPS guidance raised to $1.30–$1.45 despite tariff headwinds.
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Sales declined 3% year-over-year amid challenging EMEA and U.S. markets, with adjusted EPS down to $0.25. Facility closures and restructuring aim for $15 million in annualized savings, while FY 2025 guidance was lowered due to persistent headwinds.
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Fiscal Q1 2025 saw a 2% sales decline, with infrastructure up and metal cutting down. Margins and EPS fell year-over-year, but cash flow improved. Guidance for FY 2025 is unchanged, with recovery dependent on EMEA and aerospace markets.
Fiscal Year 2024
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Q4 sales were at the upper end of expectations, with strong aerospace and defense growth offsetting declines in other segments. FY 2025 guidance anticipates mixed market conditions, moderate growth in aerospace, and continued focus on margin expansion and cash flow.