Kennametal Earnings Call Transcripts
Fiscal Year 2027
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Q1 sales and EPS exceeded outlook, helped by tungsten price/cost timing and Metal Cutting growth. Infrastructure volumes and cash conversion remain challenges; FY27 adjusted EPS guidance is $5-$6.
Fiscal Year 2026
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FY26 sales rose 19% organically, adjusted EPS increased to $4.57, and adjusted EBITDA margin expanded to 26.9%. Priorities include $110 million in restructuring savings by FY27-end and disciplined growth execution amid market uncertainty.
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Strong FY 2026 results featured 19% organic sales growth and record margins, driven by price realization, strategic wins in aerospace, defense, and energy, and disciplined cost actions. FY 2027 guidance anticipates continued growth, with volume up 1%-4% and robust liquidity.
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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 amid broad market weakness, but adjusted EPS rose to $0.47, driven by restructuring savings and a significant tax credit. FY2025 guidance was tightened, with EPS raised to $1.30–$1.45, and active measures are underway to fully mitigate an $80 million annual tariff impact.
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Sales and profitability declined due to challenging EMEA and U.S. markets, prompting plant closures and workforce reductions targeting $15M in annualized savings. FY25 guidance was lowered, with adjusted EPS now expected at $1.05–$1.30 and continued focus on cost control and margin improvement.
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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.