Slide 1: FY25 Fourth Quarter Earnings Call Presentation
FY25 Fourth Quarter Earnings Call Presentation August 6, 2025
Slide 2: Safe Harbor Statement
Q 4 F Y 2 5 E AR N I N G S Safe Harbor Statement Certain statements in this release may be forward-looking in nature, or “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are
Slide 3: FY25 Summary
CEO OVERVIEW FY25 Summary Key Customer Wins Tariff Mitigation Restructuring Accomplishments Footprint Consolidation Portfolio Actions Softer Market / Lower Volume Supply Chain Disruptions Tariff Uncertainty Market Conditions $1.967B $1.34 $299M $208M $122M to Full Year SALES per share Adj. EBITDA CA
Slide 4: Navigating market challenges and operational pressures
Q 4 F Y 2 5 E AR N I N G S Navigating market challenges and operational pressures Earnings per Diluted Share (EPS): Reported $0.28; Adjusted $0.34 (vs. $0.47 reported and $0.49 adjusted in prior year) Sales Growth Sales of $516M, (5)% organic decline year-over-year Metal Cutting (4)% and Infrastruct
Slide 5: Lower sales partially offset by restructuring savings and tornado effect
Q 4 F Y 2 5 AD J U S T E D E P S B R I D G E Lower sales partially offset by restructuring savings and tornado effect $0.49 $0.02 $0.04 $0.01 $0.34 $0.07 ($0.04) ($0.01) ($0.24) $0.04 of Bolivia transactional FX Lower share count • Lower sales and production volume • Higher wages and general inflati
Slide 6: Macroeconomic headwinds continue to pressure industrial demand
M E TAL C U T T I N G B U S I N E S S S E G M E N T Q 4 F Y 2 5 S U M M ARY Macroeconomic headwinds continue to pressure industrial demand Regional Sales Sales Growth by Region Adjusted Sales Growth (in constant currency) • Asia Pacific – Aerospace & Defense and Energy weakness partially Operating
Slide 7: Lower mining, industrial activity and order timing impact results
I N F R AS T R U C T U R E B U S I N E S S S E G M E N T Q 4 F Y 2 5 S U M M ARY Lower mining, industrial activity and order timing impact results Regional Sales • Asia Pacific – Earthworks weakness partially offset by General Sales Growth by Region Adjusted Organic sales Engineering Sales Growth
Slide 8: Strong balance sheet and liquidity
B AL AN C E S H E E T AN D C AS H F L O W S TAT E M E N T H I G H L I G H T S Strong balance sheet and liquidity Total Debt Net Debt $800 Share Repurchases & Debt Profile $616 $597 $598 $200M 3-year share repurchase program $596 $600 $ Millions $530 $490 $469 • Q4: $5M purchased; 232K shares $457
Slide 9: FY26 Outlook
F U L L Y E AR O U T L O O K FY26 Outlook OUTLOOK CONSIDERS THE FY26 TOTAL YEAR OUTLOOK FOLLOWING ASSUMPTIONS Sales • Revenue Assumptions Year over Year $1.95- $2.05B Transportation: Aerospace Gen Engineering: & Defense: ~(5)% – ~0% ~4% ~2% Decline MSD Decline LSD Up HSD Volume growth Price and tari
Slide 10: Price and Restructuring partially offset volume and one-time items
F U L L Y E AR O U T L O O K Price and Restructuring partially offset volume and one-time items $0.04 $1.34 $0.00 ($0.06) ($0.05) ($0.07) $1.10 ($0.08) ($0.02) Includes ($0.07) of Bolivia transactional FX ($0.15) net effect • Lower interest income Partially offset by: • Price • Lower share count • R
Slide 11: Q1 FY26 Outlook
N E X T Q U AR T E R O U T L O O K Q1 FY26 Outlook OUTLOOK CONSIDERS THE FY26 FIRST QUARTER OUTLOOK FOLLOWING ASSUMPTIONS Sales Year over Year sales growth reflects: $465 - $485M • Transportation: Energy: Aerospace ~ (7)% - ~(3)% ~ 4% ~2% Decline MSD Flat & Defense: Price and tariff Growth HSD Volum
Slide 12: Focused on unlocking value and driving progress
C E O U P D AT E Focused on unlocking value and driving progress Year 1 Progress Unlocking Future Value Driving Growth Rightsizing Recalibrating the Shaping a Aerospace & Defense wins in both segments AI Power Capacity Cost Structure smarter portfolio Generation wins in Metal Cutting Continuous Impr
Slide 13: Appendix
Appendix 13
Slide 14: Volume declines offset restructuring actions and other benefits
Q 4 F Y 2 5 E AR N I N G S Volume declines offset restructuring actions and other benefits Adjusted Reported Quarter Ended ($ in millions) Change from PY June 30, 2025 June 30, 2024 Mm June 30, 2025 June 30, 2024 Sales (5)% $516 $543 $516 $543 Organic (5)% (1)% (5)% (1)% FX 0% (2)% 0% (2)% Divestitu
Slide 15: Soft macro environment continues
C O N S O L I D AT E D F Y 2 5 F I N AN C I AL O V E R V I E W Soft macro environment continues Adjusted Reported Year Ended ($ in millions) Change from PY June 30, 2025 June 30, 2024 Mm June 30, 2025 June 30, 2024 Sales (4)% $1,967 $2,047 $1,967 $2,047 Organic (4)% (1)% (4)% (1)% FX (1)% (1)% (1)%
Slide 16: Navigating market challenges and operational pressures
F Y 2 5 E AR N I N G S Navigating market challenges and operational pressures Earnings per share: Reported $1.20; Adjusted $1.34 (vs. $1.37 reported and $1.50 adjusted in prior year) Sales of $1,967 million, (4)% organic decline YoY Sales Growth Lower global Metal Cutting (5)% and Infrastructure (2)
Slide 17: Lower volumes partially offset by restructuring and one-time items
F Y 2 5 AD J U S T E D E P S B R I D G E Lower volumes partially offset by restructuring and one-time items $1.50 $0.11 $0.06 $1.34 $0.12 ($0.04) ($0.32) $0.05 ($0.10) ($0.04) • Lower share count • Lower interest Includes $0.10 of Bolivia transactional FX $0.23 net effect • Lower sales and productio
Slide 18: Sales decline due to weak market conditions
Q 4 F Y 2 5 S E G M E N T R E S U LT S Sales decline due to weak market conditions Metal Cutting Infrastructure Americas 45% Energy 7% Americas 56% AsiaPac 18% AsiaPac 23% Gen Eng 33% Energy 23% Aero & Def 13% Gen Eng Aero & Def 9% 54% EMEA 37% Transp 26% EMEA 21% Earthworks 35% Quarter Ending June
Slide 19: Market conditions offset price and strategic initiatives
F Y 2 5 S E G M E N T R E S U LT S Market conditions offset price and strategic initiatives Metal Cutting Infrastructure AsiaPac 19% Energy 7% Gen Eng 33% Energy 23% Americas 45% AsiaPac 23% Americas 56% Aero & Def 13% Aero & Def 9% Transp 27% EMEA 36% Gen Eng 53% EMEA 21% Earthworks 35% Year Ending
Slide 20: Strong balance sheet
B AL AN C E S H E E T Strong balance sheet ASSETS ($ in millions) June 30, 2025 June 30, 2024 Cash and cash equivalents $141 $128 Accounts receivable, net 295 303 Inventories 538 515 Other current assets 65 57 Total current assets 1,039 1,003 Property, plant and equipment, net 920 938 Goodwill and o
Slide 21: Lower demand pressures end markets and offsets price actions
E N D M AR K E T O U T L O O K Lower demand pressures end markets and offsets price actions FY26 Sales Assumptions at Outlook Midpoint in constant currency General Engineering Transportation Energy Earthworks Aerospace & Defense FY25 FY26 FY25 FY26 FY25 FY26 FY25 FY26 FY25 FY26 Down MSD Down LSD Dow
Slide 22: Non-GAAP Reconciliations
N O N - G AAP R E C O N C I L I AT I O N S Non-GAAP Reconciliations The information presented by the Company contains certain non-GAAP financial measures. Kennametal management believes that presentation of these non-GAAP financial measures provides useful information about the results of operations
Slide 23: Non-GAAP Reconciliations (cont'd)
N O N - G AAP R E C O N C I L I AT I O N S Non-GAAP Reconciliations (cont’d) Constant Currency End Market Sales Growth (Decline) Constant currency end market sales growth (decline) is a non-GAAP financial measure of sales growth (decline) (which is the most directly comparable GAAP measure) by end m
Slide 24: Adjusted Results – Q4
N O N - G AAP R E C O N C I L I AT I O N S Adjusted Results – Q4 Operating Operating Effective Tax ($ in millions, except percents and per share data) Sales Gross Profit Expense Income Net Income(5) Diluted EPS Rate Q4 FY25 Reported Results $ 516.4 $ 145.7 $ 105.9 $ 31.4 $ 21.6 $ 0.28 23.9 % Reporte
Slide 25: Adjusted Results – Full Year
N O N - G AAP R E C O N C I L I AT I O N S Adjusted Results – Full Year Operating Operating Effective Tax ($ in millions, except percents and per share data) Sales Gross Profit Expense Income Net Income(5) Diluted EPS Rate FY25 Reported Results $ 1,966.8 $ 598.1 $ 430.8 $ 143.1 $ 93.1 $ 1.20 25.2 %
Slide 26: Adjusted EBITDA and EBITDA Margin
N O N - G AAP R E C O N C I L I AT I O N S Adjusted EBITDA and EBITDA Margin Three months ended June 30, Year ended June 30, ($ in millions) 2025 2024 2025 2024 Net income attributable to Kennametal, reported $ 21.6 $ 37.2 $ 93.1 $ 109.3 Add back: Interest expense 6.2 6.2 24.9 26.5 Interest income (
Slide 27: Adjusted Segment Operating Income and Margins – Q4
N O N - G AAP R E C O N C I L I AT I O N S Adjusted Segment Operating Income and Margins – Q4 Metal Cutting Infrastructure Metal Cutting Operating Infrastructure Operating ($ in millions, except percents) Sales Income Sales Income Q4 FY25 Reported Results $ 320.7 $ 21.1 $ 195.8 $ 10.7 Reported Opera
Slide 28: Adjusted Segment Operating Income and Margins – Full Year
N O N - G AAP R E C O N C I L I AT I O N S Adjusted Segment Operating Income and Margins – Full Year Metal Cutting Infrastructure Metal Cutting Operating Infrastructure Operating ($ in millions, except percents) Sales Income Sales Income FY25 Reported Results $ 1,219.7 $ 86.4 $ 747.2 $ 58.5 Reported
Slide 29: Organic Sales Growth (Decline) – Q4 and Full Year
N O N - G AAP R E C O N C I L I AT I O N S Organic Sales Growth (Decline) – Q4 and Full Year Three months ended June 30, 2025 Metal Cutting Infrastructure Kennametal Organic sales decline (4)% (5)% (5)% Foreign currency exchange effect — 1 — Business days effect — (1) — Divestiture effect — (1) — Sa
Slide 30: Constant Currency Regional Sales Growth (Decline) – Q4 FY25
N O N - G AAP R E C O N C I L I AT I O N S Constant Currency Regional Sales Growth (Decline) – Q4 FY25 Metal Cutting Three months ended June 30, 2025 Americas EMEA Asia Pacific Constant currency regional sales decline (4)% (5)% (1)% Foreign currency exchange effect (2) 2 — Regional sales decline (6)
Slide 31: Constant Currency Regional Sales Growth (Decline) – Q4 FY24
N O N - G AAP R E C O N C I L I AT I O N S Constant Currency Regional Sales Growth (Decline) – Q4 FY24 Metal Cutting Three months ended June 30, 2024 Americas EMEA Asia Pacific Constant currency regional sales growth (decline) 7 % (3)% (2)% Foreign currency exchange effect (2) (2) (3) Regional sales
Slide 32: Constant Currency Regional Sales Growth (Decline) – Full Year FY25
N O N - G AAP R E C O N C I L I AT I O N S Constant Currency Regional Sales Growth (Decline) – Full Year FY25 Metal Cutting Year ended June 30, 2025 Americas EMEA Asia Pacific Constant currency regional sales decline (2)% (7)% — % Foreign currency exchange effect (2) — (1) Regional sales decline (4)
Slide 33: Constant Currency Regional Sales Growth (Decline) – Full Year FY24
N O N - G AAP R E C O N C I L I AT I O N S Constant Currency Regional Sales Growth (Decline) – Full Year FY24 Metal Cutting Year ended June 30, 2024 Americas EMEA Asia Pacific Constant currency regional sales growth (decline) 3 % 2 % (4)% Foreign currency exchange effect (1) 2 (3) Regional sales gro
Slide 34: Constant Currency End Market Sales Growth (Decline) – Q4 FY25
N O N - G AAP R E C O N C I L I AT I O N S Constant Currency End Market Sales Growth (Decline) – Q4 FY25 Metal Cutting General Aerospace & Three months ended June 30, 2025 Energy Engineering Defense Transportation Constant currency end market sales (decline) growth (6)% (5)% 1 % (4)% Foreign currenc
Slide 35: Constant Currency End Market Sales Growth (Decline) – Q4 FY24
N O N - G AAP R E C O N C I L I AT I O N S Constant Currency End Market Sales Growth (Decline) – Q4 FY24 Metal Cutting General Aerospace & Three months ended June 30, 2024 Energy Engineering Defense Transportation Constant currency end market sales (decline) growth (1)% 1 % 11 % (1)% Foreign currenc
Slide 36: Constant Currency End Market Sales Growth (Decline) – Full Year FY25
N O N - G AAP R E C O N C I L I AT I O N S Constant Currency End Market Sales Growth (Decline) – Full Year FY25 Metal Cutting General Aerospace & Year ended June 30, 2025 Energy Engineering Defense Transportation Constant currency end market sales (decline) growth (1)% (5)% 3 % (4)% Foreign currency
Slide 37: Constant Currency End Market Sales Growth (Decline) – Full Year FY24
N O N - G AAP R E C O N C I L I AT I O N S Constant Currency End Market Sales Growth (Decline) – Full Year FY24 Metal Cutting General Aerospace & Year ended June 30, 2024 Energy Engineering Defense Transportation Constant currency end market sales (decline) growth (4)% — % 8 % 1 % Foreign currency e
Slide 38: Net Debt and Free Operating Cash Flow
N O N - G AAP R E C O N C I L I AT I O N S Net Debt and Free Operating Cash Flow Net Debt Year ended (in millions) 6/30/2025 6/30/2024 6/30/2023 6/30/2022 Total debt (gross) $ 597.8 $ 597.4 $ 595.9 $ 615.6 Less: cash and cash equivalents 140.5 128.0 106.0 85.6 Net debt $ 457.3 $ 469.4 $ 489.9 $ 530.
Slide 39: Primary Working Capital – FY25
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – FY25 (in thousands, except percents) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Average Current assets $ 1,039,270 $ 1,013,360 $ 968,774 $ 1,003,869 $ 1,002,592 Current liabilities 422,329 415,626 382,228 398,386 415,961 Wo
Slide 40: Primary Working Capital – FY24
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – FY24 (in thousands, except percents) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Average Current assets $ 1,002,592 $ 999,937 $ 1,009,820 $ 1,010,555 $ 1,026,789 Current liabilities 415,961 413,245 414,108 419,846 433,975 Wo
Slide 41: Primary Working Capital – FY23
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – FY23 (in thousands, except percents) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 Average Current assets $ 1,026,789 $ 1,079,035 $ 1,048,303 $ 1,011,486 $ 1,024,708 Current liabilities 433,975 488,729 494,334 497,488 485,610
Slide 42: Primary Working Capital – FY22
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – FY22 (in thousands, except percents) 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 Average Current assets $ 1,024,708 $ 1,043,241 $ 984,201 $ 966,948 $ 1,004,807 Current liabilities 485,610 460,365 410,983 389,223 437,394 Work
Slide 43: Adjusted ROIC – FY25
N O N - G AAP R E C O N C I L I AT I O N S Adjusted ROIC – FY25 (in thousands, except percents) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Average Total debt (gross) $ 597,765 $ 609,147 $ 597,754 $ 597,608 $ 597,357 $ 599,926 Total equity 1,325,403 1,278,916 1,260,101 1,317,963 1,288,599 1,2
Slide 44: Adjusted ROIC – FY24
N O N - G AAP R E C O N C I L I AT I O N S Adjusted ROIC – FY24 (in thousands, except percents) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Average Total debt (gross) $ 597,357 $ 608,080 $ 618,891 $ 626,553 $ 595,861 $ 609,348 Total equity 1,288,599 1,305,894 1,328,104 1,298,751 1,314,168 1,3