Kennametal Inc. · NYSE:KMT
Kennametal — Q4 FY2026 Earnings Presentation
45 slides from Kennametal's earnings presentation, Aug 5, 2026
Slide 1: FY26 Fourth Quarter Earnings Call Presentation
FY26 Fourth Quarter Earnings Call Presentation August 5, 2026
Slide 2: Safe Harbor Statement
Q 4 F Y 2 6 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: FY26 Summary
CEO OVERVIEW FY26 Summary Key Customer Wins Pricing for tungsten environment Positive Volume Record Adjusted EPS Highlights Highlights Continuous Improvement Restructuring Progress End markets improved Tungsten stabilized at elevated levels Market Conditions $2,357M $4.57 $634M ©2025 Kennametal Inc.
Slide 4: Aerospace: Winning in the Composite Materials market
M E TAL C U T T I N G S H AR E G AI N U P D AT E Aerospace: Winning in the Composite Materials market Building a Position of Strength THE OPPORTUNITY HOW WE WIN Product Roadmap Composites have the highest growth rate among all Performance A three-year innovation material groups. Winning opportunitie
Slide 5: Price and volume drives outlook; upward market trend continues
CEO OVERVIEW Price and volume drives outlook; upward market trend continues FY27 Sales Assumptions at Outlook Midpoint in Constant Currency Including Price General Engineering Transportation Energy Earthworks Aerospace & Defense FY26 FY27 FY26 FY27 FY26 FY27 FY26 FY27 FY26 FY27 Up LDD Up HDD Up LSD
Slide 6: Record adjusted EBITDA margin driven by price/raw benefit and volume
Q 4 F Y 2 6 E AR N I N G S Record adjusted EBITDA margin driven by price/raw benefit and volume Returned $15M to Improved end markets drive volume growth Margin Expansion Shareholders Sales of $737M, 42% organic growth year- Sales Growth Adjusted EBITDA of $345 over-year 43% 42% million at 46.8% mar
Slide 7: Price/Raw timing and volume drive record adjusted EPS
Q 4 F Y 2 6 AD J U S T E D E P S B R I D G E Price/Raw timing and volume drive record adjusted EPS $0.09 $0.01 $0.01 $0.04 $2.96 $2.55 ($0.01) ($0.07) Includes: • Timing of raw material pricing compared to costs of • Higher share count of ($0.04) $2.43 per share • Higher interest of ($0.02) • Non ra
Slide 8: Margin expansion through price/raw timing and volume growth
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 6 S U M M ARY Margin expansion through price/raw timing and volume growth Growth driven by price, strategic wins Commercial and Organic sales increase 22% Sales of $398 million and market improvement operational excellence • Steadfast foc
Slide 9: Price/Raw timing and portfolio management drives record margins
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 6 S U M M ARY Price/Raw timing and portfolio management drives record margins Price, share gain and project timing Commercial and Organic sales growth 74% Sales of $339 million drive growth operational excellence Sales Growth • Stead
Slide 10: Recent actions enhance flexibility 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 Recent actions enhance flexibility and liquidity $800 $717 Share Repurchases & Debt Profile $598 $622 $596 $597 $ Millions $600 $490 $200M 3-year share Inception to date $70M purchased; $469 $457 repurchase program 3M shar
Slide 11: FY27 Outlook
F U L L Y E AR O U T L O O K FY27 Outlook OUTLOOK CONSIDERS THE FY27 TOTAL YEAR OUTLOOK FOLLOWING ASSUMPTIONS Sales • Revenue Year over Year $3.33 - $3.45B Transportation: Aerospace Gen Engineering: & Defense: ~1% – ~4% ~40% - 43% Neutral Up HDD Up HDD Up HDD Volume growth Price and tariff Foreign e
Slide 12: Operations and tax credits offset by interest and FX headwinds
F U L L Y E AR O U T L O O K Operations and tax credits offset by interest and FX headwinds $0.17 $0.53 ($0.23) ($0.04) ($0.02) $4.57 $4.65 ($0.25) ($0.08) • Timing of raw material cost compared to costs of $0.39 per share Includes: • Higher sales and production volume • Higher shares ($0.07) • Lowe
Slide 13: Q1 FY27 Outlook
N E X T Q U AR T E R O U T L O O K Q1 FY27 Outlook OUTLOOK CONSIDERS THE FY27 FIRST QUARTER OUTLOOK FOLLOWING ASSUMPTIONS Sales Year over Year sales growth reflects: $745 - $775M Transportation: Energy: Earthworks: Up HDD Up HDD Up HDD ~ 1% – 4% ~50 - 53% Neutral Price and tariff General Engineering
Slide 14: Solid FY26
S U M M ARY Solid FY26 Price, share gains and timing drive results Price/raw benefit Customer wins Metal Cutting General Engineering share gain Metal Cutting Energy share gains Infrastructure Earthworks wins Infrastructure Defense focus in Americas drives growth Progress on initiatives Continued mom
Slide 15: Appendix
Appendix 15
Slide 16: Higher sales, price cost timing drive results
Q 4 F Y 2 6 E AR N I N G S Higher sales, price cost timing drive results Adjusted Reported Quarter Ended ($ in millions) Change from PY June 30, 2026 June 30, 2025 Mm June 30, 2026 June 30, 2025 Sales 43% $737 $516 $737 $516 Organic 42% (5)% 42% (5)% FX 1% 0% 1% 0% Divestiture (1)% 0% (1)% 0% Busine
Slide 17: Improving macro conditions
C O N S O L I D AT E D F Y 2 6 F I N AN C I AL O V E R V I E W Improving macro conditions Adjusted Reported Year Ended ($ in millions) Change from PY June 30, 2026 June 30, 2025 Mm June 30, 2026 June 30, 2025 Sales 20% $2,357 $1,967 $2,357 $1,967 Organic 19% (4)% 19% (4)% FX 2% (1)% 2% (1)% Divestit
Slide 18: Return to volume growth in Fiscal 2026
F Y 2 6 E AR N I N G S Return to volume growth in Fiscal 2026 Margin Expansion Returned $71M to Improved end markets and strategic initiatives drive volume growth Shareholders Sales of $2,357M, 19% organic growth YoY Sales Growth $61 million Metal Cutting 12% and Infrastructure 30% 20% 19% Adjusted
Slide 19: Price/raw timing, volume and restructuring savings drive adj. EPS
F Y 2 6 AD J U S T E D E P S B R I D G E Price/raw timing, volume and restructuring savings drive adj. EPS $0.09 $0.05 $0.12 $4.57 $3.18 ($0.03) ($0.06) ($0.07) ($0.05) • Raw material pricing compared to costs of $3.11 per share Includes: • Non raw material related pricing and tariff surcharges in •
Slide 20: Price realization and volume drives sales growth
Q 4 F Y 2 6 S E G M E N T R E S U LT S Price realization and volume drives sales growth Metal Cutting Infrastructure AsiaPac 18% Energy 8% AsiaPac 18% Gen Eng 24% Energy 30% Aero & Def 14% Americas 47% Americas 63% Gen Eng EMEA 19% 55% Aero & Def 9% EMEA 35% Transp 23% Earthworks 37% Quarter Ending
Slide 21: Price realization and volume drive sales growth
F Y 2 6 S E G M E N T R E S U LT S Price realization and volume drive sales growth Metal Cutting Infrastructure Gen Eng 28% Energy 24% AsiaPac 18% Energy 8% AsiaPac 21% Americas 46% Americas 59% Aero & Def 15% Aero & Def 10% EMEA 36% EMEA 20% Earthworks 38% Gen Eng 53% Transp 24% Year Ending June 30
Slide 22: Solidified Balance Sheet
B AL AN C E S H E E T Solidified Balance Sheet ASSETS ($ in millions) June 30, 2026 June 30, 2025 Cash and cash equivalents $96 $141 Accounts receivable, net 408 295 Inventories 1,108 538 Other current assets 159 65 Total current assets 1,772 1,039 Property, plant and equipment, net 844 920 Goodwill
Slide 23: Non-GAAP Reconciliations
N O N - G AAP R E C O N C I L I AT I O N S Non-GAAP Reconciliations The information presented by the Company contains certain non-GAAP financial measures. Kennametal management believes that presentation of these non-GAAP financial measures provides useful information about the results of operations
Slide 24: Non-GAAP Reconciliations (cont’d)
N O N - G AAP R E C O N C I L I AT I O N S Non-GAAP Reconciliations (cont’d) Constant Currency End Market Sales Growth (Decline) Constant currency end market sales growth (decline) is a non-GAAP financial measure of sales growth (decline) (which is the most directly comparable GAAP measure) by end m
Slide 25: Adjusted Results - QTD
N O N - G AAP R E C O N C I L I AT I O N S Adjusted Results - QTD Operating Operating Effective Tax ($ in millions, except percents and per share data) Sales Gross Profit Expense Income Net Income(5) Diluted EPS Rate Q4 FY26 Reported Results $ 736.6 $ 433.6 $ 125.6 $ 302.9 $ 227.0 $ 2.91 23.3 % Repo
Slide 26: Adjusted Results - YTD
N O N - G AAP R E C O N C I L I AT I O N S Adjusted Results - YTD Operating Operating Effective Tax ($ in millions, except percents and per share data) Sales Gross Profit Expense Income Net Income(5) Diluted EPS Rate FY26 Reported Results $ 2,356.7 $ 970.0 $ 479.0 $ 472.5 $ 342.4 $ 4.42 24.0 % Repor
Slide 27: 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) 2026 2025 2026 2025 Net income attributable to Kennametal, reported $ 227.0 $ 21.6 $ 342.4 $ 93.1 Add back: Interest expense 10.0 6.2 28.6 24.9 Interest income
Slide 28: Adjusted Segment Operating Income and Margins – QTD
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 – QTD Metal Cutting Infrastructure Metal Cutting Operating Infrastructure Operating ($ in millions, except percents) Sales Income Sales Income Q4 FY26 Reported Results $ 397.8 $ 106.2 $ 338.8 $ 197.4 Reported Op
Slide 29: Adjusted Segment Operating Income and Margins – YTD
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 – YTD Metal Cutting Infrastructure Metal Cutting Operating Infrastructure Operating ($ in millions, except percents) Sales Income Sales Income FY26 Reported Results $ 1,397.4 $ 195.6 $ 959.3 $ 279.9 Reported Ope
Slide 30: Organic Sales Growth (Decline) – QTD and YTD
N O N - G AAP R E C O N C I L I AT I O N S Organic Sales Growth (Decline) – QTD and YTD Three months ended June 30, 2026 Metal Cutting Infrastructure Kennametal Organic sales growth 22 % 74 % 42 % Foreign currency exchange effect 1 1 1 Business days effect 1 1 1 Divestiture effect — (3) (1) Sales gr
Slide 31: Constant Currency Regional Sales Growth – Q4 FY26
N O N - G AAP R E C O N C I L I AT I O N S Constant Currency Regional Sales Growth – Q4 FY26 Metal Cutting Three months ended June 30, 2026 Americas EMEA Asia Pacific Constant currency regional sales growth 29 % 16 % 20 % Foreign currency exchange effect 1 4 (2) Regional sales growth 30 % 20 % 18 %
Slide 32: 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 growth decline (4)% (5)% (1)% Foreign currency exchange effect (2) 2 — Regional sales decl
Slide 33: Constant Currency Regional Sales Growth – FY26
N O N - G AAP R E C O N C I L I AT I O N S Constant Currency Regional Sales Growth – FY26 Metal Cutting Year ended June 30, 2026 Americas EMEA Asia Pacific Constant currency regional sales growth 17 % 6 % 11 % Foreign currency exchange effect 1 7 (1) Regional sales growth 18 % 13 % 10 % Infrastructu
Slide 34: Constant Currency Regional Sales Growth (Decline) – 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) – 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)% (7)% (1)
Slide 35: Constant Currency End Market Sales Growth – Q4 FY26
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 – Q4 FY26 Metal Cutting General Aerospace & Three months ended June 30, 2026 Energy Engineering Defense Transportation Constant currency end market sales growth 36 % 25 % 35 % 7 % Foreign currency exchange effect 6
Slide 36: 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 37: Constant Currency End Market Sales Growth – FY26
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 – FY26 Metal Cutting General Aerospace & Year ended June 30, 2026 Energy Engineering Defense Transportation Constant currency end market sales growth 19 % 12 % 25 % 2 % Foreign currency exchange effect 5 3 2 3 End m
Slide 38: Constant Currency End Market Sales Growth (Decline) – 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) – 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 exchange
Slide 39: 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) 6/30/2026 6/30/2025 6/30/2024 6/30/2023 Total debt (gross) $ 717.5 $ 597.8 $ 597.4 $ 595.9 Less: cash and cash equivalents 95.8 140.5 128.0 106.0 Net debt $ 621.7 $ 457.3 $ 469.4 $ 489.
Slide 40: Primary Working Capital – FY26
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – FY26 (in thousands, except percents) 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Average Current assets $ 1,771,771 $ 1,278,077 $ 1,121,278 $ 1,032,798 $ 1,039,270 Current liabilities 676,708 536,069 439,350 396,978 422,329
Slide 41: 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 42: 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 43: 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 44: Return on Invested Capital – FY26
N O N - G AAP R E C O N C I L I AT I O N S Return on Invested Capital – FY26 (in thousands, except percents) 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Average Total debt (gross) $ 717,450 $ 614,144 $ 598,622 $ 598,395 $ 597,765 $ 625,275 Total equity 1,613,437 1,398,372 1,357,657 1,325,597
Slide 45: Return on Invested Capital – FY25
N O N - G AAP R E C O N C I L I AT I O N S Return on Invested Capital – 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 1,324,648 1,278,916 1,260,101 1,317,963