Kennametal Inc. · NYSE:KMT
Kennametal — Q3 2026 Earnings Presentation
31 slides from Kennametal's earnings presentation, May 6, 2026
Slide 1: FY26 Third Quarter Earnings Call Presentation
FY26 Third Quarter Earnings Call Presentation May 6, 2026
Slide 2: Safe Harbor Statement
Q 3 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: Q3 FY26 Summary
CEO OVERVIEW Q3 FY26 Summary Key Customer Wins Restructuring Update Positive Volume Outlook Updated Highlights End markets moderately improving Dynamic tungsten environment continued Market Conditions ©2025 Kennametal Inc. | All rights reserved $593M $0.77 $123M $70M $15M to Q3 FY26 SALES per share
Slide 4: Price and volume drives outlook revision; upward market trend continues
CEO OVERVIEW Price and volume drives outlook revision; upward market trend continues FY26 Sales Assumptions at Outlook Midpoint in Constant Currency Including Price General Engineering Transportation Energy Earthworks Aerospace & Defense Prior Current Prior Current Prior Current Prior Current Prior
Slide 5: Volume improving; end market activity remains below prior peak
VOLUME SPOTLIGHT Volume improving; end market activity remains below prior peak +3% Volume up: share capture and improving markets 100% COVID & Recovery 36 Months Stagnated Industrial Production 90% VOLUME UP 80% FROM TROUGH KENNAMETAL 70% • Second consecutive quarter of YoY TTM unit volume growth 6
Slide 6: Organic growth and profitability driven by price and volume
Q 3 F Y 2 6 E AR N I N G S Organic growth and profitability driven by price and volume Returned $15M to Improved end markets drives volume growth Margin Expansion Shareholders Sales of $593M, 19% organic growth year- 22% Sales Growth over-year 19% Adjusted EBITDA of $123 $15 million Metal Cutting 12
Slide 7: Price/Raw timing, restructuring and volume drive Adj. EPS growth
Q 3 F Y 2 6 AD J U S T E D E P S B R I D G E Price/Raw timing, restructuring and volume drive Adj. EPS growth $0.03 $0.36 ($0.01) $0.02 $0.77 ($0.08) ($0.02) • Price/raw material timing of $39M in Infrastructure • Price and tariff surcharges in Metal Cutting Interest expense ($0.02) • Higher sales a
Slide 8: Metal Cutting: Price and volume drive sales and margin improvement
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 3 F Y 2 6 S U M M ARY Price and volume drive sales and margin improvement Growth driven by price, strategic wins Commercial and Organic sales increase 12% Sales of $358 million and market improvement operational excellence Sales Growth Sales Grow
Slide 9: Infrastructure: Price/Raw timing and modest volume growth drives profitability
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 3 F Y 2 6 S U M M ARY Price/Raw timing and modest volume growth drives profitability Price, share gain and project timing Commercial and Organic sales growth 30% Sales of $235 million drive growth operational excellence Sales Growth • Steadf
Slide 10: Balance sheet and cash flow statements highlights
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 Tungsten prices driving higher primary working capital $800 Share Repurchases & Debt Profile $659 $614 $608 $609 $566 $ Millions $600 $516 $512 $507 $200M 3-year share Inception to date $70M purchased; repurchase program 3
Slide 11: 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 Year over Year $2.33 - $2.35B Transportation: Aerospace Gen Engineering: & Defense: ~2% – ~3% ~16% ~2% Up LSD Up LDD Up HDD Volume growth Price and tariff Foreign exchange En
Slide 12: Solid FY26 continues
S U M M ARY Solid FY26 continues Price, share gains and timing drive results Customer wins Metal Cutting General Engineering share gain Metal Cutting Energy share gains Infrastructure Earthworks wins Infrastructure Defense focus in Americas drives growth Progress on initiatives Team remains committe
Slide 13: Appendix
Appendix EK xennametat
Slide 14: Higher sales and restructuring drive results
Q 3 F Y 2 6 E AR N I N G S Higher sales and restructuring drive results Adjusted Reported Quarter Ended ($ in millions) Change from PY March 31, 2026 March 31, 2025 Mm March 31, 2026 March 31, 2025 Sales 22% $593 $486 $593 $486 Organic 19% (3)% 19% (3)% FX 5% (3)% 5% (3)% Divestiture (2)% 0% (2)% 0%
Slide 15: Price realization and volume drives sales growth
Q 3 F Y 2 6 S E G M E N T R E S U LT S Price realization and volume drives sales growth Metal Cutting Infrastructure AsiaPac 18% Energy 8% AsiaPac 23% Gen Eng 28% Energy 23% Aero & Def 15% Americas 46% Americas 58% Gen Eng Aero & Def 10% 53% EMEA 36% EMEA 19% Transp 24% Earthworks 39% Quarter Ending
Slide 16: Strong balance sheet
N O N - G AAP R E C O N C I L I AT I O N S Strong balance sheet ASSETS ($ in millions) March 31, 2026 June 30, 2025 Cash and cash equivalents $107 $141 Accounts receivable, net 334 295 Inventories 747 538 Other current assets 89 65 Total current assets 1,278 1,039 Property, plant and equipment, net
Slide 17: Non-GAAP Reconciliations
N O N - G AAP R E C O N C I L I AT I O N S Non-GAAP Reconciliations The information presented by the Company contains certain non-GAAP financial measures. Kennametal management believes that presentation of these non-GAAP financial measures provides useful information about the results of operations
Slide 18: Non-GAAP Reconciliations (cont'd)
N O N - G AAP R E C O N C I L I AT I O N S Non-GAAP Reconciliations (cont’d) Constant Currency End Market Sales Growth (Decline) Constant currency end market sales growth (decline) is a non-GAAP financial measure of sales growth (decline) (which is the most directly comparable GAAP measure) by end m
Slide 19: Adjusted Results
N O N - G AAP R E C O N C I L I AT I O N S Adjusted Results Operating Operating Effective Tax ($ in millions, except percents and per share data) Sales Gross Profit Expense Income Net Income(5) Diluted EPS Rate Q3 FY26 Reported Results $ 592.6 $ 208.0 $ 124.0 $ 79.4 $ 58.2 $ 0.75 23.3 % Reported Mar
Slide 20: 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 March 31, ($ in millions, except percents) 2026 2025 Net income attributable to Kennametal, reported $ 58.2 $ 31.5 Add back: Interest expense 6.3 6.2 Interest income (0.5) (0.7) Provision for income taxes
Slide 21: Adjusted Segment Operating Income and Margins
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 Metal Cutting Metal Cutting Infrastructure Infrastructure ($ in millions, except percents) Sales Operating Income Sales Operating Income Q3 FY26 Reported Results $ 357.9 $ 38.1 $ 234.7 $ 42.5 Reported Operating
Slide 22: Organic Sales Growth (Decline)
N O N - G AAP R E C O N C I L I AT I O N S Organic Sales Growth (Decline) Three Months Ended March 31, 2026 Metal Cutting Infrastructure Kennametal Organic sales growth 12 % 30 % 19 % Foreign currency exchange effect 6 4 5 Business days effect — — — Divestiture effect — (5) (2) Sales growth 18 % 29
Slide 23: Constant Currency Regional Sales Growth (Decline) – Q3 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 (Decline) – Q3 FY26 Metal Cutting Three Months Ended March 31, 2026 Americas EMEA Asia Pacific Constant currency regional sales growth 17 % 3 % 18 % Foreign currency exchange effect 2 12 1 Regional sales growth 19 % 1
Slide 24: Constant Currency Regional Sales Growth (Decline) – Q3 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) – Q3 FY25 Metal Cutting Three Months Ended March 31, 2025 Americas EMEA Asia Pacific Constant currency regional sales decline (1) % (6) % (1) % Foreign currency exchange effect (3) (5) (3) Regional sales dec
Slide 25: Constant Currency End Market Sales Growth (Decline) – Q3 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 (Decline) – Q3 FY26 Metal Cutting General Aerospace & Three Months Ended March 31, 2026 Engineering Transportation Defense Energy Constant currency end market sales growth 13 % 1 % 27 % 17 % Foreign currency exchang
Slide 26: Constant Currency End Market Sales Growth (Decline) – Q3 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) – Q3 FY25 Metal Cutting General Aerospace & Three Months Ended March 31, 2025 Engineering Transportation Defense Energy Constant currency end market sales (decline) growth (5) % (2) % — % 2 % Foreign curre
Slide 27: 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 Three Months Ended (in millions) 3/31/2026 3/31/2025 3/31/2024 3/31/2023 Total debt (gross) $ 614.1 $ 609.1 $ 608.1 $ 659.0 Less: cash and cash equivalents 106.9 97.5 92.1 93.5 Net debt $ 507.3 $ 511.7 $ 516.0
Slide 28: Primary Working Capital – Q3 FY26
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – Q3 FY26 (in thousands, except percents) 3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025 Average Current assets $ 1,278,077 $ 1,121,278 $ 1,032,798 $ 1,039,270 $ 1,013,360 Current liabilities 536,069 439,350 396,978 422,329 415,6
Slide 29: Primary Working Capital – Q3 FY25
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – Q3 FY25 (in thousands, except percents) 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Average Current assets $ 1,013,360 $ 968,774 $ 1,003,869 $ 1,002,592 $ 999,937 Current liabilities 415,626 382,228 398,386 415,961 413,245 W
Slide 30: Primary Working Capital – Q3 FY24
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – Q3 FY24 (in thousands, except percents) 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Average Current assets $ 999,937 $ 1,009,820 $ 1,010,555 $ 1,026,789 $ 1,079,035 Current liabilities 413,245 414,108 419,846 433,975 488,729
Slide 31: Primary Working Capital – Q3 FY23
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – Q3 FY23 (in thousands, except percents) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Average Current assets $ 1,079,035 $ 1,048,303 $ 1,011,486 $ 1,024,708 $ 1,043,241 Current liabilities 488,729 494,334 497,488 485,610 460,3