Slide 1: FY26 First Quarter Earnings Call Presentation
FY26 First Quarter Earnings Call Presentation November 5, 2025
Slide 2: Safe Harbor Statement
Q 1 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: Q1 FY26 Summary
CEO OVERVIEW Q1 FY26 Summary Key Customer Wins Restructuring Power Generation Outlook Highlights Spotlight Updated Modest volume increase Tariff Mitigation Tungsten pricing Market Conditions $498M $0.34 $76M $17M $25M to Q1 FY26 SALES per share Adj. EBITDA CASH FROM Shareholders 3% Organic Results G
Slide 4: Price and modest end market improvement drive updated Outlook
CEO OVERVIEW Price and modest end market improvement drive updated Outlook FY26 Sales Assumptions at Outlook Midpoint in constant currency General Engineering Transportation Energy Earthworks Aerospace & Defense Prior Current Prior Current Prior Current Prior Current Prior Current Down LSD Up LSD Do
Slide 5: Powering AI Data centers: Proven solutions for power generation engines
WELL POSITIONED FOR LONG-TERM GROWTH Powering AI Data centers: Proven solutions BUILDING A POSITION for power generation engines OF STRENGTH THE OPPORTUNITY HOW WE WIN Targeted Surging power demand from AI fueling Opportunities the need for precision machined power Established Expertise OEMs, Tiered
Slide 6: Price and share gain drive organic growth
Q 1 F Y 2 6 E AR N I N G S Price and share gain drive organic growth Returned $25M to First Quarter of Organic Growth in Two Years Margin Expansion Shareholders Sales of $498M, 3% organic growth Sales Growth year-over-year 3% 0% 3% $10 million 1% (1)% Metal Cutting 3% and Infrastructure 3% Adjusted
Slide 7: Restructuring savings drive EPS improvement
Q 1 F Y 2 6 AD J U S T E D E P S B R I D G E Restructuring savings drive EPS improvement $0.05 $0.04 $0.34 $0.29 ($0.04) • Restructuring savings of $8M • Price/raw material timing • Tariff surcharges • IRA benefit of $0.02* Partially offset by: • Higher compensation costs, tariffs and general inflat
Slide 8: Price and growth initiatives offset lower 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 1 F Y 2 6 S U M M ARY Price and growth initiatives offset lower industrial demand Commercial and Organic sales increase 3% Sales of $311 million Project Wins drive growth operational excellence Sales Growth Sales Growth by Region Sales Growth by
Slide 9: Price realization and share gain drives 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 1 F Y 2 6 S U M M ARY Price realization and share gain drives results Price, share gain, and project wins drive Commercial and Organic sales growth 3% Sales of $187 million growth operational excellence • Steadfast focus on price Sales Growt
Slide 10: 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 $800 Share Repurchases & Debt Profile $680 $615 $627 $598 $598 $ Millions $600 $531 $478 $495 $200M 3-year share Q1: $10M purchased; 475K shares repurchase program $400 Inception to date
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 Assumptions Year over Year $2.10 - $2.17B Transportation: Aerospace Gen Engineering: & Defense: ~(1)% – ~3% ~7% ~2% Flat Up LSD Up HDD Volume growth Price and tariff Foreign
Slide 12: Q2 FY26 Outlook
N E X T Q U AR T E R O U T L O O K Q2 FY26 Outlook OUTLOOK CONSIDERS THE FY26 SECOND QUARTER OUTLOOK FOLLOWING ASSUMPTIONS Sales Year over Year sales growth reflects: $500 - $520M Transportation: Energy: Earthworks: Flat Up MSD Up HSD ~ (4)% - ~0% ~7% ~2% Price and tariff General Engineering: Aerosp
Slide 13: Solid start to FY26
S U M M ARY Solid start to FY26 Price and share gains drive results Customer wins Data center power generation Earthworks mining Aerospace & Defense share gain Progress on initiatives Continued focus on growth On track to deliver $35M in restructuring savings Fully offsetting tariff impact ©2025 Ken
Slide 14: Appendix
Appendix 14
Slide 15: Higher sales and restructuring drive results
Q 1 F Y 2 6 E AR N I N G S Higher sales and restructuring drive results Adjusted Reported Quarter Ended ($ in millions) Change from PY September 30, 2025 September 30, 2024 Mm September 30, 2025 September 30, 2024 Sales 3% $498 $482 $498 $482 Organic 3% (2)% 3% (2)% FX 1% (1)% 1% (1)% Divestiture (1
Slide 16: Price and better volume drive sales growth
Q 1 F Y 2 6 S E G M E N T R E S U LT S Price and better volume drive sales growth Metal Cutting Infrastructure Energy 8% Americas 57% Gen Eng 31% Energy 21% AsiaPac 18% Americas 46% AsiaPac 22% Aero & Def 14% Gen Eng Aero & Def 11% 52% EMEA 36% EMEA 21% Transp 26% Earthworks 37% Quarter Ending Septe
Slide 17: Strong balance sheet
N O N - G AAP R E C O N C I L I AT I O N S Strong balance sheet ASSETS ($ in millions) September 30, 2025 June 30, 2025 Cash and cash equivalents $103 $141 Accounts receivable, net 288 295 Inventories 565 538 Other current assets 76 65 Total current assets 1,033 1,039 Property, plant and equipment,
Slide 18: Non-GAAP Reconciliations
N O N - G AAP R E C O N C I L I AT I O N S Non-GAAP Reconciliations The information presented by the Company contains certain non-GAAP financial measures. Kennametal management believes that presentation of these non-GAAP financial measures provides useful information about the results of operations
Slide 19: Non-GAAP Reconciliations (cont’d)
N O N - G AAP R E C O N C I L I AT I O N S Non-GAAP Reconciliations (cont’d) Constant Currency End Market Sales Growth (Decline) Constant currency end market sales growth (decline) is a non-GAAP financial measure of sales growth (decline) (which is the most directly comparable GAAP measure) by end m
Slide 20: Adjusted Results
N O N - G AAP R E C O N C I L I AT I O N S Adjusted Results Operating Operating Effective Tax ($ in millions, except percents and per share data) Sales Gross Profit Expense Income Net Income(5) Diluted EPS Rate Q1 FY26 Reported Results $ 498.0 $ 154.6 $ 113.0 $ 37.6 $ 23.3 $ 0.30 26.9 % Reported Mar
Slide 21: 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 September 30, ($ in millions, except percents) 2025 2024 Net income attributable to Kennametal, reported $ 23.3 $ 22.1 Add back: Interest expense 6.2 6.3 Interest income (0.8) (1.5) Provision for income t
Slide 22: 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 Q1 FY26 Reported Results $ 310.6 $ 21.6 $ 187.3 $ 16.6 Reported Operating
Slide 23: 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 September 30, 2025 Metal Cutting Infrastructure Kennametal Organic sales growth 3% 3% 3% Foreign currency exchange effect 2 1 1 Business days effect — — — Divestiture effect — (3) (1) Sales growth 5% 1% 3% T
Slide 24: Constant Currency Regional Sales Growth (Decline) – Q1 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) – Q1 FY26 Metal Cutting Three Months Ended September 30, 2025 Americas EMEA Asia Pacific Constant currency regional sales growth (decline) 6 % 1 % (1) % Foreign currency exchange effect — 5 (1) Regional sale
Slide 25: Constant Currency Regional Sales Growth (Decline) – Q1 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) – Q1 FY25 Metal Cutting Three Months Ended September 30, 2024 Americas EMEA Asia Pacific Constant currency regional sales (decline) growth (1) % (6) % 3 % Foreign currency exchange effect (3) — (1) Regional
Slide 26: Constant Currency End Market Sales Growth (Decline) – Q1 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) – Q1 FY26 Metal Cutting General Aerospace & Three Months Ended September 30, 2025 Engineering Transportation Defense Energy Constant currency end market sales (decline) growth — % (1) % 16 % 12 % Foreign c
Slide 27: Constant Currency End Market Sales Growth (Decline) – Q1 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) – Q1 FY25 Metal Cutting General Aerospace & Three Months Ended September 30, 2024 Engineering Transportation Defense Energy Constant currency end market sales (decline) growth (4) % (2) % 5 % — % Foreign c
Slide 28: 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) 9/30/2025 9/30/2024 9/30/2023 9/30/2022 Total debt (gross) $ 598.4 $ 597.6 $ 626.6 $ 679.8 Less: cash and cash equivalents 103.5 119.6 95.1 64.6 Net debt $ 494.9 $ 478.0 $ 531.5
Slide 29: Primary Working Capital – Q1 FY26
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – Q1 FY26 (in thousands, except percents) 9/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 Average Current assets $ 1,032,798 $ 1,039,270 $ 1,013,360 $ 968,774 $ 1,003,869 Current liabilities 396,978 422,329 415,626 382,228 398,386
Slide 30: Primary Working Capital – Q1 FY25
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – Q1 FY25 (in thousands, except percents) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Average Current assets $ 1,003,869 $ 1,002,592 $ 999,937 $ 1,009,820 $ 1,010,555 Current liabilities 398,386 415,961 413,245 414,108 419,846
Slide 31: Primary Working Capital – Q1 FY24
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – Q1 FY24 (in thousands, except percents) 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Average Current assets $ 1,010,555 $ 1,026,789 $ 1,079,035 $ 1,048,303 $ 1,011,486 Current liabilities 419,846 433,975 488,729 494,334 497,4
Slide 32: Primary Working Capital – Q1 FY23
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – Q1 FY23 (in thousands, except percents) 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 Average Current assets $ 1,011,486 $ 1,024,708 $ 1,043,241 $ 984,201 $ 966,948 Current liabilities 497,488 485,610 460,365 410,983 389,223 W