Kennametal Inc. · NYSE:KMT
Kennametal — Q2 2026 Earnings Presentation
32 slides from Kennametal's earnings presentation, Feb 4, 2026
Slide 1: FY26 Second Quarter Earnings Call Presentation
FY26 Second Quarter Earnings Call Presentation February 4, 2026
Slide 2: Safe Harbor Statement
Q 2 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: Q2 FY26 Summary
CEO OVERVIEW Q2 FY26 Summary Key Customer Wins Restructuring Update Energy Demand Outlook Updated Highlights Spotlight Modest Volume Increase Market Update Tungsten Pricing Market Conditions ©2025 Kennametal Inc. | All rights reserved $530M $0.47 $90M $73M $15M to Q2 FY26 SALES per share Adj. EBITDA
Slide 4: Price drives outlook revision; markets remain stable
CEO OVERVIEW Price drives outlook revision; markets remain stable 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 Up LSD Up MSD Flat Up LSD U
Slide 5: Solutions to meet surging demand for Power
F U T U R E G R O W T H T H R O U G H E L E C T R I C I T Y G E N E R AT I O N Kennametal End Markets Solutions to meet surging demand for Power General Engineering Energy Earthworks Aerospace & Defense Transportation Fuel Source to Generation ~17% of KMT FY25 Sales Fuel Source Transmit Generation P
Slide 6: Price and positive volume drive organic growth and margin expansion
Q 2 F Y 2 6 E AR N I N G S Price and positive volume drive organic growth and margin expansion Returned $15M to Order timing drives volume growth Margin Expansion Shareholders Sales of $530M, 10% organic growth Sales Growth 10% 10% year-over-year $15 million Metal Cutting 9% and Infrastructure 11% A
Slide 7: Price/Raw timing, restructuring and volume drive Adj. EPS growth
Q 2 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 $0.22 $0.00 $0.01 $0.02 $0.47 ($0.01) ($0.02) $0.25 • Price/raw material timing of $17M in Infrastructure • Price and tariff surcharges in Metal Cutting • Higher sales and production volumes
Slide 8: 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 2 F Y 2 6 S U M M ARY Price and volume drive sales and margin improvement Growth driven by price, buy ahead, Commercial and Organic sales increase 9% Sales of $331 million strategic wins and market improvement operational excellence Sales Growth
Slide 9: Price/Raw timing 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 2 F Y 2 6 S U M M ARY Price/Raw timing drives profitability Price, share gain, and project timing Commercial and Organic sales growth 11% Sales of $198 million drive growth operational excellence • Steadfast focus on price Sales Growth Sales
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 $674 $597 $619 $598 $599 $ Millions $600 $528 $477 $200M 3-year share Inception to date $70M purchased; $469 repurchase program 3M shares $400 $200 Q
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 $2.19 - $2.25B Transportation: Aerospace Gen Engineering: & Defense: Flat – ~3% ~11% ~2% Up LSD Up MSD Up HDD Volume growth Price and tariff Foreig
Slide 12: Q3 FY26 Outlook
N E X T Q U AR T E R O U T L O O K Q3 FY26 Outlook OUTLOOK CONSIDERS THE FY26 THIRD QUARTER OUTLOOK FOLLOWING ASSUMPTIONS Sales Year over Year sales growth reflects: $545 - $565M Transportation: Energy: Earthworks: Up LSD Up MSD Up HDD ~ (4)% - Flat ~13% ~5% Price and tariff General Engineering: Aer
Slide 13: Solid first half of FY26
S U M M ARY Solid first half of FY26 Price, share gains and timing drive results Customer wins Metal cutting General Engineering share gain Metal Cutting Transportation share gains Infrastructure Earthworks wins Progress on initiatives Continued focus on growth On track to deliver $30M in restructur
Slide 14: Appendix
Appendix 14
Slide 15: Higher sales and restructuring drive results
Q 2 F Y 2 6 E AR N I N G S Higher sales and restructuring drive results Adjusted Reported Quarter Ended ($ in millions) Change from PY December 31, 2025 December 31, 2024 Mm December 31, 2025 December 31, 2024 Sales 10% $530 $482 $530 $482 Organic 10% (6)% 10% (6)% FX 1% 0% 1% 0% Divestiture (1)% 0%
Slide 16: Price realization drives sales growth
Q 2 F Y 2 6 S E G M E N T R E S U LT S Price realization drives sales growth Metal Cutting Infrastructure AsiaPac 19% Energy 7% AsiaPac 23% Energy 21% Gen Eng 31% Aero & Def 14% Americas 46% Americas 57% Aero & Def 10% Gen Eng 54% EMEA 35% Transp 25% EMEA 20% Earthworks 38% Quarter Ending December 3
Slide 17: Strong balance sheet
N O N - G AAP R E C O N C I L I AT I O N S Strong balance sheet ASSETS ($ in millions) December 31, 2025 June 30, 2025 Cash and cash equivalents $129 $141 Accounts receivable, net 288 295 Inventories 622 538 Other current assets 82 65 Total current assets 1,121 1,039 Property, plant and equipment, n
Slide 18: Non-GAAP Reconciliations
N O N - G AAP R E C O N C I L I AT I O N S Non-GAAP Reconciliations The information presented by the Company contains certain non-GAAP financial measures. Kennametal management believes that presentation of these non-GAAP financial measures provides useful information about the results of operations
Slide 19: Non-GAAP Reconciliations (cont'd)
N O N - G AAP R E C O N C I L I AT I O N S Non-GAAP Reconciliations (cont’d) Constant Currency End Market Sales Growth (Decline) Constant currency end market sales growth (decline) is a non-GAAP financial measure of sales growth (decline) (which is the most directly comparable GAAP measure) by end m
Slide 20: Adjusted Results
N O N - G AAP R E C O N C I L I AT I O N S Adjusted Results Operating Operating Effective Tax ($ in millions, except percents and per share data) Sales Gross Profit Expense Income Net Income(5) Diluted EPS Rate Q2 FY26 Reported Results $ 529.5 $ 173.9 $ 116.3 $ 52.7 $ 33.9 $ 0.44 27.7 % 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 December 31, ($ in millions, except percents) 2025 2024 Net income attributable to Kennametal, reported $ 33.9 $ 17.9 Add back: Interest expense 6.1 6.2 Interest income (0.6) (0.5) Provision for income ta
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 Q2 FY26 Reported Results $ 331.1 $ 29.8 $ 198.5 $ 23.4 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 December 31, 2025 Metal Cutting Infrastructure Kennametal Organic sales growth 9% 11 % 10 % Foreign currency exchange effect 2 1 1 Business days effect — — — Divestiture effect — (4) (1) Sales growth 11 % 8%
Slide 24: Constant Currency Regional Sales Growth (Decline) – Q2 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) – Q2 FY26 Metal Cutting Three Months Ended December 31, 2025 Americas EMEA Asia Pacific Constant currency regional sales growth 15 % 3 % 9 % Foreign currency exchange effect — 6 (3) Regional sales growth 15
Slide 25: Constant Currency Regional Sales Growth (Decline) – Q2 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) – Q2 FY25 Metal Cutting Three Months Ended December 31, 2024 Americas EMEA Asia Pacific Constant currency regional sales decline — % (10) % (1) % Foreign currency exchange effect (2) 1 1 Regional sales decli
Slide 26: Constant Currency End Market Sales Growth (Decline) – Q2 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) – Q2 FY26 Metal Cutting General Aerospace & Three Months Ended December 31, 2025 Engineering Transportation Defense Energy Constant currency end market sales growth 9 % 3 % 19 % 11 % Foreign currency excha
Slide 27: Constant Currency End Market Sales Growth (Decline) – Q2 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) – Q2 FY25 Metal Cutting General Aerospace & Three Months Ended December 31, 2024 Engineering Transportation Defense Energy Constant currency end market sales (decline) growth (4) % (9) % 7 % (1) % Foreign
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) 12/31/2025 12/31/2024 12/31/2023 12/31/2022 Total debt (gross) $ 598.6 $ 597.8 $ 618.9 $ 673.6 Less: cash and cash equivalents 129.3 121.2 90.7 76.8 Net debt $ 469.3 $ 476.6 $ 5
Slide 29: Primary Working Capital – Q2 FY26
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – Q2 FY26 (in thousands, except percents) 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 Average Current assets $ 1,121,278 $ 1,032,798 $ 1,039,270 $ 1,013,360 $ 968,774 Current liabilities 439,350 396,978 422,329 415,626 382,22
Slide 30: Primary Working Capital – Q2 FY25
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – Q2 FY25 (in thousands, except percents) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Average Current assets $ 968,774 $ 1,003,869 $ 1,002,592 $ 999,937 $ 1,009,820 Current liabilities 382,228 398,386 415,961 413,245 414,108
Slide 31: Primary Working Capital – Q2 FY24
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – Q2 FY24 (in thousands, except percents) 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Average Current assets $ 1,009,820 $ 1,010,555 $ 1,026,789 $ 1,079,035 $ 1,048,303 Current liabilities 414,108 419,846 433,975 488,729 494,
Slide 32: Primary Working Capital – Q2 FY23
N O N - G AAP R E C O N C I L I AT I O N S Primary Working Capital – Q2 FY23 (in thousands, except percents) 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Average Current assets $ 1,048,303 $ 1,011,486 $ 1,024,708 $ 1,043,241 $ 984,201 Current liabilities 494,334 497,488 485,610 460,365 410,98