Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: December 31, 2025 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ☐ 1934 For the transition period from _______ to _______ Commission file number 1-5318 KENNAMETAL INC. (Exact name of registrant as specified in its charter) Pennsylvania 25-0900168 (Stat ...

Market Overview - The U.S. stock market is experiencing mixed trading patterns with a notable rotation out of technology giants and into broader market sectors [1] - The S&P 500 has slipped around 0.2% to 0.3%, marking a modest decline for the fourth time in the last five days [2] - The Nasdaq Composite has traded approximately 1% lower, with the Nasdaq 100 specifically seeing a 1.4% loss [2] - The Dow Jones Industrial Average has risen by as much as 389 points, or 0.8%, indicating a shift away from tech stocks towards firms expected to benefit from improving growth prospects [2] Economic Indicators - The yield on 10-year Treasuries has remained steady at 4.28% [3] - Upcoming economic data includes the ADP Employment Change and ISM Services PMI for January, which are crucial for assessing the labor market and services sector [5] - The week will culminate with the U.S. Employment Report on February 6th, which includes non-farm payrolls and average hourly earnings [6] Company-Specific Highlights - Advanced Micro Devices (AMD) shares dropped by as much as 15.7% despite stronger-than-expected profits, indicating high expectations for AI-related companies [9] - Uber Technologies (UBER) fell 3% to 5% after its quarterly results and profit forecast fell short of expectations [10] - Super Micro Computer (SMCI) rallied by 12% to 14% after delivering stronger-than-expected profits [10] - Eli Lilly (LLY) surged by 9.2% after exceeding profit expectations and providing strong guidance, driven by its obesity drugs [11] - Silicon Laboratories (SLAB) shares soared by 51% following the announcement of its acquisition by Texas Instruments for approximately $7.5 billion [13] - Nvidia (NVDA) shares declined 2.8% due to a broad tech sell-off and uncertainty surrounding its OpenAI investment [14]

Kennametal (NYSE:KMT) Q2 2026 Earnings call February 04, 2026 09:00 AM ET Company ParticipantsMichael Pici - VP of Investor RelationsPatrick Watson - CFOSanjay Chowbey - CEOConference Call ParticipantsAngel Castillo - Equity Research Analyst, U.S. Machinery & ConstructionChristian Zylstra - AnalystJulian Mitchell - Managing Director & Equity Research Analyst, U.S. IndustrialsStephen Volkmann - Equity AnalystSteven Fisher - Managing Director & Senior Equity Research AnalystTami Zakaria - AnalystOperatorGood ...

Financial Data and Key Metrics Changes - Sales increased by 10% year-over-year, with organic growth also at 10% and a favorable foreign currency exchange impact of 1% [14] - Adjusted EBITDA margin improved to 17.1% from 13.9% in the prior year quarter, while adjusted EPS rose to $0.47 from $0.25 [8][15] - The company raised its sales and EPS outlook for fiscal 2026, now expecting sales between $2.19 billion and $2.25 billion and adjusted EPS in the range of $2.05-$2.45 [24][25] Business Line Data and Key Metrics Changes - Infrastructure segment sales increased by 11% organically, while Metal Cutting sales grew by 9% [14][19] - Aerospace and Defense in Metal Cutting saw a 19% increase year-over-year, driven by improved build rates and easing supply chain pressures [17] - In the Infrastructure segment, Aerospace and Defense sales surged by 33% due to defense orders, while Earthworks grew by 18% [19] Market Data and Key Metrics Changes - Transportation market outlook improved slightly from a previous estimate of low single digits down to flat [9] - Aerospace and Defense continues to show growth, with OEM build rates improving [9] - General Engineering in the Americas showed slight improvement, while other regions remained unchanged [10][51] Company Strategy and Development Direction - The company is focusing on strategic growth initiatives, including pricing actions in response to rising tungsten costs and cost improvement measures [5][6] - Kennametal is well-positioned to capitalize on the rising global demand for electricity, with a broad range of products supporting energy generation and transmission [10][12] - The company aims to strengthen its portfolio while executing lean transformation and structural cost improvements [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to offset rising tungsten costs through pricing actions and noted a modest improvement in certain end markets [5][8] - The outlook for fiscal 2026 reflects additional pricing actions related to increasing tungsten costs, with expectations of continued organic growth [24][25] - Management highlighted the importance of maintaining a healthy balance sheet and the absence of near-term refinancing requirements [23] Other Important Information - The company realized $8 million in restructuring savings during the quarter and continues to execute plans to lower structural costs [6] - Free Operating Cash Flow decreased to $38 million from $57 million in the prior year, primarily due to working capital changes [22] Q&A Session Summary Question: Discussion on tungsten price increases and customer behavior - Management confirmed a modest price increase in January and noted that customers are buying ahead of price increases due to rising tungsten costs [31][35] Question: Concerns about tungsten supply - Management reassured that they have multiple sources for tungsten and long-term agreements in place, minimizing supply risks [39][40] Question: Volume trends and market outlook - Management indicated that volume projections have improved, with expectations for slight growth in the second half of the fiscal year [48][49] Question: Competitive dynamics in various markets - Management acknowledged competition but emphasized their core competencies in material science and application engineering as key advantages [60][61] Question: Impact of tariffs and trade agreements - Management stated that current tariffs have not significantly impacted operations and that they are prepared to adjust pricing if tariffs change [85][87]

Kennametal (NYSE:KMT) Q2 2026 Earnings call February 04, 2026 09:00 AM ET Speaker4Good morning. I would like to welcome everyone to Kennametal's second quarter and fiscal 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press Star, then the number one on your telephone keypad. If you would like to withdraw your question, plea ...

FY26 Second Quarter Earnings Call Presentation February 4, 2026 Q2 FY26 EARNINGS 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 statements that do not relate strictly to historical or current facts. For example, statements about Kennametal's outlook for sales, adjusted operating incom ...

Core Viewpoint - Kennametal (KMT) reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, and showing an increase from $0.25 per share a year ago, indicating a strong earnings surprise of +34.29% [1] Financial Performance - The company achieved revenues of $529.53 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.60% and up from $482.05 million year-over-year [2] - Over the last four quarters, Kennametal has exceeded consensus EPS estimates three times and topped revenue estimates two times [2] Stock Performance - Kennametal shares have increased approximately 25.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.1% [3] Future Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $0.50 for the coming quarter and $1.60 for the current fiscal year, alongside projected revenues of $520.2 million and $2.08 billion respectively [7] - The Zacks Rank for Kennametal is currently 1 (Strong Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Manufacturing - Tools & Related Products industry, to which Kennametal belongs, is currently ranked in the top 12% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

FOR IMMEDIATE RELEASE: DATE: February 4, 2026 Investor Relations Media Relations CONTACT: Michael Pici CONTACT: Lori Lecker PHONE: 412-790-0792 PHONE: 412-248-8224 michael.pici@kennametal.com lori.lecker@kennametal.com Exhibit 99.1 Kennametal Announces Fiscal 2026 Second Quarter Results PITTSBURGH, (February 4, 2026) – Kennametal Inc. (NYSE: KMT) (the "Company") today reported results for its fiscal 2026 second quarter ended December 31, 2025. "We are pleased with our second quarter results, which exceeded ...

Core Insights - Kennametal Inc. reported strong second quarter results for fiscal 2026, with sales and adjusted EPS exceeding expectations, driven by volume increases and a favorable tungsten pricing environment [1][2] Financial Highlights - Sales reached $530 million, a 10% increase from $482 million in the same quarter last year, with organic sales growth of 10% and a favorable currency exchange effect of 1%, partially offset by a divestiture effect of 1% [2][7] - Operating income was $53 million, representing a margin of 9.9%, compared to $32 million and a margin of 6.6% in the prior year quarter, driven by favorable pricing and higher sales volumes [3][7] - Adjusted operating income was $56 million, or 10.5% margin, up from $33 million and 6.9% margin in the prior year [3][7] - Earnings per diluted share (EPS) were $0.44, up 92% from $0.23, while adjusted EPS was $0.47, an increase of 89% from $0.25 [7] Cash Flow and Capital Expenditures - Year-to-date net cash flow from operating activities was $73 million, down from $101 million in the prior year, primarily due to working capital changes [4] - Year-to-date free operating cash flow (FOCF) was $38 million, compared to $57 million in the prior year, also driven by working capital changes [4][27] Segment Performance - Metal Cutting sales were $331 million, an 11% increase from $298 million, with operating income of $30 million and a margin of 9.0%, up from 5.6% [9][20] - Infrastructure sales were $198 million, an 8% increase from $184 million, with operating income of $23 million and a margin of 11.8%, up from 8.5% [10][20] Outlook - The company expects third quarter sales to be between $545 million and $565 million, with adjusted EPS projected to be between $0.50 and $0.60 [8] - For the full fiscal year, sales are expected to be between $2.190 billion and $2.250 billion, with adjusted EPS projected to be between $2.05 and $2.45 [8] Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.20 per share, payable on February 24, 2026, to shareholders of record as of February 10, 2026 [11]

Core Insights - The Zacks Industrial Products sector is expected to face a year-over-year earnings decline of 2.1% in Q4 2025, contrasting with a 3% growth in the previous quarter, while revenues are projected to increase by 10.5% [3] Industry Overview - The Industrial Products sector is experiencing challenges due to ongoing weakness in the manufacturing sector, with the Manufacturing PMI indicating contraction for ten consecutive months [5] - The New Orders Index has also shown a decline, with readings of 48.7%, 47.3%, and 47.4% for October, November, and December respectively [6] - Inflationary pressures, labor market slack, supply-chain disruptions, and cautious consumer spending are impacting the sector's performance [7] Positive Factors - Companies involved in commercial and defense aerospace markets are benefiting from strong aftermarket and OEM demand, supported by robust air travel and government backing [8] - Resilience in nondurables, business supplies, and food & beverage markets is expected to positively influence the sector's results [8] Earnings Estimates and Stock Performance - Kennametal Inc. (KMT) is projected to report a 40% year-over-year increase in Q4 EPS, driven by strength in the Metal Cutting segment and increased defense spending [12][13] - Mueller Water Products, Inc. (MWA) is expected to see an 8% year-over-year increase in earnings, supported by solid demand across its product lines and manufacturing efficiencies [14][15] - Trimble Inc. (TRMB) anticipates a 7.9% year-over-year increase in earnings, benefiting from strong growth in recurring revenue streams and customer adoption of digital solutions [16][17]