Financial Data and Key Metrics Changes - Sales decreased by 2% year-over-year, with adjusted EBITDA margin at 14.3%, down from 16.6% in the prior year [11][13][28] - Adjusted EPS decreased to $0.29 from $0.41 in the prior year quarter [13][29] - Cash from operating activities increased to $46 million from $26 million in the prior year [43] - Free operating cash flow improved to $21 million from negative $3 million in the prior year [14][43] Business Line Data and Key Metrics Changes - Infrastructure sales increased by 1% organically, while metal cutting sales decreased by 4% [11][32] - Aerospace and Defense grew by 13%, while Energy grew by 2%; other markets like Transportation, General Engineering, and Earthworks experienced declines of 2%, 3%, and 6% respectively [11][40] Market Data and Key Metrics Changes - Asia Pacific sales increased by 2% on a constant currency basis, while EMEA declined by 1% and the Americas declined by 2% [11] - In the U.S., metal cutting growth was 3%, slightly below the overall market [18] Company Strategy and Development Direction - The company is focused on driving above-market growth through innovative product launches and operational initiatives [10][20] - Continued emphasis on primary working capital management and strong cash flow generation [10][15] - The company aims to optimize inventory levels and reduce primary working capital as a percentage of sales [44][70] Management's Comments on Operating Environment and Future Outlook - Management noted that fiscal '25 has started unevenly, with worsening market conditions in EMEA and soft industrial production in the U.S. [8][9] - The outlook for Q2 sales is projected between $480 million and $500 million, with expectations of a slight recovery in the second half of the year [47][50] - Management remains optimistic about long-term growth driven by global megatrends despite short-term challenges [54] Other Important Information - The company continues its share repurchase program, buying back $15 million worth of shares during the quarter [14][45] - Adjusted effective tax rate increased to 25.1% year-over-year, influenced by geographical mix and discrete items [29] Q&A Session Summary Question: Margin assumptions for Q2 - Management expects margins to be flattish from Q1 to Q2, with some benefits from the resolution of a tax dispute and the end of certain expenses [56][57] Question: Recovery in organic growth - Management anticipates slight recovery in industrial production and oil rig counts, with confidence in aerospace and defense growth [58][59] Question: Trends in Asia Pacific - Despite pressure in construction and mining, overall APAC markets are expected to remain stable and slightly improve [63] Question: Operating margins in the second half - Seasonal uptick in volumes is expected to drive margin performance in the second half, with Q4 typically being the higher margin quarter [65] Question: Inventory relative to demand - The company aims to reduce inventory levels, with production slightly below demand to optimize working capital [70] Question: Near-term trends - Industrial production and oil and gas are expected to remain stable, with continued pressure in transportation and mining construction [76] Question: Price cost dynamics - Tungsten prices have remained stable, and the company is confident in achieving 2% price realization [77][78] Question: Impact of Fed rate cuts - Lower rates are expected to be constructive, but historical lag periods suggest several quarters before significant demand changes [81][82] Question: Restructuring savings - Restructuring savings in the quarter were $5 million, with an annualized run rate of $35 million [85] Question: Metal cutting margins - Metal cutting margins were impacted by significant volume reductions and temporary costs from trade shows [86] Question: Market share gains in Europe - The company expects to maintain market share gains despite near-term pressures, supported by ongoing project wins [90][92] Question: Implications of recent political events - Management is monitoring industrial production and consumer confidence as potential impacts of new policies and tariffs [94][96]

Kennametal (KMT) reported $481.95 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 2.1%. EPS of $0.29 for the same period compares to $0.41 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $480.69 million, representing a surprise of +0.26%. The company delivered an EPS surprise of +16.00%, with the consensus EPS estimate being $0.25.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- a ...

Kennametal (KMT) came out with quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16%. A quarter ago, it was expected that this engineered products maker would post earnings of $0.44 per share when it actually produced earnings of $0.49, delivering a surprise of 11.36%.Over the last four quarters, the ...

Sales Performance - Sales for the first quarter of fiscal 2025 were $482 million, a decrease of 2% from $492 million in the prior year quarter, reflecting an organic sales decline of 2% and an unfavorable currency exchange effect of 1%[2] - Total sales for the quarter were $481,948 thousand, a decline of 2.7% from $492,476 thousand in the prior year[18] - Metal Cutting segment sales were $297 million, a decrease of 4% from $308 million in the prior year quarter, while Infrastructure segment sales increased by 0.4% to $185 million[6] - Metal Cutting segment sales were $296,900 thousand, down from $308,229 thousand, indicating a decrease of 3.9% year-over-year[24] - Infrastructure segment sales increased slightly to $185,048 thousand from $184,247 thousand, showing a growth of 0.4%[24] - Organic sales growth for Metal Cutting declined by 4%, while Infrastructure saw a growth of 1%, resulting in a total decline of 2%[31] - The foreign currency exchange effect contributed to a 2% decline in Metal Cutting sales and a 1% decline overall[31] - The business days effect positively impacted total sales by 1%[31] Financial Performance - Operating income was $36 million, representing a margin of 7.5%, compared to $45 million and a margin of 9.2% in the prior year quarter[4] - Net income for the three months ended September 30, 2024, was $23,466 thousand, down from $30,369 thousand in the same period of 2023, representing a decrease of 22.5%[16] - Operating income decreased to $36,027 thousand for the quarter, down 20.2% from $45,118 thousand in the same quarter of 2023[18] - The company reported an adjusted operating margin of 7.6% for the quarter, compared to 9.9% in the same quarter of the previous year[22] - The effective tax rate for the quarter was 25.2%, up from 21.0% in the prior year quarter, primarily due to prior year adjustments and geographical mix[4] Earnings and Cash Flow - Earnings per diluted share (EPS) were $0.28, down from $0.37 in the prior year quarter, while adjusted EPS was $0.29 compared to $0.41 in the prior year quarter[1] - Year-to-date net cash flow from operating activities was $46 million, up from $26 million in the prior year period, with free operating cash flow of $21 million compared to negative $3 million in the prior year[4] - Free Operating Cash Flow (FOCF) for the three months ended September 30, 2024, was $21,091 thousand, compared to a negative FOCF of $(3,040) thousand in the prior year[28] - Management considers FOCF an important indicator of cash generating capability for dividends, debt repayment, and strategic initiatives[27] Shareholder Returns - The company returned approximately $31 million to shareholders, including $15 million in share repurchases and $16 million in dividends[1] - The company paid cash dividends of $15,582 thousand to shareholders during the quarter, slightly down from $15,935 thousand in the previous year[16] Future Outlook - The outlook for the second quarter of fiscal 2025 anticipates sales between $480 million and $500 million, with adjusted EPS expected to be between $0.20 and $0.30[5] - Annual sales are expected to be between $2.0 billion and $2.1 billion, with adjusted EPS projected to be between $1.30 and $1.70[5] Restructuring and Cost Management - The company achieved incremental year-over-year restructuring savings of approximately $5 million, contributing to an annualized run rate pretax savings of approximately $35 million[2] - Restructuring and related charges amounted to $2,539 thousand for Metal and $1,155 thousand for Infrastructure[26] Assets and Liabilities - Total assets increased to $2,521,929 thousand as of September 30, 2024, compared to $2,503,758 thousand on June 30, 2024, reflecting a growth of 0.73%[14] - Total current liabilities decreased to $398,386 thousand from $415,961 thousand, a reduction of 4.2%[14] - Cash and cash equivalents at the end of the period were $119,588 thousand, a decrease from $127,971 thousand at the beginning of the period, reflecting a decline of 6.5%[16] Capital Expenditures - Capital expenditures for the period were $24,748 thousand, down from $31,799 thousand in the previous year[28]

Core Insights - Kennametal Inc. reported fiscal 2025 first quarter results with sales of $482 million, a decrease of 2% from $492 million in the prior year quarter, and earnings per diluted share (EPS) of $0.28 compared to $0.37 in the prior year quarter [1][3][17] Financial Performance - Strong cash flow from operations was $46 million compared to $26 million in the prior year, with free operating cash flow of $21 million compared to negative $3 million in the prior year [1][7][26] - Operating income was $36 million, representing a 7.5% margin, down from $45 million and a 9.2% margin in the prior year quarter [5][17] - The effective tax rate for the quarter was 25.2%, up from 21.0% in the prior year quarter [6][23] Shareholder Returns - The company returned approximately $31 million to shareholders, including $15 million in share repurchases and $16 million in dividends [1][8] - A quarterly cash dividend of $0.20 per share was declared, payable on November 26, 2024 [12] Segment Performance - Metal Cutting sales decreased 4% to $297 million, with operating income of $24 million and an 8.0% margin [10][23] - Infrastructure sales increased 0.4% to $185 million, with operating income of $13 million and a 6.9% margin [11][23] Outlook - For the second quarter of fiscal 2025, sales are expected to be between $480 million and $500 million, with adjusted EPS anticipated to be between $0.20 and $0.30 [9] - Annual sales are projected to be between $2.0 billion and $2.1 billion, with adjusted EPS expected to be between $1.30 and $1.70 [9]

The market expects Kennametal (KMT) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released ...

One New Offering Specific to Small Parts Machining & Medical Applications PITTSBURGH, Oct. 25, 2024 /PRNewswire/ -- Kennametal Inc. (NYSE: KMT) is expanding its turning portfolio with the introduction of new inserts and cutting tools that significantly broadens its machining capabilities in the small parts and medical machining space. The three new products –TopSwiss™ Turning Inserts and Micro Boring Solid (MBS) tooling, and KCU25B Turning Inserts – are designed to improve output, enhance component quality, ...

PITTSBURGH, Oct. 16, 2024 /PRNewswire/ -- Kennametal Inc. (NYSE: KMT) will host its first quarter fiscal year 2025 earnings call on Wednesday, November 6. The press release and presentation will be available on the Company's website before market on November 6. Details of the conference call and webcast are as follows: When: Wednesday, November 6, 2024, at 9:30 am ET Hosts: Sanjay Chowbey, President and CEO Patrick Watson, Vice President and CFO Webcast: The conference call will be broadcast via real-time a ...

Kennametal Inc. (KMT) is poised to benefit from solid momentum in aerospace, defense and transportation end markets in the quarters ahead. Growth in production for light vehicle and hybrid project wins bode well for the company. It is witnessing several positive trends in its key end markets that hold promise for long-term growth. The trends include an increase in U.S. and international defense spending volumes, digitalization and recovery in the transportation end market. For fiscal 2025 (ending June 2025) ...

Group 1 - Kennametal Inc. has been included in TIME's World's Best Companies 2024, reflecting its commitment to stakeholders including employees, customers, investors, and community partners [1] - The World's Best Companies list is based on analysis of revenue growth, employee satisfaction surveys, and sustainability data [2] - The President and CEO of Kennametal, Sanjay Chowbey, emphasized the company's focus on growth, employee engagement, and sustainability as central to its strategy [3] Group 2 - Kennametal has over 85 years of experience as an industrial technology leader, providing productivity solutions through materials science, tooling, and wear-resistant solutions [4] - The company generated $2 billion in revenues in fiscal 2024 and employs approximately 8,400 people across nearly 100 countries [4]