Financial Data and Key Metrics Changes - Sales decreased by 6% year over year, with metal cutting sales declining 4% organically and infrastructure declining 2% organically [9][25] - Adjusted EPS increased to $0.47 compared to $0.30 in the prior year quarter, driven by restructuring benefits and an advanced manufacturing tax credit [12][28] - Adjusted EBITDA and operating margins were 17.9% and 10.3% respectively, compared to 14.2% and 8.1% in the prior year quarter [27] Business Line Data and Key Metrics Changes - Metal cutting sales were down 7% year over year, with a 4% organic decline and unfavorable foreign currency exchange of 3% [29] - Infrastructure sales declined 4% year over year, with an organic decline of 2% and unfavorable foreign currency exchange of 2% [32] - Aerospace and defense sales increased by 28%, while energy declined by 3% mainly in The Americas [33] Market Data and Key Metrics Changes - EMEA remained the slowest market, down 4% on a constant currency basis, while The Americas and Asia Pacific both declined by 1% [9][30] - General engineering and transportation were largely impacted by market conditions in EMEA and The Americas [11][30] - Aerospace and defense showed slight improvement as supply chain constraints eased [49] Company Strategy and Development Direction - The company is focused on executing growth initiatives in aerospace and defense, despite overall market weakness [8][10] - A restructuring action was announced to lower structural costs by reducing employment costs and consolidating manufacturing operations [7][10] - The company aims to fully mitigate the impact of tariffs through various actions, including optimizing product flow and evaluating alternative supply options [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are short-term pressures across end markets, long-term trends for industrial production remain positive [11][12] - The company expects to achieve a $15 million annualized run rate savings from restructuring actions by June 30 [40] - Management remains committed to executing value creation initiatives to deliver a strong finish to fiscal 2025 [43] Other Important Information - The company returned $40 million to shareholders through share repurchase and dividend programs [36] - The estimated annual impact of tariffs is approximately $80 million, with ongoing mitigation actions in place [20][21] Q&A Session Summary Question: Can you discuss the outlook for the fourth quarter and demand trends? - Management indicated steady improvement in demand trends, with general engineering and transportation remaining flat, while aerospace and defense showed slight improvement [48][50] Question: Can you provide more details on tariff mitigation actions? - Management confirmed that they are confident in fully mitigating the direct impact of tariffs and have already begun implementing several actions [54][56] Question: What were the biggest surprises in the quarter relative to previous guidance? - The advanced manufacturing tax credit was a significant driver of performance, with tungsten prices expected to impact costs moving forward [66][68] Question: How is the competitive landscape affected by tariffs? - Management noted that they are performing better than peers and are well-positioned to utilize their global footprint to mitigate tariff impacts [73][74] Question: Are there any opportunities for M&A or portfolio optimization due to the changing trade situation? - Management acknowledged ongoing discussions regarding strategic priorities and potential portfolio actions in light of the tariff situation [81] Question: What is the pricing outlook for the final quarter of the year? - Management confirmed that the pricing outlook remains at approximately 2%, excluding tariff impacts [107]

Financial Data and Key Metrics Changes - Sales decreased by 6% year over year, with metal cutting sales declining 4% organically and infrastructure declining 2% organically [8][23] - Adjusted EPS increased to $0.47 compared to $0.30 in the prior year quarter, driven by restructuring benefits and an advanced manufacturing tax credit [11][26] - Adjusted EBITDA and operating margins were 17.9% and 10.3% respectively, compared to 14.2% and 8.1% in the prior year quarter [25] Business Line Data and Key Metrics Changes - Metal cutting sales were down 7% year over year, with a 4% organic decline and unfavorable foreign currency exchange of 3% [28] - Infrastructure sales declined 4% year over year, with an organic decline of 2% and unfavorable foreign currency exchange of 2% [31] - Aerospace and defense sales increased by 28%, while energy sales grew by 2% [32] Market Data and Key Metrics Changes - EMEA remained the slowest market, down 4% on a constant currency basis, while The Americas and Asia Pacific both declined by 1% [8][28] - General engineering and transportation were impacted by market conditions in EMEA and The Americas, while aerospace and defense showed slight improvement [10][29] Company Strategy and Development Direction - The company is focused on executing growth initiatives in aerospace and defense, despite overall market weakness [7][10] - A restructuring action was announced to lower structural costs by reducing employment costs and consolidating manufacturing operations [6][12] - The company aims to fully mitigate the impact of tariffs through various actions, including optimizing product flow and evaluating alternative supply options [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that most markets have been modestly declining for over thirty months, but they remain focused on controllable factors [7][10] - The company tightened its fiscal 2025 sales outlook to reflect the latest forecasts of specific market drivers and general market conditions [12][37] - Management expressed confidence in long-term mega trends for industrial production, including growth in aerospace and defense [10][40] Other Important Information - The company achieved approximately $6 million in restructuring savings during the quarter and is on pace to achieve a $15 million run rate savings [9][11] - The estimated annual impact of tariffs is approximately $80 million, with ongoing mitigation actions in place [19][96] - The company returned $40 million to shareholders through share repurchase and dividend programs [35] Q&A Session Summary Question: Can you discuss the outlook for the fourth quarter and demand trends? - Management indicated steady improvement in demand trends, with most markets remaining flat, and noted that they expect to gain market share [44][49] Question: Can you provide more details on tariff mitigation efforts? - Management confirmed that they are confident in fully mitigating the direct impact of tariffs and are already implementing several actions [52][54] Question: What were the biggest surprises in the quarter relative to previous guidance? - Management highlighted the advanced manufacturing tax credit as a significant driver of performance, with overall cost structure coming in better than expected [60][66] Question: How is the competitive landscape affected by tariffs? - Management noted that they are performing better than peers and are well-positioned to utilize their global footprint to mitigate tariff impacts [71][72] Question: Are there any opportunities for M&A or portfolio optimization due to the changing trade situation? - Management acknowledged ongoing discussions regarding strategic priorities and potential portfolio actions in light of the tariff situation [80] Question: What is the pricing outlook for the remainder of the year? - Management confirmed that the pricing outlook remains at approximately 2%, excluding tariff impacts, but could be higher with tariff surcharges [105][106]

Company Performance - Kennametal reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and up from $0.30 per share a year ago, representing an earnings surprise of 80.77% [1] - The company posted revenues of $486.4 million for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 0.80% and decreased from year-ago revenues of $515.79 million [2] - Over the last four quarters, Kennametal has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Outlook - The stock has underperformed the market, losing about 17.5% since the beginning of the year compared to the S&P 500's decline of 4.7% [3] - The current consensus EPS estimate for the coming quarter is $0.37 on revenues of $520.2 million, and for the current fiscal year, it is $1.13 on revenues of $1.97 billion [7] - The estimate revisions trend for Kennametal is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Manufacturing - Tools & Related Products industry, to which Kennametal belongs, is currently in the bottom 11% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Kennametal's stock performance [5]

Financial Performance - Kennametal's Q3 FY25 reported earnings per diluted share (EPS) was $0.41, while adjusted EPS was $0.47, compared to $0.24 reported and $0.30 adjusted in the prior year[5] - Adjusted EBITDA reached $86.9 million with a 17.9% margin, a 370 bps increase year-over-year[7] - The company returned $40 million to shareholders, including $25 million in share repurchases and $15 million in dividends[7] - YTD cash flow from operations was $130 million, and free operating cash flow (FOCF) was $63 million[7] Sales and Market Trends - Sales were $486 million, reflecting a (3)% organic decline year-over-year[6,23] - Metal Cutting sales declined by (4)%, while Infrastructure sales decreased by (2)%, but Aerospace & Defense sales experienced growth[6] - In constant currency, sales growth by region showed Asia Pacific down (1)%, Americas down (3)%, and EMEA down (4)%[6] - By end market (in constant currency), Aerospace & Defense grew by 7%, while Energy declined by (1)%, Transportation by (2)%, General Engineering by (5)%, and Earthworks by (7)%[6] Factors Affecting Performance - Kennametal benefited from an IRA advanced manufacturing production credit of approximately $10 million, with $8 million related to prior periods[7] - Restructuring savings contributed $6 million[7] - Lower raw material costs and favorable pricing also positively impacted results[7] - These gains were partially offset by lower sales and production volumes, higher wages, general inflation, and unfavorable foreign exchange of approximately $3 million[7] Outlook - The company anticipates approximately $80 million in tariff cost exposure and is implementing mitigation strategies[10] - FY25 sales are projected to be between $1.970 billion and $1.990 billion, reflecting a decline of approximately (5)% to (4)%[36] - Adjusted EPS for FY25 is expected to be in the range of $1.30 to $1.45[36] - Free Operating Cash Flow (FOCF) is projected to be greater than 125% of adjusted net income[36]

Exhibit 99.1 DATE: May 7, 2025 PITTSBURGH, (May 7, 2025) – Kennametal Inc. (NYSE: KMT) (the "Company") today reported results for its fiscal 2025 third quarter ended March 31, 2025, with sales of $486 million compared to $516 million in the prior year quarter, and earnings per diluted share (EPS) of $0.41 compared to $0.24 in the prior year quarter. The current quarter pre-tax results include a benefit of approximately $10 million from an advanced manufacturing production credit under the Inflation Reductio ...

Core Insights - Kennametal Inc. reported a decrease in sales for the third quarter of fiscal 2025, with sales of $486 million, down 6% from $516 million in the prior year quarter, while earnings per diluted share (EPS) increased to $0.41 from $0.24 [1][3][9] Financial Performance - The company achieved an adjusted EPS of $0.47, compared to $0.30 in the prior year quarter, driven by an advanced manufacturing production credit under the Inflation Reduction Act [1][5][9] - Operating income rose to $44 million, representing a 9.1% margin, compared to $35 million and a 6.8% margin in the prior year quarter [5][20] - Year-to-date net cash flow from operating activities was $130 million, down from $163 million in the prior year period, primarily due to working capital changes [7][31] Segment Performance - Metal Cutting sales decreased by 7% to $304 million, with an organic sales decline of 4% and an unfavorable currency exchange effect of 3% [12][33] - Infrastructure sales fell by 4% to $182 million, reflecting an organic sales decline of 2% and an unfavorable currency exchange effect of 2% [13][33] Cost Management and Restructuring - The company achieved restructuring savings of approximately $6 million year-over-year, with expected annualized pre-tax savings of about $15 million by the end of fiscal 2025 [4][5] - Pre-tax charges related to restructuring actions are expected to total approximately $25 million, with $6 million recognized during the quarter [4] Shareholder Returns - Kennametal returned approximately $40 million to shareholders during the quarter, including $25 million in share repurchases and $15 million in dividends [9][10] - The company declared a quarterly cash dividend of $0.20 per share, payable on May 27, 2025 [14] Outlook - The company expects full fiscal year 2025 sales to be between $1.970 billion and $1.990 billion, with adjusted EPS projected between $1.30 and $1.45 [17][11] - Pricing actions are anticipated to cover raw material costs, wages, and general inflation [17]

Group 1 - Kennametal Inc. announced the election of Shelley Bausch to its Board of Directors, effective May 1, 2025, replacing Cindy L. Davis, who will retire on September 1, 2025 [1] - Shelley Bausch has over 30 years of experience in leading global manufacturing businesses, with a strong track record in driving growth and transforming businesses [3] - Bausch previously served as President of Global Industrial Coatings at Axalta, where she led various industrial coatings businesses and expanded into new markets [2][4] Group 2 - William M. Lambert, Chairman of Kennametal's Board, expressed confidence in Bausch's ability to contribute to the company's strategy and shareholder value [3] - Sanjay Chowbey, President & CEO of Kennametal, highlighted Bausch's expertise in operational excellence, strategic execution, and P&L leadership [3] - Kennametal has over 85 years of experience in industrial technology, generating $2 billion in revenues in fiscal 2024, and employs approximately 8,400 people globally [8]

Company Overview - Kennametal Inc. is an industrial technology leader with over 85 years of experience, focusing on materials science, tooling, and wear-resistant solutions [1] - The company serves customers in various sectors including aerospace and defense, earthworks, energy, general engineering, and transportation [1] - Kennametal employs approximately 8,400 individuals across nearly 100 countries [1] Financial Performance - In fiscal 2024, Kennametal generated revenues of $2 billion [1] Upcoming Events - Kennametal will attend the BofA Securities Industrials, Transportation and Airlines Key Leaders Conference 2025 in New York City on May 14, 2025 [1] - Key attendees from Kennametal include Sanjay Chowbey (President and CEO), Patrick Watson (Vice President and CFO), and Michael Pici (Vice President, Investor Relations) [1]

Core Insights - The manufacturing industry in China has undergone significant changes, with advancements in speed and quality compared to ten years ago, leading to Chinese customers taking the lead in many niche markets [2] - Kennametal, a global leader in tooling and wear solutions, showcased innovative products at the CIMT2025 exhibition, highlighting the company's commitment to market application, product development, and manufacturing [2] Group 1: Product Innovations - Kennametal's new product line includes various types of cutting tools, emphasizing cost reduction and efficiency to meet evolving market demands [3] - The KENGold coating technology is a standout feature, enhancing tool performance through a multi-layer structure that improves wear resistance and thermal protection [3] - The CVD material KCP25C demonstrates exceptional performance in steel turning applications, effectively preventing wear and increasing production efficiency [3] Group 2: Milling Tools - The HARVI II TE solid carbide end mill features a unique design that significantly improves metal removal rate (MRR) and chip removal capability, extending tool life [4] - The HARVI IV 8-flute high-performance multifunctional end mill is designed for challenging milling applications, with an innovative internal cooling design that enhances MRR and feed rates [4] Group 3: Drilling Tools - The high-performance HPR and HPX solid carbide drill bits are designed for high-speed, high-feed drilling applications, making them ideal for automotive and aerospace sectors [5] - The HPR drill bit features a long diameter ratio of up to 12xD and includes internal cooling, while the HPX drill bit offers excellent self-centering capabilities, reducing thrust and ensuring precise cutting [5] Group 4: Market Positioning - The launch of these new products reflects Kennametal's strong capabilities in technology research and development, aimed at meeting diverse market needs and driving industry growth [6] - Kennametal aims to solidify its leading position in the tooling and wear solutions sector, providing efficient and high-quality products to enhance productivity across various industries [6]

Company Overview - Kennametal Inc. is an industrial technology leader with over 85 years of experience, focusing on materials science, tooling, and wear-resistant solutions [1] - The company serves customers in various sectors including aerospace and defense, earthworks, energy, general engineering, and transportation [1] - Kennametal employs approximately 8,400 individuals across nearly 100 countries [1] Financial Performance - In fiscal year 2024, Kennametal generated revenues of $2 billion [1] Upcoming Events - Kennametal will host its third quarter fiscal year 2025 earnings call on May 7, 2025, at 9:30 am ET [1] - The press release and presentation will be available on the company's website before market on the same day [1] - The conference call will be broadcast via real-time audio on Kennametal's investor relations website [3]