Kennametal Announces Fiscal 2025 First Quarter Results

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]