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]