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Sep 30, 2024
Kennametal Q1 2025 Earnings Report
Kennametal's financial performance decreased due to softer market conditions and increased expenses, while cash flow from operations improved.
Key Takeaways
Kennametal reported a decrease in sales and earnings per share for the first quarter of fiscal year 2025. Sales decreased by 2% to $482 million, and EPS decreased to $0.28. However, the company saw strong cash flow from operations, and returned approximately $31 million to shareholders through share repurchases and dividends.
Sales decreased by 2% year-over-year to $482 million due to softer market conditions.
EPS decreased to $0.28, with adjusted EPS at $0.29.
Operating income decreased to $36 million, or 7.5% margin.
Cash flow from operations improved to $46 million, and free operating cash flow was $21 million.
Revenue by Geographic Location
Forward Guidance
The Company’s expectations for the second quarter of fiscal 2025 and the full year are as follows:
Positive Outlook
- Sales expected to be $480 - $500 million
- Foreign exchange anticipated to be neutral compared to the second quarter of fiscal 2024
- Adjusted EPS is expected to be $0.20 - $0.30
- Sales expected to be $2.0 - $2.1 billion for the full year
- Adjusted EPS is expected to be $1.30 - $1.70 for the full year
Challenges Ahead
- Adjusted ETR is expected to be approximately 27.5 percent
- At the midpoint, improved operating performance offset by higher ETR and currency headwinds
- Pricing actions expected to cover raw material costs, wages and general inflation
- Interest expense is expected to be approximately $27 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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