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Kennametal Q3 2025 Earnings Report
Kennametal reported its third quarter fiscal year 2025 results, with sales of $486 million and diluted EPS of $0.41.
Key Takeaways
Kennametal announced its fiscal 2025 third quarter results, reporting sales of $486 million and diluted EPS of $0.41. Adjusted EPS was $0.47, exceeding the upper end of their outlook, primarily due to an advanced manufacturing production credit. The company returned approximately $40 million to shareholders through share repurchases and dividends.
Sales decreased by 6% to $486 million from $516 million in the prior year quarter.
Diluted EPS increased to $0.41 from $0.24 in the prior year quarter.
Adjusted EPS was $0.47, up from $0.30 in the prior year quarter, benefiting from a $10 million advanced manufacturing production credit.
The company returned $40 million to shareholders, including $25 million in share repurchases and $15 million in dividends.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the full fiscal year 2025, Kennametal expects sales to be between $1.970 billion and $1.990 billion, and adjusted EPS to be between $1.30 and $1.45.
Positive Outlook
- Pricing actions are expected to cover raw material costs, wages, and general inflation.
- Adjusted EPS is expected to be between $1.30 and $1.45.
- Free operating cash flow is expected to be greater than 125% of adjusted net income.
- Primary working capital as a percent of sales is expected to be approximately 32% by fiscal year-end.
- Capital spending is expected to be approximately $90 million.
Challenges Ahead
- The company acknowledges recent uncertainty regarding tariff policies.
- Market headwinds, particularly in EMEA and the Americas, are noted.
- The company expects to incur pre-tax charges of approximately $25 million related to restructuring actions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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