• Gross sales of $498 million higher 3 p.c on each a reported and natural foundation
• Running source of revenue of $38 million and altered working source of revenue of $41 million, up 4 p.c and 11 p.c, respectively
• Profits in step with diluted proportion (EPS) of $0.30 and altered EPS of $0.34, up 8 p.c and 18 p.c, respectively
• Returned roughly $25 million to shareholders; $10 million in proportion repurchases and $15 million in dividends
• Corporate raises gross sales and altered EPS annual Outlook

PITTSBURGH, Nov. 5, 2025 /PRNewswire/ — Kennametal Inc. (NYSE: KMT) (the “Company”) these days reported effects for its fiscal 2026 first quarter ended September 30, 2025.

“Our first quarter started off strong with share gains and modest end market improvements compared to our previous expectations, resulting in sales and adjusted EPS that exceeded the upper end of our outlook,” stated Sanjay Chowbey, President and CEO.

Chowbey added: “As we continue to build a more resilient business and create value for shareholders, our team remains focused on our fiscal year 2026 priorities of above market growth, cost structure improvement and shaping a smarter portfolio.”

Fiscal 2026 First Quarter Monetary Highlights

Gross sales of $498 million higher 3 p.c from $482 million within the prior yr quarter, reflecting natural gross sales enlargement of three p.c and a positive foreign money change impact of one p.c, partly offset through a divestiture impact of one p.c.

Running source of revenue was once $38 million, or 7.5 p.c margin, in comparison to $36 million, or 7.5 p.c margin, within the prior yr quarter. The rise in working source of revenue was once pushed through pricing and tariff surcharges and incremental year-over-year restructuring financial savings of roughly $8 million, partly offset through upper repayment prices, price lists and normal inflation, a previous yr have the benefit of web insurance coverage proceeds of $4 million that didn’t repeat within the wave yr and an building up in incremental restructuring and alike fees of roughly $3 million. Adjusted working source of revenue was once $41 million, or 8.2 p.c margin, within the wave quarter, in comparison to $37 million, or 7.6 p.c margin, within the prior yr quarter.

Date-to-date web money tide from working actions was once $17 million in comparison to $46 million within the prior yr length. The trade in web money tide from working actions was once pushed basically through operating capital adjustments together with an building up in stock. Date-to-date isolated working money tide (FOCF) was once adverse $5 million in comparison to certain $21 million within the prior yr length. The shorten in FOCF was once pushed basically through operating capital adjustments together with an building up in stock, partly offset through decrease web capital expenditures.

Outlook

The Corporate’s expectancies for the second one quarter of fiscal 2026 and the entire yr are as follows:

Quarterly Outlook:

• Gross sales anticipated to be $500 – $520 million; foreign currency echange expected to be a tailwind of two p.c in comparison to the second one quarter of fiscal 2025
• Adjusted EPS is anticipated to be $0.30 – $0.40

Annual Outlook:

• Gross sales anticipated to be $2.100 – $2.170 billion
• Adjusted EPS is anticipated to be $1.35 – $1.65
• Sovereign working money tide of roughly 100% of adjusted web source of revenue
• Capital spending anticipated to be roughly $90 million

The Corporate will serve extra main points relating to its Outlook throughout its quarterly income convention name.

Branch Effects

Steel Chopping gross sales of $311 million higher 5 p.c from $297 million within the prior yr quarter, reflecting natural gross sales enlargement of three p.c and a positive foreign money change impact of two p.c. Running source of revenue was once $22 million, or 6.9 p.c margin, in comparison to $24 million, or 8.0 p.c margin, within the prior yr quarter. The shorten in working source of revenue was once basically because of upper repayment prices, price lists and normal inflation, and incremental restructuring and alike fees of roughly $3 million, partly offset through pricing and tariff surcharges and incremental year-over-year restructuring financial savings of roughly $6 million. Adjusted working source of revenue was once $25 million, or 8.0 p.c margin, within the wave quarter, in comparison to $24 million, or 8.2 p.c margin, within the prior yr quarter.

Infrastructure gross sales of $187 million higher 1 p.c from $185 million within the prior yr quarter, reflecting natural gross sales enlargement of three p.c and a positive foreign money change impact of one p.c, partly offset through a divestiture impact of three p.c. Running source of revenue was once $17 million, or 8.9 p.c margin, in comparison to $13 million, or 6.9 p.c margin, within the prior yr quarter. The rise in working source of revenue was once pushed through pricing and incremental year-over-year restructuring financial savings of roughly $2 million, partly offset through a previous yr have the benefit of web insurance coverage proceeds of $4 million that didn’t repeat within the wave yr and better repayment prices and normal inflation. Adjusted working source of revenue was once $17 million, or 8.8 p.c margin, within the wave quarter, in comparison to $13 million, or 6.9 p.c margin, within the prior yr quarter.

Dividend Declared

Kennametal introduced that its Board of Administrators declared a quarterly money dividend of $0.20 in step with proportion. The dividend is payable on November 24, 2025 to shareholders of report as of the near of commercial on November 10, 2025.

Convention Name and Webcast

The Corporate will host a convention name to speak about its first quarter fiscal 2026 effects on Wednesday, November 5, 2025 at 9:30 a.m. Japanese Month. The convention name might be broadcast by way of real-time audio on Kennametal’s investor members of the family website online at https://investors.kennametal.com/ – click on “Event” (situated within the blue Quarterly Profits restrain).

This income shed comprises non-GAAP monetary measures. Reconciliations and outlines of all non-GAAP monetary measures are i’m ready forth within the tables that observe.

Positive statements on this shed could also be forward-looking in nature, or “forward-looking statements” throughout the which means of Division 27A of the Securities Function of 1933 and Division 21E of the Securities Alternate Function of 1934. Ahead-looking statements are statements that don’t relate strictly to historic or wave details. For instance, statements about Kennametal’s outlook for gross sales, adjusted EPS, FOCF, and capital expenditures for the second one quarter and whole yr of fiscal 2026 and our expectancies relating to era enlargement and monetary efficiency are forward-looking statements. Any forward-looking statements are in response to wave wisdom, expectancies and estimates that contain inherent dangers and uncertainties. Must a number of of those dangers or uncertainties materialize, or must the guesses underlying the forward-looking statements turn out mistaken, our fresh effects may just range materially from our wave expectancies. There are a selection of things that would purpose our fresh effects to vary from the ones indicated within the forward-looking statements. They come with: uncertainties alike to adjustments in macroeconomic and/or world statuses, together with on account of higher inflation, price lists, and Russia’s invasion of Ukraine and the ensuing sanctions on Russia; the struggle within the Center East; alternative financial recession; our talent to reach all expected advantages of restructuring projects; Industrial Excellence enlargement projects, Operational Excellence projects, our international operations and global markets, similar to foreign money change charges, other regulatory environments, industry limitations, change controls, and social and political instability, together with the conflicts in Ukraine and the Center East; adjustments within the regulatory circumstance through which we perform, together with environmental, condition and protection laws; doable for era approval and alternative intangible asset impairment fees; our talent to give protection to and shield our highbrow detail; endurance of knowledge generation infrastructure; festival; our talent to book our control and workers; calls for on control assets; availability and price of the uncooked fabrics we usefulness to form our merchandise; product legal responsibility claims; integrating acquisitions and reaching the anticipated financial savings and synergies; world or regional appalling occasions; call for for and marketplace acceptance of our merchandise; industry divestitures; power prices; commodity costs; hard work members of the family; and implementation of environmental remediation issues. Many of those dangers and alternative dangers are extra absolutely described in Kennametal’s unedited annual record on Method 10-Ok and its alternative periodic filings with the Securities and Alternate Fee. We will give negative guarantee that any purpose or plan i’m ready forth in forward-looking statements can also be completed and readers are cautioned to not playground undue reliance on such statements, which discuss most effective as of the week made. We adopt negative legal responsibility to shed publicly any revisions to forward-looking statements on account of era occasions or tendencies.

About Kennametal

With over 85 years as an business generation chief, Kennametal Inc. delivers productiveness to shoppers via fabrics science, tooling and wear-resistant answers. Consumers throughout aerospace and protection, earthworks, power, normal engineering and transportation flip to Kennametal to assistance them form with precision and potency. Each and every life roughly 8,100 workers are serving to shoppers in just about 100 nations keep aggressive. Kennametal generated just about $2 billion in revenues in fiscal 2025. Be told extra at www.kennametal.com. Apply @Kennametal: Instagram, Fb, LinkedIn and YouTube.

NON-GAAP RECONCILIATIONS (UNAUDITED)

Along with reported effects below in most cases authorised accounting ideas in the USA of The usa (GAAP), refer to monetary spotlight tables come with, the place suitable, a reconciliation of adjusted effects together with: working source of revenue and margin; ETR; web source of revenue resulting from Kennametal; diluted EPS; Steel Chopping working source of revenue and margin; Infrastructure working source of revenue and margin; FOCF; and consolidated and section natural gross sales enlargement (all of that are non-GAAP monetary measures), to essentially the most immediately related GAAP monetary measures. Changes for the 3 months ended September 30, 2025 come with restructuring and alike fees and variations in projected annual tax charges. Changes for the 3 months ended September 30, 2024 come with restructuring and alike fees and variations in projected annual tax charges. For the ones changes which can be offered ‘web of tax’, the tax impact of the adjustment can also be derived through calculating the residue between the pre-tax and the post-tax changes offered. The tax impact on changes is calculated through getting ready an total tax calculation together with the changes and nearest a tax calculation except the changes. The residue between those calculations leads to the tax affect of the changes.

Control believes that presentation of those non-GAAP monetary measures supplies helpful details about the result of operations of the Corporate for the wave and life sessions. Control believes that traders must have to be had the similar knowledge that control makes use of to evaluate working efficiency, decide repayment and assess the capital construction of the Corporate. Those non-GAAP monetary measures must now not be thought to be in isolation or as an alternative choice to essentially the most related GAAP monetary measures. Traders are cautioned that non-GAAP monetary measures worn through control might not be related to non-GAAP monetary measures worn through alternative corporations. Reconciliations and outlines of all non-GAAP monetary measures are i’m ready forth within the disclosures beneath.

Reconciliations to essentially the most immediately related GAAP monetary measures for refer to forward-looking non-GAAP monetary measures for the second one quarter and whole fiscal yr of 2026 have now not been supplied, together with however now not restricted to: FOCF, adjusted web source of revenue and altered EPS. Essentially the most related GAAP monetary measures are web money tide from working actions, web source of revenue resulting from Kennametal and EPS, respectively. Since the non-GAAP monetary measures on a forward-looking foundation are matter to lack of certainty and variability as they’re depending on many components – together with, however now not restricted to, the impact of foreign currencies change fluctuations, affects from doable acquisitions or divestitures, features or losses at the doable sale of companies or alternative property, restructuring prices, asset impairment fees, features or losses from early extinguishment of debt, the tax affect of the pieces above and the affect of tax regulation adjustments or alternative tax issues – reconciliations to essentially the most immediately related forward-looking GAAP monetary measures don’t seem to be to be had with out unreasonable attempt.

Sovereign Running Money Tide (FOCF)

FOCF is a non-GAAP monetary measure and is outlined through the Corporate as web money tide supplied through working actions (which is essentially the most immediately related GAAP monetary measure) much less capital expenditures plus proceeds from disposals of fastened property. Control considers FOCF to be an remarkable indicator of the Corporate’s money producing capacity as it higher represents money generated from operations that may be worn for dividends, debt reimbursement, strategic projects (similar to acquisitions) and alternative making an investment and financing actions.

Natural Gross sales Expansion

Natural gross sales enlargement is a non-GAAP monetary measure of gross sales enlargement (which is essentially the most immediately related GAAP measure) except the consequences of acquisitions, divestitures, industry days and foreign currencies change from year-over-year comparisons. Control believes this measure supplies traders with a supplemental working out of underlying gross sales tendencies through offering gross sales enlargement on a constant foundation. Control experiences natural gross sales enlargement on the consolidated and section ranges.

SOURCE Kennametal Inc.