Financial Data and Key Metrics Changes - Sales decreased by 3% year over year, with an organic decline of 6% partially offset by favorable workdays of 3% [34] - Adjusted EBITDA margin improved to 13.9% from 12.4% in the prior year [22] - Adjusted EPS decreased to $0.25 from $0.30 in the prior year [37] - Cash from operating activities year to date was $101 million compared to $88 million in the prior year [22] - Free operating cash flow year to date increased to $57 million from $36 million in the prior year [48] Business Line Data and Key Metrics Changes - Infrastructure sales decreased 4% organically while metal cutting was down 7% [18] - Aerospace and defense grew 14%, while energy grew 1% [20] - General engineering declined 4%, earthworks declined 7%, and transportation declined 9% [20] - Metal cutting adjusted operating margin decreased to 6% from 8.4% year over year [43] - Infrastructure adjusted operating margin increased by 670 basis points due to various factors [47] Market Data and Key Metrics Changes - Americas sales were flat at 0%, Asia Pacific sales decreased 3%, and EMEA declined 7% organically [18] - EMEA faced lower production volumes and realignment of investments among customers [21] - Mining capital investment in Asia decreased, impacting earthworks market [20] Company Strategy and Development Direction - Company announced actions to reduce structural costs and footprint, including plant closures and workforce reductions [8][10] - A commitment to achieve $100 million in cost savings by fiscal 2027 was reiterated [11][66] - Continuous improvement initiatives are a key focus area for enhancing profitability [65] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with recent results but remains committed to above-market growth and margin improvement [63] - The outlook for the full year reflects weakened market conditions and a strengthening U.S. Dollar [26][57] - Management noted that while external factors are challenging, they are focusing on controllable aspects [17] Other Important Information - The company continued its share repurchase program, buying back $15 million worth of shares during the quarter [50] - The effective tax rate increased year over year to 26.9% due to various factors [37] - The company expects Q3 sales to be between $480 million and $500 million, with a negative volume impact [53] Q&A Session Summary Question: Current demand environment in general engineering - Management noted some improvement in order incoming rates and billing rates, particularly in the second half of January [71][73] Question: Thoughts on cost structure and operating margins - Management confirmed ongoing restructuring actions and non-headcount related measures to improve margins [78] Question: Improvement in orders in January - Orders improved across various industries, including general engineering, with notable improvements in EMEA [83] Question: Plans for segment heads and broader changes - New segment heads are expected to focus on growth, margin improvement, and portfolio optimization [92] Question: Competitive dynamics in Earthworks - Management acknowledged pressures from reduced capital investment in China and production slowdowns in the U.S. [116] Question: Inventory management and customer inventories - Company plans to reduce inventory levels and noted that customer inventories are well controlled despite changing market conditions [110][113]

Core Viewpoint - Kennametal reported a revenue of $482.05 million for the quarter ended December 2024, reflecting a year-over-year decline of 2.7% and falling short of the Zacks Consensus Estimate of $483.66 million by 0.33% [1] Financial Performance - Earnings per share (EPS) for the quarter was $0.25, down from $0.30 in the same quarter last year, with no surprise compared to the consensus EPS estimate of $0.25 [1] - Total Sales in the Infrastructure segment reached $184.27 million, slightly above the average estimate of $182.92 million, marking a year-over-year increase of 0.2% [4] - Total Sales in the Metal Cutting segment amounted to $297.79 million, below the estimated $301.07 million, representing a decline of 4.4% compared to the previous year [4] Operating Income - The Corporate segment reported an operating loss of $0.53 million, better than the average estimate of a loss of $0.84 million [4] - Proforma Operating Income for the Infrastructure segment was $15.83 million, exceeding the average estimate of $10.52 million [4] - Proforma Operating Income for the Metal Cutting segment was $17.79 million, falling short of the average estimate of $25.45 million [4] Stock Performance - Over the past month, Kennametal's shares have returned -2%, contrasting with the Zacks S&P 500 composite's increase of 1.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Earnings Performance - Kennametal reported quarterly earnings of $0.25 per share, matching the Zacks Consensus Estimate, but down from $0.30 per share a year ago [1] - The company had previously expected earnings of $0.25 per share, but actually reported $0.29, resulting in a surprise of 16% [1] - Over the last four quarters, Kennametal has surpassed consensus EPS estimates two times [1] Revenue Performance - The company posted revenues of $482.05 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.33% [2] - This revenue figure is a decline from $495.32 million in the same quarter last year [2] - Kennametal has topped consensus revenue estimates two times over the last four quarters [2] Stock Performance and Outlook - Kennametal shares have decreased by approximately 2.3% since the beginning of the year, while the S&P 500 has gained 2.7% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call [3] - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $511 million, and for the current fiscal year, it is $1.43 on revenues of $2.01 billion [7] Industry Context - The Manufacturing - Tools & Related Products industry, to which Kennametal belongs, is currently ranked in the top 35% of over 250 Zacks industries [8] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

Exhibit 99.1 FOR IMMEDIATE RELEASE: DATE: February 5, 2025 Investor Relations Media Relations CONTACT: Michael Pici CONTACT: Lori Lecker PHONE: 412-790-0792 PHONE: 412-248-8224 michael.pici@kennametal.com lori.lecker@kennametal.com Kennametal Announces Fiscal 2025 Second Quarter Results PITTSBURGH, (February 5, 2025) – Kennametal Inc. (NYSE: KMT) (the "Company") today reported results for its fiscal 2025 second quarter ended December 31, 2024, with sales of $482 million compared to $495 million in the prior ...

Strong YTD cash from operations of $101 million compared to $88 million in the prior year; free operating cash flow of $57 million compared to $36 million in the prior year Earnings per diluted share (EPS) of $0.23 and adjusted EPS of $0.25 Returned approximately $31 million to shareholders; $15 million in share repurchases and $16 million in dividends Lowers fiscal 2025 full year outlook due to weakening market conditions, primarily in EMEAPITTSBURGH, Feb. 5, 2025 /PRNewswire/ -- Kennametal Inc. (NYSE: KM ...

Core Insights - Kennametal Inc. has elected Douglas Dietrich to its Board of Directors, effective February 1, 2025, bringing over 30 years of industry experience [1][2] - Dietrich is currently the Executive Chairman and CEO of Minerals Technologies, where he has driven transformative change through strategic and operational leadership [2][3] - His expertise in strategy, innovation, and targeted M&A is expected to enhance Kennametal's growth and shareholder value [2][3] Company Overview - Kennametal has over 85 years of experience as an industrial technology leader, focusing on materials science, tooling, and wear-resistant solutions [7] - The company serves various sectors including aerospace, defense, energy, and transportation, employing approximately 8,400 people in nearly 100 countries [7] - Kennametal generated $2 billion in revenues in fiscal 2024 [7] Douglas Dietrich's Background - Dietrich has held key management positions at Minerals Technologies since joining in 2007, including Senior Vice President of Finance and Chief Financial Officer [4] - Prior to his role at Minerals Technologies, he held several leadership positions at Alcoa Inc., contributing to various sectors within the company [5] - Dietrich holds a Bachelor of Science in Mechanical Engineering from the University of Michigan and an MBA in Finance from The Wharton School at the University of Pennsylvania [6]

Company Overview - Kennametal Inc. has over 85 years of experience as an industrial technology leader, focusing on materials science, tooling, and wear-resistant solutions [2] - The company serves various sectors including aerospace and defense, earthworks, energy, general engineering, and transportation, helping customers manufacture with precision and efficiency [2] - Approximately 8,400 employees work across nearly 100 countries to support customer competitiveness [2] - Kennametal generated $2 billion in revenues in fiscal 2024 [2] Upcoming Events - Kennametal will attend the Barclays 42nd Annual Industrial Select Conference in Miami, Florida on February 19, 2025 [1] - Key attendees from the company include Patrick Watson, Vice President and Chief Financial Officer, and Michael Pici, Vice President of Investor Relations [1]

PITTSBURGH, Jan. 15, 2025 /PRNewswire/ -- Kennametal Inc. (NYSE: KMT) will host its second quarter fiscal year 2025 earnings call on Wednesday, February 5, 2025. The press release and presentation will be available on the Company's website before market on February 5.  Details of the conference call and webcast are as follows: When: Wednesday, February 5, 2025, at 9:30 am ET Hosts: Sanjay Chowbey, President and CEOPatrick Watson, Vice President and CFO Webcast:  The conference call ...

PITTSBURGH, Jan. 15, 2025 /PRNewswire/ -- Kennametal Inc. (NYSE: KMT) announced today that Faisal Hamadi, currently Vice President of Kennametal's Value Creation Systems, will succeed Franklin Cardenas as President of the Company's Infrastructure segment, effective January 20, 2025."I want to thank Franklin for his years of service and many contributions to Kennametal," said Sanjay Chowbey, President and CEO. "We wish him success in his future endeavors and appreciate his ongoing partnership with Faisal to ...

Kennametal Inc. (KMT) has been benefiting from strength in the Infrastructure segment, driven by solid momentum in the aerospace & defense and energy end markets arising from favorable order timing. The segment’s revenues inched up 0.4% year over year in the first quarter of fiscal 2025 (ended September 2024).The company is also witnessing several positive trends in its key end markets that hold promise for its long-term growth. This includes an increase in U.S. and international defense spending volumes an ...