Kennametal Inc ( (KMT) ) has released its Q3 earnings. Here is a breakdown of the information Kennametal Inc presented to its investors.
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Kennametal Inc., a leader in industrial technology, specializes in materials science, tooling, and wear-resistant solutions, serving industries such as aerospace, defense, and energy. The company recently announced its fiscal 2025 third-quarter results, highlighting a mixed performance amidst challenging market conditions.
Kennametal reported earnings per diluted share of $0.41, an increase from $0.24 in the prior year, with adjusted EPS reaching $0.47. Despite a 6% decline in sales to $486 million, the company returned $40 million to shareholders through share repurchases and dividends. The quarter benefited from a $10 million advanced manufacturing production credit under the Inflation Reduction Act.
Key financial metrics showed a decrease in sales across its Metal Cutting and Infrastructure segments, primarily due to organic sales declines and unfavorable currency exchange effects. However, operating income improved to $44 million, driven by cost-saving initiatives and lower raw material costs. The effective tax rate also decreased, contributing to the improved net income.
Looking ahead, Kennametal has updated its annual outlook, expecting sales between $1.970 billion and $1.990 billion and adjusted EPS of $1.30 to $1.45. The company plans to continue mitigating tariff impacts and pursuing growth opportunities, while maintaining a focus on cost management and operational efficiency.