Kennametal Q2 Sales Dip to $539.6M

TL;DR

Kennametal's Q2 sales down to $539.6M from $550.6M YoY. Watch closely.

AI Summary

Kennametal Inc. reported its second quarter results for the fiscal year ending June 30, 2025. For the three months ended December 31, 2024, the company's net sales were $539.6 million, a decrease from $550.6 million in the same period of the prior year. The company's fiscal year ends on June 30th, and this filing covers the period up to December 31, 2024.

Why It Matters

This filing provides insight into Kennametal's recent financial performance, indicating a slight decline in sales which could impact investor sentiment and future strategic decisions.

Risk Assessment

Risk Level: medium — The slight decrease in sales and the company's reliance on hedging instruments suggest potential market sensitivities and financial complexities.

Key Numbers

• $539.6M — Net Sales (Q2 2025) (Represents revenue for the three months ended December 31, 2024.)
• $550.6M — Net Sales (Q2 2024) (Represents revenue for the three months ended December 31, 2023.)
• June 30 — Fiscal Year End (Kennametal's annual reporting cycle.)

Key Players & Entities

• Kennametal Inc. (company) — Filer of the 10-Q report
• 539.6 million (dollar_amount) — Net sales for the three months ended December 31, 2024
• 550.6 million (dollar_amount) — Net sales for the three months ended December 31, 2023
• 2024-12-31 (date) — End of the reporting period for Q2 2025
• 2025-02-07 (date) — Date the filing was made

FAQ

Key Financial Figures

• $1.25 — ch registered Capital Stock, par value $1.25 per share KMT New York Stock Exchange

Filing Documents

• kmt-20241231.htm (10-Q) — 1465KB
• kmt1231202410-qex311.htm (EX-31.1) — 10KB
• kmt1231202410-qex312.htm (EX-31.2) — 10KB
• kmt1231202410-qex321.htm (EX-32.1) — 6KB
• 0000055242-25-000021.txt ( ) — 8865KB
• kmt-20241231.xsd (EX-101.SCH) — 53KB
• kmt-20241231_cal.xml (EX-101.CAL) — 68KB
• kmt-20241231_def.xml (EX-101.DEF) — 400KB
• kmt-20241231_lab.xml (EX-101.LAB) — 764KB
• kmt-20241231_pre.xml (EX-101.PRE) — 602KB
• kmt-20241231_htm.xml (XML) — 1417KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1. Financial Statements Condensed Consolidated Statements of Income (Unaudited) Three and six months ended December 31, 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) Three and six months ended December 31, 2024 and 2023 4 Condensed Consolidated Balance Sheets (Unaudited) December 31, 2024 and June 30, 2024 5 Condensed Consolidated Statements of Cash Flow (Unaudited) Six months ended December 31, 2024 and 2023 6 Notes to Condensed Consolidated Financial Statements (Unaudited) 7 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 23 3. Quantitative and Qualitative Disclosures About Market Risk 34 4. Controls and Procedures 34 5. Other Information 34

- OTHER INFORMATION

PART II - OTHER INFORMATION 1. Legal Proceedings 35 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 35 6. Exhibits 36

Signatures

Signatures 37 2 Table of Contents FORWARD-LOOKING INFORMATION This Quarterly Report on Form 10-Q contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that do not relate strictly to historical or current facts. You can identify forward-looking statements by words such as "should," "anticipate," "estimate," "approximate," "expect," "may," "will," "project," "intend," "plan," "believe" and other words of similar meaning and expression in connection with any discussion of future operating or financial performance or events. We have also included forward-looking statements in this Quarterly Report on Form 10-Q concerning, among other things, our strategy, goals, plans and projections regarding our financial position, liquidity and capital resources, results of operations, market position and product development. These statements are based on current estimates that involve inherent risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, our actual results could vary materially from our current expectations. There are a number of factors that could cause our actual results to differ from those indicated in the forward-looking statements. They include: uncertainties related to changes in macroeconomic and/or global conditions, including as a result of increased inflation and Russia's invasion of Ukraine and the resulting sanctions on Russia; the conflict in the Middle East; other economic recession; our ability to achieve all anticipated benefits of restructuring, simplification and modernization initiatives; Commercial Excellence growth initiatives, Operational Excellence initiatives, our foreign operations and international markets, such as currency exchange rates, different regu

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS KENNAMETAL INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended December 31, Six Months Ended December 31, (in thousands, except per share amounts) 2024 2023 2024 2023 Sales $ 482,051 $ 495,320 $ 963,999 $ 987,796 Cost of goods sold 337,021 355,723 667,960 685,301 Gross profit 145,030 139,597 296,039 302,495 Operating expense 109,308 107,342 220,962 218,991 Restructuring and other charges, net (Note 6) 1,335 1,033 1,946 4,119 Amortization of intangibles 2,720 2,743 5,438 5,788 Operating income 31,667 28,479 67,693 73,597 Interest expense 6,180 6,847 12,493 13,447 Other income, net ( 1,477 ) ( 687 ) ( 3,136 ) ( 597 ) Income before income taxes 26,964 22,319 58,336 60,747 Provision for (benefit from) income taxes 7,927 ( 2,009 ) 15,833 6,050 Net income 19,037 24,328 42,503 54,697 Less: Net income attributable to noncontrolling interests 1,109 1,220 2,452 1,532 Net income attributable to Kennametal $ 17,928 $ 23,108 $ 40,051 $ 53,165 PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS Basic earnings per share $ 0.23 $ 0.29 $ 0.51 $ 0.67 Diluted earnings per share $ 0.23 $ 0.29 $ 0.51 $ 0.66 Basic weighted average shares outstanding 77,724 79,700 77,896 79,863 Diluted weighted average shares outstanding 78,379 80,114 78,495 80,395 KENNAMETAL INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) Three Months Ended December 31, Six Months Ended December 31, (in thousands) 2024 2023 2024 2023 Net income $ 19,037 $ 24,328 $ 42,503 $ 54,697 Other comprehensive (loss) income, net of tax Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges 1,169 ( 59 ) 1,085 ( 59 ) Reclassification of unrealized gain on derivatives designated and qualified as cash flow hedges ( 169 ) ( 192 ) ( 392 ) ( 385 ) Unrecognized net pension and other postretirement benefit plans gain (loss) 3,191 ( 1,752 ) 616 ( 235 ) Reclassification of net pension

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View this 10-Q filing on SEC EDGAR