Kennametal Inc. reported a decline in financial performance for the fiscal year ending June 30, 2025, with total sales of $1.97 billion, a decrease of 4% from $2.05 billion in the previous year. The company's operating income also fell to $143.1 million, representing a margin of 7.3%, down from $170.2 million and an 8.3% margin in 2024. The decline in revenue was attributed to an organic sales drop of 4% and unfavorable currency exchange effects, which were partially offset by a favorable business days effect. The earnings per diluted share were $1.20, down from $1.37 in the prior year, impacted by restructuring charges and a loss on divestiture.
In terms of strategic developments, Kennametal completed the sale of a subsidiary in Goshen, Indiana, for $19 million, resulting in a loss of $1.5 million. The company has also initiated restructuring efforts aimed at streamlining operations, which have yielded approximately $35 million in annualized pre-tax savings. The Metal Cutting segment reported a 5% decline in sales, while the Infrastructure segment saw a smaller 2% decrease, with operating income in Infrastructure increasing to $58.5 million from $39.9 million in the previous year.
Operationally, Kennametal employed 8,124 individuals as of June 30, 2025, with a significant portion of its workforce located outside the U.S. The company generated 60% of its sales from international markets, primarily in Western Europe, China, and India. The company’s focus on innovation and product development continued, with research and development expenses totaling $44.4 million, slightly up from $44.2 million in 2024. The company also reported a total recordable incident rate of 0.42 in 2025, an increase from 0.35 in 2024, indicating a need for continued focus on health and safety.
Looking ahead, Kennametal anticipates ongoing challenges from inflation, currency fluctuations, and global trade uncertainties, which could impact demand for its products. The company is committed to mitigating these risks through pricing strategies and operational efficiencies. Management remains optimistic about long-term growth prospects, particularly in the Aerospace & Defense and Energy sectors, and plans to continue investing in technology and innovation to enhance its market position.
About KENNAMETAL INC
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