KENNAMETAL INC
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
KMT$23.00-0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0000055242-25-000046
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001628280-25-049444
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 82 previous paragraphs and 76 current paragraphs.
34 unchanged; 37 reworded; 5 added; 11 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
We recorded restructuring and related charges of $0.6 million for the three months ended September 30, 2024, which consisted of $0.6 million in Metal Cutting and an immaterial amount in Infrastructure.
Current report
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA), which includes a broad range of tax reform provisions, was signed into law in the United States. We do not expect the OBBBA to have a material impact on our consolidated financial statements in the current fiscal year and are currently evaluating the potential impact it will have on future periods.
Current report
For the three months ended September 30, 2025, Metal Cutting sales increased 5 percent compared to the prior year quarter. This was driven by an organic sales growth of 3 percent and a favorable currency exchange effect of 2 percent. Aerospace & Defense end market sales increased in the Americas, EMEA and Asia Pacific as a result of higher volume in the Americas and global strategic focus. Energy end market sales increased in the Americas and to a lesser extent in Asia Pacific primarily due to our strategic focus, the effects of which were partially offset by lower market activity in EMEA. Sales in the General Engineering end market increased in EMEA and Asia Pacific due to slightly higher industrial activity, partially offset by a decrease in the Americas. Transportation end market sales decreased in Asia Pacific due to project timing, and to a lesser extent in EMEA as a result of a decline in vehicle production, the effects of which were partially offset by favorable currency exchange and an increase in the Americas.
Current report
On a regional basis, sales in the Americas increased in all end markets except for Energy. Sales in EMEA decreased due to a decline in the General Engineering end market from order timing and softer market conditions as well as a decline in the Energy end market due to order timing. This was offset by favorable currency exchange, an Aerospace & Defense end market sales increase driven by project timing and the execution of our growth initiatives, as well as higher Earthworks end market sales from higher global construction demand. Sales in Asia Pacific remained flat as a result of a decline in Earthworks end market sales being offset with an increase in General Engineering.
Current report
(4) Divestiture effect is calculated by dividing prior period sales attributable to divested businesses by prior period sales.
Removed paragraphs (11)
Previous report
Sales for the nine months ended March 31, 2025 were $1,450.4 million, a decrease of $53.2 million, or 4 percent, from $1,503.6 million in the prior year period. The decrease in sales was driven by an organic sales decline of 3 percent and an unfavorable currency exchange effect of 2 percent, partially offset by a favorable business days effect of 1 percent.
Previous report
Gross profit for the nine months ended March 31, 2025 was $452.4 million, a decrease of $3.4 million from $455.8 million in the prior year period. The decrease was primarily due to lower sales and production volumes and higher wages and general inflation. These factors were partially offset by lower raw material costs, pricing, an advanced manufacturing production credit under the Inflation Reduction Act of approximately $13 million within the Infrastructure segment, and a net benefit of $6 million from insurance recoveries. Gross profit margin for the nine months ended March 31, 2025 was 31.2 percent, as compared to 30.3 percent in the prior year period.
Previous report
The effective income tax rates for the nine months ended March 31, 2025 and 2024 were 25.6 percent and 15.5 percent, respectively. The year-over-year change is primarily due to adjustments for the nine months ended March 31, 2024 that include a $7.8 million benefit related to a tax rate change enacted in Switzerland, a $6.2 million benefit associated with a change in unrecognized tax benefits and a $2.9 million charge to settle tax litigation in Italy, which were partially offset by adjustments for the nine months ended March 31, 2025 that include benefits from the advanced manufacturing production credit under the Inflation Reduction Act and $1.4 million due to interest received to resolve an income tax dispute in India, and geographical mix.
Previous report
For the three months ended March 31, 2025, Metal Cutting sales decreased 7 percent compared to the prior year quarter. This was driven by an organic sales decline of 4 percent and an unfavorable currency exchange effect of 3 percent. Energy end market sales increased in Asia Pacific due to wind energy and to a lesser extent in the Americas, the effects of which were offset by an unfavorable currency exchange effect and a decrease in EMEA. Aerospace & Defense end market sales decreased in Asia Pacific due to lower production resulting from a customer quality issue and in the Americas due to strike impacts, the effects of which were partially offset by an increase in EMEA due to the easing of supply chain challenges and improved build rates. Transportation end market sales decreased in EMEA as a result of lower auto production rates, partially offset by an increase in Asia Pacific and the Americas due to order timing. Sales in the General Engineering end market declined in EMEA, the Americas and Asia Pacific due to lower manufacturing activity.
Previous report
For the nine months ended March 31, 2025, Metal Cutting sales decreased 5 percent compared to the prior year period. This was driven by an organic sales decline of 5 percent and an unfavorable currency effect of 2 percent, partially offset by a favorable business days effect of 2 percent. Aerospace & Defense end market sales increased in EMEA and the Americas as a result of our focused execution on our growth initiatives, the effects of which were partially offset by a decline in Asia Pacific due to lower economic activity and certain production challenges at our OEM customers. Energy end market sales increased primarily in the Americas and Asia Pacific due to wind energy, the effects of which were offset by an unfavorable currency exchange effect and a decline in EMEA. Transportation end market sales decreased in EMEA and the Americas resulting from lower volumes and project activity, partially offset by an increase in Asia Pacific due to increased auto production and our focused execution on our growth initiatives. Sales in the General Engineering end market declined in EMEA, the Americas and Asia Pacific due to lower manufacturing activity.
Previous report
On a regional basis, sales in the Americas decreased primarily due to the General Engineering and Transportation end markets. Sales decreased in EMEA primarily due to the General Engineering and Transportation end markets. Sales in Asia Pacific increased in the General Engineering and Aerospace & Defense and end markets, the effects of which were offset by the Transportation end markets and unfavorable currency exchange.
Previous report
For the nine months ended March 31, 2025, Metal Cutting operating income was $65.3 million compared to $88.5 million in the prior year period. The decrease in operating income was primarily due to lower sales and production volumes and higher wages and general inflation. These factors were partially offset by pricing, incremental year-over-year restructuring savings of approximately $12 million and lower raw material costs.
Previous report
On a regional basis, sales in the Americas decreased due to a decline in the Earthworks end market from lower mining activity, including customer mine closures and competitive pressures, as well as in the General Engineering and Energy end markets due to declines in industrial activity year-over-year. This was partially offset by the execution of our growth initiatives in the Aerospace & Defense end market. Sales in EMEA increased in the Aerospace & Defense end market from order timing and the execution of our strategic initiatives, as well as an increase in sales in the Earthworks end market, partially offset by lower demand in the General Engineering end market from declines in industrial activity year-over-year. Sales in Asia Pacific decreased due to a decline in underground mining from lower customer capital investment as a result of lower coal prices.
Previous report
For the nine months ended March 31, 2025, Infrastructure sales decreased 1 percent compared to the prior year period. This was driven by an organic sales decline of 1 percent. Aerospace & Defense end market sales increased in EMEA and the Americas, reflecting project timing and the execution of our growth initiatives. Energy end market sales increased in Asia Pacific and the Americas primarily due to project timing, partially offset by lower global oil and gas activities as rig counts decreased year-over-year. General Engineering end market sales decreased due to industrial activity year-over-year and temporary plant shutdowns in the Americas, partially offset by an increase in Asia Pacific. Earthworks end market sales decreased in the Americas due to lower mining activity, including customer mine closures and competitive pressures, partially offset by higher construction activity and an increase in sales in EMEA. Earthworks end market sales decreased in Asia Pacific due to lower customer capital investment from lower coal prices.
Previous report
On a regional basis, sales in the Americas decreased due to a decline in the Earthworks and General Engineering end markets. This was partially offset by the execution of our growth initiatives in the Aerospace & Defense end market. Sales in EMEA increased in the Aerospace & Defense end market from order timing and execution of our strategic initiatives as well as higher Earthworks demand. This was partially offset by a decline in the General Engineering end market from declines in industrial activity year over year. Sales in Asia Pacific decreased due to a decline in underground mining from lower customer capital investment as a result of lower coal prices, partially offset by the General Engineering and Energy end markets.
Previous report
For the nine months ended March 31, 2025, Infrastructure operating income was $47.8 million compared to $22.0 million in the prior year period. The increase in operating income was primarily due to the favorable timing of pricing compared to raw material costs, an advanced manufacturing production credit under the Inflation Reduction Act of approximately $13 million, a net benefit of $6 million from insurance recoveries related to the tornado that struck the Rogers, Arkansas facility late in fiscal 2024, and incremental year-over-year restructuring savings of approximately $5 million. These factors were partially offset by lower sales and production volumes and higher wages and general inflation.
Reworded paragraphs (37)
Previous wording
Our sales of $486.4 million for the three months ended March 31, 2025 decreased 6 percent from $515.8 million in the prior year quarter, reflecting an organic sales decline of 3 percent and an unfavorable currency exchange effect of 3 percent.
Current wording
Our sales of $498.0 million for the three months ended September 30, 2025 increased 3 percent from $481.9 million in the prior year quarter, reflecting an organic sales growth of 3 percent and a favorable currency exchange effect of 1 percent, partially offset by a divestiture effect of 1 percent.
Previous wording
Operating income for the three months ended March 31, 2025 was $44.1 million compared to $35.2 million in the prior year quarter. The year-over-year increase of $8.8 million was primarily due to an advanced manufacturing production credit under the Inflation Reduction Act of approximately $10 million within the Infrastructure segment, lower raw material costs, pricing, and incremental year-over-year restructuring savings of approximately $6 million. These factors were partially offset by lower sales and production volumes, higher wages and general inflation and an unfavorable currency exchange effect of approximately $3 million.
Current wording
Operating income for the three months ended September 30, 2025 was $37.6 million compared to $36.0 million in the prior year quarter. The year-over-year increase of $1.5 million was driven by pricing and tariff surcharges and incremental year-over-year restructuring savings of approximately $8 million, partially offset by higher compensation costs, tariffs and general inflation, a prior year benefit from net insurance proceeds of $4 million that did not repeat in the current year and an increase in incremental restructuring and related charges of approximately $3 million.
Previous wording
Operating margin for the three months ended March 31, 2025 was 9.1 percent compared to 6.8 percent in the prior year quarter. The Metal Cutting and Infrastructure segments had operating margins of 8.2 percent and 10.7 percent, respectively, for the three months ended March 31, 2025.
Current wording
Operating margin for the three months ended September 30, 2025 was 7.5 percent compared to 7.5 percent in the prior year quarter. The Metal Cutting and Infrastructure segments had operating margins of 6.9 percent and 8.9 percent, respectively, for the three months ended September 30, 2025.
Previous wording
Uncertainties with respect to evolving global trade policies and tariffs have negatively affected the global economy. We are currently estimating a potential exposure of approximately $80 million related to additional tariffs on an annual basis. The Company's results of operations, cash flows and financial condition could be negatively impacted by a decrease in demand for our products or an inability to effectively mitigate tariff-related cost increases through pricing and sourcing strategies. These factors could also increase the potential for future impairment charges, including goodwill and other intangible asset impairments. We continue to monitor the situation and are working to mitigate any negative impacts from tariffs.
Current wording
Uncertainties with respect to evolving global trade policies and tariffs have negatively affected the global economy. The Company's results of operations, cash flows and financial condition could be negatively impacted by a decrease in demand for our products or an inability to effectively mitigate tariff-related cost increases through pricing and sourcing strategies. These factors could also increase the potential for future impairment charges, including goodwill and other intangible asset impairments. We have executed tariff mitigation actions including the implementation of surcharges on certain product sales and, where appropriate, rerouted internal supply chains. The unmitigated net effect from increased tariffs was immaterial during the three months ended September 30, 2025.
Previous wording
For the three months ended March 31, 2025, earnings per diluted share (EPS) was $0.41 compared to EPS of $0.24 in the prior year quarter. EPS for the three months ended March 31, 2025 was unfavorably affected by restructuring and related charges of $0.06 per share.
Current wording
For the three months ended September 30, 2025, earnings per diluted share (EPS) was $0.30 compared to EPS of $0.28 in the prior year quarter.
Previous wording
Net cash flow provided by operating activities was $129.7 million during the nine months ended March 31, 2025 compared to $163.5 million during the prior year period. Capital expenditures were $67.5 million and $84.2 million during the nine months ended March 31, 2025 and 2024, respectively. During the nine months ended March 31, 2025, the Company returned $101.7 million to shareholders through $55.1 million in share repurchases and $46.6 million in dividends. The Company has a long history of consistently paying dividends to shareholders since its listing on the New York Stock Exchange in 1967.
Current wording
Net cash flow provided by operating activities was $17.5 million during the three months ended September 30, 2025 compared to $45.7 million during the prior year period. Capital expenditures were $23.0 million and $24.7 million during the three months ended September 30, 2025 and 2024, respectively. During the three months ended September 30, 2025, the Company returned $25.1 million to shareholders through $10.0 million in share repurchases and $15.1 million in dividends. The Company has a long history of consistently paying dividends to shareholders since its listing on the New York Stock Exchange in 1967.
Previous wording
SALES Sales for the three months ended March 31, 2025 were $486.4 million, a decrease of $29.4 million, or 6 percent, from $515.8 million in the prior year quarter, reflecting an organic sales decline of 3 percent and an unfavorable currency exchange effect of 3 percent.
Current wording
SALES Sales for the three months ended September 30, 2025 were $498.0 million, an increase of $16.0 million, or 3 percent, from $481.9 million in the prior year quarter, reflecting organic sales growth of 3 percent and a favorable currency exchange effect of 1 percent, partially offset by a divestiture effect of 1 percent.
Previous wording
GROSS PROFIT Gross profit for the three months ended March 31, 2025 was $156.4 million, an increase of $3.1 million from $153.3 million in the prior year quarter. The increase was primarily due to an advanced manufacturing production credit under the Inflation Reduction Act of approximately $10 million within the Infrastructure segment, lower raw material costs and pricing. These factors were partially offset by lower sales and production volumes and higher wages and general inflation. Gross profit margin for the three months ended March 31, 2025 was 32.1 percent, as compared to 29.7 percent in the prior year quarter.
Current wording
GROSS PROFIT Gross profit for the three months ended September 30, 2025 was $154.6 million, an increase of $3.5 million from $151.0 million in the prior year quarter. The increase was driven by pricing and tariff surcharges and incremental year-over-year restructuring savings, partially offset by higher compensation costs, tariffs and general inflation, and a prior year benefit from net insurance proceeds of $4 million that did not repeat in the current year. Gross profit margin for the three months ended September 30, 2025 was 31.0 percent, as compared to 31.3 percent in the prior year quarter.
Previous wording
OPERATING EXPENSE Operating expense for the three months ended March 31, 2025 was $104.0 million compared to $108.7 million for the three months ended March 31, 2024. Operating expense for the nine months ended March 31, 2025 was $325.0 million compared to $327.7 million for the nine months ended March 31, 2024.
Current wording
OPERATING EXPENSE Operating expense for the three months ended September 30, 2025 was $113.0 million compared to $111.7 million for the three months ended September 30, 2024.
Previous wording
Research and development expenses included in operating expense totaled $11.1 million and $11.3 million for the three months ended March 31, 2025 and 2024, respectively, and $33.2 million and $33.3 million for the nine months ended March 31, 2025 and 2024, respectively.
Current wording
Research and development expenses included in operating expense totaled $10.6 million and $11.1 million for the three months ended September 30, 2025 and 2024, respectively.
Previous wording
RESTRUCTURING AND OTHER CHARGES, NETIn January 2025, we announced several actions to support the long-term competitiveness of the Company and to mitigate softer market conditions. These actions are currently expected to deliver annualized run rate pre-tax savings of approximately $15 million by the end of fiscal 2025. We expect to incur pre-tax charges of approximately $25 million in connection with the execution of these actions.
Current wording
RESTRUCTURING AND OTHER CHARGES, NETIn January 2025, we announced several actions to support the long-term competitiveness of the Company and to mitigate softer market conditions. Total restructuring and related charges for this program of $15.6 million, compared to a target of approximately $25 million, were recorded through September 30, 2025, consisting of $13.0 million in Metal Cutting and $2.6 million in Infrastructure. The Company substantially completed the closure of a facility in Greenfield, MA and the consolidation of facilities in Barcelona, Spain during 2025 as a part of these actions.
Previous wording
We recorded restructuring and related charges of $5.8 million for the three months ended March 31, 2025, which consisted of $4.3 million in Metal Cutting and $1.5 million in Infrastructure. Of this amount, restructuring-related charges of $0.2 million were included in cost of goods sold. We recorded restructuring and related charges of $7.9 million for the nine months ended March 31, 2025, which consisted of $6.2 million in Metal Cutting and $1.7 million in Infrastructure. Of this amount, restructuring-related charges of $0.4 million were included in cost of goods sold.
Current wording
We recorded restructuring and related charges of $3.2 million for the three months ended September 30, 2025, which consisted of $3.3 million in Metal Cutting and a reversal of $0.1 million in Infrastructure. Included in this amount was restructuring related charges of $1.6 million included in cost of goods sold.
Previous wording
INTEREST EXPENSE Interest expense for the three months ended March 31, 2025 decreased to $6.2 million compared to $6.8 million for the three months ended March 31, 2024. Interest expense for the nine months ended March 31, 2025 decreased to $18.7 million compared to $20.2 million for the nine months ended March 31, 2024. The decrease in interest expense is due primarily to decreased amounts outstanding under the Credit Agreement.
Current wording
INTEREST EXPENSE Interest expense for the three months ended September 30, 2025 decreased to $6.2 million compared to $6.3 million for the three months ended September 30, 2024.
Previous wording
OTHER INCOME, NET Other income, net for the three months ended March 31, 2025 was $5.5 million compared to $0.1 million during the three months ended March 31, 2024. Other income, net for the nine months ended March 31, 2025 was $8.6 million compared to $0.7 million during the nine months ended March 31, 2024. The increase in other income was primarily due to foreign currency transaction gains including preferential exchange rates in Bolivia, partially offset by higher net periodic pension expense.
Current wording
OTHER INCOME, NET Other income, net for the three months ended September 30, 2025 was $2.3 million compared to $1.7 million during the three months ended September 30, 2024. The increase in other income was primarily due to foreign currency transaction gains including preferential exchange rates in Bolivia.
Previous wording
PROVISION FOR INCOME TAXESThe effective income tax rates for the three months ended March 31, 2025 and 2024 were 23.6 percent and 27.4 percent, respectively. The year-over-year change is primarily due to a benefit from the advanced manufacturing production credit under the Inflation Reduction Act recorded during the current year quarter, partially offset by discrete tax benefits recorded in the prior year quarter related to provision to return adjustments, and geographical mix.
Current wording
PROVISION FOR INCOME TAXESThe effective income tax rates for the three months ended September 30, 2025 and 2024 were 26.9 percent and 25.2 percent, respectively. The year-over-year change is primarily due to benefits recorded in the current year quarter for the advanced manufacturing production credit and a tax rate change enacted in Germany, a benefit recorded in the prior year quarter for interest received to resolve an income tax dispute in India and geographical mix.
Previous wording
On a regional basis, sales in the Americas declined primarily due to lower manufacturing activity in the General Engineering end market. Sales decreased in EMEA primarily as a result of the General Engineering, Transportation and Energy end markets. Sales in Asia Pacific decreased primarily due to the General Engineering and Aerospace & Defense end markets, partially offset by the Transportation and Energy end markets.
Current wording
On a regional basis, sales in the Americas increased primarily due to our strategic focus in Aerospace & Defense and Energy, and to a lesser extent in the Transportation end market, partially offset by lower industrial activity in General Engineering. Sales increased in EMEA primarily as a result of our strategic focus in Aerospace & Defense and higher industrial activity in General Engineering. Sales in Asia Pacific decreased primarily due to project timing in Transportation, partially offset by our strategic focus in the Aerospace & Defense and Energy end markets.
Previous wording
For the three months ended March 31, 2025, Metal Cutting operating income was $24.9 million compared to $30.8 million in the prior year quarter. The decrease in operating income was primarily due to lower sales and production volumes, an unfavorable currency exchange effect of approximately $3 million and higher wages and general inflation. These factors were partially offset by pricing, incremental year-over-year restructuring savings of approximately $4 million and lower raw material costs.
Current wording
For the three months ended September 30, 2025, Metal Cutting operating income was $21.6 million compared to $23.8 million in the prior year quarter. The decrease in operating income was primarily due to higher compensation costs, tariffs and general inflation, and incremental restructuring and related charges of approximately $3 million, partially offset by pricing and tariff surcharges and incremental year-over-year restructuring savings of approximately $6 million.
Previous wording
For the three months ended March 31, 2025, Infrastructure sales decreased 4 percent from the prior year quarter. This was driven by an organic sales decline of 2 percent and an unfavorable currency exchange effect of 2 percent. Aerospace & Defense end market sales increased in EMEA and the Americas as a result of project timing and the execution of our growth initiatives. Energy end market sales decreased in the Americas due to lower global oil and gas activities as rig counts decreased year-over-year and order timing. Sales in the General Engineering end market decreased in the Americas and EMEA due to declines in industrial activity year-over-year. Earthworks end market sales decreased in the Americas due to lower mining activity, including customer mine closures and competitive pressures, partially offset by higher construction activity and an increase in sales in EMEA. Earthworks end market sales decreased in Asia Pacific due to lower customer capital investment from lower coal prices.
Current wording
For the three months ended September 30, 2025, Infrastructure sales increased 1 percent from the prior year quarter. This was driven by an organic sales growth of 3 percent and a favorable currency exchange effect of 1 percent, partially offset by a divestiture effect of 3 percent. Aerospace & Defense end market sales increased in EMEA and the Americas as a result of project timing and the execution of our growth initiatives. Earthworks end market sales increased as a result of higher global construction demand, especially in the Americas partially due to order timing, partially offset by a decline in Asia Pacific mining stemming from lower customer capital investment from lower coal prices. Sales in the General Engineering end market increased in the Americas and Asia Pacific due to higher demand, offset by declines in EMEA due to softer market conditions and order timing. Energy end market sales decreased in EMEA and the Americas due to order timing and lower global oil and gas activities as rig counts decreased year-over-year.
Previous wording
For the three months ended March 31, 2025, Infrastructure operating income was $19.4 million compared to $5.1 million in the prior year quarter. The increase in operating income was primarily due to an advanced manufacturing production credit under the Inflation Reduction Act of approximately $10 million, the favorable timing of pricing compared to raw material costs and incremental year-over-year restructuring savings of approximately $2 million. These factors were partially offset by lower sales and production volumes.
Current wording
For the three months ended September 30, 2025, Infrastructure operating income was $16.6 million compared to $12.7 million in the prior year quarter. The increase in operating income was driven by pricing and incremental year-over-year restructuring savings of approximately $2 million, partially offset by a prior year benefit from net insurance proceeds of $4 million that did not repeat in the current year, and higher compensation costs and general inflation.
Previous wording
For the three months ended March 31, 2025, Corporate expense decreased by $0.5 million from the prior year quarter. For the nine months ended March 31, 2025, Corporate expense decreased by $0.3 million from the prior year period.
Current wording
For the three months ended September 30, 2025, Corporate expense increased by $0.1 million from the prior year quarter.
Previous wording
Cash flow from operations is the primary source of funding for our capital expenditures. For the nine months ended March 31, 2025, cash flow provided by operating activities was $129.7 million.
Current wording
Cash flow from operations is the primary source of funding for our capital expenditures. For the three months ended September 30, 2025, cash flow provided by operating activities was $17.5 million.
Previous wording
As of March 31, 2025, we were in compliance with all the covenants of the Credit Agreement, and there were $10.2 million of borrowings outstanding and $689.8 million of additional availability. There were no borrowings outstanding as of June 30, 2024.
Current wording
As of September 30, 2025, we were in compliance with all the covenants of the Credit Agreement, and there were no borrowings outstanding and $700.0 million of additional availability. There were no borrowings outstanding as of June 30, 2025.
Previous wording
At March 31, 2025, cash and cash equivalents were $97.5 million. Total Kennametal shareholders' equity was $1,236.9 million and total debt was $609.1 million. Our current senior credit ratings are at investment grade levels. We believe that our current financial position, liquidity and credit ratings provide us access to the capital markets. We believe that we have sufficient resources available to meet cash requirements for the next 12 months. We continue to closely monitor our liquidity position and the condition of the capital markets, as well as the counterparty risk of our credit providers. There have been no material changes in our contractual obligations and commitments since June 30, 2024.
Current wording
At September 30, 2025, cash and cash equivalents were $103.5 million. Total Kennametal shareholders' equity was $1,284.2 million and total debt was $598.4 million. Our current senior credit ratings are at investment grade levels. We believe that our current financial position, liquidity and credit ratings provide us access to the capital markets. We believe that we have sufficient resources available to meet cash requirements for the next 12 months. We continue to closely monitor our liquidity position and the condition of the capital markets, as well as the counterparty risk of our credit providers. There have been no material changes in our contractual obligations and commitments since June 30, 2025.
Previous wording
Share Repurchase Program In February 2024, the Board of Directors of the Company authorized the Company to purchase up to $200 million of the Company's common stock over a three-year period. During the nine months ended March 31, 2025, the Company repurchased $55 million of Kennametal common stock. Inception-to-date the Company has repurchased $55 million of Kennametal common stock under the $200 million three-year program.
Current wording
Share Repurchase Program In February 2024, the Board of Directors of the Company authorized the Company to purchase up to $200 million of the Company's common stock over a three-year period. During the three months ended September 30, 2025, the Company repurchased $10 million of Kennametal common stock.
Previous wording
Dividends During the nine months ended March 31, 2025, the Company paid a total of $46.6 million in dividends to Kennametal Shareholders.
Current wording
Dividends During the three months ended September 30, 2025, the Company paid a total of $15.1 million in dividends to Kennametal Shareholders.
Previous wording
During the nine months ended March 31, 2025, cash flow provided by operating activities was $129.7 million, compared to $163.5 million for the prior year period. Cash flow provided by operating activities for the current year period consisted of net income and non-cash items amounting to an inflow of $194.3 million and changes in certain assets and liabilities netting to an outflow of $64.5 million. Contributing to the changes in certain assets and liabilities were an increase in inventories of $41.3 million, a decrease in accounts payable and accrued liabilities of $14.1 million and a decrease in accrued income taxes of $11.7 million. Partially offsetting these cash outflows was a decrease in accounts receivable of $10.5 million.
Current wording
During the three months ended September 30, 2025, cash flow provided by operating activities was $17.5 million, compared to $45.7 million for the prior year period. Cash flow provided by operating activities for the current year period consisted of net income and non-cash items amounting to an inflow of $70.3 million and changes in certain assets and liabilities netting to an outflow of $52.8 million. Contributing to the changes in certain assets and liabilities were an increase in inventories of $28.0 million, an increase in other, primarily prepaid assets, of 15.1 million and a decrease in accounts payable and accrued liabilities of $13.5 million. Partially offsetting these cash outflows was a decrease in accounts receivable of $7.0 million.
Previous wording
During the nine months ended March 31, 2024, cash flow provided by operating activities was $163.5 million and consisted of net income and non-cash items amounting to an inflow of $212.2 million and changes in certain assets and liabilities netting to an outflow of $48.8 million. Contributing to the changes in certain assets and liabilities were a decrease in accounts payable and accrued liabilities of $26.0 million, a decrease in accrued income taxes of $17.5 million and a decrease in accrued pension and postretirement benefits of $8.5 million. Partially offsetting these cash outflows was a decrease in inventories of $7.0 million and a decrease in accounts receivable of $3.9 million.
Current wording
During the three months ended September 30, 2024, cash flow provided by operating activities was $45.7 million and consisted of net income and non-cash items amounting to an inflow of $61.1 million and changes in certain assets and liabilities netting to an outflow of $15.3 million. Contributing to the changes in certain assets and liabilities were a decrease in accounts payable and accrued liabilities of $22.3 million and an increase in inventories of $17.5 million. Partially offsetting these cash outflows was a decrease in accounts receivable of $26.6 million.
Previous wording
Cash flow used in investing activities was $60.1 million for the nine months ended March 31, 2025, compared to $86.1 million for the prior year period. During the current year period, cash flow used in investing activities included capital expenditures of $67.5 million, which consisted primarily of equipment upgrades, partially offset by proceeds from insurance recoveries of $7.2 million.
Current wording
Cash flow used in investing activities was $22.7 million for the three months ended September 30, 2025, compared to $20.0 million for the prior year period. During the current year period, cash flow used in investing activities included capital expenditures of $23.0 million, which consisted primarily of equipment upgrades.
Previous wording
Cash flow used in investing activities was $86.1 million for the nine months ended March 31, 2024 and included capital expenditures of $84.2 million, which consisted primarily of equipment upgrades, the acquisition of a business for $4.0 million and an investment in a strategic partnership, partially offset by disposals of property, plant, and equipment of $5.3 million.
Current wording
Cash flow used in investing activities was $20.0 million for the three months ended September 30, 2024 and primarily included capital expenditures of $24.7 million, which consisted primarily of equipment upgrades, partially offset by proceeds from insurance recoveries of $4.7 million.
Previous wording
Cash flow used in financing activities was $98.0 million for the nine months ended March 31, 2025 compared to $88.7 million in the prior year period. During the current year period, cash flow used in financing activities primarily included $55.1 million in common shares repurchased, $46.6 million of cash dividends paid to Kennametal Shareholders and $6.6 million of the effect of employee benefit and stock plans and dividend reinvestment, partially offset by borrowings of $10.2 million under the Credit Agreement.
Current wording
Cash flow used in financing activities was $31.1 million for the three months ended September 30, 2025 compared to $36.4 million in the prior year period. During the current year period, cash flow used in financing activities primarily included $15.1 million of cash dividends paid to Kennametal Shareholders, $10.0 million in common shares repurchased and $6.3 million of the effect of employee benefit and stock plans and dividend reinvestment.
Previous wording
Cash flow used in financing activities was $88.7 million for the nine months ended March 31, 2024 and included $47.7 million of cash dividends paid to Kennametal Shareholders, $43.8 million in common shares repurchased and $7.9 million of the effect of employee benefit and stock plans and dividend reinvestment, partially offset by borrowings of $7.5 million under the Credit Agreement and $4.1 million in notes payable.
Current wording
Cash flow used in financing activities was $36.4 million for the three months ended September 30, 2024 and primarily included $15.6 million of cash dividends paid to Kennametal Shareholders, $15.0 million in common shares repurchased and $5.8 million of the effect of employee benefit and stock plans and dividend reinvestment.
Previous wording
Working capital was $597.7 million at March 31, 2025, an increase of $11.1 million from $586.6 million at June 30, 2024. The increase in working capital was primarily driven by an increase in inventories of $41.4 million, an increase in other current assets of $11.8 million, a decrease of accrued expenses of $6.1 million and a decrease in other current liabilities of $3.8 million, partially offset by a decrease in cash and cash equivalents of $30.5 million, a decrease in accounts receivable of $11.9 million and an increase in revolving and other lines of credit and notes payable of $11.2 million.
Current wording
Working capital was $635.8 million at September 30, 2025, an increase of $18.9 million from $616.9 million at June 30, 2025. The increase in working capital was primarily driven by an increase in inventories of $27.0 million, a decrease in other current liabilities of $13.4 million, an increase in other current assets of $11.0 million and a decrease of accrued expenses of $7.3 million, partially offset by a decrease in cash and cash equivalents of $37.0 million and a decrease in accounts receivable of $7.4 million. Currency exchange rate effects decreased working capital by a total of approximately $2.0 million, the effects of which are included in the aforementioned changes.
Previous wording
Property, plant and equipment, net decreased $26.2 million from $938.1 million at June 30, 2024 to $911.9 million at March 31, 2025, primarily due to depreciation expense of $93.3 million, partially offset by net capital additions of $67.0 million and currency exchange effects of $0.8 million.
Current wording
Property, plant and equipment, net decreased $22.1 million from $919.9 million at June 30, 2025 to $897.9 million at September 30, 2025, primarily due to depreciation expense of $32.7 million and currency exchange effects of $0.5 million, partially offset by net capital additions of $23.0 million.
Previous wording
At March 31, 2025, total other assets were $565.3 million, an increase of $2.2 million from $563.1 million at June 30, 2024. The increase was primarily due to an increase in other of $12.8 million and currency exchange rate effects of approximately $3 million, partially offset by amortization of intangibles of $8.1 million and a decrease in lease right-of-use assets of $4.3 million.
Current wording
At September 30, 2025, total other assets were $588.3 million, an increase of $2.0 million from $586.2 million at June 30, 2025. The increase was primarily due to an increase in other of $7.4 million, partially offset by amortization of intangibles of $2.4 million, a decrease in lease right-of-use assets of $2.4 million and currency exchange rate effects of approximately $0.6 million.
Previous wording
Kennametal Shareholders' equity was $1,236.9 million at March 31, 2025, a decrease of $13.0 million from $1,249.9 million at June 30, 2024. The decrease was primarily due to the repurchase of capital stock of $55.1 million primarily under the share repurchase program and cash dividends paid to Kennametal Shareholders of $46.6 million, partially offset by net income attributable to Kennametal of $71.5 million, and capital stock issued under employee benefit and stock plans of $11.6 million and other comprehensive income attributable to Kennametal of $5.4 million.
Current wording
Kennametal Shareholders' equity was $1,284.2 million at September 30, 2025, an increase of $0.2 million from $1,284.0 million at June 30, 2025. The increase was primarily due to net income attributable to Kennametal of $23.3 million, and capital stock issued under employee benefit and stock plans of $1.9 million and other comprehensive income attributable to Kennametal of $0.2 million, partially offset by cash dividends paid to Kennametal Shareholders of $15.1 million and the repurchase of capital stock of $10.0 million primarily under the share repurchase program.
Previous wording
Reconciliations of organic sales decline to sales decline are as follows:
Current wording
Reconciliations of organic sales growth to sales growth are as follows:
Previous wording
Reconciliations of constant currency regional sales (decline) growth to reported regional sales (decline) growth(3) are as follows:
Current wording
Reconciliations of constant currency regional sales growth (decline) to reported regional sales growth (decline)(3) are as follows: