Kennametal Inc. announced its fourth quarter fiscal 2025 results, with diluted earnings per share (EPS) of $0.28, down from $0.47 in the prior year quarter, and adjusted EPS of $0.34, compared to $0.49. Sales for the quarter decreased 5 percent to $516 million from $543 million, reflecting an organic sales decline of 5 percent.
For the full fiscal year 2025, Kennametal reported sales of $1,967 million, a 4 percent decrease from $2,047 million in the prior year, with diluted EPS of $1.20 compared to $1.37, and adjusted EPS of $1.34 compared to $1.50. Operating income for the year was $143 million, or a 7.3 percent margin, down from $170 million or an 8.3 percent margin in the prior year.
Despite market headwinds, Kennametal generated $208 million in operating cash flow and $121 million in free operating cash flow for fiscal 2025, returning $122 million to shareholders through dividends and share repurchases. The company achieved approximately $65 million in annualized run-rate pre-tax savings from restructuring and increased its total annualized run-rate savings target to $125 million by the end of fiscal 2027.
The company substantially completed the closure of a facility in Greenfield, MA, and the consolidation of facilities in Barcelona, Spain, as part of its restructuring efforts. The sale of its Goshen, IN subsidiary was also completed, yielding $19 million in proceeds.
For fiscal year 2026, Kennametal projects sales between $1.95 billion and $2.05 billion, with adjusted EPS expected in the range of $0.90 to $1.30. This outlook anticipates approximately $35 million in restructuring savings and full mitigation of an estimated $80 million annual impact from tariffs.
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