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PITTSBURGH - Kennametal Inc. (NYSE:KMT) reported second-quarter fiscal 2025 results on Wednesday that fell short of analyst expectations and lowered its full-year guidance, citing weakening market conditions, particularly in Europe, the Middle East, and Africa (EMEA).
The tooling and industrial materials maker posted adjusted earnings per share (EPS) of $0.25 for the quarter ended December 31, 2024, missing the analyst estimate of $0.26.
Revenue came in at $482.05 million, below the consensus expectation of $488.33 million and down 3% YoY from $495 million.
Kennametal’s President and CEO Sanjay Chowbey stated, "This quarter we once again generated strong cash flow from operations. However, conditions in a number of our end markets, primarily in EMEA, continued to weaken resulting in sales at the lower end of our expectations."
The company reported an organic sales decline of 6%, partially offset by a favorable business days effect of 3%. Operating income increased to $32 million, or 6.6% margin, compared to $28 million, or 5.7% margin, in the prior year quarter.
Looking ahead, Kennametal lowered its fiscal 2025 full-year outlook. The company now expects annual revenue of $1.95-2.0 billion, down from the previous consensus of $2.03 billion.
Adjusted EPS guidance was cut to $1.05-$1.30, significantly below the analyst consensus of $1.44.
For the third quarter, Kennametal projects revenue of $480-500 million and adjusted EPS of $0.20-$0.30, both below current analyst estimates.
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