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FY26 Second Quarter Earnings Call Presentation February 4, 2026
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Q2 FY26 EARNINGS ©2026 Kennametal Inc. | All rights reserved Safe Harbor Statement 2 Certain statements in this release may be forward-looking in nature, or “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements that do not relate strictly to historical or current facts. For example, statements about Kennametal’s outlook for sales, adjusted operating income, adjusted EPS, FOCF, primary working capital, capital expenditures and adjusted effective tax rate for the third quarter and full year of fiscal 2026 and our expectations regarding future growth and financial performance are forward-looking statements. Any forward-looking statements are based on current knowledge, expectations and 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, tariffs, 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, Commercial Excellence growth initiatives, Operational Excellence initiatives, our foreign operations and international markets, such as currency exchange rates, different regulatory environments, trade barriers, exchange controls, and social and political instability, including the conflicts in Ukraine and the Middle East; changes in the regulatory environment in which we operate, including environmental, health and safety regulations; potential for future goodwill and other intangible asset impairment charges; our ability to protect and defend our intellectual property; continuity of information technology infrastructure; competition; our ability to retain our management and employees; demands on management resources; availability and cost of the raw materials we use to manufacture our products; product liability claims; integrating acquisitions and achieving the expected savings and synergies; global or regional catastrophic events; demand for and market acceptance of our products; business divestitures; energy costs; commodity prices; labor relations; and implementation of environmental remediation matters. Many of these risks and other risks are more fully described in Kennametal’s latest annual report on Form 10-K and its other periodic filings with the Securities and Exchange Commission. We can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments. This presentation includes certain non-GAAP financial measures as defined by SEC rules. As required by Regulation G, we have provided a reconciliation of those measures to the most directly comparable GAAP measures, which is available on our website at www.kennametal.com. Once on the homepage, select “Investor Relations” and then “Events.”
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CEO OVERVIEW ©2026 Kennametal Inc. | All rights reserved Q2 FY26 Summary ©2025 Kennametal Inc. | All rights reserved Key Customer Wins Restructuring Update Highlights Market Conditions Modest Volume Increase Tungsten Pricing Q2 FY26 Results $15M to Shareholders CAPITAL ALLOCATION $15M Dividends $0.47 per share Adj. EPS $530M SALES 10% Organic Growth $90M Adj. EBITDA 17.1% Adj. EBITDA Margin $73M YTD CASH FROM OPERATIONS YTD FOCF $38M 3 Energy Demand Spotlight Market Update Outlook Updated
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CEO OVERVIEW ©2025 Kennametal Inc. | All rights reserved Price drives outlook revision; markets remain stable 4 General Engineering Prior Current Transportation Prior Current Energy Prior Current Earthworks Prior Current Aerospace & Defense Prior Current Road Construction • Prior: Normal seasonality expected, competitive pressures persist • Current: Normal seasonality expected, competitive pressures persist Mining • Prior: Share gains in the US partially offset by soft coal markets in US and China • Current: Share gains partially offset by soft coal markets in US and China US Land based rig count • Prior: Decline MSD -7% • 526 vs 566 FY25 • Current: Decline MSD -7% • 527 vs 566 FY25 Customer US Sentiment • Prior: Unfavorable customer sentiment, rig productivity is focus • Current: Unfavorable customer sentiment, rig productivity is focus Light vehicle production • Prior: Per IHS production down LSD • Current: Per IHS production flat US S&P IPI forecast • Prior: Flat due to 1H CY26 decline • Current: Up LSD EMEA IPI forecast • Prior: Up LSD with stronger 2H CY25 • Current: Up LSD with stronger 1H CY26 China PMI • Prior: Slight growth at 51.2 (Sept) • Current: Slight growth at 50.1 (Dec) Up LDDUp LSDUp LSD Up LDD Up HDD Up HDD FY26 Market Factors FY26 Sales Assumptions at Outlook Midpoint in Constant Currency Up MSDFlat Major OEM Build Rates • Prior: Up strongly driven by supply chain and production recovery • Current: Up strongly driven by supply chain and production recovery Defense • Prior: US proposed increase of low teens and NATO plans to significantly increase spending • Current: US proposed increase of low teens and NATO plans to significantly increase spending Up MSD Up HDD
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FUTURE GROWTH THROUGH ELECTRICITY GENERATION ©2026 Kennametal Inc. | All rights reserved Fuel Source to Generation ~17% of KMT FY25 Sales General Engineering Aerospace & Defense Kennametal End Markets Energy Transportation Earthworks Generation Tooling Solutions for Power Generation Gas Turbines 15% CAGR 2025 – 2030 Wind Turbines 1% CAGR 2025 – 2030 Reciprocating Engines for Backup Generators ~10% CAGR 2023 – 2030 Power Consumers Overall Electricity Demand ~3% CAGR through 2030 Data Centers ~17% of U.S. Power Generation by 2030 Electric Vehicles Battery Electric Vehicle (BEV) growth 27% 2026-2030 Hybrid Vehicles Hybrid Electric Vehicle (HEV) growth 16% CAGR 2026 – 2030 Fuel Source Source Extraction Natural Gas ~45% of incremental energy supplied by 2030 Wind ~20% of incremental energy supplied by 2030 Solar ~35% of incremental energy supplied by 2030 Transmit Transmission of Power Generation Source Natural Gas Pipelines Trenching Foundations for Wind Towers and Overhead Lines ~20% CAGR high-power lines in the U.S. from 2025 – 2035 Solutions to meet surging demand for Power Coal Coal provides ~17% base load in 2025 Source: Bloomberg Intelligence, Bernstein Research, US Department of Energy, Company Filings (HAL, NEE, DE), Wood Mackenzie, IHS.
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Q2 FY26 EARNINGS ©2026 Kennametal Inc. | All rights reserved Price and positive volume drive organic growth and margin expansion 6 Earnings per Diluted Share (EPS): Reported $0.44; Adjusted $0.47 (vs. $0.23 reported; $0.25 adjusted in prior year) Order timing drives volume growth Sales of $530M, 10% organic growth year-over-year Metal Cutting 9% and Infrastructure 11% Aerospace & Defense Prior year strike, order timing and project wins drive growth Earthworks Share-gain and higher demand in underground mining; buy ahead in construction Energy Project wins in Metal Cutting and higher price in Infrastructure General Engineering Metal Cutting buy ahead; price in both Metal Cutting and Infrastructure Transportation Transportation growth driven by project wins in Americas 10% 1% (1)% 0% 10% Sales Growth FX Divestiture Business days Organic Growth Sales Growth 23% 18% 8% 4% 3% Aero & Defense Earthworks Gen Eng Energy Transp Sales Growth by End Market (in constant currency)* 16% 9% 2% Americas Asia Pacific EMEA Sales Growth by Region (in constant currency)* Margin Expansion Adjusted EBITDA of $90.3 million at 17.1% margin up 320 bps against prior year • Price/raw material timing of ~$17M in Infrastructure • Price and tariff surcharges in Metal Cutting • Higher sales and production volume in Metal Cutting • Restructuring savings of $8M Partially offset by: • Higher compensation costs, tariffs and general inflation • Prior year net insurance benefits of $3M Returned $15M to Shareholders $15 million Dividends *Adjusted for Divestiture
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Q2 FY26 ADJUSTED EPS BRIDGE ©2026 Kennametal Inc. | All rights reserved $0.25 $0.22 $0.00 $0.01 ($0.01) ($0.02) $0.02 $0.47 Q2 FY25 Operations Taxes Currency Pension Net Insurance Proceeds Bolivia FX Benefit Q2 FY26 Price/Raw timing, restructuring and volume drive Adj. EPS growth 7 • Price/raw material timing of $17M in Infrastructure • Price and tariff surcharges in Metal Cutting • Higher sales and production volumes in Metal Cutting • Restructuring savings of $8M Partially offset by: • Higher compensation costs, tariffs and general inflation
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METAL CUTTING BUSINESS SEGMENT Q2 FY26 SUMMARY ©2026 Kennametal Inc. | All rights reserved Price and volume drive sales and margin improvement 8 Organic sales increase 9% Sales of $331 million Regional Sales • Americas – Strength in General Engineering, Aerospace & Defense, Energy and Transportation • Asia Pacific – Growth driven by General Engineering, Transportation, Aerospace & Defense and Energy • EMEA – Strength in Aerospace and Defense, Transportation and Energy Growth driven by price, buy ahead, strategic wins and market improvement • Aerospace & Defense up driven by prior year strike and strategic focus in Americas and EMEA • Energy growth driven by project wins in Americas • General Engineering strength due to indirect channel buy ahead and price • Transportation growth driven by Internal Combustion Engine and transmission wins in Americas Commercial and operational excellence Sales Growth Sales Growth by Region (in constant currency) 15 % 9 % 3 % Americas Asia Pacific EMEA 19% 11% 9% 3% Aero & Defense Energy General Engineering Transportation Sales Growth by End Market (in constant currency) • Commercial intensity around EMEA Defense drives share gain opportunity • Remote selling initiative driving incremental sales in Americas and Asia Pacific • Lean transformation continues to drive operational gains Adjusted operating margin of 9.6% above prior year 360 bps Margin expansion driven by price and tariff surcharges, higher sales and production volume and restructuring savings of $6M; partially offset by higher compensation, tariffs and general inflation 11% 2% 0% 9% Sales Growth FX Business Days Organic Growth
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INFRASTRUCTURE BUSINESS SEGMENT Q2 FY26 SUMMARY ©2026 Kennametal Inc. | All rights reserved Price/Raw timing drives profitability 9 Organic sales growth 11% Sales of $198 million Regional Sales • Americas– Higher price with strength in Earthworks and Aerospace and Defense • Asia Pacific – General Engineering and Earthworks strength • EMEA – General Engineering, Energy weakness partially offset by Earthworks Price, share gain, and project timing drive growth • Aerospace and Defense growth driven by strategic initiatives and project timing in the Americas • Earthworks driven by share-gain in underground mining and buy ahead and share gains in construction • General Engineering driven by price and higher demand in Americas and Asia Pacific partially offset by lower demand in EMEA • Energy flat as higher price is offset by weaker market conditions Commercial and operational excellence Sales Growth by End Market (in constant currency)* • Steadfast focus on price setting and realization to offset rising material costs • Strategic initiatives maintaining traction • Managing inventory volumes to partially offset rising tungsten costs 33 % 18 % 5 % 0 % Aero & Defense Earthworks Gen Eng Energy 8% 1% (4)% 0% 11% Sales Growth FX Divestiture Business Days Organic Growth 17 % 8 % (1)% Americas Asia Pacific EMEA Sales Growth Sales Growth by Region (in constant currency)* Adjusted operating margin of 12.3% above prior year 370 bps • Price / raw material timing of ~$17M and restructuring savings of $2M partially offset by higher compensation costs, prior year net insurance proceeds of $3M, and general inflation * Adjusted for Divestiture
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BALANCE SHEET AND CASH FLOW STATEMENT HIGHLIGHTS ©2026 Kennametal Inc. | All rights reserved Strong balance sheet and liquidity 10 $674 $619 $598 $599 $597 $528 $477 $469 $200 $400 $600 $800 Q2 FY23 Q2 FY24 Q2 FY25 Q2 FY26 $ Millions Total Debt Net Debt 291 291 254 288 606 571 537 622 207 193 199 220 690 668 592 690 32.3 % 32.7 % 31.3 % 31.9 % 15% 20% 25% 30% 35% 0 100 200 300 400 500 600 700 800 900 1,000 Q2 FY23 Q2 FY24 Q2 FY25 Q2 FY26 $ Millions Primary Working Capital Receivables Inventory Payables PWC as a % of Sales (right axis) Consolidated Results ($ in millions) FY26 YTD FY25 YTD Net Cash from Operating Activities $73 $101 Capital Expenditures, Net $(34) $(44) Free Operating Cash Flow (FOCF) $38 $57 $200M 3-year share repurchase program Share Repurchases & Debt Profile Debt profile Inception to date $70M purchased; 3M shares Two $300M notes mature June 2028 & March 2031 $650M revolver matures Nov 2030 Covenant ratio well within limits
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FULL YEAR OUTLOOK ©2026 Kennametal Inc. | All rights reserved FY26 Outlook 11 FY26 TOTAL YEAR OUTLOOK OUTLOOK CONSIDERS THE FOLLOWING ASSUMPTIONS Interest Expense ~$25M Capital Spending ~$90M Adjusted Effective Tax Rate ~26% Primary Working Capital (% of sales) ~32% by fiscal year end Adjusted EPS $2.05 - $2.45 Free Operating Cash Flow (FOCF) ~60% of adjusted net income Depreciation & Amortization ~$135M Share Repurchase Offset dilution from compensation programs, at a minimum Sales $2.19 - $2.25B Flat – ~3% Volume growth ~11% Price and tariff surcharge realization ~2% Foreign exchange Tungsten prices assumed stable at the current level Pension (non-cash) headwind of ~$5M compared to FY25 Foreign exchange tailwind of ~$8M compared to FY25 Restructuring savings of ~$30M included Revenue Assumptions Year over Year Transportation: Up LSD Energy: Up LDD Gen Engineering: Up MSD Aerospace & Defense: Up HDD • • • • Earthworks: Up HDD
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NEXT QUARTER OUTLOOK ©2026 Kennametal Inc. | All rights reserved Q3 FY26 Outlook 12 FY26 THIRD QUARTER OUTLOOK OUTLOOK CONSIDERS THE FOLLOWING ASSUMPTIONS Sales $545 - $565M ~ (4)% - Flat Volume growth ~13% Price and tariff surcharge realization ~5% Foreign exchange Year over Year sales growth reflects: Transportation: Up LSD Energy: Up MSD Aerospace & Defense: Up HDD General Engineering: Up HSD Earthworks: Up HDD ~26% Adjusted Effective Tax Rate ~$6M Interest Expense $0.50 - $0.60 Adjusted EPS Pension (non-cash) headwind of ~$2M compared to Q3 FY25 Foreign exchange tailwind of ~$3M compared to Q3 FY25
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SUMMARY ©2025 Kennametal Inc. | All rights reserved Solid first half of FY26 13 Price, share gains and timing drive results Customer wins Metal cutting General Engineering share gain Metal Cutting Transportation share gains Progress on initiatives Infrastructure Earthworks wins On track to deliver $30M in restructuring savings Fully offsetting tariff impact Continued focus on growth
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14 Appendix
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Q2 FY26 EARNINGS ©2026 Kennametal Inc. | All rights reserved Higher sales and restructuring drive results Adjusted Reported Quarter Ended ($ in millions) Change from PY December 31, 2025 December 31, 2024 Mm December 31, 2025 December 31, 2024 Sales 10% $530 $482 $530 $482 Organic 10% (6)% 10% (6)% FX 1% 0% 1% 0% Divestiture (1)% 0% (1)% 0% Business Days 0% 3% 0% 3% Gross Profit 20% $174 $145 $174 $145 % of sales 280 bps 32.9% 30.1% 32.8% 30.1% Operating Expense 6% $116 $109 $116 $109 % of sales (70) bps 22.0% 22.7% 22.0% 22.7% EBITDA 35% $90 $67 $87 $66 % of sales 320 bps 17.1% 13.9% 16.5% 13.6% Operating Income 68% $56 $33 $53 $32 % of sales 360 bps 10.5% 6.9% 9.9% 6.6% Effective Tax Rate 50 bps 27.4% 26.9% 27.7% 29.4% EPS (Earnings per Diluted Share) 89% $0.47 $0.25 $0.44 $0.23 Year-to-Date Net Cash Flow Provided by Operations (28)% $73 $101 $73 $101 Free Operating Cash Flow (FOCF) (33)% $38 $57 $38 $57 15
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Q2 FY26 SEGMENT RESULTS ©2026 Kennametal Inc. | All rights reserved Price realization drives sales growth InfrastructureMetal Cutting Energy 7% Aero & Def 14% Transp 25% Gen Eng 54% Quarter Ending December 31, 2025 ($ in millions) ( % of KMT total Metal Cutting Infrastructure Total Sales $331 $198 $530 Organic 9% 11% 10% FX 2% 1% 1% Divestiture 0% (4)% * (1)%* Business Days 0% 0% 0% Constant Currency Regional Growth: Americas 50% 15% 17% 16% EMEA 30% 3% (1)% 2% AsiaPac 20% 9% 8% 9% Constant Currency End Market Growth: General Engineering 45% 9% 5% 8% Energy 12% 11% 0% 4% Transportation 16% 3% N/A 3% Earthworks 14% N/A 18% 18% Aerospace & Defense 13% 19% 33% 23% Adjusted Operating Income $32 $24 $56 Adjusted Operating Margin 9.6% 12.3% 10.5% Energy 21% Aero & Def 10% Earthworks 38% Gen Eng 31% Americas 57% EMEA 20% AsiaPac 23% Americas 46% EMEA 35% AsiaPac 19% * Divestiture effective June 6, 2025 16
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved ASSETS ($ in millions) December 31, 2025 June 30, 2025 Cash and cash equivalents $129 $141 Accounts receivable, net 288 295 Inventories 622 538 Other current assets 82 65 Total current assets 1,121 1,039 Property, plant and equipment, net 881 920 Goodwill and other intangible assets, net 346 350 Other assets 247 236 Total assets $2,596 $2,545 LIABILITIES Revolving and other lines of credit and notes payable $1 $1 Accounts payable 220 196 Other current liabilities 218 225 Total current liabilities 439 422 Long-term debt 597 597 Other liabilities 201 202 Total liabilities 1,238 1,221 Kennametal Shareowners’ Equity 1,315 1,284 Noncontrolling interest 43 41 Total liabilities and equity $2,596 $2,545 Strong balance sheet 17 * Amounts may not sum due to rounding
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 18 Non-GAAP Reconciliations The information presented by the Company contains certain non-GAAP financial measures. Kennametal management believes that presentation of these non-GAAP financial measures provides useful information about the results of operations of the Company for the current, past and future periods. Management believes that investors should have available the same information that management uses to assess operational performance, determine compensation and assess the capital structure of the Company. These Non-GAAP financial measures should not be considered in isolation or as a substitute for the most comparable GAAP measures. Investors are cautioned that non-GAAP financial measures utilized by the Company may not be comparable to non-GAAP financial measures used by other companies. Accordingly, we have compiled below certain definitions and reconciliations as required by Regulation G. Reconciliations to the most directly comparable GAAP financial measures for the following forward- looking non-GAAP financial measures for the third quarter and full fiscal year of 2026 have not been provided, including but not limited to: FOCF, adjusted operating income, adjusted net income, adjusted EPS, adjusted ETR and primary working capital. The most comparable GAAP financial measures are net cash flow from operating activities, operating income, net income attributable to Kennametal, ETR and working capital (defined as current assets less current liabilities), respectively. Primary working capital is defined as accounts receivable, net plus inventories, net minus accounts payable. Because the non-GAAP financial measures on a forward-looking basis are subject to uncertainty and variability as they are dependent on many factors - including, but not limited to, the effect of foreign currency exchange fluctuations, impacts from potential acquisitions or divestitures, gains or losses on the potential sale of businesses or other assets, restructuring costs, asset impairment charges, gains or losses from early extinguishment of debt, the tax impact of the items above and the impact of tax law changes or other tax matters - reconciliations to the most directly comparable forward-looking GAAP financial measures are not available without unreasonable effort. Adjusted Gross Profit and Margin, Adjusted Operating Expense, Adjusted Operating Expense as a Percentage of Sales, Adjusted Operating Income and Margin, Adjusted ETR, Adjusted Net Income Attributable to Kennametal and Adjusted EPS The following GAAP financial measures have been presented on an adjusted basis: gross profit and margin, operating expense, operating expense as a percentage of adjusted sales, operating income and margin, ETR, net income and EPS. Detail of these adjustments is included in the reconciliations following these definitions. Management adjusts for these items in measuring and compensating internal performance to more readily compare the Company’s financial performance period-to-period. Organic Sales Growth (Decline) Organic sales growth (decline) is a non-GAAP financial measure of sales growth (decline) (which is the most directly comparable GAAP measure) excluding the impacts of acquisitions (1), divestitures(2), business days(3) and foreign currency exchange(4) from year-over-year comparisons. Management believes this measure provides investors with a supplemental understanding of underlying sales trends by providing sales growth (decline) on a consistent basis. Also, we report organic sales growth (decline) at the consolidated and segment levels. Constant Currency Regional Sales Growth (Decline) Constant currency regional sales growth (decline) is a non-GAAP financial measure of sales growth (decline) (which is the most directly comparable GAAP measure) by region excluding the impacts of acquisitions (1), divestitures(2) and foreign currency exchange(4) from year-over-year comparisons. We note that, unlike organic sales growth (decline), constant currency regional sales growth (decline) does not exclude the impact of business days. We believe this measure provides investors with a supplemental understanding of underlying regional trends by providing regional sales growth (decline) on a consistent basis. Also, we report constant currency regional sales growth (decline) at the consolidated and segment levels.
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 19 Non-GAAP Reconciliations (cont’d) Constant Currency End Market Sales Growth (Decline) Constant currency end market sales growth (decline) is a non-GAAP financial measure of sales growth (decline) (which is the most directly comparable GAAP measure) by end market excluding the impacts of acquisitions(1), divestitures(2) and foreign currency exchange(4) from year-over-year comparisons. We note that, unlike organic sales growth (decline), constant currency end market sales growth (decline) does not exclude the impact of business days. We believe this measure provides investors with a supplemental understanding of underlying end market trends by providing end market sales growth (decline) on a consistent basis. Also, we report constant currency end market sales growth (decline) at the consolidated and segment levels. EBITDA EBITDA is a non-GAAP financial measure and is defined as net income attributable to Kennametal (which is the most directly comparable GAAP measure), with interest expense, interest income, provision for income taxes, depreciation and amortization added back. Management believes that EBITDA is widely used as a measure of operating performance and is an important indicator of the Company’s operational strength and performance. Nevertheless, the measure should not be considered in isolation or as a substitute for operating income, cash flows from operating activities or any other measure for determining liquidity that is calculated in accordance with GAAP. Additionally, Kennametal will present EBITDA on an adjusted basis. Management uses this information in reviewing operating performance. Free Operating Cash Flow FOCF is a non-GAAP financial measure and is defined by the Company as cash provided by operations (which is the most directly comparable GAAP measure) less capital expenditures, plus proceeds from disposals of fixed assets. Management considers FOCF to be an important indicator of the Company’s cash generating capability because it better represents cash generated from operations that can be used for dividends, debt repayment, strategic initiatives, and other investing and financing activities. Net Debt Net debt is a non-GAAP financial measure and is defined by the Company as total debt less cash and cash equivalents. The most directly comparable GAAP financial measure is total debt. Management believes that net debt aids in the evaluation of the Company’s financial condition. Primary Working Capital Primary working capital is a non-GAAP financial measure and is defined as accounts receivable, net plus inventories, net minus accounts payable. The most directly comparable GAAP measure is working capital, which is defined as current assets less current liabilities. We believe primary working capital better represents Kennametal’s performance in managing certain assets and liabilities controllable at the segment level and is used as such for internal performance measurement. (1) Acquisition impact is calculated by dividing current period sales attributable to acquired businesses by prior period sales. (2) Divestiture impact is calculated by dividing prior period sales attributable to divested businesses by prior period sales. (3) Business days impact is calculated by dividing the year-over-year change in weighted average working days (based on mix of sales by country) by prior period weighted average working days. (4) Foreign currency exchange impact is calculated by dividing the difference between current period sales and current period sales at prior period foreign exchange rates by prior period sales.
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 20 ($ in millions, except percents and per share data) Sales Gross Profit Operating Expense Operating Income Net Income(5) Diluted EPS Effective Tax Rate Q2 FY26 Reported Results $ 529.5 $ 173.9 $ 116.3 $ 52.7 $ 33.9 $ 0.44 27.7 % Reported Margins 32.8 % 22.0 % 9.9 % Restructuring and related charges — 0.5 — 3.1 2.5 0.03 17.1 Differences in projected annual tax rates — — — — (0.2) — (17.4) Q2 FY26 Adjusted Results $ 529.5 $ 174.4 $ 116.3 $ 55.7 $ 36.3 $ 0.47 27.4 % Q2 FY26 Adjusted Margins 32.9 % 22.0 % 10.5 % (5) Attributable to Kennametal Shareholders. ($ in millions, except percents and per share data) Sales Gross Profit Operating Expense Operating Income Net Income(5) Diluted EPS Effective Tax Rate Q2 FY25 Reported Results $ 482.1 $ 145.0 $ 109.3 $ 31.7 $ 17.9 $ 0.23 29.4 % Reported Margins 30.1 % 22.7 % 6.6 % Restructuring and related charges — — (0.1) 1.4 1.2 0.01 16.7 Differences in projected annual tax rates — — — — 0.5 0.01 (19.2) Q2 FY25 Adjusted Results $ 482.1 $ 145.0 $ 109.2 $ 33.1 $ 19.6 $ 0.25 26.9 % Q2 FY25 Adjusted Margins 30.1 % 22.7 % 6.9 % Adjusted Results
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 21 Three Months Ended December 31, ($ in millions, except percents) 2025 2024 Net income attributable to Kennametal, reported $ 33.9 $ 17.9 Add back: Interest expense 6.1 6.2 Interest income (0.6) (0.5) Provision for income taxes 13.5 7.9 Depreciation 32.0 31.3 Amortization 2.4 2.7 EBITDA $ 87.2 $ 65.5 Margin 16.5 % 13.6 % Adjustments: Restructuring and related charges 3.1 1.4 Adjusted EBITDA $ 90.3 $ 66.9 Adjusted Margin 17.1 % 13.9 % Adjusted EBITDA and EBITDA Margin
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 22 ($ in millions, except percents) Metal Cutting Sales Metal Cutting Operating Income Infrastructure Sales Infrastructure Operating Income Q2 FY26 Reported Results $ 331.1 $ 29.8 $ 198.5 $ 23.4 Reported Operating Margin 9.0 % 11.8 % Restructuring and related charges — 2.1 — 0.9 Q2 FY26 Adjusted Results $ 331.1 $ 31.9 $ 198.5 $ 24.3 Q2 FY26 Adjusted Operating Margin 9.6 % 12.3 % ($ in millions, except percents) Metal Cutting Sales Metal Cutting Operating Income Infrastructure Sales Infrastructure Operating Income Q2 FY25 Reported Results $ 297.8 $ 16.6 $ 184.3 $ 15.6 Reported Operating Margin 5.6 % 8.5 % Restructuring and related charges — 1.2 — 0.2 Q2 FY25 Adjusted Results $ 297.8 $ 17.8 $ 184.3 $ 15.8 Q2 FY25 Adjusted Operating Margin 6.0 % 8.6 % Adjusted Segment Operating Income and Margins
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 23 Three Months Ended December 31, 2025 Metal Cutting Infrastructure Kennametal Organic sales growth 9 % 11 % 10 % Foreign currency exchange effect 2 1 1 Business days effect — — — Divestiture effect — (4) (1) Sales growth 11 % 8 % 10 % Three Months Ended December 31, 2024 Metal Cutting Infrastructure Kennametal Organic sales decline (7)% (4)% (6)% Foreign currency exchange effect — 1 — Business days effect 3 3 3 Sales decline (4)% — % (3)% Organic Sales Growth (Decline)
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 24 Metal Cutting Three Months Ended December 31, 2025 Americas EMEA Asia Pacific Constant currency regional sales growth 15 % 3 % 9 % Foreign currency exchange effect — 6 (3) Regional sales growth 15 % 9 % 6 % Infrastructure Three Months Ended December 31, 2025 Americas EMEA Asia Pacific Constant currency regional sales growth (decline) 17 % (1)% 8 % Foreign currency exchange effect — 5 (1) Divestiture effect (8) — — Regional sales growth 9 % 4 % 7 % Kennametal Three Months Ended December 31, 2025 Americas EMEA Asia Pacific Constant currency regional sales growth 16 % 2 % 9 % Foreign currency exchange effect 1 5 (2) Divestiture effect (4) — — Regional sales growth 13 % 7 % 7 % Constant Currency Regional Sales Growth (Decline) – Q2 FY26
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 25 Metal Cutting Three Months Ended December 31, 2024 Americas EMEA Asia Pacific Constant currency regional sales decline — % (10)% (1)% Foreign currency exchange effect (2) 1 1 Regional sales decline (2)% (9)% — % Infrastructure Three Months Ended December 31, 2024 Americas EMEA Asia Pacific Constant currency regional sales growth (decline) — % 5 % (6)% Foreign currency exchange effect (1) 4 1 Regional sales (decline) growth (1)% 9 % (5)% Kennametal Three Months Ended December 31, 2024 Americas EMEA Asia Pacific Constant currency regional sales decline — % (7)% (3)% Foreign currency exchange effect (2) 2 1 Regional sales decline (2)% (5)% (2)% Constant Currency Regional Sales Growth (Decline) – Q2 FY25
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 26 Metal Cutting Three Months Ended December 31, 2025 General Engineering Transportation Aerospace & Defense Energy Constant currency end market sales growth 9 % 3 % 19 % 11 % Foreign currency exchange effect 2 2 3 4 End market sales growth 11 % 5 % 22 % 15 % Infrastructure Three Months Ended December 31, 2025 Energy Earthworks General Engineering Aerospace & Defense Constant currency end market sales growth — % 18 % 5 % 33 % Foreign currency exchange effect — — 1 5 Divestiture effect (6) — (7) (1) End market sales (decline) growth (6)% 18 % (1)% 37 % Kennametal Three Months Ended December 31, 2025 Energy Earthworks General Engineering Transportation Aerospace & Defense Constant currency end market sales growth 4 % 18 % 8 % 3 % 23 % Foreign currency exchange effect 1 — 2 2 3 Divestiture effect (4) — (2) — — End market sales growth 1 % 18 % 8 % 5 % 26 % Constant Currency End Market Sales Growth (Decline) – Q2 FY26
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 27 Metal Cutting Three Months Ended December 31, 2024 General Engineering Transportation Aerospace & Defense Energy Constant currency end market sales (decline) growth (4)% (9)% 7 % (1)% Foreign currency exchange effect (1) — — — End market sales (decline) growth (5)% (9)% 7 % (1)% Infrastructure Three Months Ended December 31, 2024 Energy Earthworks General Engineering Aerospace & Defense Constant currency end market sales growth (decline) 2 % (7)% (2)% 35 % Foreign currency exchange effect — 1 1 2 End market sales growth (decline) 2 % (6)% (1)% 37 % Kennametal Three Months Ended December 31, 2024 Energy Earthworks General Engineering Transportation Aerospace & Defense Constant currency end market sales growth (decline) 1 % (7)% (4)% (9)% 14 % Foreign currency exchange effect — 1 — — — End market sales growth (decline) 1 % (6)% (4)% (9)% 14 % Constant Currency End Market Sales Growth (Decline) – Q2 FY25
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 28 Net Debt Three Months Ended (in millions) 12/31/2025 12/31/2024 12/31/2023 12/31/2022 Total debt (gross) $ 598.6 $ 597.8 $ 618.9 $ 673.6 Less: cash and cash equivalents 129.3 121.2 90.7 76.8 Net debt $ 469.3 $ 476.6 $ 528.2 $ 596.8 Six Months Ended December 31, (in millions) 2025 2024 Net cash flow provided by operating activities $ 72.6 $ 100.9 Purchases of property, plant and equipment (35.7) (44.0) Proceeds from disposals of property, plant and equipment 1.6 0.4 Free operating cash flow $ 38.5 $ 57.3 Net Debt and Free Operating Cash Flow
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 29 (in thousands, except percents) 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 Average Current assets $ 1,121,278 $ 1,032,798 $ 1,039,270 $ 1,013,360 $ 968,774 Current liabilities 439,350 396,978 422,329 415,626 382,228 Working capital, GAAP $ 681,928 $ 635,820 $ 616,941 $ 597,734 $ 586,546 Excluding items: Cash and cash equivalents (129,318) (103,497) (140,540) (97,467) (121,151) Other current assets (81,835) (76,093) (65,092) (68,960) (56,848) Total excluded current assets (211,153) (179,590) (205,632) (166,427) (177,999) Adjusted current assets 910,125 853,208 833,638 846,933 790,775 Revolving and other lines of credit and notes payable (1,430) (1,405) (977) (12,561) (1,370) Other current liabilities (217,510) (202,130) (225,423) (210,142) (182,346) Total excluded current liabilities (218,940) (203,535) (226,400) (222,703) (183,716) Adjusted current liabilities 220,410 193,443 195,929 192,923 198,512 Primary working capital $ 689,715 $ 659,765 $ 637,709 $ 654,010 $ 592,263 $ 646,692 Three Months Ended 12/31/2025 9/30/2025 6/30/2025 3/31/2025 Total Sales $ 529,525 $ 497,974 $ 516,448 $ 486,399 $ 2,030,346 Primary working capital as a percentage of sales 31.9 % Primary Working Capital – Q2 FY26
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 30 (in thousands, except percents) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Average Current assets $ 968,774 $ 1,003,869 $ 1,002,592 $ 999,937 $ 1,009,820 Current liabilities 382,228 398,386 415,961 413,245 414,108 Working capital, GAAP $ 586,546 $ 605,483 $ 586,631 $ 586,692 $ 595,712 Excluding items: Cash and cash equivalents (121,151) (119,588) (127,971) (92,119) (90,735) Other current assets (56,848) (58,390) (57,179) (56,708) (57,753) Total excluded current assets (177,999) (177,978) (185,150) (148,827) (148,488) Adjusted current assets 790,775 825,891 817,442 851,110 861,332 Revolving and other lines of credit and notes payable (1,370) (1,426) (1,377) (12,302) (23,315) Other current liabilities (182,346) (195,052) (223,043) (208,174) (197,791) Total excluded current liabilities (183,716) (196,478) (224,420) (220,476) (221,106) Adjusted current liabilities 198,512 201,908 191,541 192,769 193,002 Primary working capital $ 592,263 $ 623,983 $ 625,901 $ 658,341 $ 668,330 $ 633,764 Three Months Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Total Sales $ 482,051 $ 481,948 $ 543,308 $ 515,794 $ 2,023,101 Primary working capital as a percentage of sales 31.3 % Primary Working Capital – Q2 FY25
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 31 (in thousands, except percents) 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Average Current assets $ 1,009,820 $ 1,010,555 $ 1,026,789 $ 1,079,035 $ 1,048,303 Current liabilities 414,108 419,846 433,975 488,729 494,334 Working capital, GAAP $ 595,712 $ 590,709 $ 592,814 $ 590,306 $ 553,969 Excluding items: Cash and cash equivalents (90,735) (95,098) (106,021) (93,474) (76,784) Other current assets (57,753) (56,457) (55,825) (76,607) (74,723) Total excluded current assets (148,488) (151,555) (161,846) (170,081) (151,507) Adjusted current assets 861,332 859,000 864,943 908,954 896,796 Revolving and other lines of credit and notes payable (23,315) (31,179) (689) (64,055) (78,805) Other current liabilities (197,791) (191,298) (229,945) (227,516) (208,807) Total excluded current liabilities (221,106) (222,477) (230,634) (291,571) (287,612) Adjusted current liabilities 193,002 197,369 203,341 197,158 206,722 Primary working capital $ 668,330 $ 661,631 $ 661,602 $ 711,796 $ 690,074 $ 678,687 Three Months Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Total Sales $ 495,320 $ 492,476 $ 550,234 $ 536,036 $ 2,074,066 Primary working capital as a percentage of sales 32.7 % Primary Working Capital – Q2 FY24
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 32 (in thousands, except percents) 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Average Current assets $ 1,048,303 $ 1,011,486 $ 1,024,708 $ 1,043,241 $ 984,201 Current liabilities 494,334 497,488 485,610 460,365 410,983 Working capital, GAAP $ 553,969 $ 513,998 $ 539,098 $ 582,876 $ 573,218 Excluding items: Cash and cash equivalents (76,784) (64,568) (85,586) (99,982) (101,799) Other current assets (74,723) (76,732) (72,940) (69,582) (76,794) Total excluded current assets (151,507) (141,300) (158,526) (169,564) (178,593) Adjusted current assets 896,796 870,186 866,182 873,677 805,608 Revolving and other lines of credit and notes payable (78,805) (85,239) (21,186) (28,736) (12,228) Other current liabilities (208,807) (206,309) (236,537) (233,942) (212,898) Total excluded current liabilities (287,612) (291,548) (257,723) (262,678) (225,126) Adjusted current liabilities 206,722 205,940 227,887 197,687 185,857 Primary working capital $ 690,074 $ 664,246 $ 638,295 $ 675,990 $ 619,751 $ 657,671 Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Total Sales $ 497,121 $ 494,792 $ 530,016 $ 512,259 $ 2,034,188 Primary working capital as a percentage of sales 32.3 % Primary Working Capital – Q2 FY23