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K KENNAMETAL FY26 Fourth Quarter Earnings Call Presentation August 5 , 2026
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Q4 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 first quarter and full year of fiscal 2027 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 conflicts in the Middle East, economic recession; our ability to achieve all anticipated benefits of restructuring, Commercial Excellence growth initiatives, Operational Excellence initiatives, our foreign operations and international markets, including factors 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, including tungsten; 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 FY26 Summary ©2025 Kennametal Inc. | All rights reserved Highlights Market Conditions End markets improved Tungsten stabilized at elevated levels FY26 Results $71M to Shareholders CAPITAL ALLOCATION $61M Dividends $10M Share Repurchases $4.57 per share Adj. EPS $2,357M SALES 19% Organic Growth $634M Adj. EBITDA 26.9% Adj. EBITDA Margin $(4)M CASH FROM OPERATIONS FOCF $(79)M 3 Positive Volume Record Adjusted EPS Key Customer Wins Pricing for tungsten environment Continuous Improvement Restructuring ProgressHighlights
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METAL CUTTING SHARE GAIN UPDATE ©2026 Kennametal Inc. | All rights reserved Product Roadmap A three-year innovation pipeline designed to strengthen leadership across composite applications Aerospace: Winning in the Composite Materials market 4 Channel Relationship Leverage channel relationships to increase customer penetration Training & Awareness Of internal sales and application engineers and channel partners Building a Position of Strength THE OPPORTUNITY Engineering Expertise HOW WE WIN Success Story Win complex composite applications through custom- engineered tooling and process expertise Proprietary geometry and material science; and superior edge quality to produce exceptional tool life and cut quality Various tool types for different applications Designed for a wide range of composite materials $500M CFRP1 TAM 9%2 Market CAGR (2024 – 2028) Market Expansion Composites have the highest growth rate among all material groups. Winning opportunities now allows for sustained outperformance Composite products require diamond- coated tools that cannot be reconditioned Strong recurring revenue stream Highly Consumable Complete Portfolio Performance 1. Carbon Fiber Reinforced Plastics, 2.Dedalus & management estimates • Customer experiencing supply issues with cutting tools for CFRP products from competitor • Kennametal together with its channel partner was able to deliver a superior product and guarantee supply
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CEO OVERVIEW ©2026 Kennametal Inc. | All rights reserved Price and volume drives outlook; upward market trend continues 5 General Engineering FY26 FY27 Transportation FY26 FY27 Energy FY26 FY27 Earthworks FY26 FY27 Aerospace & Defense FY26 FY27 Road Construction • FY26: Normal seasonality expected, competitive pressures persist • FY27: Normal seasonality expected, competitive pressures persist Mining • FY26: Share gains partially offset by soft coal markets in US and China • FY27: Soft market conditions in US and China, customers seek reliable suppliers US Land based rig count • FY26: Decline MSD -6% • 531 vs 566 FY25 • FY27: Increase HSD +9% • 578 vs 531 FY26 Customer US Sentiment • FY26: Cautious customer sentiment, rig productivity is focus • FY27: Improving, though rig productivity and cost is still focus Light vehicle production • FY26: Per IHS production up LSD • FY27 Per IHS production down LSD US S&P IPI forecast • FY26: Up LSD • FY27: Up LSD EMEA IPI forecast • FY26: Up LSD • FY27: Up LSD China PMI • Prior: Slight growth at 50.8 (Mar) • Current: Slight growth at 51.7 (Jun) Up HDDUp HDDUp LDD Up HDD Up HDD Up HDD FY27 Market Factors FY27 Sales Assumptions at Outlook Midpoint in Constant Currency Including Price Up HDDUp LSD Major OEM Build Rates • FY26: Strength driven by supply chain and production recovery • FY27: Growth driven by improved supply chain and production recovery Defense • FY26: US proposed increase of low teens and NATO plans to significantly increase spending • FY27: Strong growth in proposed US defense budget and NATO spend increasing Up HDD Up HDD
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Q4 FY26 EARNINGS ©2026 Kennametal Inc. | All rights reserved Record adjusted EBITDA margin driven by price/raw benefit and volume 6 Earnings per Diluted Share (EPS): Reported $2.91; Adjusted $2.96 (vs. $0.28 reported; $0.34 adjusted in prior year) Improved end markets drive volume growth Sales of $737M, 42% organic growth year- over-year Metal Cutting 22% and Infrastructure 74% Energy Higher price in Infrastructure and Metal Cutting Americas project wins Earthworks Driven by price and higher volume in surface mining and construction Aerospace & Defense Strategic focus and price in both markets General Engineering Higher price and share gain in Metal Cutting and price in Infrastructure Transportation Higher price partially offset by prior year project wins in Asia Pacific 43% 1% (1)% 1% 42% Sales Growth FX Divestiture Business days Organic Growth Sales Growth 101% 76% 43% 28% 7% Energy Earthworks Aero & Defense Gen Eng Transp Sales Growth by End Market (in constant currency)1 60% 28% 24% Americas Asia Pacific EMEA Sales Growth by Region (in constant currency)1 Margin Expansion Adjusted EBITDA of $345 million at 46.8% margin versus 14.8% in prior year • Timing of raw material pricing compared to costs of ~$252M • Non raw material related price and tariff surcharges in Metal Cutting • Higher sales and production volume in Metal Cutting • Restructuring savings of $5M Partially offset by: • Higher compensation costs, tariffs and general inflation Returned $15M to Shareholders $15 million Dividends 1. Adjusted for Divestiture
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Q4 FY26 ADJUSTED EPS BRIDGE ©2026 Kennametal Inc. | All rights reserved $0.34 $2.55 $0.09 $0.01 $0.01 $0.04 ($0.07) $2.96 ($0.01) Q4 FY25 Operations Taxes Currency Pension IRA* tax credits Bolivia FX Benefit Other Q4 FY26 Price/Raw timing and volume drive record adjusted EPS 7 • Timing of raw material pricing compared to costs of $2.43 per share • Non raw material pricing and tariff surcharges in Metal Cutting • Higher sales and production volumes • Restructuring savings of $0.05 per share Partially offset by: • Higher compensation costs, tariffs and general inflation * Inflation Reduction Act Includes: • Higher share count of ($0.04) • Higher interest of ($0.02)
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METAL CUTTING BUSINESS SEGMENT Q4 FY26 SUMMARY ©2026 Kennametal Inc. | All rights reserved Margin expansion through price/raw timing and volume growth 8 Organic sales increase 22% Sales of $398 million Regional Sales • Americas – Growth driven by General Engineering, Aerospace & Defense, Energy and Transportation • Asia Pacific – Strength in General Engineering, Aerospace & Defense and Energy • EMEA – Strength in General Engineering, Aerospace & Defense, Energy and Transportation Growth driven by price, strategic wins and market improvement • Energy strength driven by price and data center project wins in Americas • Aerospace & Defense capitalizing on higher build rates to accelerate share of wallet in tier suppliers in Americas and EMEA • General Engineering driven by higher price realization and share gains in indirect channel • Transportation driven by higher price partially offset by prior year project wins in Asia Pacific, including EV-related program activity Commercial and operational excellence Sales Growth Sales Growth by Region (in constant currency) 29 % 20 % 16 % Americas Asia Pacific EMEA 36% 35% 25% 7% Energy Aero & Defense General Engineering Transportation Sales Growth by End Market (in constant currency) • Steadfast focus on price setting and realization to offset material costs • Strategic initiatives maintaining traction; Aerospace & Defense contribute to growth • Lean transformation drives operational gains Adjusted operating margin of 27.3% vs prior year of 7.9% Driven by timing raw material related pricing compared to costs of ~$54M, non raw material pricing and tariff surcharges, higher sales and production volumes, restructuring savings of $4M; partially offset by higher compensation costs and general inflation 24% 1% 1% 22% Sales Growth FX Business Days Organic Growth
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INFRASTRUCTURE BUSINESS SEGMENT Q4 FY26 SUMMARY ©2026 Kennametal Inc. | All rights reserved Price/Raw timing and portfolio management drives record margins 9 Organic sales growth 74% Sales of $339 million Regional Sales • Americas – Growth driven by Energy, Earthworks, General Engineering and Aerospace & Defense • EMEA – Strength in Earthworks, Aerospace & Defense, General Engineering partially offset by Energy • Asia Pacific – Strength in General Engineering, Earthworks and Energy Price, share gain and project timing drive growth • Energy growth driven by price in the Americas as we prioritized volume in other end markets • Earthworks driven by price and higher volume in surface mining and construction from share- gain due to availability of materials • Aerospace & Defense growth driven by price and strategic initiative growth in the Americas and EMEA • General Engineering driven primarily by price and volume growth in EMEA partially offset by volume prioritization in the Americas Commercial and operational excellence Sales Growth by End Market (in constant currency)1 • Steadfast focus on price setting and realization to offset material costs • Strategic initiatives maintaining traction; Aerospace & Defense contribute to growth • Lean transformation drives operational gains 135 % 76 % 63 % 37 % Energy Earthworks Aero & Defense Gen Eng 73% 1% (3)% 1% 74% Sales Growth FX Divestiture Business Days Organic Growth 103 % 46 % 40 % Americas EMEA Asia Pacific Sales Growth Sales Growth by Region (in constant currency)1 Adjusted operating margin of 58.4% vs PY of 6.8% Timing of raw material pricing compared to costs of ~$198M, partially offset by lower sales and production volume, higher compensation costs and general inflation 1. Adjusted for Divestiture
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BALANCE SHEET AND CASH FLOW STATEMENT HIGHLIGHTS ©2026 Kennametal Inc. | All rights reserved Recent actions enhance flexibility and liquidity 10 $596 $597 $598 $717 $490 $469 $457 $622 $200 $400 $600 $800 Q4 FY23 Q4 FY24 Q4 FY25 Q4 FY26 $ Millions Total Debt Net Debt 307 303 295 408 558 515 538 1,108 203 192 196 370 662 626 638 1,147 32.4 % 32.0 % 31.9 % 33.5 % 15% 20% 25% 30% 35% 0 200 400 600 800 1,000 1,200 1,400 1,600 Q4 FY23 Q4 FY24 Q4 FY25 Q4 FY26 $ Millions Primary Working Capital Receivables Inventory Payables PWC as a % of Sales (right axis) Consolidated Results ($ in millions) FY26 FY25 Net Cash from Operating Activities $(4) $208 Capital Expenditures, Net $(75) $(87) Free Operating Cash Flow (FOCF) $(79) $121 Dividends $(61) $(62) $200M 3-year share repurchase program Share Repurchases & Debt Profile Debt profile Inception to date $70M purchased; 3M shares Two $300M notes mature March 2031 & June 2036* $850M revolver matures Nov 2030 $500M delayed draw term loan matures July 2029 Covenant ratio well within limits * As of 6/30/26 $91M of 2028 notes were still outstanding; subsequently redeemed on 7/1/26
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FULL YEAR OUTLOOK ©2026 Kennametal Inc. | All rights reserved FY27 Outlook 11 FY27 TOTAL YEAR OUTLOOK OUTLOOK CONSIDERS THE FOLLOWING ASSUMPTIONS Interest Expense ~$50M Capital Spending ~$85M Adjusted Effective Tax Rate ~25% Primary Working Capital (% of sales) ~45% by fiscal year end Adjusted EPS $4.15 - $5.15 Free Operating Cash Flow (FOCF) ~20% of adjusted net income Depreciation & Amortization ~$140M Share Repurchase Paused until cash flow turns positive Sales $3.33 - $3.45B ~1% – ~4% Volume growth ~40% - 43% Price and tariff surcharge realization Neutral Foreign exchange Tungsten prices stable at the current level No material effect on customer activity rates due to the conflict in the Middle East Foreign exchange Neutral compared to FY26 Restructuring savings of ~$10M included Revenue Year over Year Transportation: Up HDD Energy: Up HDD Gen Engineering: Up HDD Aerospace & Defense: Up HDD • • • • Earthworks: Up HDD
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FULL YEAR OUTLOOK ©2026 Kennametal Inc. | All rights reserved $4.57 ($0.04) ($0.25) ($0.08) $4.65 $0.53 $0.17 ($0.23) ($0.02) FY26 Adj EPS Operations IRA* manufacturing credit Bolivia FX in PY Taxes Pension Higher interest Other FY27 (Mid Point) 12 Operations and tax credits offset by interest and FX headwinds * Inflation Reduction Act Advanced Manufacturing Credit Includes: • Higher shares ($0.07) • Timing of raw material cost compared to costs of $0.39 per share • Higher sales and production volume • Lower incentive comp of $0.18 per share • Restructuring savings of $0.10 per share Partially offset by: • Higher wages and general inflation
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NEXT QUARTER OUTLOOK ©2026 Kennametal Inc. | All rights reserved Q1 FY27 Outlook 13 FY27 FIRST QUARTER OUTLOOK OUTLOOK CONSIDERS THE FOLLOWING ASSUMPTIONS Sales $745 - $775M ~ 1% – 4% Volume growth ~50 - 53% Price and tariff surcharge realization Neutral Foreign exchange Year over Year sales growth reflects: Transportation: Up HDD Energy: Up HDD Aerospace & Defense: Up HDD General Engineering: Up HDD Earthworks: Up HDD ~25% Adjusted Effective Tax Rate ~$11M Interest Expense $2.50 - $2.80 Adjusted EPS Foreign exchange Neutral compared to Q1 FY26
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SUMMARY ©2025 Kennametal Inc. | All rights reserved Solid FY26 14 Price, share gains and timing drive results Customer wins Metal Cutting General Engineering share gain Metal Cutting Energy share gains Progress on initiatives Infrastructure Earthworks wins On track to deliver ~$10M in restructuring savings Actively managing our tungsten supply chain Continued momentum on strategic growth Infrastructure Defense focus in Americas drives growth Price/raw benefit
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15 Appendix
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Q4 FY26 EARNINGS ©2026 Kennametal Inc. | All rights reserved Higher sales, price cost timing drive results 16 Adjusted Reported Quarter Ended ($ in millions) Change from PY June 30, 2026 June 30, 2025 Mm June 30, 2026 June 30, 2025 Sales 43% $737 $516 $737 $516 Organic 42% (5)% 42% (5)% FX 1% 0% 1% 0% Divestiture (1)% 0% (1)% 0% Business Days 1% 0% 1% 0% Gross Profit 196% $434 $147 $434 $146 % of sales 3050 bps 58.9% 28.4% 58.9% 28.2% Operating Expense 19% $126 $106 $126 $106 % of sales (350) Bps 17.0% 20.5% 17.1% 20.5% EBITDA 350% $345 $77 $342 $70 % of sales 3200 bps 46.8% 14.8% 46.4% 13.5% Operating Income 705% $306 $38 $303 $31 % of sales 3410 bps 41.5% 7.4% 41.1% 6.1% Effective Tax Rate (230) Bps 23.4% 25.7% 23.3% 23.9% EPS (Earnings per Diluted Share) 771% $2.96 $0.34 $2.91 $0.28
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CONSOLIDATED FY26 FINANCIAL OVERVIEW ©2026 Kennametal Inc. | All rights reserved 17 Improving macro conditions Adjusted Reported Year Ended ($ in millions) Change from PY June 30, 2026 June 30, 2025 Mm June 30, 2026 June 30, 2025 Sales 20% $2,357 $1,967 $2,357 $1,967 Organic 19% (4)% 19% (4)% FX 2% (1)% 2% (1)% Divestiture (1)% 0% (1)% 0% Business Days 0% 1% 0% 1% Gross Profit 62% $972 $599 $970 $598 % of sales 1080 bps 41.3% 30.5% 41.2% 30.4% Operating Expense 11% $479 $431 $479 $431 % of sales (160) Bps 20.3% 21.9% 20.3% 21.9% EBITDA 112% $634 $299 $623 $285 % of sales 1170 bps 26.9% 15.2% 26.4% 14.5% Operating Income 207% $484 $158 $473 $143 % of sales 1250 bps 20.5% 8.0% 20.1% 7.3% Effective Tax Rate (90) bps 23.9% 24.8% 24.0% 25.2% EPS (Earnings per Diluted Share) 241% $4.57 $1.34 $4.42 $1.20 Full Year Net Cash Flow From Operations (102)% ($4) $208 ($4) $208 Free Operating Cash Flow (FOCF) (165)% ($79) $121 ($79) $121 Return on Invested Capital (ROIC) % 1200 bps 18.8% 6.8% 18.3% 7.0%
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FY26 EARNINGS ©2026 Kennametal Inc. | All rights reserved Return to volume growth in Fiscal 2026 18 Earnings per Diluted Share (EPS): Reported $4.42; Adjusted $4.57 (vs. $1.20 reported; $1.34 adjusted in prior year) Improved end markets and strategic initiatives drive volume growth Sales of $2,357M, 19% organic growth YoY Metal Cutting 12% and Infrastructure 30% Earthworks: Price and demand in construction and underground mining, surface mining share gain Energy: Price; Metal cutting data center wins, partially offset by lower drilling activity and prioritized other end markets within Infrastructure Aerospace & Defense: Strategic focus in both segments and project timing in Infrastructure; improved OEM build rates General Engineering: Price; metal cutting indirect channel share gain, partially offset by prioritization of other end markets within Infrastructure Transportation: Price partially offset by prior year EV project wins in Asia Pacific and continued softness in EMEA 20% 2% (1)% 0% 19% Sales Growth FX Divestiture Business days Organic Growth Sales Growth 36% 34% 28% 13% 2% Earthworks Energy Aero & Defense Gen Eng Transp Sales Growth by End Market (in constant currency)1 28% 15% 7% Americas Asia Pacific EMEA Sales Growth by Region (in constant currency)1 Margin Expansion Adjusted EBITDA of $634 million at 26.9% margin vs 15.2% in prior year • Timing of raw material related pricing compared to costs of ~$316M • Non raw material related pricing and tariff surcharges in Metal Cutting • Higher sales and production volume • Restructuring savings of $27M Partially offset by: • Higher compensation costs, tariffs and general inflation • Lower insurance proceeds Returned $71M to Shareholders $61 million Dividends $10 million Share Repurchases 1. Adjusted for Divestiture 2. Inflation Reduction Act
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FY26 ADJUSTED EPS BRIDGE ©2026 Kennametal Inc. | All rights reserved 19 Price/raw timing, volume and restructuring savings drive adj. EPS $3.18 $0.09 $0.05 ($0.03) ($0.06) ($0.05) $0.12 ($0.07) $4.57 $1.34 * IRA Inflation Reduction Act • Raw material pricing compared to costs of $3.11 per share • Non raw material related pricing and tariff surcharges in Metal Cutting • Higher sales and production volumes • Restructuring savings of $0.26 Partially offset by: • Higher compensation costs, tariffs and general inflation Includes: • Higher interest $(0.03) • Higher shares $(0.02)
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Q4 FY26 SEGMENT RESULTS ©2026 Kennametal Inc. | All rights reserved Price realization and volume drives sales growth InfrastructureMetal Cutting Energy 8% Aero & Def 14% Transp 23% Gen Eng 55% Quarter Ending June 30, 2026 ($ in millions) ( % of KMT total Metal Cutting Infrastructure Total Sales $398 $339 $737 Organic 22% 74% 42% FX 1% 1% 1% Divestiture 0% (3)% (1)% Business Days 1% 1% 1% Constant Currency Regional Growth: Americas 54% 29% 103% 60% EMEA 28% 16% 46% 24% AsiaPac 18% 20% 40% 28% Constant Currency End Market Growth: General Engineering 41% 25% 37% 28% Energy 18% 36% 135% 101% Transportation 12% 7% N/A 7% Earthworks 17% N/A 76% 76% Aerospace & Defense 12% 35% 63% 43% Adjusted Operating Income $108 $198 $306 Adjusted Operating Margin 27.3% 58.4% 41.5% Energy 30% Aero & Def 9% Earthworks 37% Gen Eng 24% Americas 63%EMEA 19% AsiaPac 18% Americas 47% EMEA 35% AsiaPac 18% * Divestiture effective June 6, 2025 20
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FY26 SEGMENT RESULTS ©2026 Kennametal Inc. | All rights reserved Price realization and volume drive sales growth 21 InfrastructureMetal Cutting Year Ending June 30, 2026 ($ in millions) FY26 % of KMT total Metal Cutting Infrastructure Total Sales $1,397 $959 $2,357 Organic 12% 30% 19% FX 3% 2% 2% Divestiture 0% (4)% (1)% Business Days 0% 0% 0% Constant Currency Regional Growth: Americas 52% 17% 44% 28% EMEA 29% 6% 11% 7% AsiaPac 19% 11% 21% 15% Constant Currency End Market Growth: General Engineering 43% 12% 15% 13% Energy 15% 19% 42% 34% Transportation 14% 2% N/A 2% Earthworks 15% N/A 36% 36% Aerospace & Defense 13% 25% 35% 28% Adjusted Operating Income $205 $282 $484 Adjusted Operating Margin 14.7% 29.4% 20.5% Energy 8% Aero & Def 15% Transp 24%Gen Eng 53% Energy 24% Aero & Def 10% Earthworks 38% Gen Eng 28% Americas 59% EMEA 20% AsiaPac 21%Americas 46% EMEA 36% AsiaPac 18%
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BALANCE SHEET ©2026 Kennametal Inc. | All rights reserved ASSETS ($ in millions) June 30, 2026 June 30, 2025 Cash and cash equivalents $96 $141 Accounts receivable, net 408 295 Inventories 1,108 538 Other current assets 159 65 Total current assets 1,772 1,039 Property, plant and equipment, net 844 920 Goodwill and other intangible assets, net 335 350 Other assets 219 236 Total assets $3,170 $2,545 LIABILITIES Revolving and other lines of credit and notes payable $32 $1 Accounts payable 370 196 Other current liabilities 275 225 Total current liabilities 677 422 Long-term debt 685 597 Other liabilities 194 202 Total liabilities 1,556 1,221 Kennametal Shareowners’ Equity 1,570 1,284 Noncontrolling interest 44 41 Total liabilities and equity $3,170 $2,545 Solidified Balance Sheet 22 * Amounts may not sum due to rounding
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 23 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 first quarter and full fiscal year of 2027 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 24 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. Adjusted Return on Invested Capital Adjusted ROIC is a non-GAAP financial measure and is defined by the Company as the previous twelve months’ net income, adjusted for interest expense and special items, divided by the sum of the previous 5 quarters’ average balances of debt and total equity. The most directly comparable GAAP measure is return on invested capital calculated utilizing GAAP net income. Management believes that adjusted ROIC provides additional insight into the underlying capital structure and performance of the Company. (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 25 Adjusted Results - QTD ($ in millions, except percents and per share data) Sales Gross Profit Operating Expense Operating Income Net Income(5) Diluted EPS Effective Tax Rate Q4 FY26 Reported Results $ 736.6 $ 433.6 $ 125.6 $ 302.9 $ 227.0 $ 2.91 23.3 % Reported Margins 58.9 % 17.1 % 41.1 % Restructuring and related charges — 0.1 — 2.8 2.3 0.03 17.2 Loss on early extinguishment of debt — — — — 1.7 0.02 24.5 Differences in projected annual tax rates — — — — (0.2) — (41.6) Q4 FY26 Adjusted Results $ 736.6 $ 433.6 $ 125.6 $ 305.7 $ 230.7 $ 2.96 23.4 % Q4 FY26 Adjusted Margins 58.9 % 17.0 % 41.5 % (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 Q4 FY25 Reported Results $ 516.4 $ 145.7 $ 105.9 $ 31.4 $ 21.6 $ 0.28 23.9 % Reported Margins 28.2 % 20.5 % 6.1 % Restructuring and related charges — 1.1 — 5.4 4.1 0.05 23.6 Loss on divestiture — — — 1.5 1.1 0.01 24.5 Differences in projected annual tax rates — — — — (0.7) — (46.3) Q4 FY25 Adjusted Results $ 516.4 $ 146.7 $ 105.8 $ 38.2 $ 26.1 $ 0.34 25.7 % Q4 FY25 Adjusted Margins 28.4 % 20.5 % 7.4 %
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 26 Adjusted Results - YTD ($ in millions, except percents and per share data) Sales Gross Profit Operating Expense Operating Income Net Income(5) Diluted EPS Effective Tax Rate FY26 Reported Results $ 2,356.7 $ 970.0 $ 479.0 $ 472.5 $ 342.4 $ 4.42 24.0 % Reported Margins 41.2 % 20.3 % 20.1 % Restructuring and related charges — 2.4 (0.1) 11.4 9.4 0.13 (0.1) Loss on early extinguishment of debt — — — — 1.7 0.02 — FY26 Adjusted Results $ 2,356.7 $ 972.4 $ 478.9 $ 483.9 $ 353.5 $ 4.57 23.9 % FY26 Adjusted Margins 41.3 % 20.3 % 20.5 % ($ in millions, except percents and per share data) Sales Gross Profit Operating Expense Operating Income Net Income(5) Diluted EPS Effective Tax Rate FY25 Reported Results $ 1,966.8 $ 598.1 $ 430.8 $ 143.1 $ 93.1 $ 1.20 25.2 % Reported Margins 30.4 % 21.9 % 7.3 % Restructuring and related charges — 1.3 (0.2) 13.3 10.5 0.13 (0.4) Loss on divestiture — — — 1.5 1.1 0.01 — FY25 Adjusted Results $ 1,966.8 $ 599.3 $ 430.7 $ 157.9 $ 104.7 $ 1.34 24.8 % FY25 Adjusted Margins 30.5 % 21.9 % 8.0 %
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 27 Adjusted EBITDA and EBITDA Margin Three months ended June 30, Year ended June 30, ($ in millions) 2026 2025 2026 2025 Net income attributable to Kennametal, reported $ 227.0 $ 21.6 $ 342.4 $ 93.1 Add back: Interest expense 10.0 6.2 28.6 24.9 Interest income (0.5) (0.4) (2.3) (3.1) Provision for income taxes, reported 69.8 7.2 110.9 33.3 Depreciation 33.2 32.4 133.6 125.7 Amortization 2.4 2.6 9.5 10.8 EBITDA $ 341.9 $ 69.7 $ 622.7 $ 284.7 Margin 46.4 % 13.5 % 26.4 % 14.5 % Adjustments: Restructuring and related charges 2.8 5.4 11.4 13.3 Loss on divestiture — 1.5 — 1.5 Adjusted EBITDA $ 344.7 $ 76.6 $ 634.1 $ 299.5 Adjusted Margin 46.8 % 14.8 % 26.9 % 15.2 %
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 28 Adjusted Segment Operating Income and Margins – QTD ($ in millions, except percents) Metal Cutting Sales Metal Cutting Operating Income Infrastructure Sales Infrastructure Operating Income Q4 FY26 Reported Results $ 397.8 $ 106.2 $ 338.8 $ 197.4 Reported Operating Margin 26.7 % 58.3 % Restructuring and related charges — 2.3 — 0.5 Q4 FY26 Adjusted Results $ 397.8 $ 108.4 $ 338.8 $ 197.9 Q4 FY26 Adjusted Operating Margin 27.3 % 58.4 % ($ in millions, except percents) Metal Cutting Sales Metal Cutting Operating Income Infrastructure Sales Infrastructure Operating Income Q4 FY25 Reported Results $ 320.7 $ 21.1 $ 195.8 $ 10.7 Reported Operating Margin 6.6 % 5.5 % Restructuring and related charges — 4.3 — 1.1 Loss on divestiture — — — 1.5 Q4 FY25 Adjusted Results $ 320.7 $ 25.3 $ 195.8 $ 13.3 Q4 FY25 Adjusted Operating Margin 7.9 % 6.8 %
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 29 Adjusted Segment Operating Income and Margins – YTD ($ in millions, except percents) Metal Cutting Sales Metal Cutting Operating Income Infrastructure Sales Infrastructure Operating Income FY26 Reported Results $ 1,397.4 $ 195.6 $ 959.3 $ 279.9 Reported Operating Margin 14.0 % 29.2 % Restructuring and related charges — 9.7 — 1.7 FY26 Adjusted Results $ 1,397.4 $ 205.3 $ 959.3 $ 281.6 FY26 Adjusted Operating Margin 14.7 % 29.4 % ($ in millions, except percents) Metal Cutting Sales Metal Cutting Operating Income Infrastructure Sales Infrastructure Operating Income FY25 Reported Results $ 1,219.7 $ 86.4 $ 747.2 $ 58.5 Reported Operating Margin 7.1 % 7.8 % Restructuring and related charges — 10.4 — 2.8 Loss on divestiture — — — 1.5 FY25 Adjusted Results $ 1,219.7 $ 96.8 $ 747.2 $ 62.8 FY25 Adjusted Operating Margin 7.9 % 8.4 %
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 30 Organic Sales Growth (Decline) – QTD and YTD Three months ended June 30, 2026 Metal Cutting Infrastructure Kennametal Organic sales growth 22 % 74 % 42 % Foreign currency exchange effect 1 1 1 Business days effect 1 1 1 Divestiture effect — (3) (1) Sales growth 24 % 73 % 43 % Three months ended June 30, 2025 Metal Cutting Infrastructure Kennametal Organic sales decline (4)% (5)% (5)% Foreign currency exchange effect — 1 — Business days effect — (1) — Divestiture effect — (1) — Sales decline (4)% (6)% (5)% Year ended June 30, 2026 Metal Cutting Infrastructure Kennametal Organic sales growth 12 % 30 % 19 % Foreign currency exchange effect 3 2 2 Business days effect — — — Divestiture effect — (4) (1) Sales growth 15 % 28 % 20 % Year ended June 30, 2025 Metal Cutting Infrastructure Kennametal Organic sales decline (5)% (2)% (4)% Foreign currency exchange effect (1) — (1) Business days effect 1 — 1 Sales decline (5)% (2)% (4)%
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 31 Constant Currency Regional Sales Growth – Q4 FY26 Metal Cutting Three months ended June 30, 2026 Americas EMEA Asia Pacific Constant currency regional sales growth 29 % 16 % 20 % Foreign currency exchange effect 1 4 (2) Regional sales growth 30 % 20 % 18 % Infrastructure Three months ended June 30, 2026 Americas EMEA Asia Pacific Constant currency regional sales growth 103 % 46 % 40 % Foreign currency exchange effect — 8 — Divestiture effect (10) — — Regional sales growth 93 % 54 % 40 % Kennametal Three months ended June 30, 2026 Americas EMEA Asia Pacific Constant currency regional sales growth 60 % 24 % 28 % Foreign currency exchange effect 1 5 (1) Divestiture effect (3) — — Regional sales growth 58 % 29 % 27 %
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 32 Constant Currency Regional Sales Growth (Decline) – Q4 FY25 Metal Cutting Three months ended June 30, 2025 Americas EMEA Asia Pacific Constant currency regional sales growth decline (4)% (5)% (1)% Foreign currency exchange effect (2) 2 — Regional sales decline (6)% (3)% (1)% Infrastructure Three months ended June 30, 2025 Americas EMEA Asia Pacific Constant currency regional sales decline (7)% (5)% (4)% Foreign currency exchange effect — 3 — Divestiture effect (1) — — Regional sales decline (8)% (2)% (4)% Kennametal Three months ended June 30, 2025 Americas EMEA Asia Pacific Constant currency regional sales decline (5)% (5)% (2)% Foreign currency exchange effect (1) 2 — Divestiture effect (1) — — Regional sales decline (7)% (3)% (2)%
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 33 Constant Currency Regional Sales Growth – FY26 Metal Cutting Year ended June 30, 2026 Americas EMEA Asia Pacific Constant currency regional sales growth 17 % 6 % 11 % Foreign currency exchange effect 1 7 (1) Regional sales growth 18 % 13 % 10 % Infrastructure Year ended June 30, 2026 Americas EMEA Asia Pacific Constant currency regional sales growth 44 % 11 % 21 % Foreign currency exchange effect — 8 — Divestiture effect (9) — — Regional sales growth 35 % 19 % 21 % Kennametal Year ended June 30, 2026 Americas EMEA Asia Pacific Constant currency regional sales growth 28 % 7 % 15 % Foreign currency exchange effect — 7 — Divestiture effect (3) — — Regional sales growth 25 % 14 % 15 %
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 34 Constant Currency Regional Sales Growth (Decline) – FY25 Metal Cutting Year ended June 30, 2025 Americas EMEA Asia Pacific Constant currency regional sales decline (2)% (7)% — % Foreign currency exchange effect (2) — (1) Regional sales decline (4)% (7)% (1)% Infrastructure Year ended June 30, 2025 Americas EMEA Asia Pacific Constant currency regional sales (decline) growth (4)% 4 % (3)% Foreign currency exchange effect (1) 1 — Regional sales (decline) growth (5)% 5 % (3)% Kennametal Year ended June 30, 2025 Americas EMEA Asia Pacific Constant currency regional sales decline (3)% (4)% (1)% Foreign currency exchange effect (1) — (1) Regional sales decline (4)% (4)% (2)%
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 35 Constant Currency End Market Sales Growth – Q4 FY26 Metal Cutting Three months ended June 30, 2026 Energy General Engineering Aerospace & Defense Transportation Constant currency end market sales growth 36 % 25 % 35 % 7 % Foreign currency exchange effect 6 2 2 1 End market sales growth 42 % 27 % 37 % 8 % Infrastructure Three months ended June 30, 2026 Energy General Engineering Aerospace & Defense Earthworks Constant currency end market sales growth 135 % 37 % 63 % 76 % Foreign currency exchange effect 1 1 4 4 Divestiture effect (10) (7) (3) — End market sales growth 126 % 31 % 64 % 80 % Kennametal Three months ended June 30, 2026 Energy General Engineering Aerospace & Defense Transportation Earthworks Constant currency end market sales growth 101 % 28 % 43 % 7 % 76 % Foreign currency exchange effect 3 1 2 1 4 Divestiture effect (5) (1) — — — End market sales growth 99 % 28 % 45 % 8 % 80 %
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 36 Constant Currency End Market Sales Growth (Decline) – Q4 FY25 Metal Cutting Three months ended June 30, 2025 Energy General Engineering Aerospace & Defense Transportation Constant currency end market sales (decline) growth (6)% (5)% 1 % (4)% Foreign currency exchange effect — — — — End market sales (decline) growth (6)% (5)% 1 % (4)% Infrastructure Three months ended June 30, 2025 Energy General Engineering Aerospace & Defense Earthworks Constant currency end market sales growth (decline) 1 % (5)% (16)% (7)% Foreign currency exchange effect — 1 1 — Divestiture effect (2) (2) — — End market sales decline (1)% (6)% (15)% (7)% Kennametal Three months ended June 30, 2025 Energy General Engineering Aerospace & Defense Transportation Earthworks Constant currency end market sales decline (2)% (5)% (5)% (4)% (7)% Foreign currency exchange effect — 1 1 — — Divestiture effect (1) (1) — — — End market sales decline (3)% (5)% (4)% (4)% (7)%
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 37 Constant Currency End Market Sales Growth – FY26 Metal Cutting Year ended June 30, 2026 Energy General Engineering Aerospace & Defense Transportation Constant currency end market sales growth 19 % 12 % 25 % 2 % Foreign currency exchange effect 5 3 2 3 End market sales growth 24 % 15 % 27 % 5 % Infrastructure Year ended June 30, 2026 Energy General Engineering Aerospace & Defense Earthworks Constant currency end market sales growth 42 % 15 % 35 % 36 % Foreign currency exchange effect 1 1 6 3 Divestiture effect (7) (7) (2) — End market sales growth 36 % 9 % 39 % 39 % Kennametal Year ended June 30, 2026 Energy General Engineering Aerospace & Defense Transportation Earthworks Constant currency end market sales growth 34 % 13 % 28 % 2 % 36 % Foreign currency exchange effect 2 2 4 3 3 Divestiture effect (4) (2) (1) — — End market sales growth 32 % 13 % 31 % 5 % 39 %
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 38 Constant Currency End Market Sales Growth (Decline) – FY25 Metal Cutting Year ended June 30, 2025 Energy General Engineering Aerospace & Defense Transportation Constant currency end market sales (decline) growth (1)% (5)% 3 % (4)% Foreign currency exchange effect (1) (1) (1) (2) End market sales (decline) growth (2)% (6)% 2 % (6)% Infrastructure Year ended June 30, 2025 Energy General Engineering Aerospace & Defense Earthworks Constant currency end market sales (decline) growth — % (3)% 16 % (7)% Foreign currency exchange effect — (1) — 1 End market sales (decline) growth — % (4)% 16 % (6)% Kennametal Year ended June 30, 2025 Energy General Engineering Aerospace & Defense Transportation Earthworks Constant currency end market sales (decline) growth — % (4)% 6 % (4)% (7)% Foreign currency exchange effect (1) (1) — (2) 1 End market sales (decline) growth (1)% (5)% 6 % (6)% (6)%
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 39 Net Debt and Free Operating Cash Flow Year ended June 30, (in millions) 2026 2025 Net cash flow from operating activities $ (4.0) $ 208.3 Purchases of property, plant and equipment (76.9) (89.0) Proceeds from disposals of property, plant and equipment 1.8 1.8 Free operating cash flow $ (79.1) $ 121.2 Net Debt Year ended (in millions) 6/30/2026 6/30/2025 6/30/2024 6/30/2023 Total debt (gross) $ 717.5 $ 597.8 $ 597.4 $ 595.9 Less: cash and cash equivalents 95.8 140.5 128.0 106.0 Net debt $ 621.7 $ 457.3 $ 469.4 $ 489.9
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 40 Primary Working Capital – FY26 (in thousands, except percents) 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Average Current assets $ 1,771,771 $ 1,278,077 $ 1,121,278 $ 1,032,798 $ 1,039,270 Current liabilities 676,708 536,069 439,350 396,978 422,329 Working capital, GAAP $ 1,095,063 $ 742,008 $ 681,928 $ 635,820 $ 616,941 Excluding items: Cash and cash equivalents (95,791) (106,850) (129,318) (103,497) (140,540) Other current assets (159,092) (89,452) (81,835) (76,093) (65,092) Total excluded current assets (254,883) (196,302) (211,153) (179,590) (205,632) Adjusted current assets 1,516,888 1,081,775 910,125 853,208 833,638 Revolving and other lines of credit and notes payable (32,170) (16,750) (1,430) (1,405) (977) Other current liabilities (274,697) (256,251) (217,510) (202,130) (225,423) Total excluded current liabilities (306,867) (273,001) (218,940) (203,535) (226,400) Adjusted current liabilities 369,841 263,068 220,410 193,443 195,929 Primary working capital $ 1,147,047 $ 818,707 $ 689,715 $ 659,765 $ 637,709 $ 790,589 Three Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 Total Sales $ 736,614 $ 592,585 $ 529,525 $ 497,974 $ 2,356,698 Primary working capital as a percentage of sales 33.5 %
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 41 Primary Working Capital – FY25 (in thousands, except percents) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Average Current assets $ 1,039,270 $ 1,013,360 $ 968,774 $ 1,003,869 $ 1,002,592 Current liabilities 422,329 415,626 382,228 398,386 415,961 Working capital, GAAP $ 616,941 $ 597,734 $ 586,546 $ 605,483 $ 586,631 Excluding items: Cash and cash equivalents (140,540) (97,467) (121,151) (119,588) (127,971) Other current assets (65,092) (68,960) (56,848) (58,390) (57,179) Total excluded current assets (205,632) (166,427) (177,999) (177,978) (185,150) Adjusted current assets 833,638 846,933 790,775 825,891 817,442 Revolving and other lines of credit and notes payable (977) (12,561) (1,370) (1,426) (1,377) Other current liabilities (225,423) (210,142) (182,346) (195,052) (223,043) Total excluded current liabilities (226,400) (222,703) (183,716) (196,478) (224,420) Adjusted current liabilities 195,929 192,923 198,512 201,908 191,541 Primary working capital $ 637,709 $ 654,010 $ 592,263 $ 623,983 $ 625,901 $ 626,773 Three Months Ended 6/30/2025 3/31/2025 12/31/2024 9/30/2024 Total Sales $ 516,448 $ 486,399 $ 482,051 $ 481,948 $ 1,966,846 Primary working capital as a percentage of sales 31.9 %
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 42 Primary Working Capital – FY24 (in thousands, except percents) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Average Current assets $ 1,002,592 $ 999,937 $ 1,009,820 $ 1,010,555 $ 1,026,789 Current liabilities 415,961 413,245 414,108 419,846 433,975 Working capital, GAAP $ 586,631 $ 586,692 $ 595,712 $ 590,709 $ 592,814 Excluding items: Cash and cash equivalents (127,971) (92,119) (90,735) (95,098) (106,021) Other current assets (57,179) (56,708) (57,753) (56,457) (55,825) Total excluded current assets (185,150) (148,827) (148,488) (151,555) (161,846) Adjusted current assets 817,442 851,110 861,332 859,000 864,943 Revolving and other lines of credit and notes payable (1,377) (12,302) (23,315) (31,179) (689) Other current liabilities (223,043) (208,174) (197,791) (191,298) (229,945) Total excluded current liabilities (224,420) (220,476) (221,106) (222,477) (230,634) Adjusted current liabilities 191,541 192,769 193,002 197,369 203,341 Primary working capital $ 625,901 $ 658,341 $ 668,330 $ 661,631 $ 661,602 $ 655,161 Three Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Total Sales $ 543,308 $ 515,794 $ 495,320 $ 492,476 $ 2,046,898 Primary working capital as a percentage of sales 32.0 %
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 43 Primary Working Capital – FY23 (in thousands, except percents) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 Average Current assets $ 1,026,789 $ 1,079,035 $ 1,048,303 $ 1,011,486 $ 1,024,708 Current liabilities 433,975 488,729 494,334 497,488 485,610 Working capital, GAAP $ 592,814 $ 590,306 $ 553,969 $ 513,998 $ 539,098 Excluding items: Cash and cash equivalents (106,021) (93,474) (76,784) (64,568) (85,586) Other current assets (55,825) (76,607) (74,723) (76,732) (72,940) Total excluded current assets (161,846) (170,081) (151,507) (141,300) (158,526) Adjusted current assets 864,943 908,954 896,796 870,186 866,182 Revolving and other lines of credit and notes payable (689) (64,055) (78,805) (85,239) (21,186) Other current liabilities (229,945) (227,516) (208,807) (206,309) (236,537) Total excluded current liabilities (230,634) (291,571) (287,612) (291,548) (257,723) Adjusted current liabilities 203,341 197,158 206,722 205,940 227,887 Primary working capital $ 661,602 $ 711,796 $ 690,074 $ 664,246 $ 638,295 $ 673,203 Three Months Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Total Sales $ 550,234 $ 536,036 $ 497,121 $ 494,792 $ 2,078,183 Primary working capital as a percentage of sales 32.4 %
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 44 Return on Invested Capital – FY26 (in thousands, except percents) 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Average Total debt (gross) $ 717,450 $ 614,144 $ 598,622 $ 598,395 $ 597,765 $ 625,275 Total equity 1,613,437 1,398,372 1,357,657 1,325,597 1,324,648 1,403,942 Total invested capital $ 2,330,887 $ 2,012,516 $ 1,956,279 $ 1,923,992 $ 1,922,413 $ 2,029,217 Three months ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 Total Interest expense $ 10,023 $ 6,264 $ 6,089 $ 6,186 $ 28,561 Less: income tax benefit (6,855) Total interest expense, net of tax $ 21,706 Interest expense $ 28,561 Less: Loss of early extinguishment of debt (2,213) Less: income tax benefit (5,580) Total adjusted interest expense, net of tax $ 20,768 Year ended 6/30/2026 Net income $ 350,414 Total interest expense, net of tax 21,706 $ 372,120 Average invested capital $ 2,029,217 Return on Invested Capital 18.3 % Net income $ 350,414 Total adjusted interest expense, net of tax 20,768 Adjustments, net of tax: Restructuring and related charges 9,400 $ 380,582 Average invested capital $ 2,029,217 Adjusted Return on Invested Capital 18.8 %
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NON- GAAP RECONCILIATIONS ©2026 Kennametal Inc. | All rights reserved 45 Return on Invested Capital – FY25 (in thousands, except percents) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Average Total debt (gross) $ 597,765 $ 609,147 $ 597,754 $ 597,608 $ 597,357 $ 599,926 Total equity 1,324,648 1,278,916 1,260,101 1,317,963 1,288,599 1,294,045 Total invested capital $ 1,922,413 $ 1,888,063 $ 1,857,855 $ 1,915,571 $ 1,885,956 $ 1,893,971 Three months ended 6/30/2025 3/31/2025 12/31/2024 9/30/2024 Total Interest expense $ 6,225 $ 6,213 $ 6,180 $ 6,312 $ 24,930 Less: income tax benefit (6,282) Total interest expense, net of tax $ 18,648 Adjustments 100 Total adjusted interest expense, net of tax $ 18,748 Year ended 6/30/2025 Net income $ 98,708 Total interest expense, net of tax 18,648 $ 117,356 Average invested capital $ 1,893,971 Return on Invested Capital 6.2 % Net income $ 98,708 Total adjusted interest expense, net of tax 18,748 Adjustments, net of tax: Restructuring and related charges $ 10,475 1,142 $ 129,073 Average invested capital $ 1,893,971 Adjusted Return on Invested Capital 6.8 %