Kennametal Inc. reported fiscal 2025 second quarter results with sales of $482 million, a 3 percent decrease from $495 million in the prior year quarter, reflecting a 6 percent organic sales decline. Diluted earnings per share (EPS) were $0.23, down from $0.29 in the prior year, while adjusted EPS was $0.25 compared to $0.30.
Operating income for the quarter was $32 million, or a 6.6 percent margin, an increase from $28 million or a 5.7 percent margin in the prior year quarter, primarily due to lower raw material costs and pricing. The company achieved incremental year-over-year restructuring savings of approximately $6 million, with annualized run rate pre-tax savings of $35 million from prior initiatives substantially complete.
Subsequent to quarter-end, Kennametal announced additional restructuring actions on January 14, 2025, expected to deliver approximately $15 million in annualized run rate pre-tax savings by the end of fiscal 2025, with estimated pre-tax charges of $25 million. The company lowered its full-year fiscal 2025 outlook, now expecting sales between $1.95 billion and $2.00 billion, and adjusted EPS in the range of $1.05 to $1.30.
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