Kennametal Sales, Earnings Fall Amid ‘Significant Headwinds’

Kennametal posted declines in sales, profits and earnings in its recently completed fiscal year amid what company officials called "significant headwinds.” 

The cutting tools and engineered components supplier on Wednesday reported $1.97 billion in annual sales, down 4% from the $2.05 billion in the previous 12-month window. Gross profit dropped from $627.1 million to $598.1 million year-over-year, while operating income fell from $170.2 million to $143.1 million. Net income slipped from $113.6 million to $98.7 million.

Sales in the final quarter of the year were also down compared to the same quarter last year from $543.3 million to $516.4 million. Quarterly net income declined from $38.2 million to $23.1 million.

Kennametal President and CEO Sanjay Chowbey said that the year forced the company to respond to “persistent market softness, tariff impacts and foreign exchange weakness,” among other headwinds. The company said that tariffs had a net impact of $4 million in the fiscal year, while unfavorable foreign currency exchange dented its numbers by $6 million.

Chowbey said that the company took steps to address productivity and cut costs, as well as reduce its footprint: the company in June sold its surface coating and welding supply business in Goshen, Indiana. The company intends to continue its capacity-reduction and cost-cutting efforts, although it also expects headwinds to remain throughout its 2026 fiscal year, as well.

Kennametal expects sales in the new fiscal year to range between $1.95 billion and $2.05 billion, including $465 million to $485 million in the first quarter.

“With strategic and thoughtful actions on right sizing capacity, cost structure and portfolio optimization, and growth initiatives, I am confident that we will build a more resilient business and unlock value for our shareholders,” Chowbey said in a statement.