The chart below shows how KMT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KMT sees a -3.11% change in stock price 10 days leading up to the earnings, and a +0.35% change 10 days following the report. On the earnings day itself, the stock moves by -0.44%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Free Cash Flow Surge: 1. Strong Free Cash Flow: Free operating cash flow increased to $21 million, up significantly from negative $3 million in the prior year.
Share Repurchase Commitment: 2. Share Repurchase Program: The company repurchased $15 million worth of shares during the quarter, continuing its commitment to returning cash to shareholders.
Aerospace and Defense Expansion: 3. Aerospace and Defense Growth: The Aerospace and Defense segment grew 13% year-over-year, demonstrating strong demand in this key market.
Restructuring Cost Savings: 4. Cost Savings from Restructuring: The company realized approximately $5 million in savings from its restructuring program, contributing to an annualized run rate of $35 million in savings.
Cash Flow Improvement: 5. Increased Cash from Operating Activities: Cash from operating activities year-to-date was $46 million, compared to $26 million in the prior year period.
Negative
Sales Decline Overview: Sales decreased 2% year-over-year, with metal cutting down 4% and EMEA declining 1%.
Decline in EBITDA Margin: Adjusted EBITDA margin fell to 14.3%, down from 16.6% in the prior year, indicating a decline in profitability.
Earnings Per Share Decline: Adjusted EPS decreased to $0.29, compared to $0.41 in the prior year quarter, reflecting lower earnings performance.
Metal Cutting Margin Decline: Metal cutting adjusted operating margin decreased 300 basis points year-over-year to 8.2%, driven by lower sales and production volumes.
Market Decline Overview: General Engineering and Transportation end-markets experienced declines of 3% and 2% respectively, contributing to overall market weakness.
Kennametal Inc. (KMT) Q1 2025 Earnings Call Transcript
KMT.N
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