Kennametal reported its 2025 third quarter results on May 7 for the period ended March 31, which showed a decline in sales, while margins increased year-over-year.

The metalworking and tooling products manufacturer posted 2Q25 total sales of $486 million, which were down 6% year-over-year and up 0.8% month-over-month. On an organic basis, sales were down 3% year-over-year, impacted by an unfavorable currency change effect of 3%.

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By Kennametal business unit in 3Q25:

• Metal Cutting sales of $304 million decreased 7% year-over-year, with organic sales down 4%.
• Infrastructure sales of $182 million decreased 4% year-over-year, with organic sales down 2%.

Kennametal’s 3Q25 operating profit was $44 million on 9.1% margin, compared with $35 million on a 6.8% margin a year earlier. 3Q25 net profit of $33 million was up from 3Q24’s $20 net profit of $20 million.

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“During the quarter we demonstrated continued progress on our growth and cost initiatives despite weak market conditions, primarily in EMEA and the Americas,” Kennametal President and CEO Sanjay Chowbey said in the company’s financial release. “The market headwinds resulted in sales slightly below our midpoint while adjusted EPS exceeded the upper end of our outlook primarily due to an advanced manufacturing production credit.”

In updating its 2025 annual outlook, the company said it now expects sales between $1.97 billion to $1.99 billion.