Kennametal Expects FY25 Sales Of $2.0B-$2.1B Vs $2.064B Est, Adj EPS Of $1.30-$1.70 Vs $1.56 Est
Portfolio Pulse from Benzinga Newsdesk
Kennametal has released its financial outlook for FY25, projecting sales between $2.0 billion and $2.1 billion, and adjusted EPS between $1.30 and $1.70. The company expects improved operating performance, offset by higher effective tax rates and currency headwinds. Pricing actions are anticipated to cover raw material costs, wages, and general inflation. Interest expense is projected at $27 million, with an adjusted effective tax rate of 27.5%. Free operating cash flow is expected to exceed 125% of adjusted net income, with primary working capital at 30% of sales by year-end. Capital spending is forecasted at $110 million.

August 07, 2024 | 10:35 am
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Kennametal's FY25 outlook projects sales between $2.0 billion and $2.1 billion, and adjusted EPS between $1.30 and $1.70. The company expects improved operating performance, offset by higher effective tax rates and currency headwinds. Pricing actions are anticipated to cover raw material costs, wages, and general inflation.
The positive sales and EPS projections, along with measures to counteract inflation and cost pressures, suggest a favorable short-term impact on KMT's stock price. However, higher tax rates and currency headwinds may temper the overall optimism.
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