Q4 2024 Kennametal Inc Earnings Call Transcript
Key Points
- Kennametal Inc (KMT) achieved the highest free operating cash flow since fiscal 2015.
- The company completed a $200 million share repurchase program, returning significant value to shareholders.
- Adjusted EBITDA margin increased by 100 basis points year-over-year despite market softness and challenges.
- Aerospace and defense sales grew by 23% year-over-year, driven by market growth and strategic initiatives.
- Kennametal Inc (KMT) successfully managed the aftermath of a tornado at their Rogers, Arkansas plant, resuming operations quickly.
- Organic sales declined by 1% during the quarter, with infrastructure sales down 2% and metal coatings sales flat.
- Transportation sales decreased by 1% year-over-year due to project timing and lower volume.
- Energy sales in the Americas declined by 6% due to lower U.S. land-based rig counts and wind energy project delays in Asia.
- Earthworks business faced competitive market pressures, resulting in a 6% decline.
- The adjusted effective tax rate increased to 29.3%, driven by unfavorable geographical mix and prior year adjustments.
Good morning. I would like to welcome everyone to Kennametal's fourth-quarter and fiscal 2024 earnings conference call. (Operator Instructions)
Please note that today's event is being recorded. I would now like to turn the conference over to Michael PC, Vice President of Investor Relations. Please go ahead, sir.
Thank you, operator, and welcome, everyone, and thank you for joining us to review Kennametal's fourth quarter and fiscal 2024 results. This morning we issued our earnings press release and posted our presentation slides on our website.
We will be referring to that slide deck throughout today's call. I'm Michael pc, Vice President of Investor Relations. Joining me on the call today are Sanjay Chubb, a President and Chief Executive Officer, Pat Watson, Vice President and Chief Financial Officer, and Franklin Cardenas, Vice President and President of Infrastructure. After Sanjay impacts prepared remarks, we will open the line for questions.
At this time, I
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