Kennametal Inc. reported a decline in its financial performance for the year 2025. The company recorded sales of $1,966.8 million, reflecting a 4 percent decrease from $2,046.9 million in 2024. This decline was due to an organic sales drop of 4 percent and a 1 percent unfavorable currency exchange effect, partially offset by a 1 percent favorable business days effect. Net income attributable to Kennametal stood at $93.1 million, compared to $109.3 million in the previous year. This translated to earnings per diluted share $(EPS)$ of $1.20 in 2025, down from $1.37 in 2024. The company attributed the decrease in net income to the factors previously discussed. Operating income for the year was $143.1 million, with a margin of 7.3 percent, compared to $170.2 million and an 8.3 percent margin in 2024. In terms of end markets, Aerospace & Defense saw a sales growth of 6 percent, while Energy experienced a slight decline of 1 percent. General Engineering and Transportation sectors reported declines of 5 percent and 6 percent respectively, and Earthworks saw a 6 percent decrease. Regionally, sales declined by 4 percent in the Americas and Europe, the Middle East, and Africa (EMEA), while the Asia Pacific region experienced a 2 percent decline. Kennametal also noted the impact of the One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025, in the United States, which includes broad tax reform provisions. The company is currently assessing the potential impact of this legislation on its business. Additionally, Kennametal settled a tax matter with the Italian tax authority, resulting in an income tax charge of $2.9 million for fiscal 2024, effectively closing the matter.