MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Management is responsible for establishing and maintaining adequate internal control over financial reporting. Management has conducted an assessment of the Company’s internal controls over financial reporting as of June 30, 2026 using the criteria in Internal Control – Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Based on its assessment, management has concluded that the Company maintained effective internal control over financial reporting as of June 30, 2026, based on the criteria in Internal Control – Integrated Framework (2013) issued by the COSO. The effectiveness of the Company’s internal control over financial reporting as of June 30, 2026 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which is included in this Annual Report on Form 10-K. 32 Table of Contents Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of Kennametal Inc. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Kennametal Inc. and its subsidiaries (the "Company") as of June 30, 2026 and 2025, and the related consolidated statements of income, of comprehensive income, of shareholders' equity and of cash flows for each of the three years in the period ended June 30, 2026, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of June 30, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2026 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Basis for Opinions The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 8. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 33 Table of Contents Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Provision for Income Taxes As described in Notes 2 and 13 to the consolidated financial statements, the Company recorded a provision for income taxes of $110.9 million for the year ended June 30, 2026. The Company’s provision for income taxes is calculated based on income and statutory tax rates in the various jurisdictions in which the Company operates and requires the use of management’s estimates and judgments. Management judgment is required in determining the Company’s worldwide provision for income taxes and recording the related assets and liabilities, including accruals for unrecognized tax benefits and assessing the need for valuation allowances on deferred tax assets. The principal considerations for our determination that performing procedures relating to the provision for income taxes is a critical audit matter are (i) a high degree of auditor effort in performing procedures and evaluating management’s provision for income taxes and the related assets and liabilities, including the accruals for unrecognized tax benefits, as well as management’s assessment of the need for valuation allowances on deferred tax assets and (ii) the audit effort involved the use of professionals with specialized skill and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the provision for income taxes, including controls over accruals for unrecognized tax benefits and valuation allowances on deferred tax assets. These procedures also included, among others (i) testing the accuracy of the provision for income taxes, which included the effective tax rate reconciliation and permanent and temporary differences, (ii) evaluating whether the data utilized in the calculations of the provision for income taxes and deferred tax assets and liabilities were appropriate and consistent with evidence obtained in other areas of the audit, (iii) evaluating the identification of accruals for unrecognized tax benefits and the reasonableness of the more likely than not determination in consideration of court decisions, legislative actions, statutes of limitations, and developments in tax examinations by jurisdiction, and (iv) evaluating the reasonableness of management’s assessment of the realizability of its deferred tax assets based on expectations of the ability to utilize its tax attributes through testing of historical and estimated future taxable income. Professionals with specialized skill and knowledge were used to assist in evaluating the reasonableness of management’s judgments and estimates related to the application of foreign and domestic tax laws and regulations. /s/ PricewaterhouseCoopers LLP Pittsburgh, Pennsylvania August 12, 2026 We have served as the Company’s auditor since 2002. 34 Table of Contents CONSOLIDATED STATEMENTS OF INCOME Year ended June 30 (in thousands, except per share data) 2026 2025 2024 Sales $ 2,356,698 $ 1,966,845 $ 2,046,899 Cost of goods sold 1,386,742 1,368,775 1,419,806 Gross profit 969,956 598,070 627,093 Operating expense 478,993 430,835 433,161 Restructuring and other charges, net (Note 16) 8,909 11,813 12,152 Loss on divestiture — 1,512 — Amortization of intangibles 9,522 10,787 11,557 Operating income 472,532 143,123 170,223 Interest expense 28,561 24,930 26,472 Other income, net (17,358) (13,811) (699) Income before income taxes 461,329 132,004 144,450 Provision for income taxes (Note 13) 110,915 33,296 30,809 Net income 350,414 98,708 113,641 Less: Net income attributable to noncontrolling interests 8,025 5,583 4,318 Net income attributable to Kennametal $ 342,389 $ 93,125 $ 109,323 PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS Basic earnings per share $ 4.49 $ 1.21 $ 1.38 Diluted earnings per share $ 4.42 $ 1.20 $ 1.37 Basic weighted average shares outstanding 76,215 77,264 79,390 Diluted weighted average shares outstanding 77,424 77,894 79,965 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Year ended June 30 (in thousands) 2026 2025 2024 Net income $ 350,414 $ 98,708 $ 113,641 Other comprehensive (loss) income, net of tax Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges (207) 771 (26) Reclassification of unrealized gain on expired derivatives designated and qualified as cash flow hedges (556) (1,574) (725) Unrecognized net pension and other postretirement benefit plans gain (loss) 6,479 (7,965) (10,100) Reclassification of net pension and other postretirement benefit plans loss 8,680 6,257 4,227 Foreign currency translation adjustments (28,974) 51,240 (14,164) Total other comprehensive (loss) income, net of tax (14,578) 48,729 (20,788) Total comprehensive income 335,836 147,437 92,853 Less: comprehensive income attributable to noncontrolling interests 5,783 6,418 3,777 Comprehensive income attributable to Kennametal Shareholders $ 330,053 $ 141,019 $ 89,076 The accompanying notes are an integral part of these consolidated financial statements. 35 Table of Contents CONSOLIDATED BALANCE SHEETS As of June 30 (in thousands, except per share data) 2026 2025 ASSETS Current assets: Cash and cash equivalents $ 95,791 $ 140,540 Accounts receivable, less allowance for doubtful accounts of $8,812 and $8,819 respectively 408,438 295,401 Inventories (Note 7) 1,108,450 538,237 Other current assets 159,092 65,092 Total current assets 1,771,771 1,039,270 Property, plant and equipment: Land and buildings 439,537 440,187 Machinery and equipment 2,014,787 2,058,497 Less accumulated depreciation (1,610,740) (1,578,770) Property, plant and equipment, net 843,584 919,914 Other assets: Goodwill (Note 8) 279,213 282,726 Other intangible assets, less accumulated amortization of $181,878 and $175,501, respectively (Note 8) 55,886 67,209 Operating lease right-of-use assets (Note 9) 45,803 45,221 Deferred income taxes (Note 13) 41,280 90,473 Long-term prepaid pension benefit (Note 14) 87,268 75,062 Other 41,947 25,537 Total other assets 551,397 586,228 Total assets $ 3,166,752 $ 2,545,412 LIABILITIES Current liabilities: Revolving and other lines of credit and notes payable (Note 12) $ 32,170 $ 977 Current operating lease liabilities (Note 9) 11,718 12,187 Accounts payable 369,841 195,929 Accrued income taxes 15,967 8,546 Accrued vacation pay 13,121 12,123 Accrued payroll 54,803 43,461 Other current liabilities (Note 10) 179,088 149,106 Total current liabilities 676,708 422,329 Long-term debt, less current maturities (Note 11) 685,280 596,788 Operating lease liabilities (Note 9) 34,538 33,408 Deferred income taxes (Note 13) 31,016 32,609 Accrued postretirement benefits (Note 14) 5,323 5,752 Accrued pension benefits (Note 14) 96,726 106,963 Accrued income taxes 2,578 1,936 Other liabilities 21,146 20,979 Total liabilities 1,553,315 1,220,764 Commitments and contingencies (Note 20) EQUITY Kennametal Shareholders’ Equity: Preferred stock, no par value; 5,000 shares authorized; none issued — — Capital stock, $1.25 par value; 120,000 shares authorized; 76,213 and 76,012 shares issued, respectively 95,267 95,015 Additional paid-in capital 390,310 373,902 Retained earnings 1,483,297 1,201,755 Accumulated other comprehensive loss (Note 15) (399,030) (386,693) Total Kennametal Shareholders’ Equity 1,569,844 1,283,979 Noncontrolling interests 43,593 40,669 Total equity 1,613,437 1,324,648 Total liabilities and equity $ 3,166,752 $ 2,545,412 The accompanying notes are an integral part of these consolidated financial statements. 36 Table of Contents CONSOLIDATED STATEMENTS OF CASH FLOWS Year ended June 30 (in thousands) 2026 2025 2024 OPERATING ACTIVITIES Net income $ 350,414 $ 98,708 $ 113,641 Adjustments to reconcile to cash from operations: Depreciation 133,633 125,709 123,130 Amortization 9,522 10,787 11,557 Stock-based compensation expense 34,851 22,115 24,340 Restructuring and other charges, net 8,909 11,813 12,152 Deferred income taxes 44,686 (13,084) (8,017) Gain on insurance recoveries (3,400) (12,100) — Loss on divestiture — 1,512 — Debt refinancing charge (Note 11) 1,261 — — Other 10,648 2,048 1,405 Changes in certain assets and liabilities: Accounts receivable (116,866) 9,068 (2,624) Inventories (593,396) (17,396) 36,835 Other current assets (102,093) 2,002 (2,702) Accounts payable and accrued liabilities 226,097 (6,157) (6,086) Accrued income taxes 11,006 (12,267) (16,219) Accrued pension and postretirement benefits (7,051) (7,393) (9,481) Other (12,229) (7,041) (823) Net cash flow (used for) provided by operating activities (4,008) 208,324 277,108 INVESTING ACTIVITIES Purchases of property, plant and equipment (76,905) (88,971) (107,561) Disposals of property, plant and equipment 1,775 1,841 5,425 Proceeds from divestiture — 18,689 — Proceeds from insurance recoveries 3,400 11,793 — Business acquisitions — — (4,010) Other 435 (5,177) (3,280) Net cash flow used for investing activities (71,295) (61,825) (109,426) FINANCING ACTIVITIES Net increase (decrease) in notes payable 11,293 (459) 714 Net increase in revolving and other lines of credit 20,000 — — Term debt borrowings 296,994 — — Term debt repayments (209,387) — — Purchase of capital stock (10,106) (60,120) (65,574) The effect of employee benefit and stock plans and dividend reinvestment (8,086) (7,059) (9,982) Cash dividends paid to Shareholders (60,847) (61,852) (63,431) Other (8,227) (4,429) (3,474) Net cash flow provided by (used for) financing activities 31,634 (133,919) (141,747) Effect of exchange rate changes on cash and cash equivalents (1,080) (11) (3,985) CASH AND CASH EQUIVALENTS Net (decrease) increase in cash and cash equivalents (44,749) 12,569 21,950 Cash and cash equivalents, beginning of year 140,540 127,971 106,021 Cash and cash equivalents, end of year $ 95,791 $ 140,540 $ 127,971 The accompanying notes are an integral part of these consolidated financial statements. 37 Table of Contents CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY 2026 2025 2024 Year ended June 30 (in thousands) Shares Amount Shares Amount Shares Amount CAPITAL STOCK Balance at beginning of year 76,012 $ 95,015 77,889 $ 97,361 79,835 $ 99,794 Dividend reinvestment 4 5 7 9 7 9 Capital stock issued under employee benefit and stock plans 677 846 614 767 649 810 Purchase of capital stock (480) (599) (2,498) (3,122) (2,602) (3,252) Balance at end of year 76,213 95,267 76,012 95,015 77,889 97,361 ADDITIONAL PAID-IN CAPITAL Balance at beginning of year 373,902 416,620 465,406 Dividend reinvestment 110 158 169 Capital stock issued under employee benefit and stock plans 25,804 14,121 13,367 Purchase of capital stock (9,506) (56,997) (62,322) Balance at end of year 390,310 373,902 416,620 RETAINED EARNINGS Balance at beginning of year 1,201,755 1,170,482 1,124,590 Net income attributable to Kennametal 342,389 93,125 109,323 Cash dividends ($0.80 per share in 2026, 2025 and 2024, respectively) (60,847) (61,852) (63,431) Balance at end of year 1,483,297 1,201,755 1,170,482 ACCUMULATED OTHER COMPREHENSIVE LOSS Balance at beginning of year (386,693) (434,588) (414,343) Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges (207) 771 (26) Reclassification of unrealized gain on expired derivatives designated and qualified as cash flow hedges (556) (1,574) (725) Unrecognized net pension and other postretirement benefit plans gain (loss) 6,479 (7,965) (10,100) Reclassification of net pension and other postretirement benefit plans loss 8,680 6,257 4,227 Foreign currency translation adjustments (26,733) 50,406 (13,621) Other comprehensive (loss) income attributable to Kennametal, net of tax (12,337) 47,895 (20,245) Balance at end of year (399,030) (386,693) (434,588) NONCONTROLLING INTERESTS Balance at beginning of year 40,669 38,724 38,721 Net income 8,025 5,583 4,318 Other comprehensive (loss) income, net of tax (2,241) 836 (541) Cash dividends (2,860) (4,474) (3,774) Balance at end of year 43,593 40,669 38,724 Total equity, June 30 $ 1,613,437 $ 1,324,648 $ 1,288,599 The accompanying notes are an integral part of these consolidated financial statements. 38 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 — NATURE OF OPERATIONS With more than 85 years of materials expertise, the Company is a global industrial technology leader, helping customers across the General Engineering, Transportation, Earthworks, Energy and Aerospace & Defense end markets manufacture with precision and efficiency. This expertise includes the development and application of tungsten carbides, ceramics, super-hard materials and solutions used in metal cutting and extreme wear applications to keep customers up and running longer against conditions such as corrosion and high temperatures. Our standard and custom product offering spans metal cutting and wear applications including turning, milling, hole making, tooling systems and services, as well as specialized wear components and metallurgical powders. End users of the Company's metal cutting products include manufacturers engaged in a diverse array of industries including: the manufacturers of transportation vehicles and components, machine tools and light and heavy machinery; airframe and aerospace components; and energy-related components for the oil and gas industry, as well as power generation. The Company’s wear and metallurgical powders are used by producers and suppliers in equipment-intensive operations such as road construction, mining, quarrying, oil and gas exploration, refining, production and supply, and for aerospace and defense. Unless otherwise specified, any reference to a “year” is to a fiscal year ended June 30. When used in this Annual Report, unless the context requires otherwise, the terms “we,” “our” and “us” refer to Kennametal Inc. and its subsidiaries. NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The summary of our significant accounting policies is presented below to assist in evaluating our consolidated financial statements. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include our accounts and those of our subsidiaries in which we have a controlling interest. All intercompany balances and transactions are eliminated. USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS In preparing our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP), we make judgments and estimates about the amounts reflected in our consolidated financial statements. As part of our financial reporting process, our management collaborates to determine the necessary information on which to base our judgments and develop estimates used to prepare the consolidated financial statements. We use historical experience and available information to make these judgments and estimates. Actual amounts could differ from the estimates reflected in our consolidated financial statements. CASH AND CASH EQUIVALENTS Cash investments having original maturities of three months or less are considered cash equivalents. Cash equivalents principally consist of investments in money market funds and bank deposits at June 30, 2026. ACCOUNTS RECEIVABLE We market our products to a diverse customer base throughout the world. Trade credit is extended based upon periodically updated evaluations of each customer’s ability to satisfy its obligations. We record allowances for estimated losses resulting from the inability of our customers to make required payments. We assess the creditworthiness of our customers based on multiple sources of information and analyze additional factors such as our historical bad debt experience, industry concentrations of credit risk, current economic trends, changes in customer payment terms and forward-looking information. INVENTORIES We use the last-in, first-out (LIFO) method for determining the cost of a significant portion of our United States (U.S.) inventories, and they are stated at the lower of cost or market. The cost of the remainder of our inventories is measured using approximate costs determined on the first-in, first-out basis or using the average cost method, and are stated at the lower of cost or net realizable value. When market conditions indicate an excess of carrying costs over market value, a lower of cost or net realizable value provision or a lower of cost or market provision, as applicable, is recorded. Once inventory is determined to be excess or obsolete, a new cost basis is established that is not subsequently written back up in future periods. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are carried at cost. Major improvements are capitalized, while maintenance and repairs are expensed as incurred. Retirements and disposals are removed from cost and accumulated depreciation accounts, with the gain or loss reflected in operating income. Interest related to the construction of major facilities is capitalized as part of the construction costs and is depreciated over the facilities' estimated useful lives. Depreciation for financial reporting purposes is generally computed using the straight-line method over the following estimated useful lives: building and improvements over 15-40 years; machinery and equipment over 4-15 years; furniture and fixtures over 5-10 years and computer hardware and software over 3-7 years. 39 Table of Contents LONG-LIVED ASSETS We evaluate the recoverability of property, plant and equipment, operating lease right-of-use (ROU) assets and intangible assets that are amortized, whenever events or changes in circumstances indicate the carrying amount of any such assets may not be fully recoverable. Changes in circumstances include technological advances, changes in our business model, capital structure, economic conditions or operating performance. Our evaluation is performed at the asset group level, based upon, among other things, our assumptions about the estimated future undiscounted cash flows these assets are expected to generate. When the sum of the undiscounted cash flows is less than the carrying value, we will recognize an impairment loss to the extent that carrying value exceeds fair value. We apply our best judgment when performing these evaluations to determine if a triggering event has occurred, the undiscounted cash flows used to assess recoverability and the fair value of the asset group. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of cost over the fair value of the net assets of acquired companies. Goodwill is tested at least annually for impairment. We perform our annual impairment test during the June quarter in connection with our annual planning process unless there are impairment indicators that warrant a test prior to that quarter. As of June 30, 2026, only the Metal Cutting reporting unit has goodwill recorded. We completed annual tests of goodwill impairment and recorded no impairments during 2026, 2025 or 2024 for our Metal Cutting reporting unit. We can use a qualitative test, known as "Step 0," or a quantitative method to determine whether impairment has occurred. In 2026 and 2024, we elected to perform Step 0 and were not required to conduct the quantitative analysis. In 2025, we performed a quantitative "Step 1" analysis using a combination of a discounted cash flow analysis and market multiples based upon historical and projected financial information. We apply our best judgment when assessing the reasonableness of the assumptions used to determine the fair value of the reporting unit. The majority of our intangible assets with definite lives are amortized on a straight-line basis, while certain customer-related intangible assets are amortized on an accelerated method. Identifiable assets with finite lives are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable. PENSION AND OTHER POSTRETIREMENT BENEFITS We sponsor these types of benefit plans for certain employees and retirees. Accounting for the cost of these plans requires the estimation of the cost of the benefits to be provided well into the future and attributing that cost over either the expected work life of employees or over the average life of participants participating in these plans, depending on plan status and on participant population. This estimation requires our judgment about the discount rate used to determine these obligations, expected return on plan assets, rate of future compensation increases, withdrawal and mortality rates and participant retirement age. Differences between our estimates and actual results may significantly affect the cost of our obligations under these plans. In the valuation of our pension and other postretirement benefit liabilities, management utilizes various assumptions. Discount rates are derived by identifying a theoretical settlement portfolio of high quality corporate bonds sufficient to provide for a plan’s projected benefit payments. This rate can fluctuate based on changes in the corporate bond yields. The long-term rate of return on plan assets is estimated based on an evaluation of historical returns for each asset category held by the plans, coupled with the current and short-term mix of the investment portfolio. The historical returns are adjusted for expected future market and economic changes. This return will fluctuate based on actual market returns and other economic factors. Future compensation rates, withdrawal rates and participant retirement age are determined based on historical information. These assumptions are not expected to significantly change. Mortality rates are determined based on a review of published mortality tables. EARNINGS PER SHARE Basic earnings per share is computed using the weighted average number of shares outstanding during the period, while diluted earnings per share is calculated to reflect the potential dilution that would occur related to the issuance of capital stock under stock option grants, performance awards and restricted stock units. The difference between basic and diluted earnings per share relates solely to the effect of capital stock options, performance awards and restricted stock units. The following tables provide the computation of diluted shares outstanding: (in thousands) 2026 2025 2024 Weighted-average shares outstanding during period 76,215 77,264 79,390 Add: Unexercised stock options and unvested restricted stock units 1,209 630 575 Number of shares on which diluted earnings per share is calculated 77,424 77,894 79,965 Unexercised stock options with an exercise price greater than the average market price and restricted stock units not included in the computation because they were anti-dilutive 10 274 396 40 Table of Contents REVENUE RECOGNITION The Company's contracts with customers are comprised of purchase orders, and for larger customers, may also include long-term agreements. We account for a contract when it has approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. These contracts with customers typically relate to the manufacturing of products, which represent single performance obligations that are satisfied when control of the product passes to the customer. The Company considers the timing of right to payment, transfer of risk and rewards, transfer of title, transfer of physical possession and customer acceptance when determining when control transfers to the customer. As a result, revenue is generally recognized at a point in time - either upon shipment or delivery - based on the specific shipping terms in the contract. The shipping terms vary across all businesses and depend on the product, customary local commercial terms and the type of transportation. Shipping and handling activities are accounted for as activities to fulfill a promise to transfer a product to a customer and as such, costs incurred are recorded when the related revenue is recognized. Payment for products is due within a limited time period after shipment or delivery, typically within 30 to 90 calendar days of the respective invoice dates. The Company does not generally offer extended payment terms. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. Amounts billed and due from our customers are classified as accounts receivable, less allowance for doubtful accounts on the consolidated balance sheets. Certain contracts with customers, primarily distributor customers, have an element of variable consideration that is estimated when revenue is recognized under the contract. Variable consideration primarily includes volume incentive rebates, which are based on achieving a certain level of purchases and other performance criteria as established by our distributor programs. These rebates are estimated based on projected sales to the customer and accrued as a reduction of net sales as they are earned. The majority of our products are consumed by our customers or end users in the manufacture of their products. Historically, we have experienced very low levels of returned products and do not consider the effect of returned products to be material. We have recorded an estimated returned goods allowance to provide for any potential returns. We warrant that products sold are free from defects in material and workmanship under normal use and service when correctly installed, used and maintained. This warranty terminates 30 days after delivery of the product to the customer and does not apply to products that have been subjected to misuse, abuse, neglect or improper storage, handling or maintenance. Products may be returned to Kennametal only after inspection and approval by Kennametal and upon receipt by the customer of shipping instructions from Kennametal. We have included an estimated allowance for warranty returns in our returned goods allowance discussed above. The Company records a contract asset when it has a right to payment from a customer that is conditioned on events that have occurred other than the passage of time. The Company also records a contract liability when customers prepay but the Company has not yet satisfied its performance obligation. The Company did not have any material remaining performance obligations, contract assets or liabilities as of June 30, 2026 and 2025. The Company pays sales commissions related to certain contracts, which qualify as incremental costs of obtaining a contract. However, the Company applies the practical expedient that allows an entity to recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that would have been recognized is one year or less. These costs are recorded within operating expense in our consolidated statements of income. SHIPPING AND HANDLING FEES AND COSTS All fees billed to customers for shipping and handling are classified as a component of sales. All costs associated with shipping and handling are classified as a component of cost of goods sold. STOCK-BASED COMPENSATION We recognize stock-based compensation expense for all stock options, restricted stock awards and restricted stock units over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service (substantive vesting period). Forfeitures are recorded as incurred. We utilize the Black-Scholes valuation method to establish the fair value of all stock option awards. Time vesting stock units are valued at the market value of the stock on the grant date. Performance vesting stock units with a market condition are valued using a Monte Carlo model. RESEARCH AND DEVELOPMENT COSTS Research and development costs of $43.2 million, $44.4 million and $44.2 million in 2026, 2025 and 2024, respectively, were expensed as incurred. These costs are included in operating expense in the consolidated statements of income. 41 Table of Contents INCOME TAXES The Company’s provision for income taxes is calculated based on income and statutory tax rates in the various jurisdictions in which the Company operates and requires the use of management’s estimates and judgments. Management judgment is required in determining the Company’s worldwide provision for income taxes and recording the related assets and liabilities, including accruals for unrecognized tax benefits and assessing the need for valuation allowances on deferred tax assets. Deferred income taxes are recognized based on the future income tax effects (using enacted tax laws and rates) of differences in the carrying amounts of assets and liabilities for financial reporting and tax purposes. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50 percent) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, we consider all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, and projections of future profitability within the carry forward period, including taxable income from tax planning strategies. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of the deferred tax asset based on existing projections of income. Upon changes in facts and circumstances, we may conclude that deferred tax assets for which no valuation allowance is currently recorded may not be realized, resulting in a charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES As part of our financial risk management program, we use certain derivative financial instruments. We do not enter into derivative transactions for speculative purposes and, therefore, hold no derivative instruments for trading purposes. We use derivative financial instruments to provide predictability to the effects of changes in foreign exchange rates on our consolidated results. Our objective in managing foreign exchange exposures with derivative instruments is to reduce volatility in cash flow, allowing us to focus more of our attention on business operations. We account for derivative instruments as a hedge of the related asset, liability, firm commitment or anticipated transaction, when the derivative is specifically designated as a hedge of such items. We measure hedge effectiveness by assessing the changes in the fair value or expected future cash flows of the hedged item. Certain currency forward contracts hedging significant cross-border intercompany loans are considered other derivatives and, therefore, do not qualify for hedge accounting. CASH FLOW HEDGES Range forward contracts (a transaction where both a put option is purchased and a call option is sold) are designated as cash flow hedges and hedge anticipated cash flows from cross-border intercompany sales of products and services. Gains and losses realized on these contracts are recorded in accumulated other comprehensive loss, and are recognized as a component of cost of goods sold when the underlying sale of products or services is recognized into earnings. NET INVESTMENT HEDGES We designate financial instruments as net investment hedges from time to time to hedge the foreign exchange exposure of our net investment in foreign currency-based subsidiaries. The remeasurements of these non-derivatives designated as net investment hedges are calculated each period with changes reported in foreign currency translation adjustment within accumulated other comprehensive loss. Such amounts will remain in accumulated other comprehensive loss unless we complete or substantially complete liquidation or disposal of our investment in the underlying foreign operations. CURRENCY TRANSLATION Assets and liabilities of international operations are translated into U.S. dollars using year-end exchange rates, while revenues and expenses are translated at average exchange rates throughout the year. The resulting net translation adjustments are recorded as a component of accumulated other comprehensive loss. The local currency is the functional currency of most of our locations. Losses of $1.6 million, $1.3 million and $4.1 million from currency transactions were included in other income, net in 2026, 2025 and 2024, respectively. TARIFFS The Company is monitoring developments related to certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA) that may result in future refunds of previously paid tariffs. Any potential recoveries are accounted for as gain contingencies and will not be recognized until realized or otherwise deemed realizable. As of June 30, 2026, refunds received were not material, and the Company had not recorded any related receivables. The Company has not recorded any liabilities associated with potential tariff recoveries, as any refunds received are expected to be reinvested in the business and no obligation to reimburse customers existed as of June 30, 2026. Any future recoveries will be recognized when the applicable accounting criteria is met. 42 Table of Contents NOTE 3 — SUPPLEMENTAL CASH FLOW DISCLOSURES Supplemental cash flow information, including cash paid for income taxes presented in accordance with the guidance in ASU 2023-09, is as follows for the year ended June 30, 2026: Year ended June 30 (in thousands) 2026 Cash paid during the period for: Interest $ 27,094 Income taxes U.S. federal $ 7,683 U.S. state and local 4,066 Foreign Bolivia 3,028 Canada 3,215 China 9,009 Germany 6,478 India 8,595 Israel 4,158 Switzerland 3,278 Other 5,713 Total income taxes $ 55,223 Supplemental disclosure of non-cash information: Changes in accounts payable related to purchases of property, plant and equipment $ (6,912) Supplemental cash flow information, including cash paid for income taxes presented prior to the adoption of the guidance in ASU 2023-09, is as follows for the years ended June 30, 2025 and 2024: Year ended June 30 (in thousands) 2025 2024 Cash paid during the period for: Interest $ 24,768 $ 26,382 Income taxes 58,646 48,518 Supplemental disclosure of non-cash information: Changes in accounts payable related to purchases of property, plant and equipment 3,094 (4,497) NOTE 4 —SUPPLIER FINANCE PROGRAM We have a supplier finance program managed through two global financial institutions under which we agree to pay the financial institutions the stated amount of confirmed invoices from our participating suppliers on the invoice due date. We, or the global financial institutions, may terminate our agreements at any time upon 30 days written notice. We do not provide any forms of guarantees under these agreements. Supplier participation in the program is solely up to the supplier. We have no economic interest in a supplier’s decision to participate in the program, and their participation has no bearing on our payment terms or amounts due. The payment terms that we have with our suppliers under this program are considered commercially reasonable. As of June 30, 2026 and 2025, the obligations outstanding that the Company has confirmed as valid to the financial institutions under the program were $96.8 million and $17.3 million, respectively, and were recorded within trade accounts payable. Obligations outstanding under the supplier finance program increased during 2026 primarily due to higher purchasing activity as well as an increase in the program capacity. 43 Table of Contents The following rollforward table indicates the Company's outstanding obligations under the supplier finance program for the year ended June 30, 2026: Year ended June 30 (in thousands) 2026 Confirmed obligations outstanding at the beginning of the year $ 17,306 Invoices confirmed during the year 170,103 Confirmed invoices paid during the year (90,654) Confirmed obligations outstanding at the end of the year $ 96,755 NOTE 5 — FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of three levels to prioritize the inputs used in valuations, as defined below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs that are unobservable. As of June 30, 2026, the fair values of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 32 $ — $ 32 Total assets at fair value $ — $ 32 $ — $ 32 Liabilities: Derivatives (1) $ — $ 213 $ — $ 213 Total liabilities at fair value $ — $ 213 $ — $ 213 As of June 30, 2025, the fair value of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 88 $ — $ 88 Total assets at fair value $ — $ 88 $ — $ 88 Liabilities: Derivatives (1) $ — $ 81 $ — $ 81 Total liabilities at fair value $ — $ 81 $ — $ 81 (1) Currency derivatives are valued based on observable market spot and forward rates and are classified within Level 2 of the fair value hierarchy. There have been no changes in classification and transfers between levels in the fair value hierarchy in the current period. NOTE 6 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES As part of our financial risk management program, we use certain derivative financial instruments. See Note 2 for discussion on our derivative instruments and hedging activities policy. 44 Table of Contents The fair value of derivatives designated and not designated as hedging instruments in the consolidated balance sheets are as follows: (in thousands) 2026 2025 Derivatives designated as hedging instruments Other current liabilities - range forward contracts $ — $ (9) Total derivatives designated as hedging instruments — (9) Derivatives not designated as hedging instruments Other current assets - currency forward contracts $ 32 $ 88 Other current liabilities - currency forward contracts (213) (72) Total derivatives not designated as hedging instruments (181) 16 Total derivatives $ (181) $ 7 Certain currency forward contracts that hedge significant cross-border intercompany loans are considered as other derivatives and therefore do not qualify for hedge accounting. These contracts are recorded at fair value in the consolidated balance sheets, with the offset to other income, net. Losses (gains) related to derivatives not designated as hedging instruments have been recognized as follows: (in thousands) 2026 2025 2024 Loss (gain) recognized in other income, net $ 282 $ (58) $ 69 CASH FLOW HEDGES Range forward contracts (a transaction where both a put option is purchased and a call option is sold) are designated as cash flow hedges and hedge anticipated cash flows from cross-border intercompany sales of products and services. Gains and losses realized on these contracts are recorded in accumulated other comprehensive loss and are recognized as a component of cost of goods sold when the underlying sale of products or services is recognized into earnings. The notional amount of the contracts translated into U.S. dollars at June 30, 2026 and 2025 was zero and $4.7 million, respectively. The time value component of the fair value of range forward contracts is excluded from the assessment of hedge effectiveness. The following represents (losses) gains, net of tax, related to cash flow hedges: (in thousands) 2026 2025 Unrealized (loss) gain recognized in other comprehensive income (loss) $ (207) $ 771 NET INVESTMENT HEDGES As of June 30, 2026 and 2025, we had certain foreign currency-denominated intercompany loans payable with total aggregate principal amounts of ¥321.4 million and ¥82.3 million, respectively, designated as net investment hedges to hedge the foreign exchange exposure of our net investment in our China-based subsidiaries. Losses of $1.6 million and $2.2 million were recorded as a component of foreign currency translation adjustments in other comprehensive (loss) income as of June 30, 2026 and 2025, respectively. As of June 30, 2026, the foreign currency-denominated intercompany loans payable designated as net investment hedges consisted of: Instrument Notional (CNY in thousands)(2) Notional (USD in thousands)(2) Maturity Foreign currency-denominated intercompany loan payable ¥ 87,611 $ 12,910 January 2027 Foreign currency-denominated intercompany loan payable ¥ 69,658 $ 10,264 February 2027 Foreign currency-denominated intercompany loan payable ¥ 123,069 $ 18,134 March 2027 Foreign currency-denominated intercompany loan payable ¥ 41,065 $ 6,051 May 2027 (2) Includes principal and accrued interest. 45 Table of Contents NOTE 7 — INVENTORIES Inventories consisted of the following at June 30: (in thousands) 2026 2025 Finished goods $ 406,605 $ 328,243 Work in process and powder blends 783,469 225,726 Raw materials 279,816 90,257 Inventories at current cost 1,469,890 644,226 Less: LIFO valuation (361,440) (105,989) Total inventories $ 1,108,450 $ 538,237 We used the LIFO method of valuing inventories for approximately 34 percent and 34 percent of total inventories at June 30, 2026 and 2025, respectively. NOTE 8 — GOODWILL AND OTHER INTANGIBLE ASSETS As of June 30, 2026, goodwill of $279.2 million was allocated to the Metal Cutting reporting unit. We completed annual tests of goodwill impairment and recorded no impairments during 2026, 2025 or 2024 for our Metal Cutting reporting unit. A summary of the carrying amount of goodwill attributable to each segment, as well as the changes in such, is as follows: (in thousands) Metal Cutting Infrastructure Total Gross goodwill $ 449,228 $ 633,211 $ 1,082,439 Accumulated impairment losses (177,661) (633,211) (810,872) Balance as of June 30, 2024 $ 271,567 $ — $ 271,567 Activity for the year ended June 30, 2025: Change in gross goodwill due to translation 11,159 — 11,159 Gross goodwill 460,387 633,211 1,093,598 Accumulated impairment losses (177,661) (633,211) (810,872) Balance as of June 30, 2025 $ 282,726 $ — $ 282,726 Activity for the year ended June 30, 2026: Change in gross goodwill due to translation (3,513) — (3,513) Gross goodwill 456,874 633,211 1,090,085 Accumulated impairment losses (177,661) (633,211) (810,872) Balance as of June 30, 2026 $ 279,213 $ — $ 279,213 The components of our other intangible assets were as follows: Estimated Useful Life (in years) June 30, 2026 June 30, 2025 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Technology-based and other 4 to 20 $ 27,800 $ (23,805) $ 32,699 $ (26,243) Customer-related 10 to 21 159,836 (117,352) 159,722 (111,184) Unpatented technology 10 to 30 26,586 (25,852) 26,373 (24,281) Trademarks 5 to 20 23,542 (14,869) 23,917 (13,793) Total $ 237,764 $ (181,878) $ 242,711 $ (175,501) Amortization expense for intangible assets was $9.5 million, $10.8 million and $11.6 million for 2026, 2025 and 2024, respectively. Estimated amortization expense for 2027 through 2031 is $8.7 million, $7.7 million, $7.6 million, $7.6 million and $7.5 million, respectively. 46 Table of Contents NOTE 9 — LEASES At the inception of our contracts, we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement. For leases that do not have a readily determinable implicit rate, we use a discount rate based on our incremental borrowing rate, which is determined considering factors such as the lease term, our credit rating and the economic environment of the location of the lease as of the commencement date. We account for non-lease components separately from lease components. These costs often relate to the payments for a proportionate share of real estate taxes, insurance, common area maintenance and other operating costs in addition to base rent. We also generally do not recognize ROU assets and liabilities for leases with an initial term of 12 months or less. Lease costs associated with leases of less than 12 months were $8.2 million, $7.7 million and $5.9 million for the years ended June 30, 2026, 2025 and 2024, respectively. As a lessee, we have various operating lease agreements primarily related to real estate, vehicles and office and plant equipment. Our real estate leases, which are comprised primarily of manufacturing, warehousing, office and administration facilities, represent a majority of our lease liability. Our lease payments are largely fixed. Any variable lease payments, including utilities, common area maintenance and repairs and maintenance, are expensed during the period incurred. Variable lease costs were immaterial for the years ended June 30, 2026, 2025 and 2024. A majority of our real estate leases include options to extend the lease and options to early terminate the lease. Leases with an early termination option generally involve a termination payment. We review all options to extend, terminate, or purchase the ROU assets at the inception of the lease and account for these options when they are reasonably certain of being exercised. Our lease agreements generally do not contain any material residual value guarantees or materially restrictive covenants. We have signed a material lease agreement related to the Company's future innovation center in Germany. The lease has not yet commenced as the facility has yet to be constructed and the Company does not have the right to use the property until the future handover date. We do not have any material lease transactions with related parties. Operating lease expense is recognized on a straight-line basis over the lease term and is included in operating expense on our consolidated statements of income. Operating lease cost was $24.1 million, $24.3 million and $22.3 million in 2026, 2025 and 2024, respectively. The following table sets forth supplemental balance sheet information related to our operating leases: Year ended June 30 2026 2025 2024 Weighted average remaining lease term 7.3 years 9.6 years 8.6 years Weighted average discount rate 4.7 % 4.6 % 4.3 % The following table sets forth supplemental cash flow information related to our operating leases: Year ended June 30 (in thousands) 2026 2025 2024 Operating cash outflows from operating leases $ 15,905 $ 16,650 $ 16,360 ROU assets obtained in exchange for new operating lease liabilities $ 14,112 $ 11,754 $ 17,640 The following table sets forth the maturities of our operating lease liabilities and reconciles the respective undiscounted payments to the operating lease liabilities in the consolidated balance sheet as of June 30, 2026: Year ended June 30 (in thousands) 2027 $ 13,689 2028 10,145 2029 7,232 2030 5,340 2031 3,742 Thereafter 13,618 Total undiscounted operating lease payments $ 53,766 Less: discount to net present value 7,510 Total operating lease liabilities $ 46,256 47 Table of Contents NOTE 10 — OTHER CURRENT ASSETS AND LIABILITIES Other current assets consisted of the following at June 30: (in thousands) 2026 2025 Advance payments to vendors $ 72,471 $ 689 Prepayments and other tax assets 39,570 32,184 Other 47,051 32,219 Total other current assets $ 159,092 $ 65,092 Other current liabilities consisted of the following at June 30: (in thousands) 2026 2025 Accrued employee benefits $ 48,150 $ 31,254 Payroll, state and local taxes 10,689 12,040 Accrued professional and legal fees 15,533 16,966 Accrued environmental 2,723 1,408 Accrued restructuring (Note 16) 7,524 11,044 Accrued interest 4,588 3,307 Other 89,881 73,087 Total other current liabilities $ 179,088 $ 149,106 NOTE 11 — LONG-TERM DEBT Long-term debt consisted of the following at June 30: (in thousands) 2026 2025 5.800% Senior Unsecured Notes due fiscal 2036, net of discount of $1.0 million for 2026 $ 298,954 $ — 2.800% Senior Unsecured Notes due fiscal 2031, net of discount of $0.1 million for 2026 and $0.1 million for 2025 299,915 299,897 4.625% Senior Unsecured Notes due fiscal 2028, net of discount of zero for 2026 and $0.6 million for 2025 90,616 299,358 Total term debt 689,485 599,255 Less unamortized debt issuance costs (4,205) (2,467) Total long-term debt $ 685,280 $ 596,788 In May 2026, the Company completed refinancing transactions designed to enhance liquidity, extend debt maturities and increase financial flexibility. The Company issued $300.0 million of 5.800% Senior Unsecured Notes due 2036 (the "2036 Notes"). Interest is paid semi-annually on May 28 and November 28 of each year. Net proceeds from the 2036 Notes were used to fund a tender offer for the Company's outstanding 4.625 percent Senior Unsecured Notes due 2028 (the "2028 Notes"). The tender offer resulted in the repurchase of $209.4 million out of the total $300.0 million aggregate principal of the 2028 Notes. In connection with these transactions, the Company also entered into a new $500.0 million three-year term loan and amended its Credit Agreement (as defined in Note 12) to increase aggregate commitments by $200.0 million. The Company expects to have fully drawn the $500.0 million term loan by September 30, 2026, after which any undrawn commitments will no longer be available. In February 2021, we issued $300.0 million of 2.800 percent Senior Unsecured Notes with a maturity date of March 1, 2031. Interest is paid semi-annually on March 1 and September 1 of each year. As of June 30, 2026, the future principal maturities of long-term debt are $90.6 million in 2028, $300.0 million in 2031 and $300.0 million in 2036. The 2028 Notes were fully redeemed on July 1, 2026. Fixed rate debt had a fair market value of $666.7 million and $570.8 million at June 30, 2026 and 2025, respectively. The Level 2 fair value is determined based on the quoted market prices for similar debt instruments as of June 30, 2026 and 2025, respectively. 48 NOTE 12 — REVOLVING AND OTHER LINES OF CREDIT AND NOTES PAYABLE During fiscal 2026, we entered into the Seventh Amended and Restated Credit Agreement dated as of November 17, 2025 (the Credit Agreement). The Credit Agreement is a five-year, multi-currency, revolving credit facility, which we use to augment cash from operations and as an additional source of funds. The Credit Agreement allows for borrowings in U.S. dollars, Canadian dollars, euros, pounds sterling and Japanese yen. Interest payable under the Credit Agreement is based upon the type of borrowing under the facility and may be (1) Euro Interbank Offered Rate (EURIBOR), Sterling Overnight Index Average (SONIA), Canadian Overnight Repo Rate Average (CORRA), Tokyo Interbank Offered Rate (TIBOR) and Secured Overnight Financing Rate (SOFR) for any borrowings in euros, pounds sterling, Canadian dollars, yen and U.S. dollars, respectively, plus an applicable margin, (2) the greater of the prime rate or the Federal Funds effective rate plus an applicable margin, or (3) fixed as negotiated by us. The Credit Agreement matures in November 2030. The Credit Agreement requires us to comply with various restrictive and affirmative covenants, including one financial covenant: a maximum leverage ratio where debt, net of domestic cash and sixty percent of the unrestricted cash held outside of the United States, must be less than or equal to 3.75 times trailing twelve months EBITDA, adjusted for certain non-cash expenses. In May 2026, in connection with the refinancing transactions more fully described in Note 11, the Company amended its Credit Agreement to increase aggregate commitments by $200.0 million for a total of $850.0 million. As of June 30, 2026 and 2025, we were in compliance with all covenants of the Credit Agreement. As of June 30, 2026, we had $20 million of borrowings outstanding and $830.0 million of availability. There were no borrowings outstanding as of June 30, 2025. The weighted average interest rate on borrowings under the Credit Agreement was 4.7 percent for the year ended June 30, 2026. Borrowings on other lines of credit and notes payable were $12.2 million and $1.0 million at June 30, 2026 and 2025, respectively. The lines of credit represented short-term borrowings under credit lines with commercial banks in the various countries in which we operate. The availability of these credit lines, translated into U.S. dollars at June 30, 2026 exchange rates, totaled $48.8 million. NOTE 13 — INCOME TAXES Income (loss) before income taxes consisted of the following for the years ended June 30: (in thousands) 2026 2025 2024 Income (loss) before income taxes: United States $ 210,443 $ (10,085) $ (13,544) International 250,886 142,089 157,994 Total income before income taxes $ 461,329 $ 132,004 $ 144,450 Current income tax expense (benefit): Federal $ 8,015 $ 2,048 $ (4,003) State 3,480 346 1,045 International 54,734 43,986 41,784 Total current income tax expense 66,229 46,380 38,826 Deferred income tax expense (benefit): Federal $ 33,393 $ (7,647) $ (3,389) State 5,268 (1,549) (2,880) International 6,025 (3,888) (1,748) Total deferred income tax expense (benefit): 44,686 (13,084) (8,017) Provision for income taxes $ 110,915 $ 33,296 $ 30,809 Effective tax rate 24.0 % 25.2 % 21.3 % 49 Table of Contents The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes in accordance with the guidance in ASU 2023-09 is as follows for the year ended June 30, 2026: 2026 (in thousands, except percents) Amount Percent Income taxes at U.S. statutory rate $ 96,879 21.0 % State income taxes, net of federal tax benefit 6,911 1.5 Foreign tax effects China Statutory tax rate difference 1,680 0.4 Withholding tax 3,581 0.8 Audit settlement 1,164 0.3 Other 394 0.1 Switzerland Statutory tax rate difference (9,907) (2.1) Cantonal and municipal taxes 5,651 1.2 Other (549) (0.1) Other foreign jurisdictions 3,940 0.9 Effect of cross-border tax laws 1,450 0.3 Tax credits Research & development credit (3,271) (0.7) Advanced manufacturing production credit (1,614) (0.3) Nontaxable or nondeductible items 2,382 0.5 Changes in unrecognized tax benefits 2,224 0.5 Total provision for income taxes and effective tax rate $ 110,915 24.0 % State income taxes in Pennsylvania, Indiana, California, Minnesota, New York, Illinois and Connecticut comprise the majority of the domestic state income taxes, net of federal tax benefit for the year ended June 30, 2026. The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes prior to the adoption of ASU 2023-09 was as follows for the years ended June 30, 2025 and 2024: (in thousands) 2025 2024 Income taxes at U.S. statutory rate $ 27,721 $ 30,335 State income taxes, net of federal tax benefit (950) (1,412) U.S. income taxes provided on international income 3,220 4,272 Combined tax effects of international income 8,165 10,355 Change in valuation allowance and other uncertain tax positions (103) (3,590) U.S. research and development credit (2,880) (4,026) Advanced manufacturing production credit (2,941) (488) Combined effects of Swiss tax reform — (7,801) Non-deductible executive compensation 417 2,389 Other 647 775 Provision for income taxes $ 33,296 $ 30,809 During 2024, we recorded a tax benefit of $7.8 million to record the effects of a tax rate increase enacted by the cantonal and municipal tax authorities where we operate in Switzerland. The impact of this item is included in the tax reconciliation table under the caption "Combined effects of Swiss tax reform." During 2024, we recorded a tax benefit of $6.2 million to reduce an accrual for an unrecognized tax benefit due to the lapse of the statute of limitation. The impact of this item is included in the tax reconciliation table under the caption "Change in valuation allowance and other uncertain tax positions." During 2024, we recorded a tax charge of $2.9 million to settle income tax litigation in Italy. The impact of this item is included in the tax reconciliation table under the caption "Change in valuation allowance and other uncertain tax positions." 50 Table of Contents The components of net deferred tax assets and liabilities were as follows at June 30: (in thousands) 2026 2025 Deferred tax assets: Net operating loss (NOL) carryforwards $ 16,028 $ 19,756 Inventory valuation and reserves 7,454 8,974 Accrued employee benefits 16,229 13,613 Operating lease liabilities 11,556 10,759 Other accrued liabilities 14,183 12,976 Capitalized research and development costs 20,378 42,947 Tax credits and other carryforwards 976 19,582 Intangible assets 5,557 11,618 Total 92,361 140,225 Valuation allowance 4,946 6,214 Total deferred tax assets $ 87,415 $ 134,011 Deferred tax liabilities: Tax depreciation in excess of book $ 46,068 $ 53,337 Operating lease right-of-use assets 11,467 10,710 Unremitted earnings not permanently reinvested 6,795 3,754 Pension benefits 9,362 3,882 Other 3,459 4,464 Total deferred tax liabilities $ 77,151 $ 76,147 Total net deferred tax assets $ 10,264 $ 57,864 Included in deferred tax assets at June 30, 2026 is $1.0 million associated with tax credits and other carryforward items in the U.S. and Europe. Of that amount, $0.2 million expires through 2046, and $0.8 million does not expire. Included in deferred tax assets at June 30, 2026 is $16.0 million associated with NOL carryforwards in U.S. state and foreign jurisdictions. Of that amount, $1.6 million expires through 2031, $0.5 million expires through 2036, $0.6 million expires through 2041, $2.5 million expires through 2046, and the remaining $10.8 million does not expire. The realization of these tax benefits is primarily dependent on future taxable income in these jurisdictions. A valuation allowance of $4.9 million has been placed against deferred tax assets primarily in U.S. state, Hong Kong and Vietnam jurisdictions, all of which would be allocated to income tax expense upon realization of the deferred tax assets. As the respective operations generate sufficient income, the valuation allowances will be partially or fully reversed at such time we believe it will be more likely than not that the deferred tax assets will be realized. In 2026, the valuation allowance related to these deferred tax assets decreased by $1.3 million. We consider the majority of the $1.1 billion unremitted earnings of our non-U.S. subsidiaries to be permanently reinvested. With regard to these unremitted earnings, we have not, nor do we anticipate the need to, repatriate funds to the U.S. to satisfy domestic liquidity needs arising in the ordinary course of business, including liquidity needs associated with our domestic debt service requirements. Determination of the amount of unrecognized deferred tax liability related to indefinitely reinvested earnings is not practicable due to our legal entity structure and the complexity of U.S. and local tax laws. With regard to the small portion of unremitted earnings that are not indefinitely reinvested, we maintain a deferred tax liability for foreign withholding and U.S. state income taxes. The deferred tax liability associated with unremitted earnings of our non-U.S. subsidiaries not permanently reinvested is $6.8 million as of June 30, 2026. 51 Table of Contents A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalty) is as follows as of June 30: (in thousands) 2026 2025 2024 Balance at beginning of year $ 1,694 $ 1,309 $ 6,935 Increases for tax positions of prior years 1,302 316 — Increases for tax positions related to the current year 336 77 79 Decreases related to lapse of statute of limitations (75) (140) (5,686) Foreign currency translation (79) 132 (19) Balance at end of year $ 3,178 $ 1,694 $ 1,309 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate in 2026, 2025 and 2024 is $3.2 million, $1.7 million and $1.3 million, respectively. Our policy is to recognize interest and penalties related to income taxes as a component of the provision for income taxes in the consolidated statements of income. We recognized an increase of $0.7 million and $0.1 million in 2026 and 2025, respectively and a decrease of $0.9 million in 2024. As of June 30, 2026 and 2025, the amount of penalty accrued was $0.1 million. With few exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2019. The Internal Revenue Service has audited, or the statute of limitations has expired, for all U.S. tax years prior to 2023. Various state and foreign jurisdiction tax authorities are in the process of examining our income tax returns for various tax years ranging from 2019 to 2024. We continuously review our uncertain tax positions and evaluate any potential issues that may lead to an increase or decrease in the total amount of unrecognized tax benefits recorded. NOTE 14 — PENSION AND OTHER POSTRETIREMENT BENEFITS Defined Benefit Pension Plans. We have defined benefit pension plans that cover certain employees in the U.S., Germany, the UK, Switzerland, India and Israel. Pension benefits under defined benefit pension plans are based on years of service and, for certain plans, on average compensation for specified years preceding retirement. We fund pension costs in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA), as amended, for U.S. plans and in accordance with local regulations or customs for non-U.S. plans. The accrued benefit for all participants in the Kennametal Inc. Retirement Income Plan was frozen as of December 31, 2016. The majority of our defined benefit pension plans are closed to future participation. We have an Executive Retirement Plan for certain executives and a Supplemental Executive Retirement Plan both of which were closed to future participation as of June 15, 2017 and July 26, 2006, respectively. We presently provide varying levels of postretirement health care and life insurance benefits to certain employees and retirees. By fiscal 2019, participants over the age of 65 were transitioned to a private exchange and some received a fixed Health Retirement Account (HRA) contribution to offset the cost of their coverage. Postretirement health and life benefits were closed to future participants as of December 31, 2016. We use a June 30 measurement date for all of our plans. During 2025, the Company completed the wind-up of its Canadian defined benefit pension plans and recorded a settlement charge of $0.8 million. During 2023 and 2025, the Company annuitized portions of its UK defined benefit pension plans through the purchase of full buy-in policies. The Company expects to progress to a buy-out and an eventual wind-up of the UK plans after completing customary procedures including obtaining relevant regulatory approvals. The wind-up of the UK plans is expected to occur in fiscal 2027. 52 Table of Contents The funded status of our pension plans and amounts recognized in the consolidated balance sheets as of June 30 were as follows: (in thousands) 2026 2025 Change in benefit obligation: Benefit obligation, beginning of year $ 669,030 $ 677,054 Service cost 1,103 909 Interest cost 32,449 34,013 Participant contributions 439 438 Actuarial gains (7,249) (1,772) Benefits and expenses paid (57,544) (54,192) Currency translation adjustments (4,874) 14,887 Plan amendments — 12 Plan settlements (1,102) (3,480) Other adjustments 191 1,161 Benefit obligation, end of year $ 632,443 $ 669,030 Change in plans' assets: Fair value of plans' assets, beginning of year $ 629,588 $ 636,088 Actual return on plans' assets 37,324 35,556 Company contributions 8,963 7,755 Participant contributions 439 438 Plan settlements (1,002) (3,480) Benefits and expenses paid (57,544) (54,192) Currency translation adjustments (3,398) 7,330 Other adjustments 206 93 Fair value of plans' assets, end of year $ 614,576 $ 629,588 Funded status of plans $ (17,867) $ (39,442) Amounts recognized in the balance sheets consist of: Long-term prepaid benefit $ 87,268 $ 75,062 Short-term accrued benefit obligation (8,409) (7,541) Accrued pension benefits (96,726) (106,963) Net amount recognized $ (17,867) $ (39,442) The pre-tax amounts related to our defined benefit pension plans recognized in accumulated other comprehensive loss were as follows at June 30: (in thousands) 2026 2025 Unrecognized net actuarial losses $ 272,996 $ 292,946 Unrecognized net prior service costs 1,748 1,762 Total $ 274,744 $ 294,708 To the best of our knowledge and belief, the asset portfolios of our defined benefit pension plans do not contain our capital stock. Apart from the annuitization of the UK plans as previously mentioned, we do not issue insurance contracts to cover future annual benefits of defined benefit pension plan participants. The accumulated benefit obligation for all defined benefit pension plans was $629.9 million and $666.0 million as of June 30, 2026 and 2025, respectively. Included in the above information are plans with accumulated benefit obligations exceeding the fair value of plan assets as of June 30 as follows: (in thousands) 2026 2025 Projected benefit obligation $ 112,580 $ 122,521 Accumulated benefit obligation 111,770 121,636 Fair value of plan assets 8,534 7,871 53 Table of Contents The components of net periodic pension income include the following as of June 30: (in thousands) 2026 2025 2024 Service cost $ 1,103 $ 909 $ 1,181 Interest cost 32,449 34,013 35,551 Expected return on plans' assets (38,265) (42,655) (44,592) Amortization of transition obligation — — 76 Amortization of prior service cost (18) (9) (4) Settlement 190 954 (4) Recognition of actuarial losses 11,736 8,411 5,753 Other adjustments 82 302 14 Net periodic pension expense (income) $ 7,277 $ 1,925 $ (2,025) As of June 30, 2026, the projected benefit payments, including future service accruals for these plans for 2027 through 2031, are $59.1 million, $56.9 million, $55.3 million, $54.3 million and $52.7 million, respectively, and $245.8 million in 2032 through 2036. The amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2027 related to net actuarial losses are $11.8 million. The amount of accumulated other comprehensive income expected to be recognized in net periodic pension cost during 2027 related to transition obligations and prior service cost is immaterial. We expect to contribute approximately $10.0 million to our pension plans in 2027, which is primarily for international plans. Other Postretirement Benefit Plans. The funded status of our other postretirement benefit plans and the related amounts recognized in the consolidated balance sheets were as follows: (in thousands) 2026 2025 Change in benefit obligation: Benefit obligation, beginning of year $ 6,700 $ 7,340 Interest cost 348 393 Actuarial losses (83) (78) Benefits paid (987) (851) Other 214 (104) Benefit obligation, end of year $ 6,192 $ 6,700 Funded status of plan $ (6,192) $ (6,700) Amounts recognized in the balance sheets consist of: Short-term accrued benefit obligation $ (869) $ (948) Accrued postretirement benefits (5,323) (5,752) Net amount recognized $ (6,192) $ (6,700) The pre-tax amounts related to our other postretirement benefit plans which were recognized in accumulated other comprehensive loss were as follows at June 30: (in thousands) 2026 2025 Unrecognized net actuarial losses $ 1,487 $ 1,680 Unrecognized net prior service credits (617) (870) Total $ 870 $ 810 The components of net periodic other postretirement benefit cost include the following for the years ended June 30: (in thousands) 2026 2025 2024 Interest cost $ 348 $ 393 $ 424 Amortization of prior service credit (254) (254) (254) Recognition of actuarial loss 126 139 142 Net periodic other postretirement benefit cost $ 220 $ 278 $ 312 54 Table of Contents As of June 30, 2026, the projected benefit payments, including future service accruals for our other postretirement benefit plans for 2027 through 2031, are $0.9 million, $0.8 million, $0.7 million, $0.7 million and $0.6 million, respectively, and $2.4 million in 2032 through 2036. The amounts of accumulated other comprehensive loss expected to be recognized in net periodic other postretirement benefits cost during 2027 related to net actuarial losses and related to prior service credit are costs of $0.1 million and income of $0.3 million, respectively. We expect to contribute $0.9 million to our other postretirement benefit plans in 2027. The service cost component of net periodic pension expense (income) of $1.1 million, $0.9 million and $1.2 million for 2026, 2025 and 2024, respectively, was reported as a component of cost of goods sold and operating expense. The other components of net periodic pension expense (income) and net periodic other postretirement benefit cost totaling a net expense of $6.4 million and $1.3 million for 2026 and 2025, respectively, and a net benefit of $2.9 million for 2024 were presented as a component of other income, net. Assumptions. The significant actuarial assumptions used to determine the present value of net benefit obligations for our defined benefit pension plans and other postretirement benefit plans were as follows: 2026 2025 2024 Discount Rate: U.S. plans 4.8-5.8% 5.0-5.6% 5.7-5.8% International plans 1.1-6.9% 1.2-6.8% 1.3-7.2% Rates of future salary increases: U.S. plans (Executive Retirement Plan only) 4.0% 4.0% 4.0% International plans 1.5-8.5% 1.5-7.5% 1.8-8.0% The significant assumptions used to determine the net periodic expense (income) for our pension and other postretirement benefit plans were as follows: 2026 2025 2024 Discount Rate: U.S. plans 4.7-5.6% 5.7-5.8% 5.6-6.3% International plans 1.2-6.8% 1.3-7.2% 1.8-7.3% Rates of future salary increases: U.S. plans (Executive Retirement Plan only) 4.0% 4.0% 4.0% International plans 1.5-7.5% 1.8-8.0% 1.8-8.0% Rate of return on plans assets: U.S. plans 6.4% 6.5% 6.3% International plans 1.3-7.3% 1.3-7.5% 1.8-7.3% The rates of return on plan assets are based on historical performance, as well as future expected returns by asset class considering macroeconomic conditions, current portfolio mix, long-term investment strategy and other available relevant information. Plan Assets. The primary objective of certain of our pension plans' investment policies is to ensure that sufficient assets are available to provide the benefit obligations at the time the obligations come due. The overall investment strategy for the defined benefit pension plans' assets combines considerations of preservation of principal and moderate risk-taking. The assumption of an acceptable level of risk is warranted in order to achieve satisfactory results consistent with the long-term objectives of the portfolio. Fixed income securities comprise a significant portion of the portfolio due to their plan-liability-matching characteristics and to address the plans' cash flow requirements. Additionally, diversification of investments within each asset class is utilized to further reduce the effect of losses in single investments. Investment management practices for U.S. defined benefit pension plans must comply with ERISA and all applicable regulations and rulings thereof. The use of derivative instruments is permitted where appropriate and necessary for achieving overall investment policy objectives. Currently, the use of derivative instruments is not significant when compared to the overall investment portfolio. 55 Table of Contents The Company utilizes a liability driven investment strategy (LDI) for the assets of its U.S. defined benefit pension plans in order to reduce the volatility of the funded status of these plans and to meet the obligations at an acceptable cost over the long term. This LDI strategy entails modifying the asset allocation and duration of the assets of the plans to more closely match the liability profile of these plans. The asset reallocation involves increasing the fixed income allocation, reducing the equity component and adding alternative investments. Longer duration interest rate swaps have been utilized periodically in order to increase the overall duration of the asset portfolio to more closely match the liabilities. Our defined benefit pension plans’ asset allocations as of June 30, 2026 and 2025 and target allocations for 2027, by asset class, were as follows: 2026 2025 Target % Equity 12 % 13 % 13 % Fixed Income 74 72 72 Other 14 15 15 The following sections describe the valuation methodologies used to measure the fair value of the defined benefit pension plan assets, including an indication of the level in the fair value hierarchy in which each type of asset is generally classified (see Note 5 for the definition of fair value and a description of the fair value hierarchy). Corporate fixed income securities. Investments in corporate fixed income securities consist of corporate debt and asset backed securities. These investments are classified as level two and are valued using independent observable market inputs such as the treasury curve, swap curve and yield curve. Common stock. Common stocks are classified as level one and are valued at their quoted market price. Government securities. Investments in government securities consist of fixed income securities such as U.S. government and agency obligations and foreign government bonds and asset and mortgage backed securities such as obligations issued by government sponsored organizations. These investments are classified as level two and are valued using independent observable market inputs such as the treasury curve, credit spreads and interest rates. Other fixed income securities Investments in other fixed income securities are classified as level two and valued based on observable market data. Other. Other investments consist primarily of state and local obligations and short term investments including cash, corporate notes, and various short term debt instruments which can be redeemed within a nominal redemption notice period. These investments are primarily classified as level two and are valued using independent observable market inputs. The fair value methods described may not be reflective of future fair values. Additionally, while the Company believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in different fair value measurement at the reporting date. The following table presents the fair value of the benefit plans' assets by asset category as of June 30, 2026: (in thousands) Level 1 Level 2 Level 3 NAV(3) Total Common / collective trusts (3): Blend funds $ — $ — $ — $ 41,582 $ 41,582 Mutual funds — — — 33,218 33,218 Corporate fixed income securities — 295,961 — — 295,961 Common stock 16 — — — 16 Government securities: U.S. government securities — 119,476 — — 119,476 Foreign government securities — 677 — — 677 Other fixed income securities — 39,023 — — 39,023 Other — 84,623 — — 84,623 Total investments $ 16 $ 539,760 $ — $ 74,800 $ 614,576 56 Table of Contents The following table presents the fair value of the benefit plans' assets by asset category as of June 30, 2025: (in thousands) Level 1 Level 2 Level 3 NAV(3) Total Common / collective trusts (3): Blend funds $ — $ — $ — $ 50,038 $ 50,038 Mutual funds — — — 36,643 36,643 Corporate fixed income securities — 321,975 — — 321,975 Common stock 11 — — — 11 Government securities: U.S. government securities — 103,056 — — 103,056 Foreign government securities — 1,353 — — 1,353 Other fixed income securities — 31,475 — — 31,475 Other — 85,037 — — 85,037 Total investments $ 11 $ 542,896 $ — $ 86,681 $ 629,588 (3) Investments in common / collective trusts invest primarily in publicly traded securities and are valued using net asset value (NAV) of units of a bank collective trust. Therefore, these amounts have not been classified in the fair value hierarchy and are presented in the tables to reconcile the fair value hierarchy to the total fair value of plan assets. Defined Contribution Plans. We sponsor several defined contribution retirement plans. Costs for defined contribution plans were $16.3 million, $16.5 million and $16.3 million in 2026, 2025 and 2024, respectively. Certain U.S. employees are eligible to participate in the Kennametal Thrift Plus Plan (Thrift), which is a qualified defined contribution plan under section 401(k) of the Internal Revenue Code. Under the Thrift, eligible employees receive a full match of their contributions up to 6 percent of eligible compensation. All contributions, including the company match and discretionary, are made in cash and invested in accordance with participants’ investment elections. There are no minimum amounts that must be invested in company stock, and there are no restrictions on transferring amounts out of company stock to another investment choice, other than excessive trading rules applicable to such investments. Employee contributions and our matching and discretionary contributions vest immediately as of the participants' employment dates. NOTE 15 — ACCUMULATED OTHER COMPREHENSIVE LOSS The components of and changes in accumulated other comprehensive loss (AOCL) were as follows, net of tax, for the year ended June 30, 2026 (in thousands): Attributable to Kennametal: Pension and other postretirement benefits Currency translation adjustment Derivatives Total Balance, June 30, 2025 $ (223,016) $ (165,859) $ 2,182 $ (386,693) Other comprehensive income (loss) before reclassifications 6,479 (26,733) (207) (20,461) Amounts reclassified from AOCL 8,680 — (556) 8,124 Net other comprehensive income (loss) 15,159 (26,733) (763) (12,337) AOCL, June 30, 2026 $ (207,857) $ (192,592) $ 1,419 $ (399,030) Attributable to noncontrolling interests: Balance, June 30, 2025 $ — $ (7,844) $ — $ (7,844) Other comprehensive loss before reclassifications — (2,241) — (2,241) Net other comprehensive loss — (2,241) — (2,241) AOCL, June 30, 2026 $ — $ (10,085) $ — $ (10,085) 57 Table of Contents The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 2025 (in thousands): Attributable to Kennametal: Pension and other postretirement benefits Currency translation adjustment Derivatives Total Balance, June 30, 2024 $ (221,308) $ (216,263) $ 2,983 $ (434,588) Other comprehensive (loss) income before reclassifications (7,965) 50,404 771 43,210 Amounts reclassified from AOCL 6,257 — (1,574) 4,683 Net other comprehensive (loss) income (1,708) 50,404 (803) 47,893 AOCL, June 30, 2025 $ (223,016) $ (165,859) $ 2,182 $ (386,693) Attributable to noncontrolling interests: Balance, June 30, 2024 $ — $ (8,680) $ — $ (8,680) Other comprehensive income before reclassifications — 836 — 836 Net other comprehensive income — 836 — 836 AOCL, June 30, 2025 $ — $ (7,844) $ — $ (7,844) The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 2024 (in thousands): Attributable to Kennametal: Pension and other postretirement benefits Currency translation adjustment Derivatives Total Balance, June 30, 2023 $ (215,435) $ (202,641) $ 3,733 $ (414,343) Other comprehensive loss before reclassifications (10,100) (13,622) (26) (23,748) Amounts reclassified from AOCL 4,227 — (725) 3,502 Net other comprehensive loss (5,873) (13,622) (750) (20,245) AOCL, June 30, 2024 $ (221,308) $ (216,263) $ 2,983 $ (434,588) Attributable to noncontrolling interests: Balance, June 30, 2023 $ — $ (8,139) $ — $ (8,139) Other comprehensive loss before reclassifications — (541) — (541) Net other comprehensive loss — (541) — (541) AOCL, June 30, 2024 $ — $ (8,680) $ — $ (8,680) 58 Table of Contents Reclassifications out of AOCL for the years ended June 30, 2026, 2025 and 2024 consisted of the following: Year ended June 30, Details about AOCL components (in thousands) 2026 2025 2024 Affected line item in the Income Statement (Gains) and losses on cash flow hedges: Forward starting interest rate swaps $ (1,020) $ (1,020) $ (1,020) Interest expense Currency exchange contracts 284 (1,065) 60 Cost of goods sold Total before tax (736) (2,085) (960) Tax impact 180 511 235 Provision for income taxes Net of tax $ (556) $ (1,574) $ (725) Pension and other postretirement benefits: Amortization of transition obligations $ — $ — $ 76 Other (income) expense, net Amortization of prior service credit (272) (263) (258) Other (income) expense, net Recognition of actuarial losses 11,862 8,550 5,895 Other (income) expense, net Total before tax 11,590 8,287 5,713 Tax impact (2,910) (2,030) (1,486) Provision for income taxes Net of tax $ 8,680 $ 6,257 $ 4,227 The amount of income tax allocated to each component of other comprehensive loss for the year ended June 30, 2026: (in thousands) Pre-tax Tax impact Net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges $ (274) $ 67 $ (207) Reclassification of unrealized gain on expired derivatives designated and qualified as cash flow hedges (736) 180 (556) Unrecognized net pension and other postretirement benefit plans gain 8,339 (1,860) 6,479 Reclassification of net pension and other postretirement benefit plans loss 11,590 (2,910) 8,680 Foreign currency translation adjustments (28,974) — (28,974) Other comprehensive loss $ (10,055) $ (4,523) $ (14,578) The amount of income tax allocated to each component of other comprehensive income for the year ended June 30, 2025: (in thousands) Pre-tax Tax impact Net of tax Unrealized gain on derivatives designated and qualified as cash flow hedges $ 1,021 $ (250) $ 771 Reclassification of unrealized gain on expired derivatives designated and qualified as cash flow hedges (2,085) 511 (1,574) Unrecognized net pension and other postretirement benefit plans loss (10,193) 2,228 (7,965) Reclassification of net pension and other postretirement benefit plans loss 8,287 (2,030) 6,257 Foreign currency translation adjustments 51,240 — 51,240 Other comprehensive income $ 48,270 $ 459 $ 48,729 The amount of income tax allocated to each component of other comprehensive loss for the year ended June 30, 2024: (in thousands) Pre-tax Tax impact Net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges $ (34) $ 8 $ (26) Reclassification of unrealized gain on expired derivatives designated and qualified as cash flow hedges (960) 235 (725) Unrecognized net pension and other postretirement benefit plans loss (13,328) 3,228 (10,100) Reclassification of net pension and other postretirement benefit plans loss 5,713 (1,486) 4,227 Foreign currency translation adjustments (14,215) 51 (14,164) Other comprehensive loss $ (22,824) $ 2,036 $ (20,788) 59 Table of Contents NOTE 16 — RESTRUCTURING AND OTHER CHARGES, NET In January 2025, we announced several actions to support the long-term competitiveness of the Company and to mitigate softer market conditions. Total restructuring and related charges for this program of $23.9 million, compared to a target of approximately $20 million, were recorded through June 30, 2026, consisting of $19.4 million in Metal Cutting and $4.5 million in Infrastructure. The Company substantially completed the closure of a facility in Greenfield, MA and the consolidation of facilities in Barcelona, Spain during 2025 as a part of these actions. During 2026, we recorded restructuring and related charges of $11.4 million, which consisted of $9.7 million in Metal Cutting and $1.7 million in Infrastructure. Of this amount, restructuring-related charges of $2.4 million were included in cost of goods sold and $0.1 million were included in operating expense. These amounts are inclusive of a reversal of restructuring and related charges of $1.0 million related to prior actions. During 2025, we recorded restructuring and related charges of $13.3 million, which consisted of $10.4 million in Metal Cutting and $2.8 million in Infrastructure. Of this amount, restructuring-related charges of $1.3 million were included in cost of goods sold and $0.2 million were included in operating expense. During 2024, we recorded restructuring and related charges of $12.4 million, which consisted of $8.5 million in Metal Cutting and $3.9 million in Infrastructure. These amounts are inclusive of a reversal of restructuring and related charges of $1.1 million related to prior actions, including $0.4 million in operating expense. Also included in restructuring and other charges, net during 2024 is a net benefit of $0.6 million primarily due to the sale of properties. As of June 30, 2026, $7.5 million of the restructuring accrual is recorded in other current liabilities and $2.0 million is recorded in other liabilities in our consolidated balance sheet. As of June 30, 2025, $11.0 million of the restructuring accrual is recorded in other current liabilities and $2.4 million is recorded in other liabilities in our consolidated balance sheet. The amounts are as follows: (in thousands) June 30, 2025 Expense Asset Write-Down Translation Cash Expenditures June 30, 2026 Severance $ 13,394 $ 8,244 $ — $ (207) $ (11,867) $ 9,564 Facilities — 665 (665) — — — Total 13,394 8,909 (665) (207) (11,867) 9,564 (in thousands) June 30, 2024 Expense Asset Write-Down Translation Cash Expenditures June 30, 2025 Severance $ 10,799 $ 11,813 $ — $ 702 $ (9,920) $ 13,394 Total 10,799 11,813 — 702 (9,920) 13,394 NOTE 17 — FINANCIAL INSTRUMENTS The methods used to estimate the fair value of our financial instruments are as follows: Cash and Cash Equivalents, Revolving and Other Lines of Credit and Notes Payable. The carrying amounts approximate their fair value because of the short maturity of the instruments. Long-Term Debt, Including Current Maturities. Fixed rate debt had a fair market value of $666.7 million and $570.8 million at June 30, 2026 and 2025, respectively. The Level 2 fair value is determined based on the quoted market prices for similar debt instruments as of June 30, 2026 and 2025, respectively. Concentrations of Credit Risk. Financial instruments that potentially subject us to concentrations of credit risk consist primarily of temporary cash investments and trade receivables. By policy, we make temporary cash investments with high credit quality financial institutions and limit the amount of exposure to any one financial institution. With respect to trade receivables, concentrations of credit risk are significantly reduced because we serve numerous customers in many industries and geographic areas. We are exposed to counterparty credit risk for nonperformance of derivatives and, in the unlikely event of nonperformance, to market risk for changes in interest and currency exchange rates, as well as settlement risk. We manage exposure to counterparty credit risk through credit standards, diversification of counterparties and procedures to monitor concentrations of credit risk. We do not anticipate nonperformance by any of the counterparties. As of June 30, 2026 and 2025, we had no significant concentrations of credit risk. 60 Table of Contents NOTE 18 — STOCK-BASED COMPENSATION Stock Options. Changes in our stock options for 2026 were as follows: Options Weighted Average Exercise Price Weighted Average Remaining Life (years) Aggregate Intrinsic value (in thousands) Options outstanding, June 30, 2025 101,947 $ 30.20 Exercised (14,000) 20.87 Lapsed and forfeited (87,947) 31.69 Options outstanding, June 30, 2026 — $ — 0.0 $ — Options vested and expected to vest, June 30, 2026 — $ — 0.0 $ — Options exercisable, June 30, 2026 — $ — 0.0 $ — As of June 30, 2026 and 2025, there was no unrecognized compensation cost related to options outstanding. All options were fully vested as of June 30, 2026 and 2025. Tax benefits relating to excess stock-based compensation deductions are presented in the consolidated statements of cash flows as operating cash inflows. Tax benefits resulting from stock-based compensation deductions were less than the amounts reported for financial reporting purposes by $0.8 million, $0.8 million and $1.5 million in 2026, 2025 and 2024, respectively. The amount of cash received from the exercise of capital stock options during 2026, 2025 and 2024 was zero. The related tax benefit was $0.1 million in 2026, and zero in 2025 and 2024. The total intrinsic value of options exercised in 2026 was $0.2 million, and zero in 2025 and 2024. Restricted Stock Units – Time Vesting and Performance Vesting. Performance vesting restricted stock units are earned based on both annual and three-year performance targets. The performance vesting restricted stock units are subject to a service condition that requires the individual to be employed by the Company at the payment date after a three-year period, with the exception of retirement eligible grantees. Time vesting stock units are valued at the market value of the stock on the grant date. Performance vesting stock units with a market condition are valued using a Monte Carlo model. Changes in our performance vesting and time vesting restricted stock units for 2026 were as follows: Performance Vesting Stock Units Performance Vesting Weighted Average Fair Value Time Vesting Stock Units Time Vesting Weighted Average Fair Value Unvested, June 30, 2025 568,332 $ 24.76 1,197,215 $ 25.50 Granted 365,215 21.04 1,167,710 21.19 Vested (244,574) 27.15 (681,656) 25.53 Performance metric adjustments, net (38,930) 26.28 — — Forfeited (5,536) 22.95 (50,803) 23.16 Unvested, June 30, 2026 644,507 $ 21.66 1,632,466 $ 22.48 During 2026, 2025 and 2024, compensation expense related to performance vesting and time vesting restricted stock units was $33.4 million, $21.0 million and $23.4 million, respectively. Performance vesting stock units were adjusted by 38,930 units during 2026 related to the fiscal 2025 performance year. As of June 30, 2026, the total unrecognized compensation cost related to unvested performance vesting and time vesting restricted stock units was $24.8 million and is expected to be recognized over a weighted average period of 1.5 years. NOTE 19— ENVIRONMENTAL MATTERS The operation of our business has exposed us to certain liabilities and compliance costs related to environmental matters. We are involved in various environmental cleanup and remediation activities at certain sites associated with our current or former operations. We establish and maintain accruals for estimated liabilities associated with certain environmental matters. At June 30, 2026, the balance of such accruals was $12.3 million, of which $2.7 million was current. At June 30, 2025, the balance was $11.0 million, of which $1.4 million was current. These accruals are generally not discounted. 61 Table of Contents We record a loss contingency when the available information indicates it is probable that we have incurred a liability and the amount of the loss is reasonably estimable. The likelihood of a loss with respect to a particular environmental matter is often difficult to predict, and determining a meaningful estimate of the loss or a range of loss may not be practicable based on information available. When a material loss contingency is probable but a reasonable estimate cannot be made, or when a material loss contingency is at least reasonably possible, disclosure is provided. The accruals we have established for estimated environmental liabilities represent our best current estimate of the probable and reasonably estimable costs of addressing identified environmental situations, based on our review of currently available evidence, and taking into consideration our prior experience in remediation and that of other companies, as well as public information released by the United States Environmental Protection Agency (USEPA), other governmental agencies and by the Potentially Responsible Party (PRP) groups in which we are participating. The accrued liabilities for all environmental concerns could change substantially due to factors such as the nature and extent of contamination, changes in remedial requirements, technological changes, discovery of new information, the financial strength of other PRPs, the identification of new PRPs and the involvement of and direction taken by the government or the courts on these matters. Among other environmental laws, we are subject to the Comprehensive Environmental Response Compensation and Liability Act of 1980 (CERCLA), under which we have been identified by the USEPA or other third party as a PRP with respect to environmental remedial costs at certain Superfund sites. We have evaluated our claims and estimated liability associated with these sites based upon the best information currently available to us. We believe our environmental accruals are adequate to cover our portion of the environmental remedial costs at the sites where we have been designated a PRP, to the extent these expenses are probable and reasonably estimable. NOTE 20 — COMMITMENTS AND CONTINGENCIES Legal Matters. Various lawsuits arising during the normal course of business are pending against us. In our opinion, the ultimate liability, if any, resulting from these matters will have no significant effect on our consolidated financial position or results of operations. In February 2025, MachiningCloud, Inc. filed a lawsuit against the Company in the Superior Court of the State of California alleging breach of a contract and other matters. The Company removed the case to federal court and asserted counterclaims against MachiningCloud, Inc. MachiningCloud, Inc. initially sought damages in excess of $330 million. During the course of the litigation, certain of MachiningCloud's claims have been narrowed and the damages sought are significantly lower than originally asserted. The Company intends to vigorously defend the action and pursue its counterclaims. At this stage of the litigation, no determination can be made with regard to the outcome of the litigation, including the probability of an unfavorable outcome. Lease Commitments. We lease a wide variety of facilities, primarily for warehousing, production and offices, as well as vehicles and equipment that are considered operating leases. Refer to Note 9 for more information. Purchase Commitments. We have purchase commitments for materials, supplies and machinery and equipment as part of the ordinary conduct of business. Some of these commitments extend beyond one year and are based on minimum purchase requirements. We believe these commitments are not at prices in excess of current market. Other Contractual Obligations. We do not have material financial guarantees or other contractual commitments that are reasonably likely to adversely affect our liquidity. Related Party Transactions. Sales to affiliated companies were immaterial in 2026, 2025 and 2024. We do not have any other related party transactions that affect our operations, results of operations, cash flows or financial condition. NOTE 21 — SEGMENT DATA The Company manages and reports its business in the following two segments: Metal Cutting and Infrastructure. The Company's reportable operating segments have been determined in accordance with the Company's internal management structure, which is organized based on operating activities, the manner in which we organize segments for making operating decisions and assessing performance and the availability of separate financial results. The Company's chief operating decision maker is its President and Chief Executive Officer. The President and Chief Executive Officer regularly reviews the discrete financial information of the Metal Cutting and Infrastructure reportable operating segments to assess performance and make decisions about the allocation of resources. The primary measure of profit or loss considered by the President and Chief Executive Officer when evaluating reportable operating segment performance is segment operating income. We do not allocate certain corporate expenses related to executive retirement plans, the Company’s Board of Directors and strategic initiatives, as well as certain other costs and report them in Corporate. Our reportable operating segments do not represent the aggregation of two or more operating segments. 62 Table of Contents Sales to a single customer did not aggregate to more than five percent of total sales in 2026, 2025 and 2024. METAL CUTTING The Metal Cutting segment develops and manufactures high performance tooling and metal cutting products and services and offers an assortment of standard and custom metal cutting solutions to diverse end markets, including General Engineering, Transportation, Aerospace & Defense and Energy. The products include milling, hole making, turning, threading and toolmaking systems used in the manufacture of airframes, aero engines, trucks and automobiles, ships and various types of industrial equipment. We leverage advanced manufacturing capabilities in combination with varying levels of customization to solve our customers’ toughest challenges and deliver improved productivity for a wide range of applications. Metal Cutting markets its products under the Kennametal®, WIDIA®, WIDIA Hanita® and WIDIA GTD® brands through its direct sales force, a network of independent and national distributors, integrated supplier channels and via the Internet. Application engineers and technicians are critical to the sales process and directly assist our customers with specified product design, selection, application and support. INFRASTRUCTURE Our Infrastructure segment produces engineered tungsten carbide and ceramic components, earth cutting tools, and advanced metallurgical powders, primarily for the Earthworks, General Engineering, Energy and Aerospace & Defense end markets. These wear-resistant products include compacts, nozzles, frac seats and custom components used in oil and gas and petrochemical industries; rod blanks and abrasive water jet nozzles for general industries; earth cutting tools and systems used in underground mining, trenching and foundation drilling and road milling; tungsten carbide powders for the oil and gas, aerospace and process industries; high temperature critical wear components, tungsten penetrators and armor solutions for aerospace and defense; and ceramics used by the packaging industry for metallization of films and papers. We combine deep metallurgical and engineering expertise with advanced manufacturing capabilities, such as 3D printing, to deliver solutions that drive improved productivity for our customers. Infrastructure markets its products primarily under the Kennametal® brand and sells through a direct sales force as well as through distributors. Segment data is summarized as follows: (in thousands) 2026 2025 2024 Sales: Metal Cutting $ 1,397,418 $ 1,219,686 $ 1,280,781 Infrastructure 959,280 747,159 766,118 Total sales $ 2,356,698 $ 1,966,845 $ 2,046,899 Cost of goods sold: Metal Cutting $ 829,720 $ 793,479 $ 807,519 Infrastructure 556,130 575,678 612,178 Operating expense: Metal Cutting $ 363,313 $ 329,302 $ 331,019 Infrastructure 113,605 99,433 100,044 Restructuring and other charges, net: Metal Cutting $ 7,190 $ 9,015 $ 8,400 Infrastructure 1,719 2,797 3,752 Amortization of intangibles: Metal Cutting $ 1,590 $ 1,515 $ 1,270 Infrastructure 7,932 9,274 10,287 63 Table of Contents (in thousands) 2026 2025 2024 Operating income: Metal Cutting $ 195,605 $ 86,375 $ 132,573 Infrastructure 279,893 58,465 39,857 Total segment operating income 475,498 144,840 172,430 Unallocated corporate expenses (2,966) (1,717) (2,207) Total operating income $ 472,532 $ 143,123 $ 170,223 Interest expense $ 28,561 $ 24,930 $ 26,472 Other income, net (17,358) (13,811) (699) Income before income taxes $ 461,329 $ 132,004 $ 144,450 Depreciation and amortization: Metal Cutting $ 98,433 $ 93,544 $ 90,917 Infrastructure 44,722 42,953 43,770 Total depreciation and amortization $ 143,155 $ 136,497 $ 134,687 Segment assets(4): Metal Cutting $ 1,406,811 $ 1,423,714 $ 1,416,884 Infrastructure 1,287,348 675,785 690,374 Corporate 472,593 445,913 396,500 Total assets $ 3,166,752 $ 2,545,412 $ 2,503,758 Capital expenditures: Metal Cutting $ 40,644 $ 55,360 $ 71,148 Infrastructure 36,261 33,611 36,413 Total capital expenditures $ 76,905 $ 88,971 $ 107,561 (4) Metal Cutting and Infrastructure segment assets are principally accounts receivable, less allowance for doubtful accounts, inventories, property, plant and equipment, net, goodwill and other intangible assets, net of accumulated amortization. Corporate assets are principally cash and cash equivalents, other current assets, long-term prepaid pension benefit, deferred income taxes, operating lease ROU assets and other assets. 64 Table of Contents Geographic information for sales, based on country where the sale originated, and long-lived assets is as follows: (in thousands) 2026 2025 2024 Sales: United States $ 1,017,788 $ 794,575 $ 824,275 Germany 297,912 263,817 278,824 China 219,305 189,571 199,069 India 143,408 119,390 115,397 Canada 101,260 95,167 102,666 Italy 70,076 58,574 68,575 France 62,664 53,823 55,670 Mexico 58,481 44,672 44,408 South Africa 56,069 46,148 42,609 Spain 34,931 32,671 32,262 United Kingdom 32,633 31,971 32,013 Brazil 27,747 25,595 30,224 Other(5) 234,424 210,871 220,907 Total sales $ 2,356,698 $ 1,966,845 $ 2,046,899 Total long-lived assets: United States $ 446,690 $ 486,762 $ 516,659 Germany 213,564 237,569 219,633 China 69,956 73,875 77,759 India 35,132 38,719 41,886 Israel 24,183 23,302 22,018 Canada 15,714 17,701 18,927 Other (5) 38,345 41,986 41,181 Total long-lived assets(6) $ 843,584 $ 919,914 $ 938,063 (5) Other does not contain any country that individually exceeds 2 percent of total sales or total long-lived assets, respectively. (6) Total long-lived assets as of June 30, 2026, 2025 and 2024 include property, plant and equipment, net. The following table presents Kennametal's revenue disaggregated by segment by geography: Metal Cutting Infrastructure Total Kennametal 2026 2025 2024 2026 2025 2024 2026 2025 2024 Americas 46 % 45 % 45 % 59 % 56 % 58 % 52 % 49 % 49 % EMEA 36 36 37 20 21 20 29 31 31 Asia Pacific 18 19 18 21 23 22 19 20 20 The following table presents Kennametal's revenue disaggregated by segment by end market: Metal Cutting Infrastructure Total Kennametal 2026 2025 2024 2026 2025 2024 2026 2025 2024 General Engineering 53 % 53 % 54 % 28 % 33 % 34 % 43 % 46 % 46 % Transportation 24 27 27 — — — 14 16 17 Aerospace & Defense 15 13 12 10 9 8 13 12 11 Energy 8 7 7 24 23 22 15 13 13 Earthworks — — — 38 35 36 15 13 13 65 Table of Contents NOTE 22 — DIVESTITURE During the year ended June 30, 2025, we completed the sale of a subsidiary located in Goshen, Indiana to a Chicago-based private equity firm. The Company received $19 million in proceeds and recognized a loss on divestiture of $1.5 million during 2025. The proceeds are subject to customary post-closing adjustments as well as an EBITDA-based earn-out opportunity for Kennametal at the end of a three-year period. 66 Table of Contents