Kennametal Inc.
- Open
- 29.79
- Day high
- 29.79
- Day low
- 28.82
- Prev close
- 29.34
- Volume
- 106K
- Mkt cap
- $2.2B
- P/E (TTM)
- 6.5
- EPS (TTM)
- $4.46
- P/B
- 1.4
- P/S
- 0.9
- Yield
- 2.73%
- Per share
- $0.80
- ▼Insiders net selling -$1.2M over the last 3 months (0 open-market buys, 2 sales)
- 🏛Institutions accumulating (13F)
Kennametal Inc. (KMT) is a Industrials company listed on NYSE. The stock is up 38% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 2 sales (SEC Form 4). Drillr has 1 published research article covering KMT.
Kennametal Inc. (KMT) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 4 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
KMT earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $2.31 | $2.96 | +28.1% | $737M | +1.5% |
| May 6, 2026 | $0.68 | $0.77 | +13.2% | $593M | +4.3% |
| Feb 4, 2026 | $0.35 | $0.47 | +34.3% | $530M | -6.3% |
| Nov 5, 2025 | $0.24 | $0.34 | +41.7% | $498M | -0.2% |
| Feb 5, 2025 | $0.27 | $0.25 | -7.4% | $482M | -1.3% |
| May 8, 2024 | $0.30 | $0.30 | +0.0% | $516M | -0.5% |
| Feb 7, 2024 | $0.25 | $0.30 | +20.0% | $495M | -0.7% |
| Nov 1, 2023 | $0.37 | $0.41 | +10.8% | $492M | -2.8% |
| Aug 1, 2023 | $0.35 | $0.41 | +17.1% | $550M | -2.9% |
| May 1, 2023 | $0.34 | $0.39 | +14.7% | $536M | +1.2% |
| Feb 6, 2023 | $0.22 | $0.27 | +22.7% | $497M | +1.1% |
| Oct 31, 2022 | $0.37 | $0.34 | -8.1% | $495M | +1.4% |
KMT insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 26, 2026 | Bausch Shelley Jdirector | Grant | 811 | — |
| Aug 26, 2026 | DIETRICH DOUGLAS Tdirector | Grant | 982 | — |
| Aug 20, 2026 | Martin Lorraine Mdirector | Option | 6,092 | $31.22 |
| Aug 20, 2026 | Martin Lorraine Mdirector | Option | 1,860 | — |
| Aug 20, 2026 | Martin Lorraine Mdirector | Option | 1,933 | — |
| Aug 20, 2026 | Sternlieb Pauldirector | Option | 1,933 | — |
| Aug 20, 2026 | Sternlieb Pauldirector | Tax | 186 | $31.22 |
| Aug 20, 2026 | Sternlieb Pauldirector | Option | 6,092 | $31.22 |
| Aug 20, 2026 | Sternlieb Pauldirector | Option | 1,860 | — |
| Aug 20, 2026 | Martin Lorraine Mdirector | Tax | 186 | $31.22 |
| Aug 18, 2026 | ALVARADO JOSEPHdirector | Option | 1,860 | — |
| Aug 18, 2026 | Hamadi Faisalofficer: Vice President | Option | 3,730 | $31.22 |
| Aug 18, 2026 | Bersaglini Clark Davidofficer: Vice President | Option | 4,564 | $31.22 |
| Aug 18, 2026 | Bersaglini Clark Davidofficer: Vice President | Tax | 2,214 | $31.22 |
| Aug 18, 2026 | Martin Lorraine Mdirector | Tax | 186 | $31.22 |
Source: KMT SEC Form 4 filings, latest Aug 26, 2026. For informational purposes only — not investment advice.
See the full KMT insider & 13F page →Kennametal Inc. company profile
Overview
Kennametal Inc. (NYSE:KMT) is a Pittsburgh-based industrial manufacturing company founded in 1938 that specializes in developing and producing advanced materials and cutting tools for extreme wear applications. The company went public in 1943 and has evolved into a global leader in tungsten carbide, ceramics, and super-hard materials technology. Kennametal serves customers across diverse industries including aerospace, automotive, energy, and mining through its two primary business segments: Metal Cutting and Infrastructure. The company operates manufacturing facilities worldwide and distributes its products through direct sales forces, independent distributors, and digital channels under brands including Kennametal, WIDIA, WIDIA Hanita, and WIDIA GTD.
Business
Kennametal operates in the industrial tooling and materials sector, providing specialized solutions for metal cutting and extreme wear applications. The company's core expertise lies in developing and manufacturing products from tungsten carbide, ceramics, and super-hard materials that enable customers to work effectively against corrosion, high temperatures, and extreme wear conditions. Tungsten carbide is an extremely hard compound used in cutting tools and wear-resistant applications, while ceramics offer superior heat resistance and hardness for specialized industrial processes. The company operates through two main business segments: 1. Metal Cutting segment (approximately 70% of revenue): This division produces cutting tools and tooling systems used in manufacturing processes such as turning, milling, and hole-making operations. Products include standard and custom cutting tools, tooling systems, and specialized components for manufacturers in transportation, aerospace, machine tools, and energy industries. The segment serves customers who need precision cutting solutions for machining metal parts and components. 2. Infrastructure segment (approximately 30% of revenue): This division focuses on wear-resistant components and specialized materials for harsh operating environments. Products include compacts and nozzles for oil and gas drilling, earth cutting tools for underground mining and road construction, tungsten carbide powders for various industrial applications, and ceramics for packaging industry metallization processes. These products are designed to withstand extreme conditions in mining, construction, and energy extraction operations. Both segments leverage Kennametal's core materials science expertise to create solutions that extend tool life, improve productivity, and reduce downtime for industrial customers operating in demanding environments.
Competitive moat
Kennametal's competitive moat is moderately strong but faces ongoing challenges in certain market segments. The company's primary moat stems from its deep materials science expertise and decades of accumulated knowledge in tungsten carbide and ceramic formulations. This technical know-how creates high switching costs for customers who rely on Kennametal's application engineering support and custom solutions for critical manufacturing processes. The company benefits from customer stickiness in specialized applications where tool performance directly impacts production efficiency and quality. In aerospace and precision manufacturing, qualification processes and performance validation create barriers to switching suppliers. Additionally, Kennametal's global manufacturing footprint and distribution network provide scale advantages and local market access that smaller competitors cannot easily replicate. However, the moat faces significant challenges. In commodity cutting tool segments, the company competes against lower-cost manufacturers, particularly from Asia, which pressure margins and market share. The rise of Chinese manufacturers with improving quality and significantly lower costs represents a persistent competitive threat. Additionally, some customers are developing in-house capabilities or working with multiple suppliers to reduce dependence on any single vendor. Technological disruption poses another risk, as additive manufacturing and advanced coatings technologies could potentially displace traditional cutting tools in certain applications. The company's ability to maintain its moat depends on continued innovation, strategic positioning in high-value market segments, and successful execution of operational efficiency initiatives to remain cost-competitive while preserving technical differentiation.
Risks & safety
Kennametal demonstrates a reasonable but not exceptional margin of safety with mixed financial health indicators. • Liquidity position: Strong current ratio of 2.44x and quick ratio of 1.10x indicate solid short-term liquidity. Cash position of $97 million provides adequate operating flexibility. • Debt levels: Moderate debt-to-equity ratio of 0.046 suggests conservative leverage, though this has fluctuated historically between 0.05-0.53 across recent periods. • Cash generation: Positive but volatile free cash flow ($5.3 million in Q3 2025, down from $90 million in Q4 2024) indicates cyclical cash generation patterns. Operating cash flow remains positive at $28.8 million quarterly. • Valuation metrics: Trading at 13.0x P/E ratio and 9.1x EV/EBITDA, suggesting reasonable but not deep value pricing. Graham number of 12.15 compared to current price indicates modest undervaluation. • Operational concerns: Five consecutive quarters of negative organic growth and ongoing restructuring costs create near-term earnings pressure. Exposure to cyclical end markets adds volatility risk. • Competitive pressures: Margin compression in core segments and tariff headwinds ($80 million estimated annual impact) present ongoing challenges to profitability.
Recent development
Over the past few years, Kennametal has undertaken significant strategic initiatives focused on operational efficiency and portfolio optimization. The company launched a comprehensive $100 million cost improvement program targeting fiscal 2027, with restructuring actions including facility closures in Massachusetts and Spain, workforce reductions, and global production optimization. These efforts are expected to deliver $65 million in annualized savings by fiscal year-end 2025. The company has implemented tariff mitigation strategies to address an estimated $80 million annual tariff impact, including optimizing global product flows, evaluating alternative supply sources, rebalancing production capacity, and implementing tariff surcharges. Management has focused on commercial excellence initiatives emphasizing value-based pricing and customer application support to differentiate from commodity competitors. Product innovation has centered on high-growth market segments, with new launches including the PrimePoint longwall mining pick featuring polycrystalline diamond technology and TopSwiss micro machining solutions for medical and aerospace applications. The company has strengthened its position in aerospace and defense markets, achieving consistent double-digit growth in this segment through strategic customer wins and expanded product offerings. Portfolio optimization efforts include systematic review of underperforming product lines and potential divestiture considerations, while exploring bolt-on acquisitions in medical, ceramics, and aerospace sectors. The company has maintained focus on working capital optimization, targeting primary working capital at 30% of sales through improved inventory management and process efficiency initiatives.
KMT company profile · for informational purposes only — not investment advice.
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