At a glance
Kennametal Inc is worth $2.27B, about 7 times its fiscal 2026 earnings. Revenue grew 19.8% to $2.36B in fiscal 2026, with 14.5% kept as profit; over 5 years it has grown 5.1% a year. It pays a 2.69% dividend yield, and returned $587.9M to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned +34.5% over the past year with dividends reinvested and −2.8% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 51.7% in the 2020 crash (S&P 500: 33.7%) and 44.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 40 months after the lows.
The business in plain English
Kennametal makes cutting tools and wear-resistant parts from tungsten carbide, an extremely hard compound of tungsten and carbon. It also uses ceramics and other super-hard materials. The company was founded on a tungsten carbide breakthrough in 1938. It sells to manufacturers and equipment-heavy operators in general engineering, transportation, earthworks, energy, and aerospace and defense. It aims to set prices based on how much more productive its tools make customers, rather than competing on price alone.
Metal Cutting is the larger of its two segments. It brought in $1.40 billion, or 59% of $2.36 billion in sales, for the fiscal year ended June 30, 2026. It makes milling, drilling, turning and threading tools used to build aircraft, engines, vehicles, ships and industrial equipment. Its brands are Kennametal, WIDIA, WIDIA Hanita and WIDIA GTD. The tools reach customers through the company's own sales force, distributors and online, and its engineers help customers pick and use them. Infrastructure, at $959 million or 41%, makes carbide and ceramic wear parts, earth cutting tools for mining and road milling, parts for oil and gas production, tungsten powders, and armor for defense.
Most sales came from outside the US: 57% in fiscal 2026. The US was still the largest single market at 43%, followed by Germany at 13%, China at 9% and India at 6%.
Price history
The interactive chart needs JavaScript.
KMT +34.5% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Metal Cutting | $1.40B | 59.3% |
| Infrastructure | $959.3M | 40.7% |
By geography
| United States | $1.02B | 43.2% |
| Germany | $297.9M | 12.6% |
| Other | $234.4M | 9.9% |
| China | $219.3M | 9.3% |
| India | $143.4M | 6.1% |
| Canada | $101.3M | 4.3% |
| Italy | $70.1M | 3% |
| France | $62.7M | 2.7% |
| Mexico | $58.5M | 2.5% |
| South Africa | $56.1M | 2.4% |
| Spain | $34.9M | 1.5% |
| United Kingdom | $32.6M | 1.4% |
| Brazil | $27.7M | 1.2% |
Latest results
- In Q4 FY2026 (ended Jun 30, 2026), revenue was $736.6M, up 42.6% from a year earlier, and net income was $227.0M (+951.2%).
- For fiscal 2026, revenue was $2.36B (+19.8% year over year; +5.1% a year from FY2021 to FY2026) with a 14.5% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +5.1% good |
|---|---|
| Operating margin | 20.1% good |
| Free cash flow margin | -3.4% weak |
| Return on equity (FY2026) | 21.8% good |
| Return on assets (FY2026) | 10.8% good |
| Net cash (cash minus debt) | $-589.5M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $1.84B | $54.4M | $108.4M |
| FY2022 | $2.01B | $144.6M | $-278.4M |
| FY2023 | $2.08B | $118.5M | $163.6M |
| FY2024 | $2.05B | $109.3M | $169.5M |
| FY2025 | $1.97B | $93.1M | $119.4M |
| FY2026 | $2.36B | $342.4M | $-80.9M |
Valuation snapshot
| Market value | $2.27B |
|---|---|
| P/E ratio | 6.7 |
| Dividend yield | 2.69% |
Rank among 1514 US companies
Market value at each year end
Kennametal’s market value went from $2.50B at the end of 2016 to $2.27B on Oct 28, 2026, down 9%; since the end of 2025 it is up 5%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $2.27B | +4.9% |
| 2025 | $2.16B | +15.8% |
| 2024 | $1.87B | -9.1% |
| 2023 | $2.05B | +5.9% |
| 2022 | $1.94B | -35.5% |
| 2021 | $3.00B | -0.5% |
| 2020 | $3.02B | -1.3% |
| 2019 | $3.06B | +11.9% |
| 2018 | $2.73B | -30.4% |
| 2017 | $3.92B | +57.0% |
| 2016 | $2.50B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| KMT price data to Oct 28, 2026 | +6.5% | +34.5% | +13.2% | -2.8% | +3.4% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +6.5% |
| 2025 | +22.5% |
| 2024 | -4.0% |
| 2023 | +10.5% |
| 2022 | -31.0% |
| 2021 | +1.2% |
| 2020 | +1.0% |
| 2019 | +13.5% |
| 2018 | -29.9% |
| 2017 | +58.1% |
| 2016 | +68.5% |
| 2015 | -45.1% |
| 2014 | -30.1% |
| 2013 | +32.2% |
| 2012 | +11.2% |
| 2011 | -6.2% |
| 2010 | +54.9% |
| 2009 | +19.6% |
| 2008 | -40.4% |
| 2007 | +30.2% |
| 2006 | +16.3% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 68.2% over that stretch · deepest drop along the way 70.1%, back to its old high 25.9 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 50.4% over that stretch · deepest drop along the way 51.7%, back to its old high 2.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 37.7% over that stretch · deepest drop along the way 44.5%, back to its old high 39.6 months after the low |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 2 open-market purchases ($355K) and 2 sales ($904K).
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 4, 2026 | Michelle R Keating Vice President | sell | $611K |
| Sep 8, 2026 | Judith L Bacchus Vice President | sell | $293K |
| Sep 10, 2026 | Sanjay Chowbey President and CEO | buy | $204K |
| Sep 4, 2026 | Richard J Harshman Director | buy | $151K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 15% | Mar 31, 2025 |
| Vanguard Portfolio Management | 7.33% | Mar 31, 2026 |
| Dimensional Fund Advisors LP | 6.6% | Dec 31, 2024 |
| Vanguard Capital Management | 5.24% | Mar 31, 2026 |
| Ariel Investments, LLC | 5% | Sep 30, 2025 |
| American Century Investment Management, Inc. | 4.1% | Dec 31, 2025 |
| Wellington Management Group LLP | 3.5% | Mar 31, 2025 |
| BRANDES INVESTMENT PARTNERS, LP | 2.3% | Jun 30, 2026 |
| Burgundy Asset Management Ltd. | 0.62% | Mar 31, 2025 |
ETFs with the most weight in KMT
| MYLD Cambria Micro and SmallCap Shareholder Yield ETF | 0.92% |
| DGRS WisdomTree US Smallcap Quality Dividend Growth Fund | 0.76% |
| PSCI Invesco S&P SmallCap Industrials ETF | 0.68% |
| DSMC Distillate Small/Mid Cash Flow ETF | 0.46% |
| AFMC First Trust Active Factor Mid Cap ETF | 0.39% |
| FYT First Trust Small Cap Value AlphaDEX Fund | 0.36% |
| AVUV Avantis U.S. Small Cap Value ETF | 0.31% |
| CALF Pacer US Small Cap Cash Cows ETF | 0.27% |
What could go wrong
- Tungsten supply is concentrated in China. Tungsten is its main raw material, and global mining and processing are concentrated in China. Export controls have pushed tungsten prices higher and made supply less certain. In-house recycling only partly offsets this.
- Demand rises and falls with the economy. Sales depend on factory, mining, energy and construction activity. The company says its business has historically been cyclical, and past global downturns hurt both sales and profits.
- More than half of sales are abroad. In fiscal 2026, 57% of sales came from outside the US, with major operations in Western Europe, China and India. Currency swings, political instability and tax changes in those markets can reduce reported earnings.
- Tariffs and shifting trade rules. New tariffs or changes to trade agreements can raise what Kennametal pays for imported materials and parts, or make its products cost more for foreign buyers. Its major raw material sources are abroad.
- Debt and borrowing limits. As of June 30, 2026, total debt was $685.3 million against $95.8 million in cash and investments. Its credit agreements may limit further borrowing, and free cash flow was negative $80.9 million in fiscal 2026.
- Many competitors, large and small. Kennametal competes with several large global rivals and hundreds of smaller toolmakers. Its pricing depends on proving its tools make customers more productive. If that edge narrows, it may have to compete more on price.
Recent events
- Shareholder vote results; Other company announcement
- Executive or board change; Other company announcement
- Quarterly results released
- Other company announcement
- Executive or board change
- Executive or board change; Other company announcement
- Major agreement signed; New debt or financial obligation
- Major agreement signed; New debt or financial obligation; Other company announcement
- Other company announcement
- Quarterly results released
For income and retirement investors
Kennametal paid $0.80 per share in dividends every fiscal year from 2021 through 2026, with no increases. The yield was 2.69% as of October 28, 2026. Dividends took 17.8% of fiscal 2026 earnings. But earnings per share of $4.42 were far above fiscal 2025's $1.20, so that low payout may not be typical. Free cash flow (the cash left after spending on equipment and buildings) was negative $80.9 million in fiscal 2026, so it did not cover the $60.8 million paid in dividends. Buybacks totaled $270.6 million over fiscal 2022–2026, and shares outstanding fell 8.9%. Buybacks shrank to $10.1 million in fiscal 2026.
The stock fell steeply in past downturns. It dropped 70.1% in the 2008 financial crisis and took about 26 months to recover. It fell 51.7% in the 2020 COVID crash but recovered within 2.5 months. In the 2022 bear market it lost 44.5% and did not regain its prior peak until January 14, 2026. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Kennametal make money?
Kennametal makes money by selling tungsten carbide cutting tools and wear-resistant parts. In the fiscal year ended June 30, 2026, its Metal Cutting segment brought in 59% of $2.36 billion in sales. It sells milling, drilling and turning tools to manufacturers in aerospace, transportation, energy and general engineering. The Infrastructure segment, at 41%, sells earth cutting tools for mining and road building, wear parts for oil and gas, tungsten powders and defense products such as armor.
Does Kennametal raise its dividend every year?
No. Kennametal paid $0.80 per share in each fiscal year from 2021 through 2026, so the dividend stayed flat. The yield was 2.69% as of October 28, 2026. Dividends used 17.8% of fiscal 2026 earnings, which is a low share. But free cash flow was negative $80.9 million that year. That means the business did not produce enough spare cash to cover the $60.8 million it paid out.
What is Kennametal's P/E ratio?
Kennametal's price-to-earnings (P/E) ratio was 6.7 as of October 28, 2026, based on fiscal 2026 earnings of $4.42 per diluted share. The P/E compares the share price with a year's profit per share. The ratio is low partly because net income jumped 267.7% in fiscal 2026, to $342.4 million. Earnings per share ranged from $0.65 to $1.72 in fiscal 2021–2025, so fiscal 2026 may not reflect a typical year.
Why do tungsten prices matter to Kennametal?
Tungsten is Kennametal's main raw material. It is used to make the tungsten carbide in its tools and wear parts. Mining and processing of tungsten are concentrated in China, and the company says export controls have raised prices and made supply less certain. Kennametal manages this with long-term supply contracts, spot purchases and its own tungsten recycling. Even so, higher or swinging tungsten costs can still squeeze its profits.
How did Kennametal stock do in past market crashes?
It fell steeply each time. The share price dropped 70.1% in the 2008 financial crisis and did not recover until January 18, 2011. In the 2020 COVID crash it fell 51.7% but recovered by June 8, 2020. In the 2022 bear market it lost 44.5% and did not regain its peak until January 14, 2026, about 40 months later. Its largest drop in the year to October 28, 2026 was 31.9%.