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KMT, Kennametal

Industrial Machinery capital-intensive Cyclical

Kennametal is a global industrial technology leader, that helps customers across the General Engineering, Transportation, Earthworks, Energy and Aerospace & Defense end markets build their products with precision and efficiency.

The Company's core 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.

We bring together material science, technical expertise, innovation and customer service in a way that allows us to anticipate customers' needs and help them overcome problems and achieve their manufacturing objectives.

Latest annual: FY2025 10-K

KMT · Kennametal

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$2.0B

−3.9% YoY · 1% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $2.1B 5-yr avg $2.0B

Gross margin 32% 5-yr avg 31%

Operating margin 9.4% 5-yr avg 8.2%

ROIC 8% 5-yr avg 7%

Owner-earnings margin 3% 5-yr avg 3%

Free cash flow margin 3% 5-yr avg 3%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Metal Cutting (62%) and Infrastructure (38%).
Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Gross margin has run about 31% and operating margin about 7.3% through the cycle, a spread the cycle sets more than the company does. The margin is cyclical, swinging between −8.3% and 14% over the years, so the through-cycle figure carries more than any single year — and the balance sheet at the trough more than the peak. Inventory runs near 25% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on the capital-goods cycle and the aftermarket. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median 7%, above 15% in 0 of 10 years). By owner earnings: roughly 5% of revenue reaches owners as cash, though it swings. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

The biggest segment, Metal Cutting, is also where the profit is made: 62% of revenue and 60% of segment operating profit.

Revenue by reportable segment, FY2025

Operating profit same segments

Metal Cutting62%$1.2B60% of profit
Infrastructure38%$747M40% of profit

By geographyUnited States40%Germany13%Other11%China10%India6%Canada5%Other15%

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$2.1B	$2.1B	$2.4B	$2.4B	$1.9B	$1.8B	$2.0B	$2.1B	$2.0B	$2.0B	$2.1B	RevenueRevenue
29%	31%	35%	35%	28%	30%	32%	31%	31%	30%	32%	Gross marginGross mgn
2%	2%	2%	2%	2%	2%	2%	2%	2%	2%	2%	R&D / revenueR&D/rev
($175M)	$95M	$290M	$329M	$22M	$102M	$218M	$192M	$170M	$143M	$201M	Operating incomeOp. inc.
−8.3%	4.6%	12.3%	13.8%	1.2%	5.5%	10.8%	9.3%	8.3%	7.3%	9.4%	Operating marginOp. mgn
($226M)	$49M	$200M	$242M	($6M)	$54M	$145M	$118M	$109M	$93M	$137M	Net incomeNet inc.
—	38%	26%	21%	—	10%	28%	23%	22%	26%	26%	Effective tax rateTax rate
											Cash flow & returns
$222M	$195M	$277M	$301M	$224M	$236M	($181M)	$258M	$277M	$208M	$148M	Operating cash flowOp. cash
$117M	$108M	$109M	$112M	$120M	$126M	$132M	$134M	$135M	$136M	$143M	DepreciationDeprec.
$313M	$17M	($52M)	($76M)	$93M	$30M	($479M)	($19M)	$9M	($43M)	($161M)	Working capital & otherWC & other
$111M	$118M	$171M	$212M	$244M	$127M	$97M	$94M	$108M	$89M	$75M	CapexCapex
5.3%	5.7%	7.2%	8.9%	13.0%	6.9%	4.8%	4.5%	5.3%	4.5%	3.5%	Capex / revenueCapex/rev
$112M	$77M	$106M	$88M	($20M)	$108M	($278M)	$164M	$170M	$119M	$73M	Owner earningsOwner earn.
5.3%	3.8%	4.5%	3.7%	−1.1%	5.9%	−13.8%	7.9%	8.3%	6.1%	3.4%	Owner earnings marginOE mgn
$112M	$77M	$106M	$88M	($20M)	$108M	($278M)	$164M	$170M	$119M	$73M	Free cash flowFCF
5.3%	3.8%	4.5%	3.7%	−1.1%	5.9%	−13.8%	7.9%	8.3%	6.1%	3.4%	Free cash flow marginFCF mgn
$0	—	—	—	—	—	$0	$0	$4M	$0	$0	AcquisitionsAcquis.
$64M	$64M	$65M	$66M	$66M	$67M	$67M	$65M	$63M	$62M	$61M	Dividends paidDiv. paid
$295K	$241K	$217K	$214K	$209K	$197K	$86M	$49M	$66M	$60M	—	BuybacksBuybacks
-9%	4%	13%	15%	1%	5%	9%	8%	8%	6%	8%	ROICROIC
-23%	5%	17%	18%	-0%	4%	12%	9%	9%	7%	10%	Return on equityROE
−30%	−1%	11%	13%	−6%	−1%	6%	4%	4%	2%	6%	Retained to equityRetained/eq
											Balance sheet
$162M	$191M	$556M	$182M	$607M	$154M	$86M	$106M	$128M	$141M	$107M	Cash & investmentsCash+inv
$371M	$380M	$401M	$380M	$238M	$303M	$295M	$307M	$303M	$295M	$334M	ReceivablesReceiv.
$459M	$488M	$525M	$572M	$522M	$476M	$571M	$558M	$515M	$538M	$747M	InventoryInvent.
$182M	$216M	$222M	$213M	$165M	$178M	$228M	$203M	$192M	$196M	$263M	Accounts payablePayables
$648M	$652M	$705M	$739M	$596M	$602M	$638M	$662M	$626M	$638M	$819M	Operating working capitalOper. WC
$1.1B	$1.1B	$1.5B	$1.2B	$1.4B	$1.0B	$1.0B	$1.0B	$1.0B	$1.0B	$1.3B	Current assetsCur. assets
$427M	$461M	$887M	$462M	$898M	$437M	$486M	$434M	$416M	$422M	$536M	Current liabilitiesCur. liab.
2.5×	2.4×	1.7×	2.6×	1.6×	2.3×	2.1×	2.4×	2.4×	2.5×	2.4×	Current ratioCurr. ratio
$298M	$301M	$302M	$300M	$271M	$278M	$264M	$270M	$272M	$283M	$280M	GoodwillGoodwill
$2.4B	$2.4B	$2.9B	$2.7B	$3.0B	$2.7B	$2.6B	$2.5B	$2.5B	$2.5B	$2.7B	Total assetsAssets
$700M	$700M	$998M	$598M	$598M	$598M	$599M	$599M	$599M	$599M	$599M	Total debtDebt
$539M	$509M	$441M	$416M	($8M)	$444M	$513M	$493M	$471M	$459M	$492M	Net debt / (cash)Net debt
-6.3×	3.3×	9.7×	10.0×	0.6×	2.2×	8.4×	6.8×	6.4×	5.7×	8.1×	Interest coverageInt. cov.
$964M	$1.0B	$1.2B	$1.3B	$1.2B	$1.3B	$1.3B	$1.3B	$1.2B	$1.3B	$1.4B	Shareholders’ equityEquity
0.9%	1.0%	0.9%	1.0%	0.9%	1.3%	1.0%	1.2%	1.2%	1.1%	1.4%	Stock comp / revenueSBC/rev
$106M	—	—	—	$27M	—	—	—	—	—	$30M	Goodwill written downGW imp.
											Per share
79.8M	81.2M	82.8M	83.3M	83.0M	84.3M	83.9M	81.4M	80.0M	77.9M	77.2M	Shares out (diluted)Shares
$26.28	$25.36	$28.61	$28.52	$22.70	$21.84	$23.97	$25.53	$25.60	$25.25	$27.66	Revenue / shareRev/sh
$-2.83	$0.61	$2.42	$2.90	$-0.07	$0.65	$1.72	$1.46	$1.37	$1.20	$1.77	EPS (diluted)EPS
$1.40	$0.95	$1.28	$1.06	$-0.25	$1.29	$-3.32	$2.01	$2.12	$1.53	$0.95	Owner earnings / shareOE/sh
$1.40	$0.95	$1.28	$1.06	$-0.25	$1.29	$-3.32	$2.01	$2.12	$1.53	$0.95	Free cash flow / shareFCF/sh
$0.80	$0.79	$0.79	$0.79	$0.80	$0.79	$0.79	$0.79	$0.79	$0.79	$0.79	Dividends / shareDiv/sh
$1.39	$1.45	$2.07	$2.55	$2.94	$1.51	$1.15	$1.16	$1.35	$1.14	$0.97	Cap. spending / shareCapex/sh
$12.08	$12.53	$14.43	$16.03	$14.81	$15.77	$14.92	$15.67	$15.63	$16.48	$17.54	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	−0.4%/yr	+2.2%/yr
Owner earnings / share	+1.0%/yr	—
Dividends / share	−0.1%/yr	−0.1%/yr
Capital spending / share	−2.1%/yr	−17.2%/yr
Book value / share	+3.5%/yr	+2.2%/yr

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

Revenue-3.9%
“Sales of $1,966.8 million in 2025 decreased 4 percent from $2,046.9 million in 2024, reflecting an organic sales decline of 4 percent and an unfavorable currency exchange effect of 1 percent, partially offset by a favorable business days effect of 1 percent.”
✓ figure matches the filed record

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

78Mpeak FY2021

ROIC

6%low FY2016

Gross margin

30%low FY2020

Net debt ÷ owner earnings

3.8×peak FY2017

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$119Mowner earningsvs.$93Mnet incomelow FY2022

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $93M of profit into $119M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$93M

Owner earnings$119M · 6% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$93M	$109M	$118M	$145M	$54M
Depreciation & amortizationnon-cash charge added back	+$136M	+$135M	+$134M	+$132M	+$126M
Stock-based compensationreal costnon-cash, but a real cost	+$22M	+$24M	+$25M	+$21M	+$25M
Working capital & othertiming of cash in and out, other non-cash items	−$43M	+$9M	−$19M	−$479M	+$30M
Cash from operations	$208M	$277M	$258M	($181M)	$236M
Capital expenditurecash put back in to keep running and to grow	−$89M	−$108M	−$94M	−$97M	−$127M
Owner earnings	$119M	$170M	$164M	($278M)	$108M
Owner-earnings marginowner earnings ÷ revenue	6%	8%	8%	-14%	6%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $22M), owner earnings is nearer $97M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 5.7×

Comfortable

Operating income $143M ÷ interest expense $25M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? $459M · 3.2× operating profit

Meaningful net debt

Cash $141M − debt $599M

What this means
Netting $141M of cash and short-term investments against $599M of debt leaves $459M owed, about 3.2× a year's operating profit (4.2× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 146d

Long (60+ days)

DSO 55 + DIO 144 − DPO 52 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 6%

Below average through the cycle

10-yr median, range -9%–15%; 6% latest = NOPAT $105M ÷ invested capital $1.7B

Industry peers: median 11%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 6% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 6%

Solid, recently turned positive

latest $119M = operating cash $208M − maintenance capex $89M; positive each of the last 3 years, after an earlier loss stretch (10-yr median 4%)

Industry peers: median 10%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 6% of revenue this year, a 4% median across 10 years. Treating stock comp as the real expense it is (less $22M of SBC) leaves $97M.
Are earnings backed by cash? 2.24×

Cash-backed

Cash from ops $208M ÷ net income $93M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 102%

Returned more than it generated

Dividends + buybacks $122M ÷ Owner Earnings $119M

What this means
The company returned more than it generated: against $119M of Owner Earnings, $122M (102%) went back to shareholders, $62M dividends, $60M buybacks — the excess came from the balance sheet or borrowing, not the year's operations. Net of $22M stock comp, the real buyback was about $38M. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
Investing or harvesting? 0.65×

Harvesting

Capex $89M ÷ depreciation $136M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 4 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Near

Revenue ≥ $2B · $2.0B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 2.46×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $599M vs $617M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 2 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Pass

Uninterrupted dividends · paid every year (10)

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +1274%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $1.40/share (latest year $1.22), the averaged base the calculator's gate runs on, and book value is $16.85/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 8 of 10

What this means
Lost money in 2 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 3% → 8% (3-yr avg ends)

In the filing’s words The record and the words agree: the margin widened and the filing attributes the gain to its own pricing, not volume alone.

What this means
Through the cycle the operating margin widened — about 3% early to 8% lately, median 7% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +5%/yr

What this means
Owner earnings grew about 5% a year over the record.
Worst year 2016 · −8.3% op. margin

What this means
Operations went underwater in 2016, understand why before trusting the good years.
Share count −0.3%/yr

What this means
Roughly flat share count, little dilution, little buyback.
Dividend record paid

What this means
Paid a dividend in 10 of the years on record.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$1.3B

Cash & short-term investments$107M
Receivables$334M
Inventory$747M
Other current assets$89M

Current liabilities$536M

Accounts payable$263M
Other current liabilities$273M

Current ratio2.38×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.99×stricter: inventory excluded

Cash ratio0.20×strictest: cash alone against what's due

Working capital$742Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+21.8%the freshest read on whether the business is still growing

Current ratio, recent quarters2.4× → 2.4×

Deeper floors

Tangible book value$1.0Bequity stripped of goodwill & intangibles

Net current asset value($54M)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$45M$45M of it operating leases

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $2.0B of operating cash; how management split it reads as a reinvestor, most operating cash is plowed back into the business.

Reinvested$1.4B · 68%
Dividends$648M · 32%
Buybacks$262M · 13%

Returned to owners$910M
141% of the owner earnings the business produced over the span, $648M as dividends and $262M as buybacks.
Source of funding−$264M
Reinvestment and shareholder returns ran $264M beyond the operating cash the business generated, so the gap was financed off the balance sheet: cash and short-term investments drew down $55M.
Average price paid for buybacks—
Buybacks ran $262M over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count−3.3%
The diluted count fell from 80M to 77M, so the buybacks outran the stock issued to staff.
Dividend record$0.79/sh
Paid in 10 of the years on record, the per-share dividend shrinking about 0% a year. It was never cut over the span.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$350M14% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity22%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$4Mover 10 years buying other businesses, against $1.4B of capital spent building

$133M written down across 2 years (2016, 2020): goodwill the company has already conceded it overpaid for, charged against earnings. A write-down costs no cash (the cash went out when the deal was signed), but it is management marking its own past judgment to market.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Pay, as filed	“Actually paid”	Owner earnings
2021	$6.4M	$6.7M	$108M
2022	$6.1M	$2.4M	($278M)
2023	$6.7M	$8.5M	$164M
2024	$6.4M	$4.1M	$170M
2024	$1.8M	$1.3M	$170M
2025	$4.7M	$4.4M	$119M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Stock-based compensation$22M
The slice of the business handed to employees in shares this year, 1% of revenue, equal to 15% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Kennametal is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

1 of the 6 tests turned up something to look into; the other 5 came back clean.

Look hereDid receivables and inventory outpace sales?40% → 51% of sales
Receivables and inventory grew from $830M to $1.1B while revenue grew 2%: working capital is climbing faster than sales (40% of revenue then, 51% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.

And these came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did debt outgrow the business?
Did reported profit become cash?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Pension & retirement, Income taxes, Credit & receivables as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Industrial Machinery

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
LECOLincoln Electric Holdings Inc.	$4.2B	34%	14.3%	23%	11%
SPXCSPX Technologies Inc.	$2.3B	36%	8.0%	11%	10%
SYMSymbotic Inc.	$2.2B	15%	-21.3%	—	-4%
MTWManitowoc Company Inc. (The)	$2.2B	18%	2.4%	3%	-2%
GGGGraco Inc.	$2.2B	53%	26.6%	32%	20%
KMTKennametal	$2.0B	31%	7.8%	7%	5%
RBCRBC Bearings	$1.9B	40%	19.5%	8%	15%
ALHAlliance Laundry Holdings Inc.	$1.7B	—	18.6%	—	9%
Group median	—	34%	11.2%	10%	10%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Kennametal has delivered.

Kennametal’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Kennametal earns about $97M on its 4.9% median owner-earnings margin. This year’s 6.1% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($97M) Net of stock comp (−$30M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’16→’25+5%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $73M on 76M shares outstanding, per the 10-Q cover, as of 2026-04-30; net debt $492M. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh KMT against another business →

The owners of KMT: the meeting and the votes →

Cite: Owner Scorecard, "Kennametal (KMT), the owner's record," https://ownerscorecard.com/c/KMT, data as of 2026-07-09.

Manual order: ← KMPR its page in the Manual KMTS →

Industry order: ← KAI the Industrial Machinery chapter KRNT →