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Here are 1-3 brief analogies for Kennametal (KMT):

• Snap-on for industrial cutting tools and wear parts.
• The 'Intel Inside' for the critical tooling and wear components used in modern manufacturing.

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• Metalworking Tools: Provides a wide range of cutting tools for turning, milling, drilling, and other machining applications for industrial production.
• Tooling Systems: Offers integrated tooling solutions including tool holders, adapters, and modular systems that optimize machine tool performance.
• Advanced Materials and Wear Solutions: Engineers and manufactures wear-resistant components and materials, primarily from tungsten carbide, for applications requiring extreme durability in industries like aerospace, energy, and mining.

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Kennametal (symbol: KMT) primarily sells its advanced industrial materials, tooling, and wear-resistant solutions to other companies (Business-to-Business or B2B) rather than directly to individuals.

Due to the diverse nature of its global customer base across various industrial sectors and for competitive reasons, Kennametal does not publicly disclose the names of specific major customer companies. Therefore, while specific customer names with public symbols cannot be provided, Kennametal's customer base consists of industrial enterprises operating within the following key sectors:

• Aerospace & Defense: Manufacturers of aircraft components, engines, and defense systems worldwide.
• Earthworks: Companies involved in mining, construction, roadbuilding, and agriculture that utilize heavy machinery and require durable, wear-resistant tools and components.
• General Engineering & Industrial Manufacturing: A wide range of businesses that require precision machining, cutting tools, and specialized components for their diverse manufacturing processes.

Other significant sectors served by Kennametal include Energy (oil & gas, power generation) and Transportation (automotive, heavy truck, and rail industries).

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Sanjay Chowbey – President and CEO

Mr. Chowbey was appointed President and CEO of Kennametal Inc. effective June 1, 2024. He joined Kennametal in 2021 as Vice President and President of the Metal Cutting segment. Prior to Kennametal, he accumulated over 20 years of experience at various industrial companies, including Flowserve Corporation, Danaher, and Arvin Meritor Inc. His most recent role before joining Kennametal was President of the $1.2 billion Services & Solutions business at Flowserve.

Patrick Watson – Vice President and Chief Financial Officer

Mr. Watson serves as the Vice President and Chief Financial Officer of Kennametal Inc. In this role, he is responsible for the company's finance, treasury, accounting, investor relations, information technology, and global sourcing functions. Mr. Watson joined Kennametal in 2004, and his tenure includes serving as vice president global supply chain and logistics, as well as finance lead for both business segments and the EMEA region, and in M&A and supply chain roles. Before joining Kennametal, he held financial and supply chain positions at Allegheny Energy, Inc. and Eckerd Corporation.

Judith L. Bacchus – Vice President and Chief Administrative Officer

Ms. Bacchus serves as Vice President and Chief Administrative Officer at Kennametal. She joined the company in 2006. Ms. Bacchus has over 25 years of experience in manufacturing, HR service delivery, strategic planning, policy and governance, M&A, organizational design, and talent acquisition. She formerly served as Director-Human Resources at Telent Technology Services Ltd., and as an Independent Director at Universal Stainless & Alloy Products, Inc.

Dave Bersaglini – Vice President and President, Metal Cutting Segment

Mr. Bersaglini joined Kennametal in August 2024 as Vice President and President of the Metal Cutting segment. He is responsible for all aspects of the global business, including driving growth, continuous improvement initiatives, and optimizing the Metal Cutting portfolio. Prior to Kennametal, he spent nearly 25 years at Copeland, a spin-off of Emerson, where he was Vice President and General Manager of Global Refrigeration. His roles at Emerson and Copeland included leadership in product management, marketing, sales, strategic planning, and general management.

Faisal Hamadi – Vice President and President, Infrastructure Business Segment

Mr. Hamadi was appointed Vice President and President, Infrastructure Segment, effective January 20, 2025. He joined Kennametal in 2024 as Vice President Value Creation Systems, focusing on lean business systems. Before joining Kennametal, Mr. Hamadi spent 17 years at Eaton Corporation, holding various roles including Finance Manager, Product Manager, Sales Manager, Plant Manager, and General Manager. Most recently at Eaton, he was the General Manager of a $600 million aerospace business with over 1,000 employees.

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The key risks to Kennametal's business operations include adverse macroeconomic and global conditions, risks associated with foreign operations and currency fluctuations, and intense competition leading to margin pressures.

1. Adverse Macroeconomic and Global Conditions: Kennametal is significantly exposed to downturns in the business cycle, economic uncertainties, and lower industrial activity across its various end markets, such as general engineering, energy, and earthwork. This risk is further exacerbated by factors such as increased inflation, tariffs, and geopolitical events, including the Russia-Ukraine conflict and Middle East conflicts, which can lead to reduced demand and impact overall sales and profitability. The company has experienced declining organic revenue and faces projections of slowing revenue growth, indicating ongoing challenges in demand for its products and services.
2. Foreign Operations and Currency Exchange Rate Fluctuations: With a substantial international presence, Kennametal is vulnerable to risks inherent in global business, including fluctuations in currency exchange rates, diverse regulatory environments, trade barriers, exchange controls, and social and political instability. Adverse currency movements have directly impacted the company's sales, and a strengthening U.S. dollar can necessitate price increases or result in contracted profit margins in its non-U.S. operations.
3. Competition and Margin Pressures: Kennametal operates in a highly competitive industrial technology sector. The company faces significant pressure on its profit margins due to difficulties in maintaining cost efficiency, rising raw material costs, increased labor expenses, and competitive pricing dynamics. Consistent underperformance against analyst estimates in terms of earnings and revenue can erode investor confidence and lead to increased scrutiny from the financial community, potentially impacting its stock price and capital costs.

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Additive manufacturing (3D printing), particularly for metals, presents an emerging threat by potentially reducing the need for traditional subtractive machining processes that utilize Kennametal's cutting tools. Furthermore, it offers an alternative method for producing complex and high-performance engineered components, directly competing with a segment of Kennametal's product portfolio.

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Kennametal's Addressable Markets

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1. Strategic End Market Growth and Share Gains: Kennametal anticipates revenue growth from securing project wins and gaining market share within key end markets such as Aerospace & Defense, Earthworks, and Energy. For instance, the company reported 20% year-over-year growth in the Aerospace & Defense segment and 5% in Earthworks during Q1 FY26. Management has emphasized advancing strategic growth initiatives through its global commercial teams, leading to large project wins in Earthworks and new projects in Energy, Aerospace and Defense, and Transportation. The company's Commercial Excellence process is specifically noted as enabling share gains in these targeted end markets.
2. Pricing Actions and Tariff Surcharges: The implementation of price increases and tariff surcharges is a significant driver for future revenue growth, especially in offsetting rising raw material costs, such as tungsten. Kennametal has demonstrated its ability to effectively use pricing strategies, which contributed to organic growth and improved margins. The company projects approximately 7% from price and tariff surcharge realization for fiscal year 2026.
3. Expansion into Power Generation and AI Data Center Markets: Kennametal has identified the power generation market for AI data centers as a key emerging opportunity, representing a total addressable market of $250 million with a projected compound annual growth rate (CAGR) of approximately 10% from 2023-2028. This expanding opportunity is being capitalized on across both of Kennametal's business segments.
4. New Product Innovation and Launches: Continuous innovation and the introduction of new products and enhanced solutions are expected to drive revenue by expanding metal cutting capabilities and improving customer efficiency and productivity across various applications. Recent expansions include new offerings in its Innovations series of Metal Cutting tools and solutions, such as the KenTIP™ FS modular drill platform and the TopSwiss™ MBS (Micro Boring Solid) for small parts machining in industries like medical, aerospace, automotive, and general engineering.

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Share Repurchases

• Kennametal repurchased $49 million in shares in fiscal year 2023.
• In fiscal year 2024, the company repurchased $65.4 million in shares, completing an initial $200 million share repurchase program that was announced in July 2021.
• In February 2024, the board of directors authorized an additional share repurchase program of up to $200 million over a three-year period. Kennametal repurchased $60 million in fiscal year 2025 under this program.

Share Issuance

• In fiscal year 2021, capital stock totaling $24.6 million was issued under employee benefit and stock plans.
• During fiscal year 2024, employees delivered 57,501 shares of restricted stock to satisfy tax withholding requirements upon vesting.

Outbound Investments

• In fiscal year 2025, Kennametal completed the divestiture of its Goshen, IN subsidiary and closed its Greenfield, MA facility, along with consolidating facilities in Barcelona, Spain, as part of its portfolio optimization strategy.

Capital Expenditures

• Capital expenditures were $96 million in fiscal year 2022.
• Kennametal invested $94 million in capital expenditures in fiscal year 2023.
• In fiscal year 2024, capital expenditures were $108 million. The company expects capital spending to be approximately $90 million for fiscal year 2026, continuing its focus on investing in manufacturing facilities to boost growth.