Cash conversion efficiency remains a concern, as evidenced by an operating cash flow to net income ratio that plummeted to -0.05 in 2026Q3 due to a $113.4 million working capital outflow.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Cash from Operations | 148.28M | 208.32M | 277.11M | 257.94M | 181.44M | 235.68M | 223.74M | 300.52M | 277.3M | 192.2M | 219.32M | 351.44M | 271.87M | 284.15M | 289.58M | 230.8M | 164.83M | 192.26M | 279.79M | 199.01M | 19.05M | 202.33M | 177.86M | 181.54M | 155.16M | 187.56M | 221.21M | 226.6M | 101.5M | 99.9M | 85.5M |
| Operating CF Margin % | - | 10.59% | 13.54% | 12.41% | 9.02% | 12.8% | 11.87% | 12.65% | 11.71% | 9.34% | 10.45% | 13.28% | 9.58% | 10.97% | 10.58% | 9.6% | 8.75% | 9.61% | 10.34% | 8.34% | 0.82% | 8.78% | 9.02% | 10.32% | 9.8% | 10.37% | 11.93% | 11.91% | 6.05% | 8.64% | 7.92% |
| Operating CF Growth % | -202.83% | -24.82% | 7.43% | 42.16% | -23.01% | 5.34% | -25.55% | 8.37% | 44.28% | -12.37% | -37.59% | 29.27% | -4.32% | -1.88% | 25.47% | 40.02% | -14.27% | -31.28% | 40.59% | 944.49% | -90.58% | 13.76% | -2.03% | 17% | -17.27% | -15.21% | -2.38% | 123.25% | 1.6% | 16.84% | 51.06% |
| Net Income | 137M | 93.13M | 109.32M | 123.37M | 150.2M | 58.42M | -5.05M | 247.88M | 205.06M | 51.98M | -223.88M | -370.96M | 162.2M | 206.92M | 310.83M | 232.28M | 48.2M | -119.74M | 167.78M | 174.24M | 256.28M | 119.29M | 73.58M | 18.13M | -211.91M | 53.29M | 51.98M | 39.1M | 71.2M | 72M | 69.7M |
| Depreciation & Amortization | 137.9M | 125.71M | 134.69M | 134.03M | 131.68M | 126.49M | 119.86M | 112.05M | 108.68M | 107.66M | 117.47M | 131.66M | 130.22M | 113.1M | 104.07M | 93.47M | 96.43M | 96.38M | 94.73M | 78.66M | 71.14M | 66.88M | 65.99M | 84.04M | 73.63M | 97.3M | 101.65M | 96M | 67.4M | 41.4M | 40.2M |
| Stock-Based Compensation | 20.74M | 22.11M | 24.34M | 24.66M | 20.98M | 24.8M | 16.05M | 22.84M | 20.83M | 21.07M | 18.13M | 16.83M | 17.64M | 21.87M | 21.5M | 18.85M | 16.64M | 9.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -13.56M | -13.08M | 0 | -9.22M | 11.29M | -21.19M | -23.9M | 2.81M | 22.91M | 6.27M | 8.33M | -48.58M | 23.12M | 232K | 28.6M | -7.88M | 230K | -10.9M | 31.97M | -8.94M | 8.84M | 13.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 27.34M | 19.64M | 9.86M | 11.19M | -4M | 21.49M | 43.3M | 2.45M | 4.4M | 1.9M | 243.79M | 550.13M | 5.51M | 2.58M | -12.7M | -6.96M | -3.12M | 137.94M | 10.09M | 25.25M | 39.22M | 25.45M | 6.77M | 35.46M | 269.13M | 23.07M | 19.04M | 23.8M | 29.6M | 5.4M | 9.1M |
| Working Capital Changes | -165.32M | -39.18M | -1.1M | -26.07M | -128.72M | 25.68M | 73.47M | -87.51M | -84.58M | 3.34M | 55.49M | 72.36M | -66.82M | -60.55M | -162.73M | -98.96M | 6.45M | 79.17M | -66.62M | -71.14M | -154.68M | -22.9M | 31.52M | 43.91M | 24.31M | 13.9M | 48.54M | 67.7M | -66.7M | -18.9M | -33.5M |
| Change in Receivables | -43.96M | 9.07M | -2.62M | -11.54M | -14.43M | -53.32M | 128.72M | 17.32M | -22.2M | -7.61M | 32.66M | 46.55M | -45.04M | 33.8M | -10.89M | -89.15M | -58.24M | 200.16M | 0 | 0 | -157.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -192.1M | -17.4M | 36.84M | 17.58M | -127.41M | 61.27M | 28.18M | -53.39M | -37.23M | -24.3M | 69.55M | 70.87M | -5.31M | 5.88M | -63.83M | -124.08M | -2.58M | 36.05M | -34.03M | -26.12M | -7.71M | -8.45M | 10.26M | 38.17M | 40.25M | 19.89M | 14.33M | -3.9M | -37.2M | 1.4M | -9.8M |
| Change in Payables | 109.7M | -6.16M | -6.09M | -32.51M | 32M | 46.77M | -46.31M | -49.38M | -5.05M | 51.42M | -2.18M | -8.22M | 13.75M | -90.45M | -71.16M | 122.48M | 60.21M | -130.1M | 0 | 0 | 8.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -53.4M | -61.83M | -109.43M | -89.23M | -94.94M | -122.98M | -218.34M | -201.48M | -156.87M | -112.75M | -47.93M | -84.55M | -740.17M | -80.7M | -487.26M | -71.83M | -40.42M | -170.06M | -131.24M | -302.54M | 239.33M | -185.92M | -92.59M | -219.38M | -43.27M | -102.5M | -43.09M | -102M | -813.1M | -90.8M | -50M |
| Capital Expenditures | -75.14M | -88.97M | -107.56M | -94.39M | -96.92M | -127.3M | -244.15M | -212.34M | -171M | -118.02M | -110.7M | -100.94M | -117.38M | -82.83M | -113.04M | -83.44M | -56.68M | -104.84M | -163.49M | -92M | -79.59M | -88.55M | -56.96M | -49.41M | -44.04M | -59.93M | -50.66M | -100.2M | -860.1M | -73.8M | -57.6M |
| CapEx % of Revenue | 3.52% | 4.52% | 5.25% | 4.54% | 4.82% | 6.91% | 12.95% | 8.94% | 7.22% | 5.73% | 5.28% | 3.81% | 4.14% | 3.2% | 4.13% | 3.47% | 3.01% | 5.24% | 6.04% | 3.86% | 3.42% | 3.84% | 2.89% | 2.81% | 2.78% | 3.31% | 2.73% | 5.27% | 51.25% | 6.38% | 5.33% |
| Acquisitions | 18.78M | 0 | -4.01M | 0 | 1M | 0 | 23.95M | 11.24M | 14.36M | 5.02M | 56.13M | 0 | -624.39M | -500K | -382.56M | 1.72M | -16.97M | -69.48M | 20.26M | -210.32M | 352.36M | -136.6M | -65.85M | -166.08M | -5.38M | 0 | 0 | 11.2M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 2.97M | 27.15M | 2.15M | 5.16M | 984K | 4.33M | 1.86M | -381K | 14.13M | 5.27M | 6.64M | 16.39M | 1.59M | 2.64M | 8.33M | 9.89M | 276K | -295K | 3.23M | -213K | -36.4M | 39.24M | 30.22M | -3.89M | 6.15M | -42.58M | 7.58M | -500K | 61.2M | -17M | 7.6M |
| Cash from Financing | -86.04M | -133.92M | -141.75M | -143.11M | -150.74M | -574.25M | 425.45M | -471.43M | 247.2M | -50.15M | -110.47M | -332.96M | 270.41M | 52.15M | 131.3M | -96.03M | -58.17M | -15.53M | -125.7M | -82.72M | -66.03M | -479K | -77.99M | 37.46M | -118.25M | -92.24M | -173.34M | -124.4M | 710.1M | -3.3M | -28.8M |
| Debt Issued (Net) | 4.06M | -459K | 714K | -20.27M | 12.93M | -501.53M | 500.19M | -400.89M | 296.17M | -918K | -50.8M | -282.47M | 313.12M | 183.16M | 250.74M | -17.63M | -142.99M | 128.04M | -38.06M | -53.29M | -16.46M | -9.93M | -78.9M | 39.86M | -216.54M | -76.59M | -163.02M | -106.3M | 461.4M | 37.2M | -15.5M |
| Equity Issued (Net) | -15.11M | -60.12M | -65.57M | -49.29M | -85.54M | -197K | -209K | -214K | -217K | -241K | -295K | -318K | -14.16M | -94.74M | -66.88M | -57.91M | 120.39M | -127.72M | -50.62M | 9.51M | -17.24M | 37.58M | 27M | 7.61M | 131.44M | 6.36M | 0 | 3.3M | 272.6M | -23.1M | 2.7M |
| Dividends Paid | -60.85M | -61.85M | -63.43M | -64.52M | -66.56M | -66.73M | -66.3M | -65.75M | -65.1M | -64.13M | -63.72M | -56.98M | -56.44M | -51.01M | -43.63M | -39.8M | -39.32M | -30.59M | -35.99M | -31.76M | -29.72M | -25.43M | -24.83M | -24.5M | -21.43M | -21.06M | -20.57M | -20.3M | -18.5M | -17.5M | -16M |
| Share Repurchases | -15.11M | -60.12M | -65.57M | -49.29M | -85.54M | -197K | -209K | -214K | -217K | -241K | -295K | -318K | -14.16M | -121.41M | -66.88M | -57.91M | -306K | -127.72M | -65.43M | -41.4M | -93.02M | 0 | 0 | 0 | -12.42M | -16.49M | 0 | 0 | 0 | -28.7M | 0 |
| Other Financing | -14.14M | -11.49M | -13.46M | -9.02M | -11.56M | -5.79M | -8.23M | -4.58M | 16.35M | 12M | 4.34M | 6.8M | 27.89M | 14.74M | -8.93M | 19.32M | 3.75M | 19.62M | -1.03M | -7.18M | -2.61M | -2.69M | -1.26M | 14.49M | -11.72M | -949K | 10.26M | -1.1M | -5.4M | 100K | 0 |
| Net Change in Cash | 9.38M | 12.57M | 21.95M | 20.43M | -68.46M | -452.64M | 424.67M | -374.14M | 365.52M | 29.05M | 56.09M | -72.44M | -199.39M | 260.85M | -88.1M | 86.44M | 48.31M | -16.66M | 36.05M | -183.54M | 190.76M | 17.28M | 10.85M | 4.71M | -2.56M | -9.38M | 4.92M | -1M | -3.5M | 4.8M | 6.3M |
| Free Cash Flow | 73.13M | 119.35M | 169.55M | 163.56M | 84.52M | 108.38M | -20.41M | 88.18M | 106.3M | 74.18M | 108.63M | 250.5M | 154.5M | 201.31M | 176.54M | 147.35M | 108.15M | 87.42M | 116.3M | 107M | -60.54M | 113.78M | 120.9M | 132.13M | 111.12M | 127.63M | 170.54M | 126.4M | -758.6M | 26.1M | 27.9M |
| FCF Margin % | 3.42% | 6.07% | 8.28% | 7.87% | 4.2% | 5.89% | -1.08% | 3.71% | 4.49% | 3.6% | 5.18% | 9.46% | 5.45% | 7.77% | 6.45% | 6.13% | 5.74% | 4.37% | 4.3% | 4.49% | -2.6% | 4.94% | 6.13% | 7.51% | 7.02% | 7.06% | 9.2% | 6.64% | -45.2% | 2.26% | 2.58% |
| FCF Growth % | -52.06% | -29.6% | 3.66% | 93.52% | -22.02% | 630.94% | -123.15% | -17.05% | 43.29% | -31.71% | -56.64% | 62.14% | -23.26% | 14.03% | 19.81% | 36.25% | 23.71% | -24.83% | 8.68% | 276.75% | -153.21% | -5.89% | -8.5% | 18.91% | -12.93% | -25.16% | 34.92% | 116.66% | -3006.51% | -6.45% | 111.36% |
| FCF per Share | 0.95 | 1.53 | 2.12 | 2.01 | 1.01 | 1.29 | -0.25 | 1.06 | 1.28 | 0.91 | 1.36 | 3.16 | 1.94 | 2.50 | 2.17 | 1.77 | 1.32 | 1.20 | 1.49 | 1.36 | -0.77 | 1.49 | 1.66 | 1.86 | 1.76 | 2.08 | 2.81 | 2.11 | -13.76 | 0.49 | 0.52 |
| FCF Conversion (FCF/Net Income) | 0.53x | 2.24x | 2.53x | 2.18x | 1.25x | 4.33x | -39.52x | 1.24x | 1.39x | 3.91x | -0.97x | -0.94x | 1.72x | 1.40x | 0.94x | 1.00x | 3.55x | -1.61x | 1.67x | 1.14x | 0.07x | 1.70x | 2.42x | 10.01x | -0.73x | 3.52x | 4.28x | 5.80x | 1.43x | 1.39x | 1.23x |
| Interest Paid | 7.68M | 24.77M | 26.38M | 28.19M | 25.28M | 43.6M | 0 | 0 | 35.97M | 27.53M | 43.73M | 30.98M | 29.84M | 24.43M | 27.39M | 26.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -39.64M | 58.65M | 48.52M | 43.73M | 36.1M | 48.91M | 0 | 0 | 27.89M | 16.75M | 26.25M | 40.3M | 49.39M | 51.1M | 55.73M | 60.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical Working Capital Volatility
As reported in recent financial filings, Kennametal's operating cash flow to net income ratio plummeted to -0.05 in 2026Q3, a stark reversal from the 3.64 ratio observed in 2025Q4, indicating that reported accounting profits are currently failing to translate into actual cash generation for the business.
The sharp divergence between net income and operating cash flow suggests that earnings quality is currently compromised by significant non-cash items or aggressive accrual accounting. Investors should monitor whether this disconnect is a temporary timing issue or a structural inability to convert reported profitability into liquidity.
Based on the company's quarterly cash flow statements, free cash flow margins have swung violently from a peak of 16.6% in 2024Q4 to a negative 3.5% in 2026Q3, highlighting the inherent instability in Kennametal's ability to generate surplus cash during periods of industrial cycle shifts.
The erratic trajectory of free cash flow suggests that the company's capital-intensive nature leaves little room for error when revenue growth fluctuates. This inconsistency makes it difficult to rely on internal cash generation to fund dividends or debt reduction without periodic reliance on external financing or balance sheet adjustments.
According to recent SEC filings, Kennametal experienced a massive $113.4 million cash outflow related to working capital changes in 2026Q3, which directly offset the company's reported net income and highlights the extreme sensitivity of cash flow to inventory and receivables management in the current industrial environment.
The significant volatility in working capital suggests that the company may be struggling to manage its supply chain or distributor inventory levels effectively. This pattern warrants further investigation into whether the company is overproducing in anticipation of demand that has yet to materialize in cash receipts.
As indicated by historical financial statements, Kennametal has maintained a consistent dividend payout of approximately $15 million per quarter despite the recent deterioration in free cash flow, suggesting a management commitment to shareholder returns that may be increasingly difficult to sustain without improved operational cash conversion.
The decision to maintain dividends while free cash flow turned negative in 2026Q3 implies a potential reliance on existing cash reserves or debt capacity to fund payouts. Investors should monitor if this capital allocation strategy remains viable if the current cash flow pressure persists into future quarters.
Quick answers to the most common questions about buying KMT stock.
Kennametal Inc. (KMT) generated $208.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Kennametal Inc. (KMT) generated $119.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Kennametal Inc. (KMT) spent $89.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Kennametal Inc. (KMT) returned $61.9M to shareholders via cash dividends and spent $60.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.