Free cash flow swung to -$212.1M in the latest quarter from $90.3M a year earlier, with OCF/NI of -0.74 showing that reported earnings are not yet translating into cash generation.
Kennametal Inc. (KMT) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Jun'26 | 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 |
|---|
| Cash from Operations | -222.75M | -4.01M | 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 |
| Operating CF Margin % | - | -0.17% | 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% |
| Operating CF Growth % | -1554.87% | -101.92% | -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% |
| Net Income | 590.68M | 350.41M | 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 |
| Depreciation & Amortization | 141.92M | 143.16M | 136.5M | 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 |
| Stock-Based Compensation | 37.49M | 34.85M | 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 |
| Deferred Taxes | 44.86M | 44.69M | -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 |
| Other Non-Cash Items | 35.01M | 17.42M | 8.86M | 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 |
| Working Capital Changes | -1.08B | -594.53M | -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 |
| Change in Receivables | -146M | -116.87M | 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 |
| Change in Inventory | -1.08B | -593.4M | -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 |
| Change in Payables | 226.58M | 226.1M | -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 |
| Cash from Investing | -61.88M | -71.3M | -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 |
| Capital Expenditures | -64.73M | -76.91M | -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 |
| CapEx % of Revenue | 2.46% | 3.26% | 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% |
| Acquisitions | 0 | 0 | 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 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 2.85M | 5.61M | 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 |
| Cash from Financing | 453.82M | 31.63M | -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 |
| Debt Issued (Net) | 536M | 118.9M | -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 |
| Equity Issued (Net) | 6.21M | -10.11M | -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 |
| Dividends Paid | -60.95M | -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 |
| Share Repurchases | -114K | -10.11M | -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 |
| Other Financing | -27.44M | -16.31M | -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 |
| Net Change in Cash | 169.26M | -44.75M | 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 |
| Free Cash Flow | -287.48M | -80.91M | 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 |
| FCF Margin % | -10.94% | -3.43% | 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% |
| FCF Growth % | -409.59% | -167.79% | -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% |
| FCF per Share | -3.68 | -1.05 | 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 |
| FCF Conversion (FCF/Net Income) | -0.49x | -0.01x | 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 |
| Interest Paid | 12.19M | 0 | 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 |
| Taxes Paid | 28.8M | 0 | 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 |
Quick answers to the most common questions about buying KMT stock.
Kennametal Inc. (KMT) generated $-4.0M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Kennametal Inc. (KMT) reported negative free cash flow of $80.9M in 2026, indicating capital requirements exceeded cash from operations.
Kennametal Inc. (KMT) spent $76.9M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Kennametal Inc. (KMT) returned $60.8M to shareholders via cash dividends and spent $10.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Working capital reversal risk
Metrics are mathematically derived from official filings.
Earnings Not Yet Converting to Cash
According to reported quarterly cash flow statements, KMT's operating cash flow was negative in the latest quarter despite $271.6M of net income, with OCF/NI reaching -0.74, a gap that warrants close monitoring before earnings are treated as durable.
The divergence between net income and operating cash flow is the most important signal in this dataset, and it suggests reported earnings are being absorbed by working capital build rather than converting into distributable cash. The conversion ratio has been erratic across recent quarters, swinging from 3.64 to -0.74, which points to timing-driven rather than structural cash generation. Investors should treat the strong quarterly earnings as provisional until conversion normalizes.
Working Capital Absorbing Earnings Gains
As reported in KMT's cash flow statements, working capital absorbed roughly $540.6M in the latest quarter and $403.9M in the prior quarter, a magnitude that appears large relative to the company's reported net income base.
Outsized working capital consumption is consistent with inventory and receivables build tied to the sharp revenue rebound, though the filings alone do not establish the split between the two. This pattern may reflect the pricing-cost timing effects cited in the earnings context, which would imply cash is temporarily locked in receivables and inventory rather than lost. Whether these balances reverse in coming quarters is the central question for judging the durability of recent cash generation.
Free Cash Flow Turned Sharply Negative
Based on KMT's reported figures, free cash flow fell to -$212.1M in the latest quarter from $90.3M in the 2024Q4 period, a deterioration that stands in sharp contrast to the reported net income recovery.
The free cash flow margin of -27.6% in the latest quarter, following a peak of 16.6% in 2024Q4, indicates the cash profile has moved in the opposite direction from earnings. Capital expenditure has remained modest at 1.4% to 5.1% of revenue, so the deterioration appears driven by operating and working capital dynamics rather than investment intensity. The FCF trajectory is therefore more informative about working capital timing than about underlying capital intensity.
Capital Spending Remains Modest Relative to Revenue
As reported in KMT's cash flow data, capital expenditures ranged between 1.4% and 5.1% of revenue across the last ten quarters, with depreciation and amortization of roughly $33M to $38M per quarter appearing to exceed reinvestment in most periods.
CapEx running below D&A in most quarters, such as $10.8M against $33.8M in the latest quarter, suggests the asset base may be harvested rather than fully replenished, which could flatter near-term free cash flow capacity. The manufacturing footprint is capital-intensive, so sustained underinvestment could eventually pressure margins or capacity. Investors should monitor whether CapEx rises toward maintenance-plus levels as volumes recover.
Shareholder Returns Continue Despite Cash Strain
According to recent SEC filings, KMT has maintained quarterly dividend payments of about $15.2M while buybacks and acquisitions have been intermittent, with distributions continuing even during quarters of negative free cash flow.
Dividend payments of roughly $15M per quarter persist across the period, including the latest quarter when free cash flow was -$212.1M, which suggests these distributions were funded from balance sheet resources or prior cash rather than current operations. This pattern may reflect management's commitment to the dividend as a stability signal, but it also warrants scrutiny of how long cash reserves can absorb the outflow if conversion does not recover. Acquisition outflows and buybacks appear sporadic, suggesting capital deployment is opportunistic rather than systematic.
Peak Quarter Flatters Cash Profile Read
Based on reported figures, the latest quarter's 20.1% trailing operating margin and 23.0% ROE may reflect peak dynamics, and a cash profile read off these earnings could overstate sustainable cash generation as guidance implies normalization.
The positive earnings headline sits alongside negative operating and free cash flow, so a valuation or thesis anchored to reported profit could embed peak earnings that the cash statements do not yet support. If the favorable pricing-versus-cost timing reverses as management's guidance implies, the working capital currently absorbing cash may unwind unevenly, and the balance sheet read could shift quickly. Investors should weigh the cash statements more heavily than the headline EPS until several quarters confirm conversion.