KMTKENNAMETAL INC

Machine Tools, Metal Cutting Types

Revenue: $2.4B; 20% YoY
Operating margin: 20.1%; 176% YoY
EBITDA: $616M; 120% YoY
Market cap: $2.2B
Employees: 8,073; $292K revenue each
Net debt / EBITDA: 1.0×; $589M net debt
AI in 10-K: 0.7; mentions per 10K words

Takeover score 4 of 13

Fixable underperformance 2 of 7

TSR below peersYes
5 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashYes
-1% of net income
Cash flow under 80% of net income
Dilutive SBCNo
1% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
-18× cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
9% of assets
Over 40% of assets
Shareholder dissentNo
93% lowest support
Any vote under 80% support

Buyer economics 2 of 4

Low revenue per employeeYes
$292K · 20th pct
Bottom quartile of its SIC industry
Quiet on AINo
0.7 per 10K words · 28th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
1.0× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedYes
$2.2B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
−$5M net
Net sales over $10M in 12 months

Financials

Metric	FY2022	FY2023	FY2024	FY2025	FY2026	YoY	Trend
Revenue	$2.0B	$2.1B	$2.0B	$2.0B	$2.4B	20%
Operating income	$218M	$192M	$170M	$143M	$473M	230%
Net income	$145M	$119M	$109M	$99M	$350M	255%
Operating cash flow	−$181M	$258M	$277M	$208M	−$4M	102%
Capex	$97M	$94M	$108M	$89M	$77M	14%
Stock-based comp	$21M	$25M	$24M	$22M	$35M	58%
Buybacks	$86M	$49M	$66M	$60M	$10M	83%
Dividends	$67M	$65M	$63M	$62M	$61M	1.6%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $355K · 2
Open-market sells, 12 mo: $6M · 9
Net: −$5M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2026	—	—	113	240
FY2025	—	—	72	164
FY2024	—	—	71	142
FY2023	—	—	83	120
FY2022	—	—	66	82