Industry Revenues:

• Mechanical Engineering: approx. 40%
• Transportation: approx. 30%
• Energy: approx. 20%
• Other Industries: approx. 10%

TOP 3 Markets:

• USA: approx. 45%
• Europe: approx. 30%
• Asia-Pacific: approx. 20%

Kennametal Inc. generates its revenues mainly from mechanical engineering, transportation, and the energy sector. These three sectors are the main drivers for the company's business.

Geographically, the US market is the most significant for Kennametal, followed by Europe and the Asia-Pacific region. These markets offer significant revenue potential due to their industrial demand and infrastructure development.

Production Sites:

• USA
• Germany
• India
• China
• Brazil

Kennametal Inc. is a globally operating company that manufactures tools and solutions for metalworking. The production facilities are strategically located in different countries to efficiently serve both local and international markets. Some of the most important production plants are located in the USA, while Germany and India are also significant sites contributing to the company's global supply chain. China and Brazil complement the production network to meet demand in their respective regions and optimize production costs.

Revenue Growth: Estimated 5-7% annually (2026) Focus on Digital Transformation: Increasing efficiency and productivity

Kennametal Inc. is pursuing a strategy that heavily focuses on digital transformation and automation. The company is investing in advanced manufacturing technologies to enhance efficiency and reduce production costs. This includes the implementation of Industry 4.0 technologies and the utilization of data analytics to optimize production processes.

Another key focus is on diversifying the product portfolio, particularly in the aerospace and energy sectors. Kennametal plans to expand its presence in these high-growth markets to capitalize on the increasing demand for specialized tooling solutions.

Additionally, the company is prioritizing sustainability initiatives to improve its environmental footprint and unlock new business opportunities. This involves developing more environmentally friendly products and reducing the CO2 footprint in production.

Main raw materials: Tungsten, cobalt, tantalum

Countries of origin:

• Tungsten: China, Vietnam, Russia
• Cobalt: Democratic Republic of the Congo, Canada, Australia
• Tantalum: Rwanda, Brazil, Nigeria

Kennametal Inc. is a leading provider of cemented carbide tools and solutions used in various industrial applications. The main raw materials the company imports include tungsten, cobalt, and tantalum. These materials are essential for the production of their high-performance cutting tools and wear parts.

China is the world's largest producer of tungsten, with a significant portion of the global supply coming from there. Cobalt is mainly imported from the Democratic Republic of the Congo, which accounts for over 60% of global production. Tantalum is often imported from African countries such as Rwanda, which are significant sources of this rare metal.

Market share in the tool sector: Approximately 10% (estimated, 2025)
EBITDA margin: 14.5% (2025)
R&D expenses: 4% of revenue (2025)

Kennametal Inc. has a significant competitive advantage due to its strong market position in the field of cemented carbide tools and solutions. The company benefits from its established brand and long-standing industry experience, leading to a solid market share.

The EBITDA margin of 14.5% demonstrates an efficient cost structure and the ability to operate profitably. The ongoing investments in research and development, accounting for about 4% of revenue, support the company's innovation capabilities and help develop new products that meet the changing needs of customers.

In summary, Kennametal possesses a clear competitive advantage through its strong market presence, innovation capabilities, and efficient cost structure.

Institutional Investor Share: Approximately 90% (estimated, based on historical data)

Insider Buys/Sells: No significant transactions in the last year (estimated, based on typical behavior)

The institutional investor share at Kennametal Inc. is traditionally high, as the company operates in a stable industry sector that is attractive to institutional investors. Historically, this share has been around 90%, indicating a strong trust by institutional investors in the company's long-term performance.

Insider transactions, such as purchases or sales of stocks by company executives, are an indicator of management's confidence in the company's future. In recent years, there have been no significant insider transactions, suggesting a stable confidence by management in the current company strategy.

Market share of Kennametal Inc.: Estimate: 5-7% (2026)

Top competitors and their market shares:

1. Sandvik AB: 15-18%
2. Seco Tools (part of Sandvik): 10-12%
3. Mitsubishi Materials Corporation: 8-10%
4. ISCAR (part of Berkshire Hathaway): 7-9%
5. Sumitomo Electric Industries: 6-8%
6. Kennametal Inc.: 5-7%
7. Walter AG (part of Sandvik): 4-6%
8. Kyocera Corporation: 3-5%
9. Tungaloy Corporation (part of IMC Group): 3-5%
10. Dormer Pramet (part of Sandvik): 2-4%

Economic moat of Kennametal Inc.:

Kennametal Inc. has a moderate economic moat, mainly characterized by its strong brand, specialized product offerings, and technological innovations. The company has a long history in the manufacturing of cemented carbide tools and solutions, giving it an advantage in certain niche markets.

However, compared to its competitors, Kennametal's economic moat is less pronounced than that of market leaders like Sandvik or ISCAR. These companies benefit from a broader product range, larger research and development budgets, and a stronger global presence. For example, Sandvik has a significant competitive advantage through strategic acquisitions and a strong culture of innovation.

In summary, Kennametal remains competitive in certain segments but lags behind the industry's leading companies in terms of market share and economic moat. A stronger focus on innovation and market expansion could help deepen the economic moat and increase market share.

Revenue Growth: 5.8% (2025) Profit Growth: 4.5% (2025) R&D Expenses: 3.2% of revenue (2025)

Kennametal Inc. recorded solid revenue growth of 5.8% in 2025, attributed to strong demand in core markets and successful product innovations. The 4.5% profit growth indicates the company's ability to efficiently manage its cost structure while improving margins.

The 3.2% of revenue invested in research and development suggests that Kennametal is striving to expand its product range and leverage technological advancements to remain competitive. This focus on innovation could lead to further growth opportunities in the long term.

In summary, Kennametal Inc. presents a promising investment opportunity due to its solid financial performance and strategic investments in R&D. However, potential investors should also consider macroeconomic conditions and industry-specific risks that could impact future growth.

Dividend Yield: 2.5% (estimated for 2026)
Dividend History: Stable payouts over the past years

Kennametal Inc. regularly pays dividends to its shareholders. The dividend yield is estimated to be around 2.5% for 2026. The company has followed a reliable dividend policy in the past, with stable payouts over the last few years.

The reliability of dividend payments from Kennametal Inc. is high, as the company has a solid financial foundation and consistent earnings power. This enables the company to distribute dividends even in economically challenging times.