Kennametal Inc (KMT)
Operating profit margin
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 143,123 | 170,223 | 192,417 | 218,140 | 140,096 |
| Revenue | US$ in thousands | 1,966,840 | 2,046,900 | 2,078,180 | 2,012,460 | 1,841,440 |
| Operating profit margin | 7.28% | 8.32% | 9.26% | 10.84% | 7.61% |
June 30, 2025 calculation
Operating profit margin = Operating income ÷ Revenue
= $143,123K ÷ $1,966,840K
= 7.28%
The operating profit margin of Kennametal Inc. demonstrates notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. In fiscal year 2021, the operating profit margin stood at 7.61%, indicating the proportion of revenue remaining after covering operating expenses. This margin experienced a significant increase in the subsequent year, reaching 10.84% in 2022, reflecting improved operational efficiency or higher profitability from core activities.
However, the margin declined marginally in 2023 to 9.26%, suggesting some challenges in maintaining the heightened profitability levels or possibly increased operating costs. This downward trend continued into 2024, with the operating profit margin decreasing further to 8.32%. The most recent data for 2025 shows a continued decline to 7.28%, approaching the earlier levels observed in 2021.
Overall, the data indicates an initial improvement in profitability from 2021 to 2022, followed by a gradual decline over the subsequent years. The fluctuations could be attributable to various factors such as fluctuations in sales, changes in operating expenses, shifts in product mix, or macroeconomic influences impacting operational efficiency. The declining trend in the operating profit margin towards the end of the period warrants ongoing analysis to identify underlying causes and assess the company's strategic response to sustain or improve profitability in the future.