Kennametal Inc (KMT)
Operating profit margin
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 143,123 | 174,764 | 172,396 | 169,208 | 178,299 | 171,219 | 181,998 | 189,010 | 192,418 | 199,153 | 200,046 | 212,060 | 218,140 | 216,266 | 202,424 | 173,953 | 102,169 | 56,999 | 55,370 | -11,302 |
| Revenue (ttm) | US$ in thousands | 1,966,846 | 1,993,706 | 2,023,101 | 2,036,370 | 2,046,898 | 2,053,824 | 2,074,066 | 2,075,867 | 2,078,183 | 2,057,965 | 2,034,188 | 2,023,740 | 2,012,457 | 1,998,412 | 1,970,811 | 1,924,645 | 1,841,441 | 1,704,523 | 1,702,949 | 1,767,522 |
| Operating profit margin | 7.28% | 8.77% | 8.52% | 8.31% | 8.71% | 8.34% | 8.77% | 9.11% | 9.26% | 9.68% | 9.83% | 10.48% | 10.84% | 10.82% | 10.27% | 9.04% | 5.55% | 3.34% | 3.25% | -0.64% |
June 30, 2025 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $143,123K ÷ $1,966,846K
= 7.28%
The analysis of Kennametal Inc’s operating profit margin over the specified periods reveals a trajectory characterized initially by significant volatility, followed by a sustained period of growth and subsequent stabilization.
Starting with the fiscal quarter ending September 30, 2020, the operating profit margin was reported at -0.64%, indicating a loss relative to operational earnings. This negative margin reflects operational challenges during that period, likely influenced by external factors such as the economic impact of the COVID-19 pandemic, disruptions in supply chain, or transitional adjustments within the company.
Subsequently, from the quarter ending December 31, 2020, onward, the operating profit margin experienced a marked improvement, rising to 3.25%, and continuing an upward trend through March 31, 2021, at 3.34%. The margin then increased more substantially to 5.55% by June 30, 2021, and further accelerated to 9.04% by September 30, 2021. This escalation suggests a period of operational recovery and improved efficiency, likely resulting from strategic initiatives, cost control measures, and favorable market conditions.
Throughout 2022, the operating profit margin maintained a relatively stable and high level, with values of 10.27%, 10.82%, and 10.84% across the March, June, and September quarters, respectively. This high margin indicates strong operational profitability, reflecting effective cost management and revenue generation during this period.
However, from late 2022 into 2023, a slight downward trend emerges, with the margin decreasing to 9.83% at December 31, 2022, then further to 9.68% in March 2023, and declining marginally to 9.26% in June 2023, and 9.11% in September 2023. This gradual decline suggests some pressures on operational efficiency or increased costs, which could be attributed to macroeconomic factors, input cost inflation, or competitive dynamics.
Looking into the more recent fiscal periods, the margin continues to decrease: 8.77% at December 31, 2023, down to 8.34% by March 31, 2024, and further to 8.71% in June 2024. The margin stabilized somewhat thereafter at 8.31% in September 2024, then slightly increased to 8.52% by December 2024. In early 2025, the margin appears to recover modestly to 8.77%, but a notable decline is observed with a reading of 7.28% at June 30, 2025.
Overall, the trend indicates that Kennametal Inc experienced a substantial recovery from losses during the early pandemic period, stabilizing into a high-margin operating environment throughout 2022. The subsequent gradual decline may denote rising costs or competitive pressures, yet the margins remain healthy and above pre-pandemic negative levels. The recent fluctuations reflect ongoing operational and market dynamics affecting profitability margins. It is prudent to monitor these trends for signs of further margin compression or potential recovery, as they are indicative of the company’s core operational efficiency and cost management effectiveness over time.