Kennametal Inc (KMT)
Pretax margin
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 132,004 | 144,450 | 159,621 | 206,733 | 64,660 |
| Revenue | US$ in thousands | 1,966,840 | 2,046,900 | 2,078,180 | 2,012,460 | 1,841,440 |
| Pretax margin | 6.71% | 7.06% | 7.68% | 10.27% | 3.51% |
June 30, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $132,004K ÷ $1,966,840K
= 6.71%
The pretax margin of Kennametal Inc has exhibited notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. In Fiscal Year 2021, the pretax margin stood at 3.51%, indicating relatively modest profitability relative to revenue before tax expenses. A significant improvement was observed the following year, with the margin increasing to 10.27% in FY 2022, reflecting enhanced operational efficiency, cost management, or favorable market conditions contributing to higher pre-tax profitability.
However, this elevated margin experienced a decrease in subsequent years. By FY 2023, the pretax margin declined to 7.68%, suggesting a possible reduction in profitability margins, potentially due to increased operating expenses, competitive pressures, or changes in revenue mix. The downward trend continued marginally in FY 2024, with the margin decreasing to 7.06%, and further to 6.71% by FY 2025.
Overall, the pretax margin demonstrates a pattern of initial expansion followed by a gradual decline, which may warrant further analysis to identify underlying causes, such as changes in gross profit, operating costs, or external market factors impacting pre-tax profitability.