KENNAMETAL INCKMT
KENNAMETAL INC Segments Disclosure
SEGMENT DATA
The Company manages and reports its business in the following two segments: Metal Cutting and Infrastructure. The Company's reportable operating segments have been determined in accordance with the Company's internal management structure, which is organized based on operating activities, the manner in which we organize segments for making operating decisions and assessing performance and the availability of separate financial results. The Company's chief operating decision maker is its President and Chief Executive Officer. The President and Chief Executive Officer regularly reviews the discrete financial information of the Metal Cutting and Infrastructure reportable operating segments to assess performance and make decisions about the allocation of resources. The primary measure of profit or loss considered by the President and Chief Executive Officer when evaluating reportable operating segment performance is segment operating income. We do not allocate certain corporate expenses related to executive retirement plans, the Company’s Board of Directors and strategic initiatives, as well as certain other costs and report them in Corporate. Our reportable operating segments do not represent the aggregation of two or more operating segments.
Sales to a single customer did not aggregate to more than five percent of total sales in 2025, 2024 and 2023.
METAL CUTTING The Metal Cutting segment develops and manufactures high performance tooling and metal cutting products and services and offers an assortment of standard and custom metal cutting solutions to diverse end markets, including General Engineering, Transportation, Aerospace & Defense and Energy. The products include milling, hole making, turning, threading and toolmaking systems used in the manufacture of airframes, aero engines, trucks and automobiles, ships and various types of industrial equipment. We leverage advanced manufacturing capabilities in combination with varying levels of customization to solve our customers’ toughest challenges and deliver improved productivity for a wide range of applications. Metal Cutting markets its products under the Kennametal®, WIDIA®, WIDIA Hanita® and WIDIA GTD® brands through its direct sales force, a network of independent and national distributors, integrated supplier channels and via the Internet. Application engineers and technicians are critical to the sales process and directly assist our customers with specified product design, selection, application and support.
INFRASTRUCTURE Our Infrastructure segment produces engineered tungsten carbide and ceramic components, earth-cutting tools, and advanced metallurgical powders, primarily for the Earthworks, General Engineering, Energy and Aerospace & Defense end markets. These wear-resistant products include compacts, nozzles, frac seats and custom components used in oil and gas and petrochemical industries; rod blanks and abrasive water jet nozzles for general industries; earth cutting tools and systems used in underground mining, trenching and foundation drilling and road milling; tungsten carbide powders for the oil and gas, aerospace and process industries; high temperature critical wear components, tungsten penetrators and armor solutions for aerospace and defense; and ceramics used by the packaging industry for metallization of films and papers. We combine deep metallurgical and engineering expertise with advanced manufacturing capabilities, such as 3D printing, to deliver solutions that drive improved productivity for our customers. Infrastructure markets its products primarily under the Kennametal® brand and sells through a direct sales force as well as through distributors.
Segment data is summarized as follows:
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Sales: | |||||||||||||||||
| Metal Cutting | $ | 1,219,686 | $ | 1,280,781 | $ | 1,269,765 | |||||||||||
| Infrastructure | 747,159 | 766,118 | 808,419 | ||||||||||||||
| Total sales | $ | 1,966,845 | $ | 2,046,899 | $ | 2,078,184 | |||||||||||
| Cost of goods sold: | |||||||||||||||||
| Metal Cutting | $ | 793,479 | $ | 807,519 | $ | 798,749 | |||||||||||
| Infrastructure | 575,678 | 612,178 | 632,754 | ||||||||||||||
| Operating expense: | |||||||||||||||||
| Metal Cutting | $ | 329,302 | $ | 331,019 | $ | 331,146 | |||||||||||
| Infrastructure | 99,433 | 100,044 | 103,285 | ||||||||||||||
| Restructuring and other charges, net: | |||||||||||||||||
| Metal Cutting | $ | 9,015 | $ | 8,400 | $ | 2,741 | |||||||||||
| Infrastructure | 2,797 | 3,752 | 1,365 | ||||||||||||||
| Amortization of intangibles: | |||||||||||||||||
| Metal Cutting | $ | 1,515 | $ | 1,270 | $ | 1,366 | |||||||||||
| Infrastructure | 9,274 | 10,287 | 11,258 | ||||||||||||||
| Operating income: | |||||||||||||||||
| Metal Cutting | $ | 86,375 | $ | 132,573 | $ | 135,763 | |||||||||||
| Infrastructure | 58,465 | 39,857 | 59,757 | ||||||||||||||
| Total segment operating income | 144,840 | 172,430 | 195,520 | ||||||||||||||
| Unallocated corporate expenses | (1,717) | (2,207) | (3,103) | ||||||||||||||
| Total operating income | $ | 143,123 | $ | 170,223 | $ | 192,417 | |||||||||||
| Interest expense | $ | 24,930 | $ | 26,472 | $ | 28,496 | |||||||||||
| Other (income) expense, net | (13,811) | (699) | 4,300 | ||||||||||||||
| Income before income taxes | $ | 132,004 | $ | 144,450 | $ | 159,621 | |||||||||||
| Depreciation and amortization: | |||||||||||||||||
| Metal Cutting | $ | 93,544 | $ | 90,917 | $ | 90,880 | |||||||||||
| Infrastructure | 42,953 | 43,770 | 43,144 | ||||||||||||||
| Corporate | — | — | 1 | ||||||||||||||
| Total depreciation and amortization | $ | 136,497 | $ | 134,687 | $ | 134,025 | |||||||||||
Segment assets(4): | |||||||||||||||||
| Metal Cutting | $ | 1,423,714 | $ | 1,416,884 | $ | 1,460,757 | |||||||||||
| Infrastructure | 675,785 | 690,374 | 734,944 | ||||||||||||||
| Corporate | 445,913 | 396,500 | 351,533 | ||||||||||||||
| Total assets | $ | 2,545,412 | $ | 2,503,758 | $ | 2,547,234 | |||||||||||
| Capital expenditures: | |||||||||||||||||
| Metal Cutting | $ | 55,360 | $ | 71,148 | $ | 58,384 | |||||||||||
| Infrastructure | 33,611 | 36,413 | 36,001 | ||||||||||||||
| Total capital expenditures | $ | 88,971 | $ | 107,561 | $ | 94,385 | |||||||||||
(4) Metal Cutting and Infrastructure segment assets are principally accounts receivable, less allowance for doubtful accounts; inventories; property, plant and equipment, net; goodwill; other intangible assets, net of accumulated amortization; and operating lease ROU assets. Corporate assets are principally cash and cash equivalents, other current assets, long-term prepaid pension benefit, deferred income taxes and other assets.
Geographic information for sales, based on country where the sale originated, and long-lived assets is as follows:
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Sales: | |||||||||||||||||
| United States | $ | 794,575 | $ | 824,275 | $ | 848,713 | |||||||||||
| Germany | 263,817 | 278,824 | 270,936 | ||||||||||||||
| China | 189,571 | 199,069 | 220,193 | ||||||||||||||
| India | 119,390 | 115,397 | 112,819 | ||||||||||||||
| Canada | 95,167 | 102,666 | 103,323 | ||||||||||||||
| Italy | 58,574 | 68,575 | 68,249 | ||||||||||||||
| France | 53,823 | 55,670 | 51,178 | ||||||||||||||
| South Africa | 46,148 | 42,609 | 42,775 | ||||||||||||||
| Mexico | 44,672 | 44,408 | 42,367 | ||||||||||||||
| Brazil | 25,595 | 30,224 | 32,946 | ||||||||||||||
| Spain | 32,671 | 32,262 | 31,064 | ||||||||||||||
| United Kingdom | 31,971 | 32,013 | 29,943 | ||||||||||||||
Other(5) | 210,871 | 220,907 | 223,678 | ||||||||||||||
| Total sales | $ | 1,966,845 | $ | 2,046,899 | $ | 2,078,184 | |||||||||||
| Total long-lived assets: | |||||||||||||||||
| United States | $ | 486,762 | $ | 516,659 | $ | 552,770 | |||||||||||
| Germany | 237,569 | 219,633 | 204,551 | ||||||||||||||
| China | 73,875 | 77,759 | 81,731 | ||||||||||||||
| India | 38,719 | 41,886 | 44,748 | ||||||||||||||
| Israel | 23,302 | 22,018 | 24,662 | ||||||||||||||
| Canada | 17,701 | 18,927 | 18,934 | ||||||||||||||
Other (5) | 41,986 | 41,181 | 41,672 | ||||||||||||||
Total long-lived assets(6) | $ | 919,914 | $ | 938,063 | $ | 969,068 | |||||||||||
(5) Other does not contain any country that individually exceeds 2 percent of total sales or total long-lived assets, respectively.
(6) Total long-lived assets as of June 30, 2025, 2024 and 2023 include property, plant and equipment, net.
The following table presents Kennametal's revenue disaggregated by segment by geography:
| Metal Cutting | Infrastructure | Total Kennametal | ||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||
| Americas | 45 | % | 45 | % | 44 | % | 56 | % | 58 | % | 60 | % | 49 | % | 49 | % | 50 | % | ||||||||||||||||||||
| EMEA | 36 | 37 | 36 | 21 | 20 | 18 | 31 | 31 | 29 | |||||||||||||||||||||||||||||
| Asia Pacific | 19 | 18 | 20 | 23 | 22 | 22 | 20 | 20 | 21 | |||||||||||||||||||||||||||||
The following table presents Kennametal's revenue disaggregated by segment by end market:
| Metal Cutting | Infrastructure | Total Kennametal | ||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||
| General Engineering | 53 | % | 54 | % | 55 | % | 33 | % | 34 | % | 34 | % | 46 | % | 46 | % | 47 | % | ||||||||||||||||||||
| Transportation | 27 | 27 | 27 | — | — | — | 16 | 17 | 16 | |||||||||||||||||||||||||||||
| Aerospace & Defense | 13 | 12 | 11 | 9 | 8 | 6 | 12 | 11 | 9 | |||||||||||||||||||||||||||||
| Energy | 7 | 7 | 7 | 23 | 22 | 24 | 13 | 13 | 14 | |||||||||||||||||||||||||||||
| Earthworks | — | — | — | 35 | 36 | 36 | 13 | 13 | 14 | |||||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 12, 2025 | Showing above |
| 2024 | Aug 12, 2024 | |
| 2023 | Aug 9, 2023 | |
| 2022 | Aug 10, 2022 | |
| 2021 | Aug 10, 2021 | |
| 2020 | Aug 20, 2020 | |
| 2019 | Aug 13, 2019 | |
| 2018 | Aug 10, 2018 | |
| 2017 | Aug 14, 2017 | |
| 2016 | Aug 11, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.