Kennametal announces quarterly dividend payout

Published 30/04/2025, 18:54
Kennametal announces quarterly dividend payout

Kennametal Inc., a company specializing in metal cutting tools, has declared a quarterly cash dividend for its shareholders. On Tuesday, the Board of Directors announced a dividend of $0.20 per share, which is scheduled to be paid on May 27, 2025. Shareholders on record by the end of business on May 13, 2025, will be eligible for this dividend. The company boasts a remarkable 55-year streak of consecutive dividend payments, with the current dividend yield standing at 4.12%. According to InvestingPro, this is one of eight key insights available about Kennametal’s financial performance.

The announcement was made as part of the company’s recent 8-K filing with the Securities and Exchange Commission. The filing, which reports on various corporate events, including financial matters, was submitted on Wednesday, April 30, 2025, and covers the events as of April 29, 2025.

Kennametal, incorporated in Pennsylvania with headquarters in Pittsburgh, is listed on the New York Stock Exchange under the ticker symbol (NYSE:KMT). With a market capitalization of $1.5 billion and a healthy current ratio of 2.53, the company maintains strong liquidity. InvestingPro analysis reveals the company’s robust financial health, with liquid assets exceeding short-term obligations. The company has also registered Preferred Stock Purchase Rights with the exchange.

The 8-K filing additionally included the company’s Cover Page Interactive Data File, which is embedded within the Inline XBRL document. This document is a requirement for SEC filings and provides standardized financial information that can be read by both humans and machines.

The filing concluded with the formal signature of Michelle R. Keating, Vice President, Secretary, and General Counsel of Kennametal Inc., thereby fulfilling the company’s reporting obligations under the Securities Exchange Act of 1934.

This dividend declaration reflects Kennametal’s continued practice of returning value to its shareholders and is based on the company’s financial performance and outlook. According to InvestingPro’s Fair Value analysis, the stock currently appears slightly undervalued. As with all corporate announcements, this dividend is subject to the prevailing economic conditions and the company’s financial health at the time of payment. Discover comprehensive insights about Kennametal and 1,400+ other stocks through InvestingPro’s detailed research reports.

In other recent news, Kennametal Inc. reported second-quarter fiscal 2025 earnings that did not meet analyst expectations, with an adjusted EPS of $0.25, slightly below the projected $0.26. The company also reported revenue of $482.05 million, falling short of the anticipated $488.33 million. As a result of weakening market conditions, particularly in Europe, the Middle East, and Africa, Kennametal lowered its full-year revenue outlook to $1.95-2.0 billion, down from the previous consensus of $2.03 billion. Adjusted EPS guidance was also revised downward to $1.05-$1.30, significantly below the analyst consensus of $1.44. In response to these earnings, Loop Capital downgraded its price target for Kennametal from $26.00 to $21.00 while maintaining a Hold rating. Additionally, Kennametal finalized a separation agreement with former executive Franklin Cardenas, which included benefits aligned with his pre-existing contract. Meanwhile, President and CEO Sanjay Chowbey made a significant purchase of 10,000 shares of the company’s stock, which some interpret as a show of confidence in the company’s future. Despite these challenges, Kennametal has been actively pursuing cost reduction measures expected to impact financial results positively by the end of the fiscal year.

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