Form 4: Kennametal CFO Earns Significant Performance Stock Units

Kennametal Inc.'s CFO, Patrick S. Watson, was awarded 10,560 performance stock units based on the achievement of adjusted ROIC and EBITDA margin targets.

Summary

• Patrick S. Watson, Vice President and CFO of Kennametal Inc. (KMT), was deemed to have earned a total of 10,560 performance stock units (PSUs) on July 28, 2025.
• The PSUs were awarded under the Kennametal Inc. 2020 Stock and Incentive Plan and the 2024 Stock and Incentive Plan.
• 1,636 PSUs were earned from the third tranche of the 2022 Performance Unit Award, based on adjusted ROIC, with a payout multiple of 81.1%.
• 2,796 PSUs were earned from the 2022 Performance Unit Award, based on adjusted EBITDA margin, with a payout of 92.4%.
• 2,496 PSUs were earned from the second tranche of the 2023 Performance Unit Award, based on adjusted ROIC, with a payout multiple of 81.1%.
• 3,632 PSUs were earned from the first tranche of the 2024 Performance Unit Award, based on adjusted ROIC, with a payout of 81.1%.
• Vesting and actual distribution of these shares are contingent upon Mr. Watson's continued employment with the company through specific future dates.
• Following these transactions, Mr. Watson beneficially owns 47,140.79 shares of Common Stock, which includes 356.79 shares held in the Kennametal Inc. 401(k) Plan.

Sentiment

Score: 7

Explanation: The award of performance stock units to a key executive indicates that the company's performance metrics (adjusted ROIC and EBITDA margin) were met at a significant level, leading to the vesting of these awards, which is a positive signal regarding internal performance.

Positives

• The award of performance stock units indicates that Kennametal Inc. achieved its performance targets for adjusted ROIC and adjusted EBITDA margin at significant payout percentages (81.1% and 92.4% respectively).
• The compensation structure aligns executive incentives with company performance metrics, which is generally viewed favorably for corporate governance.

Risks

• Actual distribution of the earned performance stock units is subject to the reporting person's continued employment with the company through specified future vesting dates.

Future Outlook

The future distribution of the earned performance stock units is contingent upon the CFO's continued employment with Kennametal Inc. through specific vesting dates in August 2025, August 2026, and August 2027.

Industry Context

This filing is a routine insider transaction report related to executive compensation and does not provide broader industry context or trends. It reflects the company's internal performance against set targets.

Stakeholder Impact

• Shareholders: The award of PSUs based on performance metrics suggests that the company is meeting its internal financial goals, which could be viewed positively.
• Employees (specifically the CFO): Direct positive impact through the earning of additional equity compensation tied to performance.

Next Steps

• Vesting of 1,636 and 2,796 performance stock units on August 15, 2025, subject to continued employment.
• Vesting of 2,496 performance stock units on August 15, 2026, subject to continued employment.
• Vesting of 3,632 performance stock units on August 15, 2027, subject to continued employment.

Key Dates

Keywords

Kennametal Inc., KMT, Patrick S. Watson, CFO, Performance Stock Units, PSUs, Executive Compensation, Insider Ownership, ROIC, EBITDA Margin, SEC Form 4