Pittsburgh-based Kennametal, a materials science, tooling and wear-resistant solutions provider, recently held Investor Day at the New York Stock Exchange and announced its growth and innovation strategy.
The company also outlined its operational and financial targets through fiscal year 2027. Targets include 4 percent to 6 percent organic sales compound annual growth rate (CAGR); 20 percent to 23 percent adjusted earnings before interest, taxes, depreciation, and amortization; 20 percent to 25 percent adjusted earnings per diluted share CAGR; 12 percent to 14 percent adjusted return on invested capital; and free operating cash flow of greater than 100 percent of adjusted net income.
“We invested in modernizing our manufacturing facilities to drive productivity, deliver greater customer service and bring higher value-add products to market faster,” president and CEO Christopher Rossi said at the event. “In addition, we enhanced our commercial excellence process to drive share gain and add new revenue streams in underserved areas of our diverse end markets. today, this process is enabling share gain in end markets like aerospace & defense, which gives us confidence in our ability to deliver above market growth as we apply this process to other targeted end markets.”
Kennametal serves customers in the aerospace and defense, earthworks, energy, general engineering and transportation industries.