KMT

Kennametal Inc.

HALAL — DATA INCOMPLETEstock

Is KMT Halal?

Metal-cutting tooling and materials maker with known financial ratios passing; gross interest income and activity classification remain incomplete.

What You Should Know

Kennametal Inc. manufactures metal-cutting tools, tooling systems and wear-resistant products for metalworking, aerospace, energy and industrial customers. Its March 31, 2026 Form 10-Q reports assets of $2,730.747 million, interest-bearing debt of $614.144 million, cash of $106.850 million and accounts receivable of $334.429 million. Debt/assets is 22.49%, liquidity/assets is 3.91% and receivables-plus-cash/assets is 16.16%; gross interest income is not separately disclosed. The known financial ratios pass the examined MSCI and Malaysia proxies, with FTSE income remaining incomplete, while defense and end-use activity remains qualitative.

⚠️ Concerns

  • Known debt, liquidity and receivables-plus-cash ratios pass the examined limits
  • Gross interest income is not separately disclosed
  • Aerospace, defense and energy customers are mixed with general engineering demand
  • Restructuring and global manufacturing obligations require review
  • Re-screen after the next filing or a material end-use change

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
22.49%Within limit
Below 33.333% under FTSE Yasaar

614.144 / 2,730.747

Cash + interest-bearing securities / assets
3.91%Within limit
Below 33.333% under FTSE Yasaar

106.85 / 2,730.747

Receivables + cash / assets
16.16%Within limit
Below 50% under FTSE Yasaar

441.279 / 2,730.747

FTSE Yasaar
v4.6, February 2026
Financial
Incomplete
Overall
Incomplete

Known debt/assets is 22.49%, liquidity is 3.91% and receivables plus cash is 16.16%, below examined FTSE limits, but gross interest income is unavailable.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Pass
Overall
Incomplete

Debt/assets is 22.49%, liquidity is 3.91% and receivables plus cash is 16.16%, below examined MSCI total-assets limits; activity remains incomplete.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Incomplete

Debt/assets is 22.49% and liquidity is 3.91%, below the examined 33% limits; activity remains incomplete and this is not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Incomplete

A licensed historical market-cap series is not stored and activity classification remains incomplete.

Business-activity disclosure

Kennametal manufactures metal-cutting tools, tooling systems and wear-resistant products for metalworking, aerospace, energy and industrial customers. Industrial manufacturing is generally permissible, while defense and end-use exposure require review.

Limitation: The filing does not provide a reproducible prohibited-revenue numerator for aerospace, defense, energy or customer end uses, and gross interest income is not separately disclosed.

Purification

Gross interest income is not separately disclosed and no scholar-approved purification percentage is inferred.

Inputs, assumptions and primary sources
  • Amounts are USD millions converted from Kennametal's thousands-of-dollars presentation for March 31, 2026.
  • Debt combines $16.750 million revolving and other current borrowings with $597.394 million long-term debt; operating leases are excluded.
  • Cash is $106.850 million and no separately identified interest-bearing securities are added.
  • Accounts receivable is $334.429 million and third-quarter fiscal sales are $592.585 million; gross interest income is not separately disclosed.
  • Kennametal's fiscal year ends June 30 and March 31, 2026 is the nine-month fiscal-period balance-sheet date.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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