Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the first quarter ended September 30, 2026.

 

 

 

 

 

Three Months Ended

 

September 30,

(Amounts in Thousands, except EPS)

 

2026

 

 

 

2025

 

Net Sales

$

390,803

 

 

$

365,603

 

Operating Income

$

12,374

 

 

$

14,454

 

Adjusted Operating Income (non-GAAP)

$

16,990

 

 

$

17,534

 

Operating Income %

 

3.2

%

 

 

4.0

%

Adjusted Operating Income (non-GAAP) %

 

4.3

%

 

 

4.8

%

Net Income

$

2,642

 

 

$

10,086

 

Adjusted Net Income (non-GAAP)

$

6,121

 

 

$

12,250

 

Diluted EPS

$

0.11

 

 

$

0.40

 

Adjusted Diluted EPS (non-GAAP)

$

0.25

 

 

$

0.49

 

Commenting on today’s announcement, Richard D. Phillips, Chief Executive Officer, stated, “I’m encouraged by our first quarter results and solid start to fiscal 2027. Sales increased both sequentially and year-over-year, margins were healthy, and cash conversion days were once again at a multiyear low. The top line benefited from organic sales growth and the contribution from Helvoet Polymer Technologies, our recent tuck-in acquisition in the medical CDMO. The organic growth was in line with expectations and driven by a high single-digit increase in Medical. This growth aligns with our strategic focus to balance the portfolio across the verticals.”

Mr. Phillips continued, “Our excitement for the overall fit and growth opportunities of Helvoet are higher now than ever. With the backdrop of a strong balance sheet, we’re investing in medical growth by integrating Helvoet, ramping operations in Indianapolis, leveraging our capabilities as a full service provider, and unlocking synergies across our global footprint. Fiscal 2027 marks an important milestone in our journey and we are reiterating our guidance for the year with sales expected at the high end of the range, driven by continued strength in Medical.”

Net Sales by Vertical Market for Q1 Fiscal 2027

 

Three Months Ended

 

 

 

 

September 30,

 

 

 

(Amounts in Millions)

 

2026

 

*

 

 

2025

 

*

 

Percent

Change

 

Automotive

$

170.5

 

44

%

 

$

164.4

 

45

%

 

4

%

 

Medical

 

115.7

 

29

%

 

 

101.6

 

28

%

 

14

%

 

Industrial

 

104.6

 

27

%

 

 

99.6

 

27

%

 

5

%

 

Total Net Sales

$

390.8

 

100

%

 

$

365.6

 

100

%

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

* As a percent of Total Net Sales

 

 

 

– Automotive includes chassis control – steering, chassis control – braking, and body controls

– Medical includes sleep & oxygen therapy, defibrillation (AEDs), surgical systems, in vitro diagnostics, imaging systems, drug delivery/auto-injectors, patient monitoring, and microfluidics

– Industrial includes climate controls, off-highway/commercial equipment, IoT & factory automation, energy, and public safety

FISCAL YEAR 2027 GUIDANCE

As part of today’s announcement, the Company reiterated its guidance for fiscal 2027 with net sales expected at the high end of the range of $1,535 – $1,560 million, adjusted operating income of 4.4% – 4.7% of net sales, and capital expenditures of $50 – $60 million.

Conference Call / Webcast

 

Date: Thursday, November 5, 2026

 

Time: 10:00 AM Eastern Time

 

Live Webcast: investors.kimballelectronics.com/events-and-presentations/events

 

Dial-in #: 888-396-8049 (or 416-764-8646)

For those unable to participate in the live webcast, the call will be archived at investors.kimballelectronics.com.

Forward-Looking Statements

Certain statements contained within this release are considered forward-looking, including our guidance, under the Private Securities Litigation Reform Act of 1995. The statements may be identified by the use of words such as “expect,” “should,” “goal,” “predict,” “will,” “future,” “optimistic,” “confident,” and “believe.” Undue reliance should not be placed on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. These forward-looking statements are subject to risks and uncertainties including, without limitation, global economic conditions, geopolitical environment and conflicts such as war, global health emergencies, availability or cost of raw materials and components, tariffs and other trade barriers, foreign exchange rate fluctuations, and our ability to convert new business opportunities into customers and revenue. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the company are contained in its Annual Report on Form 10-K for the year ended June 30, 2026.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures. The non-GAAP financial measures contained herein include organic sales growth, adjusted selling and administrative expenses, adjusted operating income, adjusted EBITDA, adjusted net income, and adjusted diluted EPS. Reconciliations of the reported GAAP numbers to these non-GAAP financial measures are included in the Reconciliation of Non-GAAP Financial Measures section below. Management believes these measures are useful and allow investors to meaningfully trend, analyze, and benchmark the performance of the company’s core operations. The company’s non-GAAP financial measures are not necessarily comparable to non-GAAP information used by other companies.

About Kimball Electronics/Kimball Solutions

Kimball Electronics is a global, multifaceted manufacturer offering Electronics Manufacturing Services (EMS) and Contract Development and Manufacturing Organization (CDMO) solutions to customers around the world. From our operations in the United States, China, India, Mexico, The Netherlands, Poland, Romania, and Thailand, our teams are proud to provide manufacturing services for a variety of industries. Recognized for a reputation of excellence, we are committed to a high-performance culture that values quality, reliability, value, speed, and ethical behavior. Kimball Electronics, Inc. (Nasdaq: KE) is headquartered in Jasper, Indiana.

To learn more about Kimball Electronics, visit www.kimballelectronics.com.

Lasting relationships. Global success.

Condensed Consolidated Statements of Income

 

 

 

 

 

 

(Unaudited)

Three Months Ended

(Amounts in Thousands, except Per Share Data)

September 30, 2026

 

September 30, 2025

Net Sales

$

390,803

 

 

100.0

%

 

$

365,603

 

 

100.0

%

Cost of Sales

 

359,929

 

 

92.1

%

 

 

336,767

 

 

92.1

%

Gross Profit

 

30,874

 

 

7.9

%

 

 

28,836

 

 

7.9

%

Selling and Administrative Expenses

 

18,055

 

 

4.6

%

 

 

13,090

 

 

3.5

%

Restructuring Expense

 

445

 

 

0.1

%

 

 

1,416

 

 

0.4

%

Gain on Disposal

 

—

 

 

—

%

 

 

(124

)

 

—

%

Operating Income

 

12,374

 

 

3.2

%

 

 

14,454

 

 

4.0

%

Interest Income

 

549

 

 

0.1

%

 

 

139

 

 

—

%

Interest Expense

 

(3,519

)

 

(0.9

)%

 

 

(2,353

)

 

(0.6

)%

Non-Operating Income (Expense), net

 

(1,601

)

 

(0.4

)%

 

 

(1,241

)

 

(0.4

)%

Other Income (Expense), net

 

(4,571

)

 

(1.2

)%

 

 

(3,455

)

 

(1.0

)%

Income Before Taxes on Income

 

7,803

 

 

2.0

%

 

 

10,999

 

 

3.0

%

Provision (Benefit) for Income Taxes

 

5,161

 

 

1.3

%

 

 

913

 

 

0.2

%

Net Income

$

2,642

 

 

0.7

%

 

$

10,086

 

 

2.8

%

 

 

 

 

 

 

 

 

Earnings Per Share of Common Stock:

 

 

 

 

 

 

 

Basic

$

0.11

 

 

 

 

$

0.41

 

 

 

Diluted

$

0.11

 

 

 

 

$

0.40

 

 

 

Average Number of Shares Outstanding:

 

 

 

 

 

 

 

Basic

 

24,330

 

 

 

 

 

24,600

 

 

 

Diluted

 

24,581

 

 

 

 

 

24,909

 

 

 
Condensed Consolidated Statements of Cash Flows

Three Months Ended

(Unaudited)

September 30,

(Amounts in Thousands)

 

2026

 

 

 

2025

 

Net Cash Flow provided by (used for) Operating Activities

$

(19,324

)

 

$

8,065

 

Net Cash Flow used for Investing Activities

 

(109,728

)

 

 

(6,202

)

Net Cash Flow provided by (used for) Financing Activities

 

114,026

 

 

 

(13,966

)

Effect of Exchange Rate Change on Cash, Cash Equivalents, and Restricted Cash

 

(64

)

 

 

116

 

Net Decrease in Cash, Cash Equivalents, and Restricted Cash

 

(15,090

)

 

 

(11,987

)

Cash, Cash Equivalents, and Restricted Cash at Beginning of Period

 

89,641

 

 

 

89,467

 

Cash, Cash Equivalents, and Restricted Cash at End of Period

$

74,551

 

 

$

77,480

 

 

(Unaudited)

  

 

 

  

Condensed Consolidated Balance Sheets

September 30,

2026

  

 

June 30,

2026

  

(Amounts in Thousands)

    

ASSETS

 

  

 

 

  

Cash and cash equivalents

$

72,763

  

 

$

88,925

  

Receivables, net

 

236,068

  

 

 

218,840

  

Contract assets

 

83,003

  

 

 

70,497

  

Inventories

 

312,137

  

 

 

271,906

  

Prepaid expenses and other current assets

 

49,371

  

 

 

42,836

  

Property and Equipment, net

 

304,480

  

 

 

274,192

  

Goodwill

 

50,459

  

 

 

6,191

  

Other Intangible Assets, net

 

25,491

  

 

 

1,921

  

Other Assets, net

 

103,426

  

 

 

116,762

  

Total Assets

$

1,237,198

  

 

$

1,092,070

  

 

 

  

 

 

  

LIABILITIES AND SHARE OWNERS’ EQUITY

 

  

 

 

  

Current portion of long-term debt

$

39,700

  

 

$

8,202

  

Accounts payable

 

260,560

  

 

 

234,361

  

Advances from customers

 

36,607

  

 

 

30,672

  

Accrued expenses

 

58,725

  

 

 

58,860

  

Long-term debt, less current portion

 

195,650

  

 

 

108,000

  

Other long-term liabilities

 

63,739

  

 

 

66,843

  

Share Owners’ Equity

 

582,217

  

 

 

585,132

  

Total Liabilities and Share Owners’ Equity

$

1,237,198

  

 

$

1,092,070

  

Other Financial Metrics

  

 

 

  

 

 

  

(Unaudited)

 

  

 

 

  

 

 

  

(Amounts in Millions, except CCD)

 

  

 

 

  

 

 

  

 

At or For the

  

 

Three Months Ended

  

 

September 30,

  

 

June 30,

  

 

September 30,

  

 

 

2026

  

 

 

2026

  

 

 

2025

  

Cash Conversion Days (CCD) (1)

 

82

  

 

 

82

  

 

 

83

  

Open Orders (2)

$

690

  

 

$

643

  

 

$

593

  

(1)

  

Cash Conversion Days (“CCD”) are calculated as the sum of Days Sales Outstanding plus Contract Asset Days plus Production Days Supply on Hand less Accounts Payable Days and less Advances from Customers Days. CCD, or a similar metric, is used in our industry and by our management to measure the efficiency of managing working capital.

(2)

  

Open Orders are the aggregate sales price of production pursuant to unfulfilled customer orders.

 

 

  

Select Financial Results of Helvoet

  

(Unaudited)

 

  

(Amounts in Millions)

 

  

 

Three Months

  

 

Ended

  

 

September 30,

  

 

 

2026

  

Net Sales

$

12.4

  

Reconciliation of Non-GAAP Financial Measures

 

 

 

(Unaudited, Amounts in Thousands, except Per Share Data)

 

 

 

 

Three Months Ended

 

September 30,

 

 

2026

 

 

 

2025

 

Net Sales Growth (vs. same period in prior year)

 

7

%

 

 

(2

)%

Acquisition Impact

 

3

%

 

 

—

%

Foreign Currency Exchange Impact

 

1

%

 

 

1

%

Organic Sales Growth

 

3

%

 

 

(3

)%

 

 

 

 

Net Sales Growth (vs. same period in prior year), Medical Vertical

 

14

%

 

 

13

%

Acquisition Impact, Medical Vertical

 

5

%

 

 

—

%

Foreign Currency Exchange Impact, Medical Vertical

 

—

%

 

 

1

%

Organic Sales Growth, Medical Vertical

 

9

%

 

 

12

%

 

 

 

 

Selling and Administrative Expenses, as reported

$

18,055

 

 

$

13,090

 

Stock Compensation Expense

 

(1,677

)

 

 

(1,563

)

SERP

 

14

 

 

 

(225

)

Acquisition Amortization

 

(532

)

 

 

—

 

Acquisition Costs

 

(1,976

)

 

 

—

 

Adjusted Selling and Administrative Expenses

$

13,884

 

 

$

11,302

 

 

 

 

 

Operating Income, as reported

$

12,374

 

 

$

14,454

 

Stock Compensation Expense

 

1,677

 

 

 

1,563

 

SERP

 

(14

)

 

 

225

 

Restructuring Expense

 

445

 

 

 

1,416

 

Asset Impairment (Gain on Disposal)

 

—

 

 

 

(124

)

Acquisition Amortization

 

532

 

 

 

—

 

Acquisition Costs

 

1,976

 

 

 

—

 

Adjusted Operating Income

$

16,990

 

 

$

17,534

 

 

 

 

 

Adjusted Operating Income

$

16,990

 

 

$

17,534

 

Depreciation & Amortization Excluding Acquisition Amortization

 

10,571

 

 

 

9,117

 

Adjusted EBITDA

$

27,561

 

 

$

26,651

 

 

 

 

 

Net Income, as reported

$

2,642

 

 

$

10,086

 

Stock Compensation Expense, After-Tax

 

1,272

 

 

 

1,185

 

Restructuring Expense, After-Tax

 

312

 

 

 

1,073

 

Asset Impairment (Gain on Disposal), After-Tax

 

—

 

 

 

(94

)

Acquisition Amortization, After-Tax

 

396

 

 

 

—

 

Acquisition Costs, After-Tax

 

1,499

 

 

 

—

 

Adjusted Net Income

$

6,121

 

 

$

12,250

 

 

 

 

 

Diluted Earnings per Share, as reported

$

0.11

 

 

$

0.40

 

Stock Compensation Expense

 

0.05

 

 

 

0.05

 

Restructuring Expense

 

0.01

 

 

 

0.04

 

Acquisition Amortization

 

0.02

 

 

 

—

 

Acquisition Costs

 

0.06

 

 

 

—

 

Adjusted Diluted Earnings per Share

$

0.25

 

 

$

0.49

 

 

 

 

 

 

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