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KIMBALL ELECTRONICS REPORTS Q1 RESULTS;
COMPANY REITERATES GUIDANCE FOR FISCAL 2026

JASPER, Ind., November 5, 2025 -- (BUSINESS WIRE) -- Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the first quarter ended September 30, 2025.
“I’m pleased with the results for the first quarter and start to the new fiscal year. Sales were in line with expectations, driven by strength in the medical vertical, margins improved year-over-year, cash from operations was positive for the seventh consecutive quarter, and debt at the end of Q1 was the lowest level in over three years. We have ample liquidity to navigate the current operating environment, and plenty of dry powder to opportunistically invest in growth.

I continue to be impressed with our team’s progress in positioning the Company for the future. Our solid footing as an EMS provider and our capabilities as a medical CMO are unique in the industry and we look to expand upon them through organic, and possibly inorganic, channels. We remain confident this powerful combination will result in a return to profitable topline growth next year, and we are reiterating our guidance for fiscal 2026.”

Richard D. Phillips
Chief Executive Officer
  First Quarter 2026 Highlights
•Revenue of $365.6 million, with strong year-over-year sales growth in the medical end-market vertical
•Operating income of $14.5 million, or 4.0% of net sales, adjusted OI of 4.8%, up 140 bps year-over-year
•Net income of $10.1 million, or $0.40 per diluted share, adjusted EPS of $0.49, more than double Q1 fiscal 2025
•Cash from operations of $8.1 million, the seventh consecutive quarter of positive cash generation
•Debt of $138.0 million, down $9.5 million in the quarter, and borrowing capacity of $294.3 million
•Cash Conversion Days of 83, the lowest level in 3 years
•Invested $1.5 million to repurchase 49,000 shares of common stock






Net Sales By Vertical Market For The First Quarter Of Fiscal 2026
Sales in the medical vertical market increased 13% compared to the first quarter of fiscal 2025, while sales in automotive decreased 10% and industrial, excluding Automation, Test and Measurement, decreased 1%.
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*Percentage of net sales.
**Percentage changes compared to Q1 of fiscal 2025.
AT&M excluded from all amounts, percentages, and periods.

FISCAL YEAR 2026 GUIDANCE
As part of today’s announcement, the Company reiterated its guidance for fiscal year 2026 with net sales expected to be in the range of $1,350 - $1,450 million and adjusted operating income of 4.0% - 4.25% of net sales. Capital expenditures are estimated to be $50 - $60 million.











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Conference Call / Webcast

Thursday, November 6, 2025

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

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 the war in Ukraine, 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, 2025.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures. The non-GAAP financial measures contained herein include constant currency growth, net sales excluding Automation, Test & Measurement, adjusted selling and administrative expenses, adjusted operating income, adjusted net income, adjusted diluted EPS, and ROIC. 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, Inc.
Kimball Electronics is a global, multifaceted manufacturer offering Electronics Manufacturing Services (EMS) and Contract Manufacturing Organization (CMO) solutions to customers around the world. From our operations in the United States, China, Mexico, 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.
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Contact:
Andrew D. Regrut
Treasurer and Investor Relations Officer
812.827.4151
Investor.Relations@kimballelectronics.com






Financial highlights for the first quarter ended September 30, 2025 are as follows:
Three Months Ended
September 30,
(Amounts in Thousands, except EPS)20252024
Net Sales$365,603 $374,256 
Operating Income
$14,454 $9,115 
Adjusted Operating Income (non-GAAP)
$17,534 $12,590 
Operating Income %4.0%2.4%
Adjusted Operating Income (non-GAAP) % 4.8%3.4%
Net Income $10,086 $3,154 
Adjusted Net Income (non-GAAP)
$12,250 $5,527 
Diluted EPS
$0.40 $0.12 
Adjusted Diluted EPS (non-GAAP)
$0.49 $0.22 


Net Sales by Vertical Market for Q1 Fiscal 2026:
Three Months Ended
September 30,
(Amounts in Millions)
2025
*
2024 (2)
*Percent
Change
Automotive
$164.4 45%$181.8 49%(10)%
Medical
101.6 28%89.8 24%13%
Industrial excluding AT&M (1)
99.6 27%100.6 26%(1)%
Net Sales excluding AT&M (1)
$365.6 100%$372.2 99%(2)%
AT&M (1)
— —%2.1 1%(100)%
    Total Net Sales$365.6 100%$374.3 100%(2)%
*As a percent of Total Net Sales
(1)Sales from our Automation, Test, and Measurement business (AT&M), which was divested effective July 31, 2024, were previously included in the industrial vertical
(2)Beginning in the first quarter of fiscal year 2026, sales to customers related to commercial transportation, previously included in the automotive vertical, are now reflected in the industrial vertical; prior periods have been recast to conform to current period presentation
–Automotive includes electronic power steering, body controls, advanced driver-assistance systems, and electronic braking systems
–Medical includes sleep therapy and respiratory care, image guided therapy, in vitro diagnostics, drug delivery, AED, and patient monitoring
–Industrial includes climate controls, automation controls, public safety, IoT and factory automation, efficient energy, off highway equipment, and commercial transportation







Condensed Consolidated Statements of Income
(Unaudited)Three Months Ended
(Amounts in Thousands, except Per Share Data)September 30, 2025September 30, 2024
Net Sales$365,603 100.0%$374,256 100.0%
Cost of Sales336,767 92.1%350,656 93.7%
Gross Profit28,836 7.9%23,600 6.3%
Selling and Administrative Expenses13,090 3.5%13,427 3.6%
Restructuring Expense1,416 0.4%2,322 0.6%
Gain on Disposal(124)—%(1,264)(0.3)%
Operating Income
14,454 4.0%9,115 2.4%
Interest Income139 —%222 0.1%
Interest Expense(2,353)(0.6)%(4,792)(1.3)%
Non-Operating Income (Expense), net(1,241)(0.4)%(1,661)(0.4)%
Other Income (Expense), net(3,455)(1.0)%(6,231)(1.6)%
Income Before Taxes on Income10,999 3.0%2,884 0.8%
Provision (Benefit) for Income Taxes913 0.2%(270)—%
Net Income
$10,086 2.8%$3,154 0.8%
Earnings Per Share of Common Stock:
Basic$0.41 $0.13 
Diluted$0.40 $0.12 
Average Number of Shares Outstanding:
     Basic24,600 24,979 
     Diluted24,909 25,235 
Condensed Consolidated Statements of Cash FlowsThree Months Ended
(Unaudited)September 30,
(Amounts in Thousands)20252024
Net Cash Flow provided by Operating Activities$8,065 $45,474 
Net Cash Flow (used for) provided by Investing Activities
(6,202)5,226 
Net Cash Flow used for Financing Activities
(13,966)(52,954)
Effect of Exchange Rate Change on Cash, Cash Equivalents, and Restricted Cash116 1,830 
Net Decrease in Cash, Cash Equivalents, and Restricted Cash
(11,987)(424)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period89,467 78,779 
Cash, Cash Equivalents, and Restricted Cash at End of Period$77,480 $78,355 








(Unaudited)
Condensed Consolidated Balance SheetsSeptember 30,
2025		June 30,
2025
(Amounts in Thousands)
ASSETS
    Cash and cash equivalents$75,696 $88,781 
    Receivables, net226,012 222,623 
    Contract assets75,199 71,812 
    Inventories 272,725 273,500 
    Prepaid expenses and other current assets34,341 36,027 
    Assets held for sale6,579 6,861 
    Property and Equipment, net273,937 264,804 
    Goodwill6,191 6,191 
    Other Intangible Assets, net2,305 2,427 
    Other Assets, net
104,931 104,286 
        Total Assets$1,077,916 $1,077,312 
LIABILITIES AND SHARE OWNERS’ EQUITY
    Current portion of long-term debt$6,600 $17,400 
    Accounts payable234,567 218,805 
    Advances from customers 27,058 35,867 
    Accrued expenses43,795 46,489 
    Long-term debt, less current portion130,925 129,650 
    Other long-term liabilities57,832 59,217 
    Share Owners’ Equity577,139 569,884 
        Total Liabilities and Share Owners’ Equity$1,077,916 $1,077,312 








Other Financial Metrics
(Unaudited)
(Amounts in Millions, except CCD)
At or For the
Three Months Ended
September 30,June 30,September 30,
202520252024
Depreciation and Amortization$9.1 $9.6 $9.2 
Cash Conversion Days (CCD) (1)
83 85 108 
Open Orders (2)
$593 $642 $594 
(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. The total reported for June 30, 2025 has been revised to $642 million, from the $702 million originally reported, to more accurately reflect the calculation of open order activity impacting all three verticals.
Select Financial Results of Automation, Test and Measurement
(Unaudited)
(Amounts in Millions)
Three Months Ended
September 30,
20252024
Net Sales$— $2.1 
Operating Income (Loss) (1)
$— $0.8 
(1)Includes gain on sale of $1.3 million following the close of the sale on July 31, 2024 for the three months ended September 30, 2024.


Reconciliation of Non-GAAP Financial Measures
(Unaudited, Amounts in Thousands, except Per Share Data)
Three Months Ended
September 30,
20252024
Net Sales Growth (vs. same period in prior year)(2)%(15)%
Foreign Currency Exchange Impact1%—%
Constant Currency Growth(3)%(15)%
Selling and Administrative Expenses, as reported$13,090 $13,427 
Stock Compensation Expense(1,563)(2,072)
SERP(225)(345)
Adjusted Selling and Administrative Expenses$11,302 $11,010 
Operating Income, as reported
$14,454 $9,115 
Stock Compensation Expense1,563 2,072 
SERP 225 345 
Restructuring Expense1,416 2,322 
Asset Impairment (Gain on Disposal) (124)(1,264)
Adjusted Operating Income$17,534 $12,590 
Net Income, as reported
$10,086 $3,154 
Stock Compensation Expense, After-Tax1,185 1,571 
Restructuring Expense, After-Tax1,073 1,761 
Asset Impairment (Gain on Disposal), After-Tax(94)(959)
Adjusted Net Income$12,250 $5,527 
Diluted Earnings per Share, as reported$0.40 $0.12 
Stock Compensation Expense0.05 0.06 
Restructuring Expense0.04 0.07 
Asset Impairment (Gain on Disposal)— (0.03)
Adjusted Diluted Earnings per Share$0.49 $0.22 
Twelve Months Ended
September 30,
20252024
Operating Income$50,874 $38,902 
Goodwill Impairment— 5,820 
SERP494 1,202 
Restructuring Expense10,084 4,708 
Asset Impairment (Gain on Disposal)(1,251)15,776 
Legal Settlements (Recovery)— (892)
Stock Compensation Expense6,010 7,564 
Adjusted Operating Income (non-GAAP)$66,211 $73,080 
Tax Effect23,511 16,285 
After-tax Adjusted Operating Income$42,700 $56,795 
Average Invested Capital (1)
$669,471 $773,016 
ROIC6.4%7.3%
(1) Average invested capital is computed using Share Owners’ equity plus current and non-current debt less cash and cash equivalents averaged for the last five quarters.