Please wait





releaseheadinglogo.jpg
KIMBALL ELECTRONICS REPORTS Q2 RESULTS;
WITH STRONG SALES GROWTH IN THE MEDICAL VERTICAL; COMPANY RAISES ITS GUIDANCE FOR FISCAL 2026

JASPER, Ind., February 4, 2026 -- (BUSINESS WIRE) -- Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the second quarter ended December 31, 2025.
“I’m pleased with the results for the second quarter and our updated guidance for fiscal 2026. Sales in Q2 were in line with expectations, highlighted by another quarter of strong double-digit year-over-year growth in the medical vertical, margins improved compared to the same period last year, and cash from operations was positive for the eighth consecutive quarter.

Our focus as a medical CMO continues to gain momentum as we leverage our unique capabilities in the industry. We expect top-line growth in medical to outpace our other two verticals as we balance our portfolio across the markets we serve. Our recent announcement to rebrand as Kimball Solutions, and the grand opening of the new medical manufacturing facility in Indianapolis, reflects this strategy and our expanded offering of capabilities and services.”

Richard D. Phillips
Chief Executive Officer
  Second Quarter 2026 Highlights
•Revenue of $341.3 million, a 5% decrease compared to Q2 of fiscal 2025
•Sales in the medical vertical increased 15% year-over-year
•Operating income of $10.8 million, or 3.2% of net sales
•Adjusted operating income of 4.5%, up 80 bps year-over-year
•Cash from operations of $6.9 million, the eighth consecutive quarter of positive operating cash generation
•Debt of $154.2 million and borrowing capacity of $285.1 million
•Cash Conversion Days of 91, a 16-day improvement compared to the same period last year
•Invested $4.3 million to repurchase 149,000 shares of common stock
•Company increases guidance for fiscal 2026 sales and adjusted operating income






Net Sales by Vertical Market For Q2 Fiscal 2026
Sales in the medical vertical market increased 15% compared to the second quarter of fiscal 2025, while sales in automotive decreased 13% and industrial decreased 5%.
netsalesq226.jpg
*Percentage of net sales.
**Percentage changes compared to Q2 of fiscal 2025.
AT&M excluded from all amounts, percentages, and periods.
FISCAL YEAR 2026 GUIDANCE
As part of today’s announcement, the Company increased its guidance for net sales and adjusted operating income in fiscal year 2026:
•Net sales are now expected to be in the range of $1,400 - $1,460 million, compared to the previous guidance of $1,350 - $1,450 million
•Adjusted operating income is estimated to be 4.2% - 4.5% of net sales versus the prior estimate of 4.0% - 4.25%
•The guidance for capital expenditures did not change with a range of $50 - $60 million






webcastq226.jpg
Conference Call / Webcast

Thursday, February 5, 2026

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.
releaseheadinglogo.jpg
Contact:
Andrew D. Regrut
Vice President, Investor Relations, Strategic Development, and Treasurer
812.827.4151
Investor.Relations@kimballelectronics.com






Financial highlights for the second quarter and year-to-date period ended December 31, 2025 are as follows:
Three Months Ended
Six Months Ended
December 31,December 31,
(Amounts in Thousands, except EPS)2025202420252024
Net Sales$341,280 $357,392 $706,883 $731,648 
Operating Income
$10,767 $8,230 $25,221 $17,345 
Adjusted Operating Income (non-GAAP)
$15,308 $13,333 $32,842 $25,923 
Operating Income %3.2%2.3%3.6%2.4%
Adjusted Operating Income (non-GAAP) % 4.5%3.7%4.6%3.5%
Net Income $3,637 $3,432 $13,723 $6,586 
Adjusted Net Income (non-GAAP)
$6,925 $7,354 $19,175 $12,881 
Diluted EPS
$0.15 $0.14 $0.55 $0.26 
Adjusted Diluted EPS (non-GAAP)
$0.28 $0.29 $0.77 $0.51 


Net Sales by Vertical Market for Q2 Fiscal 2026:
Three Months Ended
Six Months Ended
December 31,December 31,
(Amounts in Millions)
2025
*
2024 (2)
*Percent
Change
2025
*
2024 (2)
*Percent Change
Automotive
$162.3 48%$186.3 52%(13)%$326.7 46%$368.0 50%(11)%
Medical
96.3 28%84.0 23%15%197.9 28%173.8 24%14%
Industrial excluding AT&M (1)
82.7 24%87.1 25%(5)%182.3 26%187.7 26%(3)%
Net Sales excluding AT&M (1)
$341.3 100%$357.4 100%(5)%$706.9 100%$729.5 100%(3)%
AT&M (1)
— —%— —%—%— —%2.1 —%(100)%
    Total Net Sales$341.3 100%$357.4 100%(5)%$706.9 100%$731.6 100%(3)%
*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)December 31, 2025December 31, 2024
Net Sales$341,280 100.0%$357,392 100.0%
Cost of Sales313,412 91.8%333,965 93.4%
Gross Profit27,868 8.2%23,427 6.6%
Selling and Administrative Expenses14,862 4.4%10,526 3.0%
Restructuring Expense1,817 0.5%4,671 1.3%
Asset Impairment
422 0.1%— —%
Operating Income
10,767 3.2%8,230 2.3%
Interest Income375 0.1%253 0.1%
Interest Expense(2,095)(0.6)%(4,241)(1.2)%
Non-Operating Income (Expense), net(2,063)(0.7)%(768)(0.2)%
Other Income (Expense), net(3,783)(1.2)%(4,756)(1.3)%
Income Before Taxes on Income6,984 2.0%3,474 1.0%
Provision (Benefit) for Income Taxes3,347 0.9%42 —%
Net Income
$3,637 1.1%$3,432 1.0%
Earnings Per Share of Common Stock:
Basic$0.15 $0.14 
Diluted$0.15 $0.14 
Average Number of Shares Outstanding:
     Basic24,606 24,870 
     Diluted24,823 24,968 
(Unaudited)Six Months Ended
(Amounts in Thousands, except Per Share Data)December 31, 2025December 31, 2024
Net Sales$706,883 100.0%$731,648 100.0%
Cost of Sales650,179 92.0%684,621 93.6%
Gross Profit56,704 8.0%47,027 6.4%
Selling and Administrative Expenses27,952 3.9%23,953 3.2%
Restructuring Expense3,233 0.5%6,993 1.0%
Asset Impairment (Gain on Disposal)298 —%(1,264)(0.2)%
Operating Income25,221 3.6%17,345 2.4%
Interest Income514 0.1%475 0.1%
Interest Expense(4,448)(0.6)%(9,033)(1.2)%
Non-Operating Income (Expense), net(3,304)(0.6)%(2,429)(0.4)%
Other Income (Expense), net(7,238)(1.1)%(10,987)(1.5)%
Income Before Taxes on Income17,983 2.5%6,358 0.9%
Provision (Benefit) for Income Taxes
4,260 0.6%(228)—%
Net Income$13,723 1.9%$6,586 0.9%
Earnings Per Share of Common Stock:
Basic$0.56 $0.26 
Diluted$0.55 $0.26 
Average Number of Shares Outstanding:
     Basic24,603 24,924 
     Diluted24,878 25,098 






Condensed Consolidated Statements of Cash FlowsSix Months Ended
(Unaudited)December 31,
(Amounts in Thousands)20252024
Net Cash Flow provided by Operating Activities$14,943 $74,932 
Net Cash Flow used for Investing Activities
(24,368)(1,214)
Net Cash Flow used for Financing Activities
(2,142)(97,255)
Effect of Exchange Rate Change on Cash, Cash Equivalents, and Restricted Cash623 (722)
Net Decrease in Cash, Cash Equivalents, and Restricted Cash
(10,944)(24,259)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period89,467 78,779 
Cash, Cash Equivalents, and Restricted Cash at End of Period$78,523 $54,520 



(Unaudited)
Condensed Consolidated Balance SheetsDecember 31,
2025		June 30,
2025
(Amounts in Thousands)
ASSETS
    Cash and cash equivalents$77,853 $88,781 
    Receivables, net213,994 222,623 
    Contract assets79,521 71,812 
    Inventories 281,699 273,500 
    Prepaid expenses and other current assets32,214 36,027 
    Assets held for sale6,610 6,861 
    Property and Equipment, net276,433 264,804 
    Goodwill6,191 6,191 
    Other Intangible Assets, net2,182 2,427 
    Other Assets, net
106,774 104,286 
        Total Assets$1,083,471 $1,077,312 
LIABILITIES AND SHARE OWNERS’ EQUITY
    Current portion of long-term debt$24,112 $17,400 
    Accounts payable218,830 218,805 
    Advances from customers 28,439 35,867 
    Accrued expenses41,995 46,489 
    Long-term debt, less current portion129,700 129,650 
    Other long-term liabilities61,233 59,217 
    Share Owners’ Equity579,162 569,884 
        Total Liabilities and Share Owners’ Equity$1,083,471 $1,077,312 








Other Financial Metrics
(Unaudited)
(Amounts in Millions, except CCD)
At or For the
Three Months Ended
December 31,September 30,December 31,
202520252024
Depreciation and Amortization$9.3 $9.1 $9.1 
Cash Conversion Days (CCD) (1)
91 83 107 
Open Orders (2)
$557 $593 $564 
(1)Cash Conversion Days (“CCD”) are calculated as the sum of Days Sales Outstanding plus Contract Asset Days plus Production Days Supply on Hand less Accounts Payable Days and less Advances from Customers Days. CCD, or a similar metric, is used in our industry and by our management to measure the efficiency of managing working capital.
(2)Open Orders are the aggregate sales price of production pursuant to unfulfilled customer orders.
Select Financial Results of Automation, Test and Measurement
(Unaudited)
(Amounts in Millions)
Three Months EndedSix Months Ended
December 31,December 31,
2025202420252024
Net Sales$— $— $— $2.1 
Operating Income (Loss) (1)
$(0.4)$— $(0.4)$0.8 
(1)Amounts include gain (loss) on sale adjustments following the close of the sale on July 31, 2024: ($0.4 million) in the three and six months ended December 31, 2025 and $1.3 million for the six months ended December 31, 2024.


Reconciliation of Non-GAAP Financial Measures
(Unaudited, Amounts in Thousands, except Per Share Data)
Three Months EndedSix Months Ended
December 31,December 31,
2025202420252024
Net Sales Growth (vs. same period in prior year)(5)%(15)%(3)%(15)%
Foreign Currency Exchange Impact2%—%2%—%
Constant Currency Growth(7)%(15)%(5)%(15)%
Selling and Administrative Expenses, as reported$14,862 $10,526 $27,952 $23,953 
Stock Compensation Expense(2,217)(501)(3,780)(2,573)
SERP(85)69 (310)(276)
Adjusted Selling and Administrative Expenses$12,560 $10,094 $23,862 $21,104 
Operating Income, as reported
$10,767 $8,230 $25,221 $17,345 
Stock Compensation Expense2,217 501 3,780 2,573 
SERP 85 (69)310 276 
Restructuring Expense1,817 4,671 3,233 6,993 
Asset Impairment (Gain on Disposal) 422 — 298 (1,264)
Adjusted Operating Income$15,308 $13,333 $32,842 $25,923 
Net Income, as reported
$3,637 $3,432 $13,723 $6,586 
Stock Compensation Expense, After-Tax1,681 380 2,866 1,951 
Restructuring Expense, After-Tax1,287 3,542 2,360 5,303 
Asset Impairment (Gain on Disposal), After-Tax320 — 226 (959)
Adjusted Net Income$6,925 $7,354 $19,175 $12,881 
Diluted Earnings per Share, as reported$0.15 $0.14 $0.55 $0.26 
Stock Compensation Expense0.07 0.01 0.12 0.07 
Restructuring Expense0.05 0.14 0.09 0.21 
Asset Impairment (Gain on Disposal)0.01 — 0.01 (0.03)
Adjusted Diluted Earnings per Share$0.28 $0.29 $0.77 $0.51 
Twelve Months Ended
December 31,
20252024
Operating Income, as reported
$53,411 $30,522 
Goodwill Impairment— 5,820 
SERP648 649 
Restructuring Expense7,230 9,379 
Asset Impairment (Gain on Disposal)(829)15,776 
Legal Settlements (Recovery)— (892)
Stock Compensation Expense7,726 6,096 
Adjusted Operating Income
$68,186 $67,350 
Tax Effect23,836 17,019 
After-tax Adjusted Operating Income$44,350 $50,331 
Average Invested Capital (1)
$657,074 $756,966 
ROIC6.7%6.6%
(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.