Company Raises Its Guidance for Fiscal 2026
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
JASPER, Ind.– Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the second quarter ended December 31, 2025.
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Three Months Ended |
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Six Months Ended |
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December 31, |
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December 31, |
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(Amounts in Thousands, except EPS) |
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2025 |
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2024 |
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2025 |
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2024 |
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Net Sales |
$ |
341,280 |
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$ |
357,392 |
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$ |
706,883 |
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$ |
731,648 |
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Operating Income |
$ |
10,767 |
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$ |
8,230 |
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$ |
25,221 |
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$ |
17,345 |
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Adjusted Operating Income (non-GAAP) |
$ |
15,308 |
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$ |
13,333 |
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$ |
32,842 |
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$ |
25,923 |
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Operating Income % |
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3.2 |
% |
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2.3 |
% |
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3.6 |
% |
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2.4 |
% |
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Adjusted Operating Income (non-GAAP) % |
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4.5 |
% |
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3.7 |
% |
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4.6 |
% |
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3.5 |
% |
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Net Income |
$ |
3,637 |
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$ |
3,432 |
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$ |
13,723 |
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$ |
6,586 |
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Adjusted Net Income (non-GAAP) |
$ |
6,925 |
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$ |
7,354 |
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$ |
19,175 |
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$ |
12,881 |
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Diluted EPS |
$ |
0.15 |
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$ |
0.14 |
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$ |
0.55 |
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$ |
0.26 |
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Adjusted Diluted EPS (non-GAAP) |
$ |
0.28 |
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$ |
0.29 |
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$ |
0.77 |
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$ |
0.51 |
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Commenting on today’s announcement, Richard D. Phillips, Chief Executive Officer, stated, “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.”
Mr. Phillips continued, “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.”
Net Sales by Vertical Market for Q2 Fiscal 2026:
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Three Months Ended |
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Six Months Ended |
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December 31, |
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December 31, |
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(Amounts in Millions) |
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2025 |
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* |
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2024(2) |
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* |
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Percent |
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2025 |
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* |
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2024(2) |
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* |
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Percent |
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Automotive |
$ |
162.3 |
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48 |
% |
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$ |
186.3 |
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52 |
% |
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(13 |
)% |
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$ |
326.7 |
|
46 |
% |
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$ |
368.0 |
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50 |
% |
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(11 |
)% |
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Medical |
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96.3 |
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28 |
% |
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84.0 |
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23 |
% |
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15 |
% |
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197.9 |
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28 |
% |
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173.8 |
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24 |
% |
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14 |
% |
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Industrial excluding AT&M (1) |
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82.7 |
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24 |
% |
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87.1 |
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|
25 |
% |
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(5 |
)% |
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|
182.3 |
|
26 |
% |
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|
187.7 |
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26 |
% |
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(3 |
)% |
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Net Sales excluding AT&M(1) |
$ |
341.3 |
|
100 |
% |
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$ |
357.4 |
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100 |
% |
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(5 |
)% |
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$ |
706.9 |
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100 |
% |
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$ |
729.5 |
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100 |
% |
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(3 |
)% |
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AT&M(1) |
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— |
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— |
% |
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— |
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— |
% |
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— |
% |
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— |
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— |
% |
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2.1 |
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— |
% |
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(100 |
)% |
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Total Net Sales |
$ |
341.3 |
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100 |
% |
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$ |
357.4 |
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100 |
% |
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(5 |
)% |
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$ |
706.9 |
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100 |
% |
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$ |
731.6 |
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100 |
% |
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(3 |
)% |
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* |
As a percent of Total Net Sales |
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(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 |
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(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 |
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– |
Automotive includes electronic power steering, body controls, advanced driver-assistance systems, and electronic braking systems |
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– |
Medical includes sleep therapy and respiratory care, image guided therapy, in vitro diagnostics, drug delivery, AED, and patient monitoring |
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– |
Industrial includes climate controls, automation controls, public safety, IoT and factory automation, efficient energy, off highway equipment, and commercial transportation |
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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
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Conference Call / Webcast |
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Date: Thursday, February 5, 2026
Time: 10:00 AM Eastern Time
Live Webcast: investors.kimballelectronics.com/events-and-presentations/events
Dial-in #: 877-407-8293 (or 201-689-8349)
For those unable to participate in the live webcast, the call will be archived at investors.kimballelectronics.com. |
