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
JASPER, Ind.–(BUSINESS WIRE)– Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the first quarter ended September 30, 2025.
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Three Months Ended |
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September 30, |
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(Amounts in Thousands, except EPS) |
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2025 |
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2024 |
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Net Sales |
$ |
365,603 |
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$ |
374,256 |
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Operating Income |
$ |
14,454 |
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$ |
9,115 |
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Adjusted Operating Income (non-GAAP) |
$ |
17,534 |
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$ |
12,590 |
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Operating Income % |
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4.0 |
% |
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2.4 |
% |
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Adjusted Operating Income (non-GAAP) % |
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4.8 |
% |
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3.4 |
% |
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Net Income |
$ |
10,086 |
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$ |
3,154 |
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Adjusted Net Income (non-GAAP) |
$ |
12,250 |
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$ |
5,527 |
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Diluted EPS |
$ |
0.40 |
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$ |
0.12 |
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Adjusted Diluted EPS (non-GAAP) |
$ |
0.49 |
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$ |
0.22 |
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Commenting on today’s announcement, Richard D. Phillips, Chief Executive Officer, stated, “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.”
Mr. Phillips continued, “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.”
Net Sales by Vertical Market for Q1 Fiscal 2026:
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Three Months Ended |
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September 30, |
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(Amounts in Millions) |
2025 |
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* |
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2024(2) |
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* |
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Percent Change |
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Automotive |
$ |
164.4 |
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45 |
% |
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$ |
181.8 |
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49 |
% |
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(10 |
)% |
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Medical |
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101.6 |
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28 |
% |
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89.8 |
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24 |
% |
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13 |
% |
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Industrial excluding AT&M (1) |
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99.6 |
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27 |
% |
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100.6 |
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26 |
% |
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(1 |
)% |
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Net Sales excluding AT&M(1) |
$ |
365.6 |
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100 |
% |
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$ |
372.2 |
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99 |
% |
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(2 |
)% |
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AT&M(1) |
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— |
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— |
% |
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2.1 |
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1 |
% |
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(100 |
)% |
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Total Net Sales |
$ |
365.6 |
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100 |
% |
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$ |
374.3 |
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100 |
% |
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(2 |
)% |
| *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 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 |
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Date: Thursday, November 6, 2025
Time: 10:00 AM Eastern Time
Live Webcast: investors.kimballelectronics.com/events-and-presentations/events
Dial-in #: 888-396-8049 (or 416-764-8646)
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