Company affirms guidance for fiscal 2026 with adjusted operating margin expected at high end of range.
JASPER, Ind. — Kimball Electronics, Inc. (Nasdaq: KE) announced financial results for the third quarter ended March 31, 2026.
• Revenue of $352.9 million, a sequential increase of 3.4% compared to Q2; Sales in the medical vertical increased 10.2% versus the prior quarter
• Operating income of $11.8 million, or 3.3% of net sales, adjusted operating margin of 4.2%
• Cash from operations of $14.9 million, the ninth consecutive quarter of positive operating cash generation
• Debt of $163.0 million and borrowing capacity of $276.0 million
• Cash Conversion Days of 90, an improvement compared to both the prior quarter and Q3 of fiscal 2025
• Invested $4.0 million to repurchase 165,000 shares of common stock
• Company affirms guidance for fiscal 2026 with adjusted operating margin expected at the high end of the range
“Results for the third quarter were in line with expectations, said Richard D. Phillips Chief Executive Officer. “Sales increased sequentially compared to Q2, driven by strong growth in our medical vertical market, margins remained solid, and cash from operations was positive for the ninth consecutive quarter. We expect Q4 to be a good finish to the year and we are affirming our guidance for fiscal 2026 with adjusted operating margin estimated to be at the high end of the range.
“As we look forward, the medical CMO continues to be a key part of our strategy and we are making deliberate investments in our capabilities, operating capacity, and
commercial focus. When volumes ramp, we expect it to become a meaningful driver of both top line growth and margin expansion. In addition, we continue to focus on inorganic growth as a possible complement to this strategy. We believe this could be a powerful combination for the future of our Company.”
