Kimball Electronics Stock Price, News & Analysis

Kimball Electronics, Inc. (Nasdaq: KE) is a global, multifaceted manufacturer that provides Electronics Manufacturing Services (EMS) and Contract Manufacturing Organization (CMO) solutions. According to the company’s disclosures, it serves customers in multiple end markets and operates manufacturing facilities in the United States, China, Mexico, Poland, Romania, and Thailand. Kimball Electronics is headquartered in Jasper, Indiana, and is incorporated in the state of Indiana.

The company describes itself as focused on manufacturing services for a variety of industries, with particular emphasis on automotive, medical, and industrial verticals. In its financial reporting, Kimball Electronics highlights net sales by vertical markets that include automotive, medical, and industrial (excluding a divested Automation, Test, and Measurement business). Automotive programs referenced by the company include electronic power steering, body controls, advanced driver-assistance or automated driver assist systems, and electronic braking systems. Medical programs referenced include sleep therapy and respiratory care, guided therapy, in vitro diagnostics, drug delivery, automated external defibrillators (AED), and patient monitoring. Industrial programs referenced include climate controls, automation controls, public safety, Internet of Things (IoT) and factory automation, efficient energy, off-highway equipment, and commercial transportation.

Kimball Electronics states that it has a high-performance culture that values quality, reliability, value, speed, and ethical behavior. In its proxy materials, the company notes a long history in electronics manufacturing and emphasizes long-term relationships with customers, including a significant portion of revenue from customers it has served for a decade or more. The company also reports that it has focused on high-complexity, high-reliability programs across its verticals, citing examples such as braking and steering systems in vehicles, motor controls for HVAC systems, and diagnostic and therapeutic equipment in the medical field.

Within the medical market, Kimball Electronics describes a dedicated strategy as a medical CMO. The company highlights capabilities in areas such as medical disposables, single-use surgical instruments, selected drug delivery devices such as auto-injectors, and other complex medical manufacturing. It has identified drug delivery as one of its key areas of focus. The company’s disclosures also reference expansion into areas such as cardiology, orthopedics, minimally invasive surgery, and surgical instruments and packaging as part of its medical CMO strategy.

Kimball Electronics reports that it has undertaken portfolio adjustments and network changes, including the divestiture of its Automation, Test, and Measurement (AT&M) business and the closure of a facility in Tampa, to align its manufacturing footprint with demand trends and to focus more intensively on its core EMS and medical CMO activities. These actions are described as part of an effort to improve capacity utilization and emphasize facilities in lower-cost regions, while continuing to support complex, highly regulated manufacturing environments.

The company has also disclosed investments in new capacity to support its medical strategy. In its public communications, Kimball Electronics describes a new medical CMO facility in Indianapolis as a significant milestone. The facility is described as a large medical manufacturing site intended to expand production capabilities in areas such as cold chain management, complete device assembly, and precision-molded plastics. The company later announced a ribbon-cutting event for a new medical manufacturing facility in Indianapolis, describing it as an advanced manufacturing and innovation hub serving the medical and life sciences industries.

Kimball Electronics has announced its intention to rebrand as Kimball Solutions as it marks 65 years in business. According to a company news release, the parent entity intends to change its name to Kimball Solutions, Inc., subject to approval by share owners and other required approvals. The company describes this planned rebrand as reflecting an expanded portfolio of capabilities and a solutions-driven approach while affirming that its core values of integrity, quality, and continuous improvement remain central to its identity.

From a governance perspective, Kimball Electronics is a public company with its common stock listed on Nasdaq under the symbol KE. The company files periodic and current reports with the U.S. Securities and Exchange Commission, including annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and proxy statements on Schedule 14A. Its board of directors is divided into classes, with directors elected for staggered terms, and the company maintains audit, nominating and ESG, and talent, culture, and compensation committees, each composed of independent directors, as described in its proxy materials.

In its communications with investors, Kimball Electronics discusses metrics such as net sales by vertical market, operating income, adjusted operating income, cash conversion days, and open orders, and it provides reconciliations of certain non-GAAP measures. While specific financial figures vary by period, the company’s disclosures emphasize efforts to manage working capital, generate cash from operations, and adjust its cost structure and portfolio mix in response to demand conditions in its end markets.

Business focus and end markets

According to its earnings releases and other public statements, Kimball Electronics’ business is organized around serving three primary vertical markets: automotive, medical, and industrial. The company describes its role as providing manufacturing services and CMO capabilities for customers in these sectors, often in applications that require high reliability and operate in regulated or safety-critical environments.

In automotive, the company’s reported programs include electronic power steering, body controls, advanced driver-assistance or automated driver assist systems, and electronic braking systems. These applications are characterized by requirements for reliability and performance in vehicle safety and control systems.

In medical, Kimball Electronics reports involvement in sleep therapy and respiratory care, guided therapy, in vitro diagnostics, drug delivery, AED, and patient monitoring. The company’s proxy statement and news releases further describe its medical CMO strategy as targeting complex devices and disposables, including single-use surgical instruments and selected drug delivery devices such as auto-injectors, with expansion into additional therapeutic and procedural areas.

In industrial markets, the company’s disclosures reference climate controls, automation controls, public safety, IoT and factory automation, efficient energy, off-highway equipment, and commercial transportation. These programs reflect the company’s participation in industrial control and monitoring applications, as well as equipment used in transportation and infrastructure-related contexts.

Global footprint

Kimball Electronics states that it operates through business units and facilities in the United States, China, Mexico, Poland, Romania, and Thailand. From these locations, the company provides EMS and CMO manufacturing services for its various vertical markets. The company has described adjustments to this footprint, including the divestiture of the AT&M business and the closure of a Tampa facility, as part of efforts to align capacity with demand and to emphasize facilities in lower-cost regions while supporting its strategic focus areas.

Strategic direction and medical CMO emphasis

In its proxy statement and earnings communications, Kimball Electronics outlines a strategy that includes an intensified focus on its role as a medical CMO. The company notes opportunities in the medical market to pursue programs with long product life cycles and high visibility, particularly with large, established customers. It also highlights the potential to add capabilities and build a scalable platform that supports vertical integration and complex manufacturing in regulated environments.

The company’s described investments in its Indianapolis medical facility, and its characterization of that facility as a medical CMO hub with space for expanded capabilities, are presented as key elements of this strategy. The company also references its history of quality performance and customer ratings as part of its positioning in high-complexity, high-reliability manufacturing.

Planned rebrand to Kimball Solutions

Kimball Electronics has publicly announced its intention to rebrand as Kimball Solutions as it celebrates 65 years in business. The company states that the rebrand will be implemented through a phased rollout for subsidiaries within its global footprint, subject to corporate and regulatory approvals, and that the parent entity intends to change its name to Kimball Solutions, Inc., subject to approval by share owners. The company describes this planned change as reflecting an expanded portfolio of capabilities and a solutions-driven approach while maintaining its existing core values.

FAQs about Kimball Electronics (KE)

• What does Kimball Electronics, Inc. do?
  

  Kimball Electronics, Inc. is a global manufacturer that provides Electronics Manufacturing Services (EMS) and Contract Manufacturing Organization (CMO) solutions. The company reports that it manufactures electronics and related products for automotive, medical, and industrial end markets, focusing on high-complexity, high-reliability programs.

• In which industries and vertical markets does Kimball Electronics participate?
  

  According to the company’s financial disclosures, Kimball Electronics reports net sales by three primary vertical markets: automotive, medical, and industrial. Within these, it references applications such as electronic power steering, body controls, advanced driver-assistance or automated driver assist systems, electronic braking systems, sleep therapy and respiratory care, guided therapy, in vitro diagnostics, drug delivery, AED, patient monitoring, climate controls, automation controls, public safety, IoT and factory automation, efficient energy, off-highway equipment, and commercial transportation.

• Where is Kimball Electronics headquartered and where does it operate?
  

  Kimball Electronics, Inc. is headquartered in Jasper, Indiana. The company states that it operates from locations in the United States, China, Mexico, Poland, Romania, and Thailand, providing manufacturing services to customers around the world.

• What is Kimball Electronics’ strategy in the medical market?
  

  The company describes a focused strategy as a medical Contract Manufacturing Organization (CMO). It reports capabilities in medical disposables, single-use surgical instruments, selected drug delivery devices such as auto-injectors, and other complex medical manufacturing. Kimball Electronics has highlighted expansion into areas such as cardiology, orthopedics, minimally invasive surgery, and surgical instruments and packaging, supported by a large medical CMO facility in Indianapolis.

• What is the significance of the Indianapolis medical facility?
  

  In its proxy statement and news releases, Kimball Electronics describes a new medical CMO facility in Indianapolis as an important milestone in its strategy. The facility is characterized as a large site that provides space to expand production capabilities in cold chain management, complete device assembly, and precision-molded plastics, and as an advanced manufacturing and innovation hub serving the medical and life sciences industries.

• Has Kimball Electronics changed its name?
  

  Kimball Electronics has announced its intention to rebrand as Kimball Solutions and for the parent entity to change its name to Kimball Solutions, Inc., subject to approval by share owners and other required approvals. The company has described this as a future rebrand to be implemented in phases; until such approvals and changes are completed, it continues to operate as Kimball Electronics, Inc.

• On which exchange does Kimball Electronics trade and what is its ticker symbol?
  

  Kimball Electronics, Inc. states that its common stock is listed on Nasdaq under the ticker symbol KE.

• How does Kimball Electronics describe its culture and values?
  

  The company describes itself as having a high-performance culture that values quality, reliability, value, speed, and ethical behavior. It also emphasizes long-term relationships with customers and references Guiding Principles that focus on collaboration, high aspirations, open communication, and accountability.

• What portfolio changes has Kimball Electronics reported?
  

  Kimball Electronics has reported the divestiture of its Automation, Test, and Measurement (AT&M) business and the closure of a facility in Tampa. The company describes these actions as steps to streamline its network, improve global capacity utilization, align its electronics manufacturing footprint in the U.S. with market demand, and focus on its core EMS and medical CMO activities.

• How does Kimball Electronics present its financial performance to investors?
  

  In its earnings releases and SEC filings, Kimball Electronics discusses metrics such as net sales by vertical market, operating income, adjusted operating income, net income, adjusted net income, cash generated from operating activities, cash conversion days, and open orders. It provides reconciliations for non-GAAP financial measures and explains that these measures are used to analyze and benchmark the performance of its core operations.