Kimball Electronics Q1 FY2027 net income falls 74%
Helvoet's first-quarter contribution was $12.4 million in revenue and a $0.3 million net loss.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
10-Q
Rhea-AI Filing Summary
Kimball Electronics, Inc. (KE) reported first-quarter fiscal 2027 net sales of $390.8 million, up 7% from $365.6 million, while net income fell 74% to $2.6 million and diluted earnings per share was $0.11 versus $0.40. Operating income declined 14% to $12.4 million. Gross profit was $30.9 million, or 7.9% of sales, matching the prior-year margin. Medical sales rose 14% to $115.7 million, and open orders were $690 million, up 16% year over year.
The company completed its Helvoet acquisition on July 1, 2026, recording a net adjusted purchase price of $103.3 million and cash paid, net of cash acquired, of $101.0 million. Helvoet contributed $12.4 million in revenue and a $0.3 million net loss in the quarter. Net cash used in operating activities was $19.3 million, versus $8.1 million provided a year earlier, as operating-asset and liability changes used $34.5 million, largely due to inventory.
At September 30, 2026, borrowings under credit facilities were $235.7 million, and the company was in compliance with its financial covenants. It expects $1.0 million to $2.5 million of additional restructuring costs through fiscal 2027 as the final phase of its plan.
1 point · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet sales increased 7% to $390.8 million year over year.
Negative
- Moderate pointNet income fell 74% to $2.6 million; operating income declined 14%.
Filing Explained
The repurchase plan is authorization, not a commitment: $118.6 million of its $140 million ceiling had been repurchased by September 30, 2026.
This unaudited quarterly report updates Kimball Electronics' liquidity position: at
Kimball Electronics' board-authorized stock-repurchase plan permits up to
Key Figures
Net sales: $390.8 million
Net income: $2.6 million
Operating income: $12.4 million
+5 more
8 metrics
Net sales
$390.8 million
Three months ended September 30, 2026; up 7% from $365.6 million in 2025
Net income
$2.6 million
Three months ended September 30, 2026; down 74% from $10.1 million in 2025
Operating income
$12.4 million
Three months ended September 30, 2026; down 14% from $14.5 million in 2025
Diluted earnings per share
$0.11
Three months ended September 30, 2026; compared with $0.40 in 2025
Medical net sales
$115.7 million
Three months ended September 30, 2026; up 14% from $101.6 million in 2025
Net cash used in operating activities
$19.3 million used
Three months ended September 30, 2026; $8.1 million provided in 2025
Helvoet net adjusted purchase price
$103.3 million
Acquisition completed July 1, 2026
Cash paid for Helvoet, net of cash acquired
$101.0 million
Three months ended September 30, 2026
Key Terms
contract assets, purchase price allocation, Cash Conversion Days, cash flow hedges
4 terms
contract assets financial
"Contract assets relate to unbilled accounts receivable"
Contract assets are amounts a company has earned by doing work or delivering goods under a customer agreement but has not yet billed or collected because certain contract conditions remain. Think of it as completed work sitting in a company’s toolbox waiting for an invoice trigger. For investors, growing contract assets signal future cash and revenue potential but also raise questions about timing, cash collection risk and the real strength of reported sales.
purchase price allocation financial
"preliminary purchase price allocation to assets acquired"
Purchase price allocation is the accounting process that breaks down the total amount paid for an acquired business into specific pieces—like tangible assets, identifiable intangible assets (brands, patents, customer lists) and goodwill—based on their estimated fair values. Investors care because this breakdown affects future earnings, tax costs and reported asset values: higher allocations to amortizable intangibles or goodwill can change profit volatility, depreciation and potential impairment charges, similar to splitting a restaurant bill to see what you actually bought versus what you paid extra for goodwill.
Cash Conversion Days financial
"Cash Conversion Days (“CCD”) are calculated as"
Cash conversion days measure how many days a company’s cash is tied up in the normal course of business—how long it takes to turn spending on inventory and receivables back into cash, after accounting for payments deferred to suppliers. Investors use it like a speedometer for working capital: shorter cash conversion days mean a company recovers cash faster and can fund growth or weather shocks more easily.
cash flow hedges financial
"forward contracts designated as cash flow hedges"
A cash flow hedge is an accounting label companies use when they enter financial contracts—like currency or interest-rate agreements—to protect expected future cash payments or receipts from unpredictable moves. For investors, it signals that the company is trying to smooth out future cash variability (think of locking in a price to avoid surprises), which can reduce reported profit swings but also means the company has exposure to derivative instruments and their associated risks.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were KE's first-quarter fiscal 2027 sales and earnings?
KE reported net sales of $390.8 million and net income of $2.6 million for the three months ended September 30, 2026. Sales increased 7% from $365.6 million, while net income declined 74% from $10.1 million; diluted earnings per share was $0.11, compared with $0.40.
How much revenue and earnings did KE's Helvoet acquisition contribute?
For the three months ended September 30, 2026, Helvoet contributed $12.4 million of revenue and a $0.3 million net loss to KE's consolidated results. The acquisition was completed July 1, 2026; the net loss included $0.6 million, net of tax, of incremental depreciation and amortization from purchase accounting adjustments.
Why did KE use cash in operating activities?
KE used $19.3 million in operating cash for the three months ended September 30, 2026. Changes in operating assets and liabilities used $34.5 million, including $25.2 million for inventory, $7.7 million for contract assets, and $7.6 million for receivables; an increase in accounts payable provided $19.7 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
For the quarterly period ended September 30, 2026
OR
For the transition period from to
Commission File Number 001-36454
| (Exact name of registrant as specified in its charter) | ||
| (State or other jurisdiction of | (I.R.S. Employer Identification No.) | |||||||||||||
| incorporation or organization) | ||||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
(812 ) 634-4000
| Registrant’s telephone number, including area code | ||
| Not Applicable | ||
| Former name, former address and former fiscal year, if changed since last report | ||
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||
| Title of each Class | Trading Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | ☒ | Emerging growth company | ||||||||||||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒
The number of shares outstanding of the Registrant’s common stock as of October 22, 2026 was 23,976,241 shares.
KIMBALL ELECTRONICS, INC.
FORM 10-Q
INDEX
| Page No. | |||||||||||
| PART I FINANCIAL INFORMATION | |||||||||||
Item 1. Financial Statements | |||||||||||
Condensed Consolidated Balance Sheets - September 30, 2026 (Unaudited) and June 30, 2026 | 3 | ||||||||||
Condensed Consolidated Statements of Income (Unaudited) - Three Months Ended September 30, 2026 and 2025 | 4 | ||||||||||
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - Three Months Ended September 30, 2026 and 2025 | 5 | ||||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) - Three Months Ended September 30, 2026 and 2025 | 6 | ||||||||||
Condensed Consolidated Statements of Share Owners’ Equity (Unaudited) - Three Months Ended September 30, 2026 and 2025 | 7 | ||||||||||
Notes to Condensed Consolidated Financial Statements (Unaudited) | 8 | ||||||||||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 25 | ||||||||||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 33 | ||||||||||
Item 4. Controls and Procedures | 33 | ||||||||||
| PART II OTHER INFORMATION | |||||||||||
Item 1. Legal Proceedings | 34 | ||||||||||
Item 1A. Risk Factors | 34 | ||||||||||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 34 | ||||||||||
Item 5. Other Information | 34 | ||||||||||
Item 6. Exhibits | 35 | ||||||||||
SIGNATURES | 36 | ||||||||||
2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
KIMBALL ELECTRONICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands, Except for Share Data)
| (Unaudited) | |||||||||||
| September 30, 2026 | June 30, 2026 | ||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
Receivables, net of allowances of $ | |||||||||||
| Contract assets | |||||||||||
| Inventories | |||||||||||
| Prepaid expenses and other current assets | |||||||||||
| Total current assets | |||||||||||
Property and Equipment, net of accumulated depreciation of $ | |||||||||||
| Goodwill | |||||||||||
Other Intangible Assets, net of accumulated amortization of $ | |||||||||||
Other Assets, net | |||||||||||
| Total Assets | $ | $ | |||||||||
LIABILITIES AND SHARE OWNERS’ EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Current portion of long-term debt | $ | $ | |||||||||
| Accounts payable | |||||||||||
| Advances from customers | |||||||||||
| Accrued expenses | |||||||||||
| Total current liabilities | |||||||||||
| Other Liabilities: | |||||||||||
| Long-term debt, less current portion | |||||||||||
| Other long-term liabilities | |||||||||||
| Total other liabilities | |||||||||||
| Share Owners’ Equity: | |||||||||||
Preferred stock- | |||||||||||
Shares authorized: Shares issued: | |||||||||||
Common stock- | |||||||||||
Shares authorized: Shares issued: Shares outstanding: | |||||||||||
| Additional paid-in capital | |||||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| Treasury stock, at cost: | |||||||||||
Shares: | ( | ( | |||||||||
| Total Share Owners’ Equity | |||||||||||
| Total Liabilities and Share Owners’ Equity | $ | $ | |||||||||
See Notes to Condensed Consolidated Financial Statements.
3
KIMBALL ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands, Except for Per Share Data)
| Three Months Ended | |||||||||||
| September 30 | |||||||||||
| (Unaudited) | 2026 | 2025 | |||||||||
| Net Sales | $ | $ | |||||||||
| Cost of Sales | |||||||||||
| Gross Profit | |||||||||||
| Selling and Administrative Expenses | |||||||||||
| Restructuring Expense | |||||||||||
| Asset Impairment (Gain on Disposal) | ( | ||||||||||
| Operating Income | |||||||||||
| Other Income (Expense): | |||||||||||
| Interest income | |||||||||||
| Interest expense | ( | ( | |||||||||
| Non-operating income (expense), net | ( | ( | |||||||||
| Other income (expense), net | ( | ( | |||||||||
| Income Before Taxes on Income | |||||||||||
Provision (Benefit) for Income Taxes | |||||||||||
| Net Income | $ | $ | |||||||||
| Earnings Per Share of Common Stock: | |||||||||||
| Basic | $ | $ | |||||||||
| Diluted | $ | $ | |||||||||
| Average Number of Shares Outstanding: | |||||||||||
| Basic | |||||||||||
| Diluted | |||||||||||
See Notes to Condensed Consolidated Financial Statements.
4
KIMBALL ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Amounts in Thousands)
| Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||||||||||||
| (Unaudited) | Pre-tax | Tax | Net of Tax | Pre-tax | Tax | Net of Tax | |||||||||||||||||||||||||||||
| Net income | $ | $ | |||||||||||||||||||||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||
| Postemployment actuarial change | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Derivative gain (loss) | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Reclassification to (earnings) loss: | |||||||||||||||||||||||||||||||||||
| Derivatives | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Amortization of actuarial change | ( | ( | |||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | $ | ( | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||
| Total comprehensive income | $ | $ | |||||||||||||||||||||||||||||||||
See Notes to Condensed Consolidated Financial Statements.
5
KIMBALL ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in Thousands)
| Three Months Ended | |||||||||||
| September 30 | |||||||||||
| (Unaudited) | 2026 | 2025 | |||||||||
| Cash Flows From Operating Activities: | |||||||||||
| Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | |||||||||||
| Depreciation and amortization | |||||||||||
(Gain) loss on sales of assets | |||||||||||
| Deferred income taxes | ( | ( | |||||||||
| Asset impairment (gain on disposal) | ( | ||||||||||
| Stock-based compensation | |||||||||||
| Other, net | ( | ( | |||||||||
| Change in operating assets and liabilities: | |||||||||||
| Receivables | ( | ( | |||||||||
| Contract assets | ( | ( | |||||||||
| Inventories | ( | ||||||||||
| Prepaid expenses and other assets | ( | ||||||||||
| Accounts payable | |||||||||||
| Advances from customers | ( | ( | |||||||||
| Accrued expenses and taxes payable | ( | ( | |||||||||
| Net cash (used for) provided by operating activities | ( | ||||||||||
| Cash Flows From Investing Activities: | |||||||||||
| Capital expenditures | ( | ( | |||||||||
| Proceeds from sales of assets | |||||||||||
| Payments for acquisitions, net of cash acquired | ( | ||||||||||
| Purchases of capitalized software | ( | ( | |||||||||
| Net proceeds from disposal | |||||||||||
| Other, net | |||||||||||
| Net cash used for investing activities | ( | ( | |||||||||
| Cash Flows From Financing Activities: | |||||||||||
| Proceeds from credit facilities | |||||||||||
| Payments on credit facilities | ( | ( | |||||||||
| Net change in revolving credit facilities | |||||||||||
| Repurchases of common stock | ( | ( | |||||||||
| Payments related to tax withholding for stock-based compensation | ( | ( | |||||||||
| Net cash provided by (used for) financing activities | ( | ||||||||||
| Effect of Exchange Rate Change on Cash and Cash Equivalents | ( | ||||||||||
| Net Decrease in Cash, Cash Equivalents, and Restricted Cash | ( | ( | |||||||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period (1) | |||||||||||
Cash, Cash Equivalents, and Restricted Cash at End of Period (1) | $ | $ | |||||||||
| Supplemental Disclosure of Cash Flow Information | |||||||||||
| Cash paid during the period for: | |||||||||||
| Income taxes | $ | $ | |||||||||
| Interest expense | $ | $ | |||||||||
| Non-cash investing activity: | |||||||||||
| Unpaid purchases of property and equipment at the end of the period | $ | $ | |||||||||
(1) The following table reconciles cash and cash equivalents in the balance sheets to cash, cash equivalents, and restricted cash per the statements of cash flows. The restricted cash included in Prepaid expenses and other current assets on the balance sheet represents funds held by the Company for a foreign subsidiary’s employee savings plan. | |||||||||||
| (Unaudited) | September 30, 2026 | June 30, 2026 | |||||||||
| Cash and Cash Equivalents | $ | $ | |||||||||
| Restricted Cash included in Prepaid expenses and other current assets | $ | $ | |||||||||
| Total Cash, Cash Equivalents, and Restricted Cash at end of period | $ | $ | |||||||||
See Notes to Condensed Consolidated Financial Statements.
6
KIMBALL ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHARE OWNERS’ EQUITY
(Amounts in Thousands, Except for Share Data)
| Three Months Ended | ||||||||||||||||||||||||||||||||
| (Unaudited) | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Share Owners’ Equity | |||||||||||||||||||||||||||
| Amounts at June 30, 2026 | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | ( | ( | ||||||||||||||||||||||||||||||
| Compensation expense related to stock compensation plans | ||||||||||||||||||||||||||||||||
Performance and restricted share issuance ( | ( | ( | ||||||||||||||||||||||||||||||
Charitable donation of common stock ( | ||||||||||||||||||||||||||||||||
Repurchase of common stock ( | ( | ( | ||||||||||||||||||||||||||||||
| Amounts at September 30, 2026 | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||
| Amounts at June 30, 2025 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
| Net income | ||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | ||||||||||||||||||||||||||||||||
| Compensation expense related to stock compensation plans | ||||||||||||||||||||||||||||||||
Performance and restricted share issuance ( | ( | ( | ||||||||||||||||||||||||||||||
Charitable donation of common stock ( | ||||||||||||||||||||||||||||||||
Repurchase of Common Stock ( | ( | ( | ||||||||||||||||||||||||||||||
| Amounts at September 30, 2025 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
See Notes to Condensed Consolidated Financial Statements.
7
KIMBALL ELECTRONICS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Business Description and Summary of Significant Accounting Policies
Business Description:
Kimball Electronics, Inc. (also referred to herein as “Kimball Electronics,” the “Company,” “we,” “us,” or “our”) is a global, multifaceted manufacturing solutions provider. We provide electronics manufacturing services (“EMS”), including engineering and supply chain support, to customers in the automotive, medical, and industrial end markets. We further produce higher level and final assemblies and offer contract development and manufacturing organization (“CDMO”) solutions which include the production of medical disposables and drug delivery devices, from precision molded plastics and cold chain management to drug integration. Our design and manufacturing expertise coupled with robust processes and procedures help us ensure that we deliver the highest levels of quality, reliability, and service throughout the entire life cycle of our customers’ products. We deliver award-winning service across our highly integrated global footprint, which is enabled by our largely common operating system, procedures, and standardization. We are well recognized by customers and industry trade publications for our excellent quality, reliability, and innovative service. We intend to change our name to Kimball Solutions, Inc. subject to Share Owners’ approval, to reflect our strategic focus as a full-service provider.
Basis of Presentation:
The Condensed Consolidated Financial Statements presented herein reflect the consolidated financial position as of September 30, 2026 and June 30, 2026, results of operations for the three months ended September 30, 2026 and 2025, cash flows for the three months ended September 30, 2026 and 2025, and share owners’ equity for the three months ended September 30, 2026 and 2025. The financial data presented herein is unaudited and should be read in conjunction with the annual Consolidated Financial Statements as of and for the year ended June 30, 2026 and related notes thereto included in our Annual Report on Form 10-K. As such, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted, although we believe that the disclosures are adequate to make the information presented not misleading. Intercompany transactions and balances have been eliminated. Management believes the financial statements include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly the financial statements for the interim periods. The results of operations for the interim periods shown in this report are not necessarily indicative of results for any future interim period or for the entire fiscal year.
Revenue Recognition:
We recognize revenue in accordance with the standard issued by the Financial Accounting Standards Board (“FASB”), Revenue from Contracts with Customers and all the related amendments. Our revenue from contracts with customers is generated primarily from manufacturing services provided for the production of electronic assemblies, components, medical devices, medical disposables, and precision molded plastics built to customers’ specifications. Our customer agreements are generally not for a definitive term but continue for the relevant product’s life cycle. Typically, our customer agreements do not commit the customer to purchase our services until a purchase order or a contractually binding forecast is provided, which are generally short term in nature. Customer purchase orders and contractually binding forecasts primarily have a single performance obligation. Generally, the prices stated in the customer purchase orders or committed to in contractually binding forecasts are agreed upon prices for the manufactured product and do not vary over the term of the order or the contractually binding forecast period, and therefore, the majority of our contracts do not contain variable consideration. In limited circumstances, we may enter into a contract which contains minimum quantity thresholds to cover our capital costs, and we may offer our customer a rebate for specific volume thresholds or other incentives; in these cases, the rebates or incentives are accounted for as variable consideration.
The majority of our revenue is recognized over time as manufacturing services are performed as we manufacture a product to customer specifications with no alternative use and we have an enforceable right to payment for performance completed to date. The remaining revenue for manufacturing services is recognized when the customer obtains control of the product, typically either upon shipment or delivery of the product dependent on the terms of the contract, and the customer is able to direct the use of and obtain substantially all of the remaining benefits from the asset. We generally recognize revenue over time using costs based input methods, in which judgment is required to evaluate assumptions including anticipated margins to estimate the corresponding amount of revenue to recognize. Costs used as a basis for estimating anticipated margins include material, direct and indirect labor, and appropriate applied overheads. Anticipated margins are determined based on historical or quoted customer pricing. Costs based input methods are considered a faithful depiction of our efforts and progress toward satisfying our performance obligations for manufacturing services and for which we believe we are entitled to payment for performance
8
completed to date. The cumulative effect of revisions to estimates related to net contract revenues or costs are recorded in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated.
We have elected to account for shipping and handling activities related to contracts with customers as costs to fulfill our promise to transfer the associated services and products. Accordingly, we record customer payments of shipping and handling costs as a component of net sales and classify such costs as a component of cost of sales. We recognize sales net of applicable sales or value add taxes. Based on estimated product returns and price concessions, a reserve for returns and allowances is recorded at the time revenue is recognized, resulting in a reduction of net revenue.
Direct incremental costs to obtain and fulfill a contract are capitalized as a contract asset only if they are material, expected to be recovered, and are not accounted for in accordance with other guidance. Incidental items that are immaterial in the context of the contract are recognized as expense in the period incurred.
Trade Accounts Receivable:
The Company’s trade accounts receivable are recorded per the terms of the agreement or sale, and accrued interest is recognized when earned. Our policy for estimating the allowance for credit losses on trade accounts receivable includes analysis of such items as aging, credit worthiness, payment history, and historical bad debt experience. Management uses these specific analyses in conjunction with an evaluation of the general economic and market conditions to estimate expected credit losses. Management believes that historical loss information generally provides a basis for its assessment of expected credit losses. Trade accounts receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Adjustments to the allowance for credit losses are recorded in Selling and Administrative Expenses on our Condensed Consolidated Statements of Income.
We are also a party to receivables purchase agreements (“RPA’s”) with third-party banking institutions for the sale of trade receivables generated from sales to certain customers, subject to acceptance by, and a funding commitment from, the banks that are a party to the RPA’s. Receivables sold pursuant to the RPA’s are serviced by us.
Under the RPA’s, we sell our entire interest in certain receivables at the invoice amount less a discount. Upon sale, these receivables are removed from the Condensed Consolidated Balance Sheets and cash received is presented as cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows. We are required to remit amounts collected as a servicer under the RPA’s timely to the financial institution that purchased the receivables. Our risks with respect to receivables we service include commercial disputes regarding such receivables and, under one of the RPA’s, no greater than 5 % of sold and outstanding receivables in the event of customer insolvency.
In the three months ended September 30, 2026 and 2025, under the RPA’s, we sold $65.0 million and $28.6 million of receivables and incurred discount fees of $0.4 million and $0.2 million, recorded in Non-operating income (expense), net on our Condensed Consolidated Statements of Income. Receivables sold under the RPA and subject to our servicing that remained outstanding and uncollected as of September 30, 2026 and June 30, 2026 were $46.1 million and $49.0 million, respectively. Of the $46.1 million outstanding and uncollected at September 30, 2026, $22.4 million is subject to the 5 % customer insolvency provision.
9
sold at a discount or transferred in settlement of current accounts payable during the three months ended September 30, 2026 and 2025 were $7.6 million and $11.1 million, respectively.
In fiscal year 2024, changes to the expected timing of payments from and risk of default for a customer resulted in the recording of an allowance for credit losses of $2.0 million in Selling and Administrative Expenses on our Consolidated Statements of Income. An additional $0.4 million allowance was recorded in fiscal year 2026. Although the customer is not bankrupt or insolvent and we will continue to pursue full recovery, an allowance was deemed necessary in consideration of the expected timing of payments and risk of default. The amounts expected to be collected after twelve months are included in Other Assets, net on the Consolidated Balance Sheet. At September 30, 2026, the noncurrent receivable associated with this customer in Other Assets, net totaled $2.3 million, which is net of the $2.4 million allowance for expected credit losses. The $2.4 million allowance for expected credit losses does not include fully reserved unpaid late payment fees. The current portion of receivables from this customer is $1.5 million at September 30, 2026.
Property, Equipment, and Depreciation
Property and equipment are stated at cost less accumulated depreciation and depreciated over the estimated useful life of the assets using the straight-line method for most assets and units of production method for certain fully dedicated machinery and equipment. Generally, maintenance and repairs are expensed as incurred. Depreciation and expenses for maintenance and repairs are included in both Cost of Sales and Selling and Administrative Expense on the Condensed Consolidated Statements of Income.
Non-operating Income (Expense), net:
Non-operating income (expense), net includes the impact of such items as foreign currency rate movements and related derivative gain or loss, fair value adjustments on supplemental employee retirement plan (“SERP”) investments, government subsidies, factoring fees, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. The gain (loss) on SERP investments is offset by a change in the SERP liability that is recognized in Selling and Administrative Expenses.
Components of Non-operating income (expense), net:
| Three Months Ended | |||||||||||
| September 30 | |||||||||||
| (Amounts in Thousands) | 2026 | 2025 | |||||||||
| Foreign currency/derivative gain (loss) | $ | ( | $ | ( | |||||||
| Gain (loss) on SERP investments | ( | ||||||||||
| Factoring fees | ( | ( | |||||||||
| Credit facilities and bank fees | ( | ( | |||||||||
| Other | ( | ( | |||||||||
| Non-operating income (expense), net | $ | ( | $ | ( | |||||||
Income Taxes:
In determining the quarterly provision for income taxes, we use an estimated annual effective tax rate which is based on expected annual income, statutory tax rates, and available tax planning opportunities in the various jurisdictions in which we operate. Unusual or infrequently occurring items are separately recognized in the quarter in which they occur.
On July 4, 2025, the One Big Beautiful Bill Act (“2025 U.S. tax reform”) was enacted into law. The 2025 U.S. tax reform contains several key tax laws, including extensions and modifications of the Tax Cuts and Jobs Act. In accordance with ASC 740, Income Taxes, the Company is required to recognize the effect of the tax law changes in the period of enactment, such as remeasuring the estimated U.S. deferred tax assets and liabilities, as well as potential impacts to previously existing valuation allowances. The legislation has multiple effective dates, with certain provisions effective in fiscal year 2026 and others implemented through fiscal year 2028. The impact from this legislation has resulted in a partial release of the valuation allowance against the business interest limitation deferred tax asset in the three months ended September 30, 2025. The Company does not currently expect the provisions effective in our fiscal year 2027 to have a material impact on our effective tax rate and cash paid for income taxes in fiscal year 2027. The Company will continue to monitor and assess future impacts from the 2025 U.S. tax reform.
Deferred income tax assets and liabilities, recorded in Other Assets, net and Other long-term liabilities, respectively, in the Condensed Consolidated Balance Sheets, are recognized for the estimated future tax consequences attributable to temporary
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differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. These assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse. We evaluate the recoverability of deferred tax assets each quarter by assessing the likelihood of future taxable income and available tax planning strategies that could be implemented to realize our deferred tax assets. If recovery is not likely, we provide a valuation allowance based on our best estimate of future taxable income in the various taxing jurisdictions and the amount of deferred taxes ultimately realizable. Future events could change management’s assessment.
We operate within multiple taxing jurisdictions and are subject to tax audits in these jurisdictions. These audits can involve complex uncertain tax positions, which may require an extended period of time to resolve. A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. We maintain a liability for uncertain income tax and other tax positions, including accrued interest and penalties on those positions. As tax positions are effectively settled, the tax liability is adjusted accordingly. We recognize interest and penalties related to unrecognized tax benefits in Provision for Income Taxes on the Condensed Consolidated Statements of Income.
New Accounting Standards:
Adopted in Fiscal Year 2027:
In September 2025, the FASB issued guidance on Accounting for Internal-Use Software, intended to modernize the accounting for software costs and changing the requirements for capitalization of software costs. The guidance is effective for fiscal years beginning after December 15, 2027 and for interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period, and the guidance can be applied prospectively, retrospectively, or on a modified transition approach. The Company adopted the standard effective July 1, 2026, the beginning of our first quarter of fiscal year 2027, on a prospective basis. The adoption did not have a material effect on our condensed consolidated financial statements.
In December 2025, Financial Accounting Standards Board (FASB) issued guidance on Interim Reporting, intended to improve the navigability of the guidance in ASC 270, Interim Reporting, and clarify when it applies. The guidance is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted, and the guidance can be applied prospectively or retrospectively. The Company adopted the standard effective July 1, 2026, the beginning of our first quarter of fiscal year 2027. The adoption did not have a material effect on our condensed consolidated financial statements.
Not Yet Adopted:
In November 2024, the FASB issued guidance on Expense Disaggregation Disclosures, requiring more disclosure about the types of expenses presented in our expense captions. The guidance is effective for fiscal years beginning after December 15, 2026 and for interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted, and the guidance can be applied prospectively or retrospectively. We are currently evaluating the impact of the adoption of this guidance on our condensed consolidated financial statements.
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Note 2. Acquisition
On July 1, 2026 , the Company completed the acquisition of Helvoet Polymer Technologies B.V. and Helvoet Rubber & Plastics Technologies (India) Pvt. Ltd. (collectively referred to as “Helvoet”) from Hydratec Industries N.V. The acquisition included purchasing substantially all of the assets, assuming certain liabilities, and acquiring 100% of the shares of Helvoet Netherlands and Helvoet India.
This acquisition supported the Company’s strategy of establishing Kimball as a true global medical CDMO platform with a strengthened presence in Europe, access to the India market, and a clear path for accelerating growth in the U.S. by leveraging our new manufacturing facility in Indianapolis. Helvoet is a contract development and manufacturing organization based in The Netherlands and India, with a focus on microfluidics, diagnostics, and drug delivery applications. This acquisition expanded our capabilities in precision molded plastics, complex tooling, and medical device component manufacturing, enhancing our ability to provide comprehensive solutions to customers across the medical and pharmaceutical markets.
Incremental costs directly related to the acquisition during the three months ended September 30, 2026 were $2.0 million, which were expensed as incurred and recorded in Selling and Administrative Expenses on our Condensed Consolidated Statements of Income. In the fourth quarter of fiscal year 2026, we incurred $0.5 million of costs related to the acquisition. The operating results of this acquisition are included in the Company’s condensed consolidated financial statements beginning on the acquisition date of July 1, 2026 .
The Helvoet acquisition was accounted for as a business combination. The Company has recorded a net adjusted purchase price of $103.3 million.
Cash paid, net of cash acquired, was $101.0 million. The Company funded the acquisition through a combination of available borrowing capacity on existing lines of credit and available cash.
The following table summarizes the preliminary purchase price allocation to assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess allocated to goodwill. The goodwill is not expected to be deductible for tax purposes. The goodwill recognized in the acquisition is primarily attributable to the expected benefits from expanded capabilities and growth opportunities resulting from the combination of the businesses, operational synergies, Helvoet’s assembled workforce, and other intangible benefits that do not qualify for separate recognition. The fair values of the assets acquired and the liabilities assumed presented in these financial statements are preliminary, due to continued analysis and fair value determination of intangibles, property and equipment, and other long-term liabilities and may differ from the final purchase price allocation and as the Company obtains additional information during the measurement period, which will end no later than one year from the acquisition date.
| (Amounts in Thousands) | |||||
| Cash | $ | ||||
| Receivables | |||||
| Contract assets | |||||
| Inventories | |||||
| Prepaid expenses and other current assets | |||||
| Property and Equipment | |||||
| Other Intangible Assets | |||||
| Other Assets | |||||
| Goodwill | |||||
Total assets acquired | $ | ||||
| Accounts payable | $ | ||||
| Accrued expenses | |||||
| Other long-term liabilities | |||||
Total liabilities assumed | $ | ||||
Net assets acquired | $ | ||||
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Other Intangible Assets include the estimated fair values for finite-lived intangible assets acquired and are listed in the table below along with their estimated useful lives which are being amortized on a straight-line basis.
| (Amounts in Thousands) | Estimated Fair Value | Estimated useful life (years) | |||||||||||||||
| Customer relationships | $ | ||||||||||||||||
| Technology | |||||||||||||||||
| Trade name | |||||||||||||||||
| Software | to | ||||||||||||||||
| $ | |||||||||||||||||
Since July 1, 2026 , the Helvoet acquisition resulted in revenue of $12.4 million and a net loss of $(0.3 ) million reflected in our condensed consolidated statements of operations for the three months ended September 30, 2026, respectively. The net loss includes $0.6 million, net of tax, of incremental depreciation and amortization expense resulting from purchase accounting adjustments.
The following unaudited pro forma financial information summarizes the combined results of operations for Kimball Electronics and Helvoet, as though the companies were combined as of the beginning of fiscal year 2026.
| Three Months Ended | |||||||||||
| September 30 | |||||||||||
| (Amounts in Thousands) | 2026 | 2025 | |||||||||
| Net sales | $ | $ | |||||||||
| Net income | $ | $ | |||||||||
The unaudited pro forma financial information combines the historical results of Kimball Electronics with the historical results of Helvoet for the three months ended September 30, 2026 and 2025, respectively. The unaudited pro forma net income for the three months ended September 30, 2026 includes adjustments for nonrecurring acquisition-related transaction costs, net of tax and withholding taxes on dividends partially funding the acquisition. The unaudited pro forma net income for the three months ended September 30, 2025 includes adjustments for non-recurring acquisition-related transaction costs, withholding taxes on dividends partially funding the acquisition, interest expense on borrowings partially funding the acquisition, and preliminary fair value adjustments, including depreciation and amortization of the fair value adjustments to property, plant and equipment and identifiable intangible assets, as well as the related income tax effects. The unaudited pro forma financial information is for informational purposes only. It is not necessarily indicative of the results of operations that the Company would have achieved if the acquisition of Helvoet had taken place at the beginning of our fiscal year 2026 or of the results of our future operations of the combined business.
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Note 3. Revenue from Contracts with Customers
Our revenue from contracts with customers is generated primarily from manufacturing services provided for the production of electronic assemblies, electronic and non-electronic components, medical devices, medical disposables, and precision molded plastics in automotive, medical, and industrial applications, to the specifications and designs of our customers.
The following table disaggregates our revenue by end market vertical for the three months ended September 30, 2026 and 2025.
| Three Months Ended | |||||||||||
| September 30 | |||||||||||
| (Amounts in Millions) | 2026 | 2025 | |||||||||
| Vertical Markets: | |||||||||||
| Automotive | $ | $ | |||||||||
Medical | |||||||||||
| Industrial | |||||||||||
| Total net sales | $ | $ | |||||||||
For both the three months ended September 30, 2026 and 2025, approximately 99
The timing differences of revenue recognition, billings to our customers, and cash collections from our customers result in billed accounts receivable and unbilled accounts receivable. Contract assets on the Condensed Consolidated Balance Sheets relate to unbilled accounts receivable and occur when revenue is recognized over time as manufacturing services are provided and the billing to the customer has not yet occurred as of the balance sheet date, which are generally transferred to receivables in the next fiscal quarter due to the short-term nature of the manufacturing cycle. Contract assets were $83.0 million and $70.5 million as of September 30, 2026 and June 30, 2026, respectively.
Note 4. Restructuring Activities
In the three months ended September 30, 2026, we continued our restructuring efforts to align our cost structure with reduced end market demand levels, including resizing our workforce and taking specific cost actions, and recorded restructuring expense of $0.4 million, respectively, which were primarily employee-related costs. The cumulative amount incurred since inception of these efforts beginning in fiscal year 2024 through September 30, 2026 was $11.9 million. As we are seeing additional end market demand pressures, and as we monitor the progression of tariffs, reciprocal tariffs, and the geopolitical economic environment broadly, we expect to incur $1.0 million to $2.5 million of additional restructuring costs through fiscal year 2027. This is the final phase of this restructuring plan. No additional restructuring costs are anticipated to be recognized under this plan after fiscal year 2027.
Additionally, on November 4, 2024, the Company announced that its Board of Directors had approved a plan to cease operations at our Tampa facility (“Tampa Closure Plan”). The decision was made to leverage capacity within our global footprint and streamline the operating structure. These costs were predominantly cash expenditures and were recognized during fiscal years 2025 and 2026. The cumulative amount of restructuring expense incurred under the Tampa Closure Plan totaled $6.9 million. The restructuring charges were considered complete at June 30, 2026.
At June 30, 2025, Tampa’s operations had ceased, and the related land, building, and certain equipment met the criteria to be classified as held for sale, and we ceased recording depreciation on the held for sale assets. On April 22, 2026, the Company completed the sale of the Tampa land and buildings for $21.6 million and recognized a gain on sale of $15.0 million. The gain on sale is recorded in (Gain on Disposal) Asset Impairment on our Condensed Consolidated Statements of Income.
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Note 5. Inventories
| (Amounts in Thousands) | September 30, 2026 | June 30, 2026 | |||||||||
| Finished products | $ | $ | |||||||||
| Work-in-process | |||||||||||
| Raw materials | |||||||||||
| Total inventory | $ | $ | |||||||||
Note 6. Accumulated Other Comprehensive Income (Loss)
During the three months ended September 30, 2026 and 2025, the changes in the balances of each component of Accumulated Other Comprehensive Income (Loss), net of tax, were as follows:
| Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
| (Amounts in Thousands) | Foreign Currency Translation Adjustments | Derivative Gain (Loss) | Post Employment Benefits Net Actuarial Gain (Loss) | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
Balance at June 30, 2026 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Other comprehensive income (loss) before reclassifications | ( | ( | ( | ( | |||||||||||||||||||
| Reclassification to (earnings) loss | ( | ( | |||||||||||||||||||||
| Net current-period other comprehensive income (loss) | ( | ( | ( | ( | |||||||||||||||||||
Balance at September 30, 2026 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Balance at June 30, 2025 | $ | $ | ( | $ | ( | $ | |||||||||||||||||
| Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||
| Reclassification to (earnings) loss | ( | ( | |||||||||||||||||||||
| Net current-period other comprehensive income (loss) | ( | ||||||||||||||||||||||
Balance at September 30, 2025 | $ | $ | $ | ( | $ | ||||||||||||||||||
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The following reclassifications were made from Accumulated Other Comprehensive Income (Loss) to the Condensed Consolidated Statements of Income:
| Reclassifications from Accumulated Other Comprehensive Income (Loss) | Three Months Ended | Affected Line Item in the Condensed Consolidated Statements of Income | ||||||||||||||||||
| September 30 | ||||||||||||||||||||
| (Amounts in Thousands) | 2026 | 2025 | ||||||||||||||||||
Derivative gain (loss) (1) | $ | $ | Cost of Sales | |||||||||||||||||
| ( | ( | Benefit (Provision) for Income Taxes | ||||||||||||||||||
| $ | $ | Net of Tax | ||||||||||||||||||
| Postemployment Benefits: | ||||||||||||||||||||
Amortization of actuarial gain (loss) (2) | ( | ( | Non-operating income (expense), net | |||||||||||||||||
| Benefit (Provision) for Income Taxes | ||||||||||||||||||||
| $ | ( | $ | ( | Net of Tax | ||||||||||||||||
| Total reclassifications for the period | $ | $ | Net of Tax | |||||||||||||||||
Amounts in parentheses indicate reductions to income.
(1)See Note 10 - Derivative Instruments for further information on derivative instruments.
Note 7. Commitments and Contingent Liabilities
Note 8. Credit Facilities
Credit facilities consisted of the following:
| Available Borrowing Capacity at | Borrowings Outstanding at | Borrowings Outstanding at | |||||||||||||||
| (Amounts in Millions, in U.S. Dollar Equivalents) | September 30, 2026 | September 30, 2026 | June 30, 2026 | ||||||||||||||
Primary credit facility, revolving (1) | $ | $ | $ | ||||||||||||||
Primary credit facility, term (1) | |||||||||||||||||
India revolving credit facility (2) | |||||||||||||||||
Thailand overdraft credit facility (2) | |||||||||||||||||
China revolving credit facility (2) | |||||||||||||||||
Netherlands revolving credit facility (2) | |||||||||||||||||
Poland revolving credit facility (2) | |||||||||||||||||
| Total credit facilities | $ | $ | $ | ||||||||||||||
| Unamortized deferred debt financing fees | $ | ( | $ | ( | |||||||||||||
| Total long-term debt | $ | $ | |||||||||||||||
| Less: current portion | ( | $ | ( | ||||||||||||||
Long-term debt under credit facilities, less current portion (3) | $ | $ | |||||||||||||||
(1)The Company maintains a U.S. primary credit facility (the “primary credit facility”) among the Company, the lenders party thereto, and JPMorgan Chase Bank, N. A., as Administrative Agent, and Bank of America, N.A., as Documentation Agent. The primary credit facility provides for revolving borrowings of $300 million, with the option to increase the amount available for revolving borrowings by an additional $150 million (to a total of $450 million) at the Company’s request,
16
subject to the consent of each lender participating in such increase, with a maturity date of April 30, 2031. The primary credit facility also provides for term loan borrowings (“term borrowings”) of $100 million repayable in scheduled quarterly installments, scheduled to mature December 20, 2029.
This facility is maintained for working capital and general corporate purposes of the Company. A commitment fee is payable on the unused portion of the credit facility at a rate that ranges from 10.0 to 25.0 basis points per annum as determined by the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA, as defined in the restated primary credit facility. Types of borrowings available on the restated primary credit facility include term loans, revolving loans, multi-currency term loans, and swingline loans.
At September 30, 2026, the Company had $133.5 million Term Benchmark and no ABR, denominated in U.S. dollars, outstanding borrowings under the primary credit facility. At June 30, 2026, outstanding borrowings under the primary credit facility included $22.0 million Term Benchmark borrowings and $2.1 million ABR, both denominated in U.S. dollars.
The interest rate on borrowings is dependent on the class, type and currencies of borrowings and will be one of the following options:
•any Term Benchmark borrowing denominated in U.S. Dollars will utilize the Secured Overnight Financing Rate (“SOFR”) for one, three, or six-month tenors as elected, which is a rate per annum equal to the secured overnight financing rate for such business day published by the SOFR Administrator, the Federal Reserve Bank of New York, on the immediately succeeding business day, plus the Revolving Commitment Term Benchmark spread or Term Loan Benchmark spread which can range from 110.0 to 185.0 basis points based on the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA;
•any Term Benchmark borrowing denominated in Euros will utilize the Euro Interbank Offered Rate (“EURIBOR”) in effect two target days prior to the advance (adjusted upwards to reflect bank reserve costs) for such interest period as defined in the agreement, plus the Revolving Commitment Term Benchmark spread or Term Loan Term Benchmark spread which can range from 110.0 to 185.0 basis points based on the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA; or
•the Alternate Base Rate (“ABR”), which is defined as the highest of the fluctuating rate per annum equal to the higher of:
a.Prime Rate in the U.S. last quoted by the Wall Street Journal, and if this is ceased to be quoted, the highest bank prime loan rate or similar loan rate quoted by the Federal Reserve Board;
b.1/2 of 1% per annum above the Federal Reserve Bank of New York (NYFRB) Rate (as defined under the restated primary credit facility); or
c.1 % per annum above the Adjusted SOFR Rate (as defined under the restated primary credit facility);
plus the Revolving Commitment ABR spread which can range from 0.0 to 75.0 basis points based on the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA. Under the restated primary credit facility, the ABR Spread and Benchmark Spread for term borrowings are the same as for revolving borrowings.
The Company’s financial covenants under the amended primary credit facility require:
•a ratio of consolidated total indebtedness minus unrestricted cash, as defined in the restated primary credit facility, in an amount not to exceed $25 million to adjusted consolidated EBITDA, determined as of the end of each of its fiscal quarters for the then most recently ended four fiscal quarters, to not be greater than 3.0 to 1.0, provided, however, that for each fiscal quarter end during the four quarter period following a material permitted acquisition, as defined in the restated primary credit facility, the Company will not permit this financial covenant to be greater than 3.5 to 1.0 for each such fiscal quarter end, and,
•an interest coverage ratio, defined as that ratio of consolidated EBITDA for such period to cash interest expense for such period, for any period of four consecutive fiscal quarters, to not be less than 3.5 to 1.0.
We were in compliance with the financial covenants of the primary credit facility as of September 30, 2026. The Company no longer has letters of credit contingently committed against the primary credit facility at September 30, 2026. Letters of credit contingently committed against the primary credit facility at June 30, 2026 were $0.4 million.
17
time by either the bank or us and generally include renewal clauses. Interest on borrowing under these facilities is charged at a rate as defined under the respective foreign credit facility. As part of the acquisition, the Company now maintains a foreign credit facility for its operations in India, allowing for borrowings up to 300.0 million INR (approximately $3.1 million at September 30, 2026 exchange rates). The foreign credit facility in India matures on April 17, 2027.
As of September 30, 2026, the contractual maturities of the term borrowings on the primary credit facility were as follows:
| (Amounts in Millions) | Contractual Maturities | ||||
| Fiscal year: | |||||
| Remaining 2027 | |||||
| 2028 | |||||
| 2029 | |||||
| 2030 | |||||
| Total | $ | ||||
The weighted-average interest rate on borrowings outstanding under the credit facilities at September 30, 2026 and June 30, 2026 were 5.1 % and 5.0 %, respectively.
Note 9. Fair Value
The Company categorizes assets and liabilities measured at fair value into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas level 3 generally requires significant management judgment. The three levels are defined as follows:
•Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.
•Level 2: Observable inputs other than those included in level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
•Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.
There were no changes in the inputs or valuation techniques used to measure fair values during the three months ended September 30, 2026. For more information on inputs and fair valuation techniques used, refer to our Annual Report on Form 10-K for the year ended June 30, 2026.
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Recurring Fair Value Measurements:
As of September 30, 2026 and June 30, 2026, the fair values of financial assets and liabilities that are measured at fair value on a recurring basis using the market approach are categorized as follows:
| September 30, 2026 | |||||||||||||||||
| (Amounts in Thousands) | Level 1 | Level 2 | Total | ||||||||||||||
| Assets | |||||||||||||||||
| Derivatives: foreign exchange contracts | $ | $ | $ | ||||||||||||||
| Trading securities: mutual funds held in nonqualified SERP | |||||||||||||||||
| Total assets at fair value | $ | $ | $ | ||||||||||||||
| Liabilities | |||||||||||||||||
| Derivatives: foreign exchange contracts | $ | $ | $ | ||||||||||||||
| Total liabilities at fair value | $ | $ | $ | ||||||||||||||
| June 30, 2026 | |||||||||||||||||
| (Amounts in Thousands) | Level 1 | Level 2 | Total | ||||||||||||||
| Assets | |||||||||||||||||
| Derivatives: foreign exchange contracts | $ | $ | $ | ||||||||||||||
| Trading securities: mutual funds held in nonqualified SERP | |||||||||||||||||
| Total assets at fair value | $ | $ | $ | ||||||||||||||
| Liabilities | |||||||||||||||||
| Derivatives: foreign exchange contracts | $ | $ | $ | ||||||||||||||
| Total liabilities at fair value | $ | $ | $ | ||||||||||||||
We had no
The nonqualified supplemental employee retirement plan (“SERP”) assets consist primarily of equity funds, balanced funds, bond funds, and a money market fund. The SERP investment assets are offset by a SERP liability which represents the Company’s obligation to distribute SERP funds to participants. See Note 11 - Employee Benefit Plans for further information regarding the SERP.
Financial Instruments Not Carried At Fair Value:
Financial instruments that are not reflected in the Condensed Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include notes receivable and borrowings under credit facilities. There were no changes to the inputs and valuation techniques used to assess the fair value of these financial instruments during the three months ended September 30, 2026. For more information on inputs and fair valuation techniques used, refer to our Annual Report on Form 10-K for the year ended June 30, 2026.
The carrying values of our cash deposit accounts, trade accounts receivable, and trade accounts payable approximate fair value due to the relatively short maturity and immaterial non-performance risk.
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Note 10. Derivative Instruments
Foreign Exchange Contracts:
We operate internationally and are therefore exposed to foreign currency exchange rate fluctuations in the normal course of business. Our primary means of managing this exposure is to utilize natural hedges, such as aligning currencies used in the supply chain with the sale currency. To the extent natural hedging techniques do not fully offset currency risk, we use derivative instruments with the objective of reducing the residual exposure to certain foreign currency rate movements. Factors considered in the decision to hedge an underlying market exposure include the materiality of the risk, the volatility of the market, the duration of the hedge, the degree to which the underlying exposure is committed to, and the availability, effectiveness, and cost of derivative instruments. Derivative instruments are only utilized for risk management purposes and are not used for speculative or trading purposes.
We use forward contracts designated as cash flow hedges to protect against foreign currency exchange rate risks inherent in forecasted transactions denominated in a foreign currency. Non-designated foreign exchange contracts are also used to hedge against foreign currency exchange rate risks related to intercompany balances and other balance sheet positions denominated in currencies other than the functional currencies. As of September 30, 2026, we had outstanding foreign exchange contracts to hedge currencies against the U.S. dollar in the aggregate notional amount of $5.0 million and to hedge currencies against the Euro in the aggregate notional amount of 40.6 million Euro. The notional amounts are indicators of the volume of derivative activities but may not be indicators of the potential gain or loss on the derivatives.
The fair value of outstanding derivative instruments is recognized on the Condensed Consolidated Balance Sheets as a derivative asset or liability and presented with Prepaid expenses and other current assets and Accrued expenses, respectively. When derivatives are settled with the counterparty, the derivative asset or liability is relieved and cash flow is impacted for the net settlement. For derivative instruments that meet the criteria of hedging instruments under FASB guidance, the gain or loss on the derivative instrument is initially recorded net of related tax effect in Accumulated Other Comprehensive Income (Loss), a component of Share Owners’ Equity, and is subsequently reclassified into earnings in the period or periods during which the hedged transaction is recognized in earnings. The gain or loss associated with derivative instruments that are not designated as hedging instruments or that cease to meet the criteria for hedging under FASB guidance is reported immediately in Non-operating income (expense), net on the Condensed Consolidated Statements of Income.
Based on fair values as of September 30, 2026, we estimate that approximately less than $0.1 million of pre-tax derivative loss deferred in Accumulated Other Comprehensive Loss will be reclassified into earnings, along with the earnings effects of related forecasted transactions, within the next 12 months. Gains on foreign exchange contracts are generally offset by losses in operating income in the income statement when the underlying hedged transaction is recognized in earnings. Because gains or losses on foreign exchange contracts fluctuate partially based on currency spot rates, the future effect on earnings of the cash flow hedges alone is not determinable, but in conjunction with the underlying hedged transactions, the result is expected to be a decline in currency risk. The maximum length of time we had hedged our exposure to the variability in future cash flows was 12
See Note 9 - Fair Value for further information regarding the fair value of derivative assets and liabilities and Note 6 - Accumulated Other Comprehensive Income (Loss) for the changes in deferred derivative gains and losses.
20
Information on the location and amounts of derivative fair values in the Condensed Consolidated Balance Sheets and derivative gains and losses in the Condensed Consolidated Statements of Income are presented below.
Fair Value of Derivative Instruments on the Condensed Consolidated Balance Sheets
| Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||||||
| Fair Value As of | Fair Value As of | ||||||||||||||||||||||||||||||||||
| (Amounts in Thousands) | Balance Sheet Location | September 30, 2026 | June 30, 2026 | Balance Sheet Location | September 30, 2026 | June 30, 2026 | |||||||||||||||||||||||||||||
| Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||||||||||||||||
| Foreign exchange contracts | Prepaid expenses and other current assets | $ | $ | Accrued expenses | $ | $ | |||||||||||||||||||||||||||||
| Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||||||||||||||||||||
| Foreign exchange contracts | Prepaid expenses and other current assets | Accrued expenses | |||||||||||||||||||||||||||||||||
| Total derivatives | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
The Effect of Derivative Instruments on Other Comprehensive Income (Loss)
| Three Months Ended | ||||||||||||||||||||
| September 30 | ||||||||||||||||||||
| (Amounts in Thousands) | 2026 | 2025 | ||||||||||||||||||
| Amount of Pre-Tax Gain or (Loss) Recognized in Other Comprehensive Income (Loss) (OCI) on Derivatives: | ||||||||||||||||||||
| Foreign exchange contracts | $ | ( | $ | |||||||||||||||||
The Effect of Derivative Instruments on Condensed Consolidated Statements of Income
| Three Months Ended | ||||||||||||||||||||
| (Amounts in Thousands) | September 30 | |||||||||||||||||||
| Derivatives in Cash Flow Hedging Relationships | Location of Gain or (Loss) | 2026 | 2025 | |||||||||||||||||
| Amount of Pre-Tax Gain or (Loss) Reclassified from Accumulated OCI into Income: | ||||||||||||||||||||
| Foreign exchange contracts | Cost of Sales | $ | $ | |||||||||||||||||
| Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||
| Amount of Pre-Tax Gain or (Loss) Recognized in Income on Derivatives: | ||||||||||||||||||||
| Foreign exchange contracts | Non-operating income (expense) | $ | ( | $ | ( | |||||||||||||||
| Total Derivative Pre-Tax Gain (Loss) Recognized in Income | $ | $ | ( | |||||||||||||||||
Note 11. Employee Benefit Plans
Defined Contribution Retirement Plan:
The Company maintains a trusteed defined contribution retirement plan which is in effect for substantially all domestic employees meeting the eligibility requirements. The Company matches 50% of eligible employee contributions up to 6%. The Company may also provide a discretionary contribution, to be authorized and determined annually by the Talent, Culture, and Compensation Committee of the Company’s Board of Directors. Total expense related to employer contributions to the domestic retirement plans was $0.6 million and $0.5 million for the three months ended September 30, 2026 and September 30, 2025, respectively.
The Company also maintains a supplemental employee retirement plan (“SERP”) for executives and other key employees which enables them to defer cash compensation on a pre-tax basis and restore amounts that would otherwise be payable under our tax-qualified retirement plans if the IRS did not have limits on includable compensation and maximum benefits. The SERP is structured as a rabbi trust, and therefore, assets in the SERP portfolio are subject to creditor claims in the event of bankruptcy. We recognize SERP investment assets on the balance sheet at current fair value. A SERP liability of the same amount is recorded on the balance sheet representing an obligation to distribute SERP funds to participants. As of September 30, 2026, both total investments and obligations under SERP were $4.3 1.1 3.2 4.4 1.1 3.3
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Defined Benefit Postemployment Plan:
Note 12. Stock Compensation Plans
A stock compensation plan was created and adopted by the Company’s Board of Directors (the “Board”) on September 20, 2023 and approved by our Share Owners at our 2023 Annual Meeting on November 17, 2023. The 2023 Plan allows for the issuance of up to 2.0 million shares and replaced our former 2014 plan. The shares under the 2023 Plan may be granted in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted awards, performance share awards, cash awards, and other equity awards. The Plan is a ten-year plan that terminates automatically on November 17, 2033. No award shall be granted pursuant to the Plan after such date, but awards theretofore granted may extend beyond that date.
On October 20, 2016, the Board approved a nonqualified deferred stock compensation plan, the Kimball Electronics, Inc. Non-Employee Directors Stock Compensation Deferral Plan (the “Deferral Plan”), which allows Non-Employee Directors to elect to defer all, or a portion of, their retainer fees in stock until retirement or termination from the Board or death. The Deferral Plan allows for issuance of up to 1.0 million shares of the Company’s common stock. For more information on the 2023 Plan and the Deferral Plan, refer to our Annual Report on Form 10-K for the year ended June 30, 2026.
During the first three months of fiscal year 2027, the following stock compensation was granted under the 2023 Plan and the Deferral Plan.
| Stock Compensation Granted | Quarter Granted | Shares/Units | Grant Date Fair Value (4) | |||||||||||||||||
Long-Term Performance Shares (1) | 1st Quarter | $ | ||||||||||||||||||
Long-Term Performance Shares (2) | 1st Quarter | $ | ||||||||||||||||||
Restricted Shares (3) | 1st Quarter | $ | ||||||||||||||||||
(1)Long-term performance share awards were granted to key employees. These annual performance share awards were approved by the Talent, Culture, and Compensation Committee of the Board. These awards granted in fiscal year 2027 will cliff vest at the third anniversary of the award date in fiscal year 2030.
(2)Long-term performance shares were granted to leadership team members. These annual performance share awards were approved by the Talent, Culture, and Compensation Committee of the Board. The awards granted in fiscal year 2027 will cliff vest in fiscal year 2030.
Under these awards, a number of shares will be issued to each participant based upon a combination of the Company’s economic profit for fiscal years 2027, 2028, and 2029 as compared to the Board approved plan and the Company’s relative total shareholder return (rTSR) for the performance period as compared to a group of peer companies selected by the Talent, Culture, and Compensation Committee of the Board. The number of shares issued could be zero if minimum thresholds are not met up to a maximum of 200 % if results on both measures exceed targets under the formula.
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(3)Restricted shares were granted to leadership team members and other key employees. These restricted shares were approved by the Talent, Culture, and Compensation Committee of the Board. The contractual life for a majority of the restricted shares is three years , with one-third of the interest in the restricted shares vested after year one of the grant, another one-third after year two of the grant, and the final one-third after year three of the grant. The contractual life of the remaining restricted shares is one year. Restricted shares are expensed over the contractual vesting period as earned. If the employment of a holder of restricted shares terminates before the RSU has vested for any reason other than death, retirement, or disability, the restricted shares not yet vested will be forfeited.
(4)The grant date fair value is the weighted average stock price based on the dates of the grants for all grants, with the exception of the portion of the long-term performance shares based on rTSR, the fair value of which is determined by a Monte Carlo simulation completed by a third party.
Note 13. Goodwill and Other Intangible Assets
A summary of goodwill is as follows:
| (Amounts in Thousands) | |||||
| Balance as of June 30, 2026 | |||||
| Goodwill | $ | ||||
| Accumulated impairment | ( | ||||
| Goodwill, net | $ | ||||
| Goodwill Acquired | |||||
| Balance as of September 30, 2026 | |||||
| Goodwill | $ | ||||
| Accumulated impairment | ( | ||||
| Goodwill, net | $ | ||||
During fiscal year 2027, we acquired $44.3 million in goodwill resulting from the Helvoet acquisition. See Note 2 - Acquisition for more information on this acquisition.
A summary of other intangible assets subject to amortization is as follows:
| September 30, 2026 | June 30, 2026 | ||||||||||||||||||||||||||||||||||
| (Amounts in Thousands) | Cost | Accumulated Amortization | Net Value | Cost | Accumulated Amortization | Net Value | |||||||||||||||||||||||||||||
| Capitalized Software | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
| Customer Relationships | ( | ||||||||||||||||||||||||||||||||||
| Technology | ( | ||||||||||||||||||||||||||||||||||
| Trade Name | ( | ||||||||||||||||||||||||||||||||||
| Other Intangible Assets | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
For the three months ended September 30, 2026 and 2025, amortization expense of other intangible assets was $0.8 million and $0.2 million, respectively.
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Note 14. Leases
The Company leases certain office, manufacturing, and warehouse facilities and equipment under operating leases, in addition to land on which certain office and manufacturing facilities reside. These operating leases expire from fiscal year 2027 to 2056. The Company determines if a contract is or contains a lease at inception.
| (Amounts in Thousands) | September 30, 2026 | June 30, 2026 | |||||||||
| $ | $ | ||||||||||
| $ | $ | ||||||||||
| $ | $ | ||||||||||
Note 15. Share Owners’ Equity
The Company has a Board-authorized stock repurchase plan (the “Plan”) allowing the repurchase of up to $140 million of our common stock. Purchases may be made under various programs, including in open-market transactions, block transactions on or off an exchange, or in privately negotiated transactions, all in accordance with applicable securities laws and regulations. The Plan has no expiration date but may be suspended or discontinued at any time.
During the three months ended September 30, 2026 and 2025, the Company repurchased $3.1 million and $1.5 million, respectively, of common stock under the Plan at an average price of $24.24 per share and $30.01 per share, respectively, which was recorded in Treasury stock, at cost in the Consolidated Balance Sheets. Since the inception of the Plan, the Company has repurchased $118.6 million of common stock at an average cost of $16.53 per share.
Note 16. Earnings Per Share
Basic and diluted earnings per share were calculated as follows under the two-class method:
| Three Months Ended | |||||||||||
| September 30 | |||||||||||
| (Amounts in thousands, except per share data) | 2026 | 2025 | |||||||||
| Basic and Diluted Earnings Per Share: | |||||||||||
| Net Income | $ | $ | |||||||||
| Less: Net Income allocated to participating securities | |||||||||||
| Net Income allocated to common Share Owners | $ | $ | |||||||||
| Basic weighted average common shares outstanding | |||||||||||
| Dilutive effect of average outstanding stock compensation awards | |||||||||||
| Dilutive weighted average shares outstanding | |||||||||||
| Earnings Per Share of Common Stock: | |||||||||||
| Basic | $ | $ | |||||||||
| Diluted | $ | $ | |||||||||
Note 17. Segment Reporting
The Company’s operations are managed by its , who has been identified as our chief operating decision maker (“CODM.”) The CODM evaluates the performance of multiple business units domestically and globally, and each of these business units qualify as operating segments, providing contract manufacturing services, including engineering and supply chain support, for the production of electronic assemblies and other products including medical devices, medical disposables, precision molded plastics, and complete device assembly primarily in automotive, medical, and industrial applications, to the specifications and designs of our customers. These operating segments are aggregated into one reportable segment, Business Unit Operations, due to similarities in the nature of the products, the production process, the type of customer, the methods used to distribute the products, and long-term economic characteristics. The accounting policies for the Business Unit Operations
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segment are consistent with those described in Part II, Item 8, Note 1 - Business Description and Summary of Significant Accounting Policies of our Annual Report on Form 10-K for the year ended June 30, 2026.
Certain corporate administrative expenses have been allocated to the Business Unit Operations Segment based upon the nature of the expenses.
The following table presents significant operations segment net sales and expenses:
| Three Months Ended | |||||||||||
| September 30 | |||||||||||
| (Amounts in Thousands) | 2026 | 2025 | |||||||||
| Net Sales | |||||||||||
| Business Unit Operations | $ | $ | |||||||||
| Corporate/Eliminations | ( | ( | |||||||||
| Total Net Sales | $ | $ | |||||||||
| Cost of Sales (Excluding Depreciation and Amortization) | |||||||||||
| Selling and Administrative (Excluding Depreciation and Amortization) | |||||||||||
| Depreciation and Amortization | |||||||||||
| Restructuring Expense | |||||||||||
| (Gain on Disposal) Asset Impairment | ( | ||||||||||
| Total Operating Income | $ | $ | |||||||||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
Certain statements contained within this document are considered forward-looking under the Private Securities Litigation Reform Act of 1995. The statements may be identified by the use of words such as “believes,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “estimates,” “forecasts,” “likely,” “future,” “may,” “might,” “should,” “would,” “could,” “will,” “can,” “potentially,” “probable,” and similar expressions. These forward-looking statements are subject to risks and uncertainties including, but not limited to, global economic conditions, geopolitical environment and conflicts such as war, global health emergencies, availability or cost of raw materials and components, tariffs and other trade barriers, foreign exchange 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 Kimball Electronics are contained in our Annual Report on Form 10-K for the year ended June 30, 2026.
Business Overview
We are a global, multifaceted manufacturing solutions provider. We provide electronics manufacturing services (“EMS”), including engineering and supply chain support, to customers in the automotive, medical, and industrial end markets. We further produce higher level and final assemblies and offer contract development and manufacturing organization (“CDMO”) solutions which include the production of medical disposables and drug delivery devices, from precision molded plastics and cold chain management to drug integration. Our manufacturing services, including engineering and supply chain support, utilize common production and support capabilities globally. We are well recognized by our customers and the industry for our excellent quality, reliability, and innovative service. We have participated in the CIRCUITS ASSEMBLY Service Excellence Awards for the past thirteen consecutive years, winning awards for excellence each year of participation and recently receiving top honors in all seven award categories. CIRCUITS ASSEMBLY is a leading brand and technical publication for electronics manufacturers worldwide.
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The contract manufacturing services industry is very competitive. As a mid-sized player, we can expect to be challenged by the agility and flexibility of the smaller, regional players, and we can expect to be challenged by the scale and price competitiveness of the larger, global players. We enjoy a unique market position between these extremes which allows us to compete with the larger scale players for high-volume projects but also maintain our competitive position in the generally lower volume durable electronics market space. We expect to continue to effectively operate in this market space; however, one significant challenge will be maintaining our profit margins. Pricing remains competitive in the market even as production efficiencies and material pricing advantages for most projects drive costs and prices down over the life of the projects, a characteristic of our business and the market that we expect to continue.
We monitor the current economic and industry conditions for uncertainties that may pose a threat to our future growth or cause disruption in business strategy, execution, and timing in the markets in which we compete.
Industry supply conditions for certain components have tightened, resulting in extended lead times and higher component costs. Through contractual pricing arrangements and negotiations with our customers, we have recovered a majority of these cost increases to date; however, cost increases recovered without margin may reduce our operating income percentage, and increases we are unable to recover timely could adversely impact our profitability. Extended component lead times may require us to purchase inventory earlier than we otherwise would, which could increase our working capital requirements. Further discussion on supply chain disruption risk can be found in our Annual Report on Form 10-K for the year ended June 30, 2026.
Beginning in February 2025, the U.S. implemented tariffs on a variety of countries and commodities under the International Emergency Economic Powers Act (“IEEPA”), and certain countries have imposed or are considering retaliatory tariffs on U.S. exports. The global tariff landscape is highly dynamic, including legal challenges and administrative processes related to tariffs and potential refunds. Increased tariffs have and may continue to impact end customer demand. We have recovered, and expect to continue recovering, a significant portion of our tariff-related costs from our customers, although recovery may lag the timing of cost occurrence. In the fourth quarter of fiscal year 2026, following the Supreme Court ruling that the IEEPA tariffs must be vacated, we began receiving refunds on IEEPA tariffs, a significant portion of which will be returned to our customers. While we may not be able to fully recover tariff costs, we expect any unrecovered amounts, after giving effect to our contractual pass-through and repricing mechanisms, to be immaterial to our results of operations and cash flows.
We are closely monitoring ongoing geopolitical tensions in the Middle East, including the recent conflict involving the U.S., Israel, and Iran, and the related regional instability. We are specifically monitoring the impacts to global macroeconomic conditions, supply chain disruptions, freight and component cost increases, and the related impact to end customer demand.
Net sales in the first quarter of the current fiscal year increased 7% compared to the prior fiscal year first quarter, driven primarily by a double-digit percentage increase in the medical end market vertical, which is inclusive of the additional sales from our acquired Helvoet locations.
We have a strong focus on cost control balanced with managing the future growth prospects of our business. We expect to make investments that will strengthen or add new capabilities to our package of value as a multifaceted manufacturing solutions company, including through entering into a lease on a new facility for our Indianapolis operations, and our recent acquisition of Helvoet. The acquisition of Helvoet on July 1, 2026, expanded our capabilities in precision molded plastics, complex tooling, and medical device component manufacturing, enhancing our ability to provide comprehensive solutions to customers across the medical and pharmaceutical markets. Refer to Note 2 - Acquisition of Notes to Condensed Consolidated Financial Statements for further discussion on our recent acquisition. Managing working capital in conjunction with fluctuating demand levels is likewise key. In addition, a long-standing component of our profit-sharing incentive bonus plan is its link to our financial performance, which results in varying amounts of compensation expense as profits change.
As we continue to monitor the progression of tariffs and the geopolitical economic environment, additional restructuring efforts may be necessary. In fiscal year 2027, we expect the following known trends and uncertainties to affect our results of operations: (i) integration of Helvoet, including one-time integration costs, purchase-accounting adjustments, and expected revenue and cost synergies; (ii) start-up costs and depreciation associated with our new Indianapolis, Indiana medical CDMO facility as it replaces our existing Indianapolis operations; (iii) continued uncertainty regarding U.S. and foreign tariff policy; (iv) ongoing demand pressure in the automotive vertical, partially offset by expected growth in the medical vertical; and (v) potential changes to our effective tax rate arising from the geographic mix of earnings and from the continued implementation of the One Big Beautiful Bill Act. We continue to work with our customers to optimize our global footprint.
We continue to maintain a strong balance sheet, which included a current ratio of 1.9, a debt-to-equity ratio of 0.4, and Share Owners’ equity of $582 million at September 30, 2026. Refer to the Future Liquidity section of Liquidity and Capital Resources below for further discussion of our liquidity.
The continuing success of our business is dependent upon our ability to replace expiring customers/programs with new customers/programs. We monitor our success in this area by tracking the number of customers and the percentage of our net sales generated from them by years of service as depicted in the table below. While variation in the size of program awards
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makes it difficult to directly correlate this data to our sales trends, we believe it does provide useful information regarding our customer loyalty and new business growth.
| Three Months Ended | ||||||||||||||
| September 30 | ||||||||||||||
| Customer Service Years | 2026 | 2025 | ||||||||||||
| More than 10 Years | ||||||||||||||
| % of Net Sales | 82 | % | 77 | % | ||||||||||
| # of Customers | 27 | 29 | ||||||||||||
| 5 to 10 Years | ||||||||||||||
| % of Net Sales | 10 | % | 17 | % | ||||||||||
| # of Customers | 11 | 12 | ||||||||||||
| Less than 5 Years | ||||||||||||||
| % of Net Sales | 8 | % | 6 | % | ||||||||||
| # of Customers | 24 | 12 | ||||||||||||
| Total | ||||||||||||||
| % of Net Sales | 100 | % | 100 | % | ||||||||||
| # of Customers | 62 | 53 | ||||||||||||
Our total number of customers increased when comparing the three-month period ended September 30, 2026 to September 30, 2025 primarily from the Helvoet acquisition, with thirteen new customers added to the Less than 5 Years category from the acquisition for customers that were not existing customers of the Company.
A detailed discussion of risk factors and uncertainties that could have an effect on our performance are located within the “Risk Factors” section of our Annual Report on Form 10-K for the year ended June 30, 2026.
Results of Operations
| At or for the | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| September 30 | |||||||||||||||||||||||||||||
| (Amounts in Millions, Except for Per Share Data) | 2026 | as a % of Net Sales | 2025 | as a % of Net Sales | % Change | ||||||||||||||||||||||||
| Net Sales | $ | 390.8 | $ | 365.6 | 7 | % | |||||||||||||||||||||||
| Gross Profit | $ | 30.9 | 7.9 | % | $ | 28.8 | 7.9 | % | 7 | % | |||||||||||||||||||
| Selling and Administrative Expenses | 18.1 | 4.6 | % | 13.0 | 3.5 | % | 38 | % | |||||||||||||||||||||
| Restructuring Expense | 0.4 | 0.1 | % | 1.4 | 0.4 | % | |||||||||||||||||||||||
| Gain on Disposal | — | — | % | (0.1) | — | % | |||||||||||||||||||||||
| Operating Income | 12.4 | 3.2 | % | 14.5 | 4.0 | % | (14 | %) | |||||||||||||||||||||
| Other Income (Expense) | (4.6) | (3.5) | |||||||||||||||||||||||||||
| Provision (Benefit) for Income Taxes | 5.2 | 0.9 | 465 | % | |||||||||||||||||||||||||
| Net Income | $ | 2.6 | $ | 10.1 | (74 | %) | |||||||||||||||||||||||
| Diluted Earnings per Share | $ | 0.11 | $ | 0.40 | (73 | %) | |||||||||||||||||||||||
| Open Orders | $ | 690 | $ | 593 | 16 | % | |||||||||||||||||||||||
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| Net Sales by Vertical Market | Three Months Ended | ||||||||||||||||
| September 30 | |||||||||||||||||
| (Amounts in Millions) | 2026 | 2025 | % Change | ||||||||||||||
| Automotive | $ | 170.5 | $ | 164.4 | 4 | % | |||||||||||
| Medical | 115.7 | 101.6 | 14 | % | |||||||||||||
| Industrial | 104.6 | 99.6 | 5 | % | |||||||||||||
| Total Net Sales | $ | 390.8 | $ | 365.6 | 7 | % | |||||||||||
First quarter fiscal year 2027 consolidated net sales increased 7% compared to the first quarter of fiscal year 2026. Foreign currency fluctuations had a favorable 1% impact on net sales in the current quarter compared to the first quarter of fiscal year 2026.
•In the automotive end market vertical, sales to customers increased when compared to prior year quarter. The increase was mainly driven by improvements in both Europe and Asia and additional sales from our acquired Helvoet locations partially offset by a decline associated with the end of life of a major automotive program.
•Sales to the medical end market vertical increased when compared to prior year quarter driven by the ramp up of new programs, additional sales from our acquired Helvoet locations, and increased demand for existing programs partially offset by a decline in demand in North America.
•In the industrial end market vertical, sales to customers increased for quarter over quarter. The increase was driven by an increase in smart metering in Europe, ramp up of new programs, and additional sales from our acquired Helvoet locations partially offset by a decline in climate control in North America.
Sales to Nexteer Automotive, Philips, and ZF accounted for the following portions of our net sales:
| Three Months Ended | |||||||||||
| September 30 | |||||||||||
| 2026 | 2025 | ||||||||||
| Nexteer Automotive | 16% | 19% | |||||||||
| Philips | 11% | 11% | |||||||||
| ZF | 11% | 10% | |||||||||
Gross profit as a percent of net sales in the first quarter of fiscal year 2027 remained flat when compared to the first quarter of fiscal year 2026. The favorable product mix and favorable foreign exchange rates were offset by increased costs associated with our new manufacturing facility in Indianapolis.
Selling and administrative expenses increased both as a percent of net sales and in absolute dollars in the first quarter of fiscal year 2027 when compared to the first quarter of fiscal year 2026. The increased expenses were primarily driven by $2.0 million of acquisition costs relating to our recent acquisition of Helvoet as well as increased amortization on acquired intangible assets. In the first quarter of fiscal year 2026, following a customer termination of a program, an agreement was reached for the customer to compensate us for incurred costs, resulting in recognition of a $2.0 million recovery recorded in selling and administrative expenses.
In the three months ended September 30, 2026, we recorded pre-tax restructuring expense of $0.4 million for employee-related costs as we undertook restructuring efforts to align our cost structure with reduced end market demand levels. In the three months ended September 30, 2025, we recorded pre-tax restructuring expense of $1.4 million for employee-related costs for cost structure alignment and incurred costs related to the Tampa closure. See Note 4 - Restructuring Activities of Notes to Condensed Consolidated Financial Statements for more information.
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Other Income (Expense) consisted of the following:
| Three Months Ended | ||||||||||||||
| September 30 | ||||||||||||||
| (Amounts in Thousands) | 2026 | 2025 | ||||||||||||
| Interest income | $ | 549 | $ | 139 | ||||||||||
| Interest expense | (3,519) | (2,353) | ||||||||||||
| Foreign currency/derivative gain (loss) | (177) | (145) | ||||||||||||
| Gain (loss) on SERP investments | (14) | 225 | ||||||||||||
| Factoring fees | (995) | (917) | ||||||||||||
| Credit facilities fees and bank charges | (116) | (231) | ||||||||||||
| Other | (299) | (180) | ||||||||||||
| Other income (expense), net | $ | (4,571) | $ | (3,455) | ||||||||||
Interest expense has increased in the three months ended September 30, 2026 compared to the three months ended September 30, 2025 due to increased borrowings on credit facilities primarily to fund the acquisition. Foreign currency/derivative gains (losses) result from net foreign currency exchange rate movements during the periods. The revaluation to fair value of the SERP investments recorded in Other Income (Expense) is offset by the revaluation of the SERP liability recorded in Selling and Administrative Expenses, and thus there is no effect on net income.
Our provision for income taxes for the three months ended September 30, 2026 and 2025 was $5.2 million, or 66.1% of income before taxes on income, and $0.9 million, or 8.3% of income before taxes on income, respectively. The three months ended September 30, 2026 include $3.0 million of withholding taxes incurred on the intercompany dividends executed to partially fund the acquisition. The low tax rate in the three months ended September 30, 2025 was driven by the new U.S. tax legislation resulting in a partial release of the valuation allowance against the business interest limitation deferred tax asset.
Open orders increased by 16% when comparing September 30, 2026 to September 30, 2025. Open orders at a point in time may not be indicative of future sales trends due to the contract nature of our business.
Liquidity and Capital Resources
Working capital at September 30, 2026 was $357.8 million compared to working capital of $360.9 million at June 30, 2026. The current ratio was 1.9 at September 30, 2026 and 2.1 at June 30, 2026. The debt-to-equity ratio was 0.4 at September 30, 2026 and 0.2 at June 30, 2026. Our short-term liquidity available, represented as cash and cash equivalents plus the unused amount of our credit facilities, some of which are uncommitted, totaled $270.8 million at September 30, 2026 and $403.8 million at June 30, 2026.
Cash Conversion Days (“CCD”) are calculated as the sum of Days Sales Outstanding (“DSO”) plus Contract Asset Days (“CAD”) plus Production Days Supply on Hand (“PDSOH”) less Accounts Payable Days (“APD”) and less Advances from Customers Days (“ACD”). CCD, or a similar metric, is used in our industry and by our management to measure the efficiency of managing working capital. The following table summarizes our CCD for the quarterly periods indicated.
| Three Months Ended | ||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||||||||||||
| Days Sales Outstanding | 57 | 53 | 54 | |||||||||||||||||
| Contract Asset Days | 18 | 19 | 18 | |||||||||||||||||
| Production Days Supply on Hand | 88 | 89 | 85 | |||||||||||||||||
| Accounts Payable Days | 63 | 62 | 59 | |||||||||||||||||
| Advances from Customers Days | 18 | 17 | 15 | |||||||||||||||||
| Cash Conversion Days | 82 | 82 | 83 | |||||||||||||||||
We define Days Sales Outstanding as the average of monthly trade accounts and notes receivable divided by an average day’s net sales, Contract Asset Days as the average monthly contract assets divided by an average day’s net sales, Production Days Supply on Hand as the average of monthly gross inventory divided by an average day’s cost of sales, Accounts Payable Days as the average of monthly accounts payable divided by an average day’s cost of sales, and Advances from Customers Days as the average of monthly customer deposits divided by an average day’s cost of sales. Over the past several quarters, we have improved our CCD metrics by better aligning our working capital with the lower sales levels.
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Cash Flows
The following table reflects the major categories of cash flows for the first three months of fiscal years 2027 and 2026.
| Three Months Ended | ||||||||||||||
| September 30 | ||||||||||||||
| (Amounts in Millions) | 2026 | 2025 | ||||||||||||
| Net cash (used for) provided by operating activities | $ | (19.3) | $ | 8.1 | ||||||||||
| Net cash used for investing activities | $ | (109.7) | $ | (6.2) | ||||||||||
| Net cash provided by (used for) financing activities | $ | 114.0 | $ | (14.0) | ||||||||||
Cash Flows from Operating Activities
Net cash used for operating activities for the first three months of fiscal year 2027 was driven by net income adjusted for non-cash items, more than offset by changes in operating assets and liabilities. Net cash provided by operating activities for the first three months of the prior year was driven by net income adjusted for non-cash items, partially offset by changes in operating assets and liabilities.
Net income adjusted for non-cash items provided cash of $15.2 million in the first three months of fiscal year 2027, while changes in operating assets and liabilities used $34.5 million of cash in the first three months of fiscal year 2027, largely due to an increase in inventories, which used cash of $25.2 million, an increase in contract assets, which used cash of $7.7 million, and an increase in receivables, which used cash of $7.6 million. The increase of the inventories is primarily driven by purchases to support upcoming growth in certain programs. Partially offsetting cash used for inventories, receivables, and contract assets was an increase in accounts payable, which provided cash of $19.7 million.
Net income adjusted for non-cash items provided cash of $18.0 million in the first three months of fiscal year 2026, while changes in operating assets and liabilities used $9.9 million of cash in the first three months of fiscal year 2026, largely due to a decrease in advances from customers, which used cash of $10.7 million.
Cash Flows from Investing Activities
Net cash used by investing activities of $109.7 million in the first three months of fiscal year 2027 was largely due to our investment of $101.0 million in the acquisition of Helvoet.
Net cash used by investing activities of $6.2 million in the first three months of fiscal year 2026 was largely due to capital investments of $10.6 million. The capital investments were primarily for the new medical facility in Indianapolis as well as to support new business awards and replacement of older machinery and equipment.
Cash Flows from Financing Activities
For the first three months of fiscal year 2027, net cash provided by financing activities of $114.0 million resulted largely from net borrowings on our credit facilities of $119.2 million partially offset by repurchases of our common stock under an authorized repurchase plan and the remittance of tax withholdings on share-based payments. For the first three months of fiscal year 2026, net cash used for financing activities of $14.0 million resulted largely from net payments on our credit facilities of $9.6 million.
Credit Facilities
The Company maintains a U.S. primary credit facility (the “primary credit facility”). The primary credit facility provides revolving borrowings of $300 million, with the option to increase the amount available for borrowing to $450 million at the Company’s request, subject to consent of each lender participating in such increase, with a maturity date of April 30, 2031. The primary credit facility also provides for term loan borrowings (“term borrowings”) of $100 million repayable in scheduled quarterly installments, scheduled to mature December 20, 2029.
We also maintain foreign credit facilities for working capital and general corporate purposes at specific foreign locations rather than utilizing funding from intercompany sources. These foreign credit facilities can be canceled at any time by either the bank or us and generally include renewal clauses. As of September 30, 2026, we maintained foreign credit facilities at our Thailand operation, our China operation, our Netherlands subsidiary, and our Poland operation.
See Note 8 - Credit Facilities of Notes to Consolidated Financial Statements for more information on our credit facilities, including the terms of the credit facilities such as interest, commitment fees, and debt covenants.
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Factoring Arrangements
We participate in our customers’ supply chain financing arrangements in order to extend terms for the customer without negatively impacting our cash flow. These arrangements in all cases do not contain recourse provisions which would obligate us in the event of our customers’ failure to pay. Receivables are considered sold when they are transferred beyond the reach of Kimball Electronics and its creditors, the purchaser has the right to pledge or exchange the receivables, and we have surrendered control over the transferred receivables. In the three months ended September 30, 2026 and 2025, we sold, without recourse, $79.8 million and $71.2 million of accounts receivable, respectively.
In addition to our customers’ supply chain financing arrangements, we have also entered into receivables purchase agreements (“RPA’s”) with third-party banking institutions for certain domestic receivables. We sell our entire interest in certain receivables for 100% of face value, less a discount. We are required to remit amounts collected as a servicer under the RPA’s timely to the financial institution that purchased the receivables. Our risks with respect to receivables we service include commercial disputes regarding such receivables and under one of the RPA’s, no greater than 5% of sold and outstanding receivables in the event of customer insolvency. In the three months ended September 30, 2026 and 2025, under these programs, we sold $65.0 million and $28.6 million of receivables. See Note 1 - Business Description and Summary of Significant Accounting Policies of Notes to Condensed Consolidated Financial Statements for more information regarding the factoring arrangements.
Future Liquidity
The Helvoet acquisition, which we accounted for as a business combination, represented a significant use of capital during the quarter. At September 30, 2026, the Company has recorded a net adjusted purchase price of $103.3 million. We have paid cash, net of cash acquired, of $101.0 million.
Following our recent acquisition, we expect to maintain a strong liquidity position by cash generated from operations and available borrowing capacity under our credit facilities. At September 30, 2026, we had $72.8 million in cash and unused borrowings in USD equivalent under all of our credit facilities of $198.0 million. We believe our sources of liquidity will be sufficient to satisfy our working capital requirements and any other operating needs for at least the next twelve months.
We expect to continue to prudently invest in capital expenditures, including for capacity expansions and potential acquisitions, that would help us continue our growth as a multifaceted manufacturing solutions company. At September 30, 2026, our capital expenditure commitments were approximately $6.5 million, consisting primarily of capital related to new program wins and facility improvements. We anticipate our available liquidity will be sufficient to fund these capital expenditures.
We have purchase obligations that arise in the normal course of business for items such as raw materials, services, and software acquisitions/license commitments. In certain instances, such as when lead times dictate, we enter into contractual agreements for material in excess of the levels required to fulfill customer orders. In turn, material authorization agreements with customers cover a portion of the exposure for material that we must purchase prior to having a firm order.
At September 30, 2026, our foreign operations held cash totaling $72.5 million. Most of our accumulated unremitted foreign earnings have been invested in active non-U.S. business operations. The Company continually evaluates its global cash needs. If such funds were repatriated or we determined that all or a portion of such foreign earnings are no longer permanently reinvested, we may be subject to applicable non-U.S. income and withholding taxes. Determination of the amount of any potential future unrecognized deferred tax liability on such unremitted earnings is not practicable and is recorded in the period when any foreign earnings are determined to be no longer permanently reinvested. The Company notes that during the current quarter, a one-time dividend was paid out of our China operation of $29.7 million for partial funding of the Helvoet acquisition. Due to the one-time nature of this transaction and the lack of future plans to repatriate additional funds, the Company has not changed the permanently reinvested position of our historical earnings in China nor recorded any deferred tax liability. The Company did appropriately record $3.0 million of withholding tax expense in the quarter as result of the dividend as aligned with our noted policy.
The Company’s Repurchase Plan allows the repurchase of up to $140 million of our common stock. Purchases may be made under various programs, including in open-market transactions, block transactions on or off an exchange, or in privately negotiated transactions, all in accordance with applicable securities laws and regulations. The Repurchase Plan has no expiration date but may be suspended or discontinued at any time. The extent to which the Company repurchases its shares, and the timing of such repurchases, will depend upon a variety of factors, including market conditions, regulatory requirements, and other corporate considerations, as determined by the Company’s management team. The Company expects to finance the purchases with existing liquidity. The Company has repurchased $118.6 million of common stock under the Repurchase Plan through September 30, 2026.
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Our ability to generate cash from operations to meet our liquidity obligations could be adversely affected in the future by factors such as general economic and market conditions, lack of availability of raw material components in the supply chain, a decline in demand for our services, loss of key contract customers, unsuccessful integration of acquisitions and new operations, global health emergencies, and the related uncertainties around the financial impact, and other unforeseen circumstances. In particular, should demand for our customers’ products and, in turn, our services decrease significantly over the next 12 months, the available cash provided by operations could be adversely impacted. Additional cautionary statements regarding our risk factors are contained in our Annual Report on Form 10-K for the year ended June 30, 2026.
Fair Value
During the first quarter of fiscal year 2027, no level 1 or level 2 financial instruments were affected by a lack of market liquidity. For level 1 financial assets, readily available market pricing was used to value the financial instruments. Our foreign currency derivative assets and liabilities, which were classified as level 2, were independently valued using observable market inputs such as forward interest rate yield curves, current spot rates, and time value calculations. To verify the reasonableness of the independently determined fair values, these derivative fair values were compared to fair values calculated by the counterparty banks. Our own credit risk and counterparty credit risk had an immaterial impact on the valuation of the foreign currency derivatives. See Note 9 - Fair Value of Notes to Condensed Consolidated Financial Statements for additional information.
Off-Balance Sheet Arrangements
As of September 30, 2026, we do not have any material off-balance sheet arrangements.
Critical Accounting Policies and Estimates
Kimball Electronics’ Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America. These principles require the use of estimates and assumptions that affect amounts reported and disclosed in the Condensed Consolidated Financial Statements and related notes. Actual results could differ from these estimates and assumptions. Management uses its best judgment in the assumptions used to value these estimates, which are based on current facts and circumstances, prior experience, and other assumptions that are believed to be reasonable.
Business Combinations and Valuation of Goodwill and Intangible Assets - The Company accounts for business combinations using the acquisition method of accounting. Assets acquired and liabilities assumed are recognized at their estimated fair values as of the acquisition date, and the results of operations of acquired businesses are included in the consolidated and combined financial statements beginning on that date.
We have utilized third-party valuation specialists to determine the fair value of assets acquired in material acquisitions. The determination of fair value requires the use of estimates and assumptions, particularly in valuing acquired intangible assets and determining their estimated useful lives. These estimates are based on information available at or near the acquisition date and may include assumptions regarding future cash flows, growth rates, profitability, and other factors, as applicable. Because these estimates involve significant judgment and are inherently uncertain, actual results may differ from the amounts initially recognized. Changes in these estimates may affect future amortization expense or impairment charges. The Company recorded $44 million of goodwill and $24 million of intangible assets in relation to the Helvoet acquisition, As of September 30, 2026, these amounts are considered preliminary. See Note 2 - Acquisition of Notes to Condensed Consolidated Financial Statements for more information on the Helvoet acquisition.
There have been no other material changes to our critical accounting policies and estimates since our Annual Report on Form 10-K for the year ended June 30, 2026. For further information regarding our critical accounting policies, refer to “Note 1 - Business Description and Summary of Significant Accounting Policies” of Notes to Consolidated Financial Statements and “Critical Accounting Policies” in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended June 30, 2026.
New Accounting Standards
See Note 1 - Business Description and Summary of Significant Accounting Policies of Notes to Condensed Consolidated Financial Statements for information regarding New Accounting Standards.
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
There were no material changes in our exposure to market risks for changes in foreign currency exchange rates and interest rates as compared to the fiscal year ended June 30, 2026.
Comprehensive disclosures of quantitative and qualitative market risk can be found in our Annual Report on Form 10-K for the year ended June 30, 2026.
Item 4. Controls and Procedures
(a)Evaluation of disclosure controls and procedures.
Kimball Electronics maintains controls and procedures designed to ensure that information required to be disclosed in the reports that the Company files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Based upon their evaluation of those controls and procedures performed, the Chief Executive Officer and Chief Financial Officer of the Company concluded that the disclosure controls and procedures were effective as of September 30, 2026.
(b)Changes in internal control over financial reporting.
There have been no changes in our internal control over financial reporting that occurred during the quarter ended September 30, 2026 that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.
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PART II. OTHER INFORMATION
Item 1. Legal Proceedings
We and our subsidiaries are not parties to any pending legal proceedings, other than ordinary routine litigation incidental to the business. The outcome of current routine pending litigation and claims, individually and in the aggregate, is not expected to have a material adverse impact on our business or financial condition.
Item 1A. Risk Factors
We are subject to various risks and uncertainties in the course of our business. A comprehensive disclosure of risk factors related to Kimball Electronics can be found in our Annual Report on Form 10-K for the year ended June 30, 2026.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
On October 21, 2015, our Board approved an 18-month stock repurchase plan (the “Plan”), authorizing the repurchase of up to $20 million worth of our common stock. Then, separately on each of September 29, 2016, August 23, 2017, November 8, 2018, November 10, 2020, and November 15, 2024, and May 13, 2026 the Board extended and increased the Plan to allow the repurchase of up to an additional $20 million worth of common stock with no expiration date, which brought the total authorized stock repurchases under the Plan to $140 million.
During the three months ended September 30, 2026, the Company repurchased $3.1 million of common stock under the Plan. The following table contains information about our purchases of equity securities during the three months ended September 30, 2026.
| Period | Total Number of Shares Purchased | Average Price Paid per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Plan | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plan(1) | ||||||||||
| July 1, 2026 - July 31, 2026 | — | $ | — | — | $ | 24,423,858 | ||||||||
| August 1, 2026 - August 31, 2026 | 59,804 | $ | 23.72 | 59,804 | $ | 23,005,481 | ||||||||
| September 1, 2026 - September 30, 2026 | 66,873 | $ | 24.70 | 66,873 | $ | 21,353,441 | ||||||||
| Total | 126,677 | $ | 24.24 | 126,677 | ||||||||||
(1)Excludes 1% U.S. excise tax on share repurchases which is recognized as part of the cost basis of the shares acquired in the Consolidated Statements of Share Owners’ Equity.
Item 5. Other Information
During the three months ended September 30, 2026, no
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Item 6. Exhibits
Exhibits (numbered in accordance with Item 601 of Regulation S-K)
| Incorporated by Reference | ||||||||||||||||||||
| Exhibit No. | Description | Form | Period Ending | Exhibit | Filing Date | |||||||||||||||
| 3.1 | Amended and Restated Articles of Incorporation of the Company | 8-K | 3.1 | 2/18/2021 | ||||||||||||||||
| 3.2 | Amended and Restated By-Laws of the Company | 8-K | 3.2 | 9/23/2024 | ||||||||||||||||
| 31.1 | Certification filed by Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed Herewith | ||||||||||||||||||
| 31.2 | Certification filed by Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed Herewith | ||||||||||||||||||
32.1(a) | Certification furnished by the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Furnished Herewith | ||||||||||||||||||
32.2(a) | Certification furnished by the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Furnished Herewith | ||||||||||||||||||
| 101.INS | Inline XBRL Instance Document - The instance document does not appear in the Interactive Data File because its Inline XBRL tags are embedded within the Inline XBRL document | Filed Herewith | ||||||||||||||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | Filed Herewith | ||||||||||||||||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | Filed Herewith | ||||||||||||||||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | Filed Herewith | ||||||||||||||||||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | Filed Herewith | ||||||||||||||||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | Filed Herewith | ||||||||||||||||||
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) | Filed Herewith | ||||||||||||||||||
(a) In accordance with Item 601(b)(32)(ii) of Regulation S-K, the certifications furnished in Exhibit 32.1 and 32.2 will not be deemed “filed” for purposes of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. | ||||||||||||||||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| KIMBALL ELECTRONICS, INC. | ||||||||
| By: | /s/ RICHARD D. PHILLIPS | |||||||
| Richard D. Phillips Chief Executive Officer | ||||||||
| November 5, 2026 | ||||||||
| By: | /s/ JANA T. CROOM | |||||||
| Jana T. Croom Chief Financial Officer | ||||||||
| November 5, 2026 | ||||||||
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