Kimball Electronics Q1 FY2027 profit falls to $2.64M

Medical sales increased 14%, and fiscal 2027 net sales are expected at the high end of the company's guidance range.

Available on EDGAR 11/04/2026 - 04:37 PM EST Accepted by SEC EDGAR 11/04/2026 - 04:37 PM EST Learn about SEC filing dates

Rhea-AI Filing Summary

Kimball Electronics, Inc. (KE) reported first-quarter fiscal 2027 net sales of $390.803 million for the three months ended September 30, 2026, up 7% from $365.603 million a year earlier. Medical sales rose 14% to $115.7 million; industrial sales rose 5% to $104.6 million, and automotive sales rose 4% to $170.5 million. GAAP operating income was $12.374 million versus $14.454 million, while net income was $2.642 million versus $10.086 million; diluted EPS was $0.11 versus $0.40.

Operating cash flow was $(19.324) million, compared with $8.065 million a year earlier. Adjusted operating income was $16.990 million and adjusted net income was $6.121 million, versus $17.534 million and $12.250 million, respectively. The company reiterated fiscal 2027 guidance, expecting net sales at the high end of $1,535-$1,560 million, adjusted operating income of 4.4%-4.7% of net sales, and capital expenditures of $50-$60 million.

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Positive

• Moderate pointNet sales rose 7% to $390.803 million year over year.
• Moderate pointMedical vertical sales increased 14% to $115.7 million.

Negative

• Moderate pointNet income was $2.642 million, compared with $10.086 million a year earlier.
• Moderate pointOperating cash flow was $(19.324) million, versus $8.065 million.
• Moderate pointOperating income was $12.374 million, compared with $14.454 million.

Filing Explained

Sales growth included 3% organic growth, a 3% acquisition impact and a 1% foreign-exchange impact.

This 8-K furnishes Kimball Electronics’ first-quarter fiscal 2027 results.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Net Sales: $390.803 million Operating Income: $12.374 million Net Income: $2.642 million +5 more

8 metrics

Net Sales $390.803 million Three months ended September 30, 2026; up 7% year over year

Operating Income $12.374 million Three months ended September 30, 2026; compared with $14.454 million a year earlier

Net Income $2.642 million Three months ended September 30, 2026; compared with $10.086 million a year earlier

Diluted EPS $0.11 Three months ended September 30, 2026; compared with $0.40 a year earlier

Operating Cash Flow $(19.324) million Three months ended September 30, 2026; compared with $8.065 million a year earlier

Adjusted Operating Income $16.990 million Three months ended September 30, 2026; compared with $17.534 million a year earlier

Adjusted Net Income $6.121 million Three months ended September 30, 2026; compared with $12.250 million a year earlier

Fiscal 2027 Net Sales Guidance $1,535-$1,560 million Net sales expected at the high end of the range

Key Terms

Organic Sales Growth, Cash Conversion Days, Open Orders, Adjusted EBITDA

4 terms

Organic Sales Growth financial

"Organic Sales Growth"

Organic sales growth measures how much a company’s revenue rises from its regular business activity — like selling more products, charging higher prices, or selling to more customers — without counting money from buying other businesses or one-time currency effects. Investors watch it because it shows whether demand and the company’s core operations are genuinely getting stronger, similar to judging a garden by how much the plants you planted yourself are growing rather than by adding bought potted plants.

Cash Conversion Days financial

"Cash Conversion Days (CCD)"

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.

Open Orders financial

"Open Orders are the aggregate sales price"

Adjusted EBITDA financial

"Adjusted EBITDA"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

Earnings Snapshot

Net Sales: $390.803 million · Guidance included

First quarter of fiscal 2027 ended September 30, 2026

Net Sales $390.803 million 7% year over year

Operating Income $12.374 million Compared with $14.454 million a year earlier

Net Income $2.642 million Compared with $10.086 million a year earlier

Diluted EPS $0.11 Compared with $0.40 a year earlier

Operating Cash Flow $(19.324) million Compared with $8.065 million a year earlier

Adjusted Operating Income $16.990 million Compared with $17.534 million a year earlier

Guidance

Fiscal 2027 net sales expected at the high end of $1,535-$1,560 million; adjusted operating income of 4.4%-4.7% of net sales; capital expenditures of $50-$60 million.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were KE's net sales in the first quarter of fiscal 2027?

KE reported net sales of $390.803 million for the quarter ended September 30, 2026, up 7% from $365.603 million a year earlier. Organic sales growth was 3%; acquisition impact was 3%, and foreign currency exchange impact was 1%.

How much did KE earn in the first quarter of fiscal 2027?

KE reported GAAP net income of $2.642 million, compared with $10.086 million a year earlier. Diluted EPS was $0.11 versus $0.40. Adjusted net income was $6.121 million, compared with $12.250 million in the prior-year quarter.

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0001606757false00016067572026-11-042026-11-04

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)   November 4, 2026

KIMBALL ELECTRONICS, INC.

________________________________________________________________________________________________________

(Exact name of registrant as specified in its charter)

Indiana

001-36454

35-2047713

(State or other jurisdiction of

(Commission File

(IRS Employer Identification No.)

incorporation)

Number)

1205 Kimball Boulevard, Jasper, Indiana						47546
(Address of principal executive offices)						(Zip Code)

Registrant’s telephone number, including area code   (812) 634-4000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each Class			Trading Symbol			Name of each exchange on which registered
Common Stock, no par value			KE			The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (Section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter).

Emerging growth 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. ☐

Item 2.02 Results of Operations and Financial Condition

On November 4, 2026, the Company issued an earnings release for the first quarter ended September 30, 2026. The earnings release is attached as Exhibit 99.1.

The information in Item 2.02 of this Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Form 8-K shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or under the Securities Exchange Act of 1934, as amended, except as shall otherwise be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit
Number						Description
99.1						Earnings Release dated November 4, 2026
104						Cover Page Interactive Data File (formatted in Inline XBRL)

2

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 hereunto duly authorized.

			KIMBALL ELECTRONICS, INC.
By:			/s/ Jana T. Croom
			JANA T. CROOM Chief Financial Officer

Date: November 4, 2026

3

Exhibit 99.1

KIMBALL ELECTRONICS REPORTS Q1 RESULTS HIGHLIGHTED BY THE RETURN TO TOP-LINE GROWTH;
COMPANY REITERATES GUIDANCE FOR FISCAL 2027 WITH SALES EXPECTED AT THE HIGH END OF THE RANGE

JASPER, Ind., November 4, 2026 -- (BUSINESS WIRE) -- Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the first quarter ended September 30, 2026.

“I’m encouraged by our first quarter results and solid start to fiscal 2027. Sales increased both sequentially and year-over-year, margins were healthy, and cash conversion days were once again at a multiyear low. The top line benefited from organic sales growth and the contribution from Helvoet Polymer Technologies, our recent tuck-in acquisition in the medical CDMO. The organic growth was in line with expectations and driven by a high single-digit increase in Medical. This growth aligns with our strategic focus to balance the portfolio across the verticals. Our excitement for the overall fit and growth opportunities of Helvoet are higher now than ever. With the backdrop of a strong balance sheet, we’re investing in medical growth by integrating Helvoet, ramping operations in Indianapolis, leveraging our capabilities as a full service provider, and unlocking synergies across our global footprint. Fiscal 2027 marks an important milestone in our journey and we are reiterating our guidance for the year with sales expected at the high end of the range, driven by continued strength in Medical.” Richard D. Phillips Chief Executive Officer First Quarter 2027 Highlights •Net sales of $390.8 million, a 5% increase sequentially and up 7% compared to Q1 fiscal 2026 •Year-over-year organic sales growth of 3%, driven by increases in all verticals •Medical sales increased 14% with 9% organic growth •Operating income of $12.4 million, or 3.2% of net sales; adjusted operating income margin of 4.3% of net sales •Cash Conversion Days of 82, equaling the multiyear low from last quarter •Debt totaling $235.7 million, cash of $72.8 million, and borrowing capacity of $198.0 million •Invested $3.1 million to repurchase 127,000 shares of common stock •Company reiterates guidance for fiscal 2027 with sales expected at the high end of the range, driven by continued strength in the Medical vertical

Net Sales by Vertical Market For Q1 Fiscal 2027

Sales in the medical vertical market increased 14% compared to the first quarter of fiscal 2026, while sales in the industrial and automotive vertical markets increased and 5% and 4%, respectively.

*			Percentage of net sales.
**			Percentage changes compared to Q1 of fiscal 2026.

FISCAL YEAR 2027 GUIDANCE

As part of today’s announcement, the Company reiterated its guidance for fiscal 2027 with net sales expected at the high end of the range of $1,535 - $1,560 million, adjusted operating income of 4.4% - 4.7% of net sales, and capital expenditures of $50 - $60 million.

			Conference Call / Webcast
			Thursday, November 5, 2026 Live Webcast: investors.kimballelectronics.com/events-and-presentations/events For those unable to participate in the live webcast, the call will be archived at investors.kimballelectronics.com.

Forward-Looking Statements

Certain statements contained within this release are considered forward-looking, including our guidance, under the Private Securities Litigation Reform Act of 1995. The statements may be identified by the use of words such as “expect,” “should,” “goal,” “predict,” “will,” “future,” “optimistic,” “confident,” and “believe.” Undue reliance should not be placed on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. These forward-looking statements are subject to risks and uncertainties including, without limitation, 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 rate 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 the company are contained in its Annual Report on Form 10-K for the year ended June 30, 2026.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures. The non-GAAP financial measures contained herein include organic sales growth, adjusted selling and administrative expenses, adjusted operating income, adjusted EBITDA, adjusted net income, and adjusted diluted EPS. Reconciliations of the reported GAAP numbers to these non-GAAP financial measures are included in the Reconciliation of Non-GAAP Financial Measures section below. Management believes these measures are useful and allow investors to meaningfully trend, analyze, and benchmark the performance of the company’s core operations. The company’s non-GAAP financial measures are not necessarily comparable to non-GAAP information used by other companies.

About Kimball Electronics/Kimball Solutions

Kimball Electronics is a global, multifaceted manufacturer offering Electronics Manufacturing Services (EMS) and Contract Development and Manufacturing Organization (CDMO) solutions to customers around the world. From our operations in the United States, China, India, Mexico, The Netherlands, Poland, Romania, and Thailand, our teams are proud to provide manufacturing services for a variety of industries. Recognized for a reputation of excellence, we are committed to a high-performance culture that values quality, reliability, value, speed, and ethical behavior. Kimball Electronics, Inc. (Nasdaq: KE) is headquartered in Jasper, Indiana.

To learn more about Kimball Electronics, visit www.kimballelectronics.com.

Lasting relationships. Global success.

Contact: Andrew D. Regrut Vice President, Investor Relations, Strategic Development, and Treasurer 812.827.4151 Investor.Relations@kmbl.com

Financial highlights for the first quarter ended September 30, 2026 are as follows:

			Three Months Ended
			September 30,
(Amounts in Thousands, except EPS)			2026						2025
Net Sales			$	390,803					$	365,603
Operating Income			$	12,374					$	14,454
Adjusted Operating Income (non-GAAP)			$	16,990					$	17,534
Operating Income %			3.2		%				4.0		%
Adjusted Operating Income (non-GAAP) %			4.3		%				4.8		%
Net Income			$	2,642					$	10,086
Adjusted Net Income (non-GAAP)			$	6,121					$	12,250
Diluted EPS			$	0.11					$	0.40
Adjusted Diluted EPS (non-GAAP)			$	0.25					$	0.49

Net Sales by Vertical Market for Q1 Fiscal 2027:

			Three Months Ended
			September 30,
(Amounts in Millions)			2026						*						2025						*						Percent Change
Automotive			$	170.5					44		%				$	164.4					45		%				4		%
Medical			115.7						29		%				101.6						28		%				14		%
Industrial			104.6						27		%				99.6						27		%				5		%
Total Net Sales			$	390.8					100		%				$	365.6					100		%				7		%
*As a percent of Total Net Sales
–Automotive includes chassis control - steering, chassis control - braking, and body controls
–Medical includes sleep & oxygen therapy, defibrillation (AEDs), surgical systems, in vitro diagnostics, imaging systems, drug delivery/auto-injectors, patient monitoring, and microfluidics
–Industrial includes climate controls, off-highway/commercial equipment, IoT & factory automation, energy, and public safety

Condensed Consolidated Statements of Income
(Unaudited)			Three Months Ended
(Amounts in Thousands, except Per Share Data)			September 30, 2026												September 30, 2025
Net Sales			$	390,803					100.0		%				$	365,603					100.0		%
Cost of Sales			359,929						92.1		%				336,767						92.1		%
Gross Profit			30,874						7.9		%				28,836						7.9		%
Selling and Administrative Expenses			18,055						4.6		%				13,090						3.5		%
Restructuring Expense			445						0.1		%				1,416						0.4		%
Gain on Disposal			—						—		%				(124)						—		%
Operating Income			12,374						3.2		%				14,454						4.0		%
Interest Income			549						0.1		%				139						—		%
Interest Expense			(3,519)						(0.9)		%				(2,353)						(0.6)		%
Non-Operating Income (Expense), net			(1,601)						(0.4)		%				(1,241)						(0.4)		%
Other Income (Expense), net			(4,571)						(1.2)		%				(3,455)						(1.0)		%
Income Before Taxes on Income			7,803						2.0		%				10,999						3.0		%
Provision (Benefit) for Income Taxes			5,161						1.3		%				913						0.2		%
Net Income			$	2,642					0.7		%				$	10,086					2.8		%
Earnings Per Share of Common Stock:
Basic			$	0.11											$	0.41
Diluted			$	0.11											$	0.40
Average Number of Shares Outstanding:
Basic			24,330												24,600
Diluted			24,581												24,909

Condensed Consolidated Statements of Cash Flows			Three Months Ended
(Unaudited)			September 30,
(Amounts in Thousands)			2026						2025
Net Cash Flow provided by (used for) Operating Activities			$	(19,324)					$	8,065
Net Cash Flow used for Investing Activities			(109,728)						(6,202)
Net Cash Flow provided by (used for) Financing Activities			114,026						(13,966)
Effect of Exchange Rate Change on Cash, Cash Equivalents, and Restricted Cash			(64)						116
Net Decrease in Cash, Cash Equivalents, and Restricted Cash			(15,090)						(11,987)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period			89,641						89,467
Cash, Cash Equivalents, and Restricted Cash at End of Period			$	74,551					$	77,480

			(Unaudited)
Condensed Consolidated Balance Sheets			September 30, 2026						June 30, 2026
(Amounts in Thousands)
ASSETS
Cash and cash equivalents			$	72,763					$	88,925
Receivables, net			236,068						218,840
Contract assets			83,003						70,497
Inventories			312,137						271,906
Prepaid expenses and other current assets			49,371						42,836
Property and Equipment, net			304,480						274,192
Goodwill			50,459						6,191
Other Intangible Assets, net			25,491						1,921
Other Assets, net			103,426						116,762
Total Assets			$	1,237,198					$	1,092,070
LIABILITIES AND SHARE OWNERS’ EQUITY
Current portion of long-term debt			$	39,700					$	8,202
Accounts payable			260,560						234,361
Advances from customers			36,607						30,672
Accrued expenses			58,725						58,860
Long-term debt, less current portion			195,650						108,000
Other long-term liabilities			63,739						66,843
Share Owners’ Equity			582,217						585,132
Total Liabilities and Share Owners’ Equity			$	1,237,198					$	1,092,070

Other Financial Metrics
(Unaudited)
(Amounts in Millions, except CCD)
			At or For the
			Three Months Ended
			September 30,						June 30,						September 30,
			2026						2026						2025
Cash Conversion Days (CCD) (1)			82						82						83
Open Orders (2)			$	690					$	643					$	593

(1)Cash Conversion Days (“CCD”) are calculated as the sum of Days Sales Outstanding plus Contract Asset Days plus Production Days Supply on Hand less Accounts Payable Days and less Advances from Customers Days. CCD, or a similar metric, is used in our industry and by our management to measure the efficiency of managing working capital.

(2)Open Orders are the aggregate sales price of production pursuant to unfulfilled customer orders.

Select Financial Results of Helvoet

(Unaudited)

(Amounts in Millions)

Three Months

Ended

September 30,

2026

Net Sales

$

12.4

Reconciliation of Non-GAAP Financial Measures
(Unaudited, Amounts in Thousands, except Per Share Data)
			Three Months Ended
			September 30,
			2026						2025
Net Sales Growth (vs. same period in prior year)			7		%				(2)		%
Acquisition Impact			3		%				—		%
Foreign Currency Exchange Impact			1		%				1		%
Organic Sales Growth			3		%				(3)		%
Net Sales Growth (vs. same period in prior year), Medical Vertical			14		%				13		%
Acquisition Impact, Medical Vertical			5		%				—		%
Foreign Currency Exchange Impact, Medical Vertical			—		%				1		%
Organic Sales Growth, Medical Vertical			9		%				12		%
Selling and Administrative Expenses, as reported			$	18,055					$	13,090
Stock Compensation Expense			(1,677)						(1,563)
SERP			14						(225)
Acquisition Amortization			(532)						—
Acquisition Costs			(1,976)						—
Adjusted Selling and Administrative Expenses			$	13,884					$	11,302
Operating Income, as reported			$	12,374					$	14,454
Stock Compensation Expense			1,677						1,563
SERP			(14)						225
Restructuring Expense			445						1,416
Asset Impairment (Gain on Disposal)			—						(124)
Acquisition Amortization			532						—
Acquisition Costs			1,976						—
Adjusted Operating Income			$	16,990					$	17,534
Adjusted Operating Income			$	16,990					$	17,534
Depreciation & Amortization Excluding Acquisition Amortization			10,571						9,117
Adjusted EBITDA			$	27,561					$	26,651
Net Income, as reported			$	2,642					$	10,086
Stock Compensation Expense, After-Tax			1,272						1,185
Restructuring Expense, After-Tax			312						1,073
Asset Impairment (Gain on Disposal), After-Tax			—						(94)
Acquisition Amortization, After-Tax			396						—
Acquisition Costs, After-Tax			1,499						—
Adjusted Net Income			$	6,121					$	12,250
Diluted Earnings per Share, as reported			$	0.11					$	0.40
Stock Compensation Expense			0.05						0.05
Restructuring Expense			0.01						0.04
Acquisition Amortization			0.02						—
Acquisition Costs			0.06						—
Adjusted Diluted Earnings per Share			$	0.25					$	0.49

Filing Exhibits & Attachments

5 documents

Press Releases

• EX-99.1 KIMBALL ELECTRONICS, INC. EX-99.1 258.1 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 2.0 KB
• EX-101 XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT 14.1 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT 24.7 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT 14.7 KB