Kimball Electronics (KE) lifts Q3 profit and keeps 2026 guidance
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Kimball Electronics reported mixed results for the third quarter ended March 31, 2026. Net sales were $352.9 million, down 6% from the prior year, with automotive sales down 3% and medical and industrial each down 8%, partly against a prior-year non-recurring $24 million medical inventory sale.
Despite lower revenue, profitability improved. Operating income was $11.8 million and net income increased to $5.7 million from $3.8 million, while adjusted net income rose to $8.0 million and adjusted diluted EPS reached $0.33 versus $0.27. For the first nine months, net income was $19.4 million, up from $10.4 million, and ROIC for the twelve months ended March 31, 2026 was 7.1% versus 6.1%.
The company affirmed fiscal 2026 guidance, targeting net sales of $1.40–$1.46 billion, adjusted operating income of 4.2%–4.5% of net sales with results expected at the high end, and capital expenditures of $50–$60 million. Net cash provided by operating activities for the first nine months was $29.8 million, down from $105.9 million.
Positive
- None.
Negative
- None.
Insights
Profitability and ROIC improved despite lower revenue; guidance is reaffirmed at healthy margin levels.
Kimball Electronics is managing a revenue decline while lifting earnings. Q3 net sales fell 6% to $352.9M, but operating income held at $11.8M and net income rose to $5.7M. Gross margin expanded, and adjusted operating margin stayed at 4.2%.
Year-to-date, net income nearly doubled to $19.4M and after-tax returns strengthened, with ROIC at 7.1% for the twelve months ended March 31, 2026 versus 6.1% a year earlier. Segment data show broad-based sales pressure, though prior-year comparables include a one-time $24M medical inventory sale.
Management reaffirmed fiscal 2026 guidance for net sales of $1.40–$1.46B and adjusted operating income of 4.2%–4.5% of net sales, with results expected at the high end of that range. Investors can compare upcoming quarterly results to these targets and to the company’s capex plan of $50–$60M for the year.
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, and exhibit attachments filed with this report.
Key Figures
Q3 2026 Net Sales: $352.9M
Q3 2026 Net Income: $5.7M
Q3 2026 Adjusted Diluted EPS: $0.33
+5 more
8 metrics
Q3 2026 Net Sales
$352.9M
Quarter ended March 31, 2026; net sales growth -6% vs prior year
Q3 2026 Net Income
$5.7M
Quarter ended March 31, 2026 vs $3.8M in Q3 2025
Q3 2026 Adjusted Diluted EPS
$0.33
Non-GAAP EPS for quarter ended March 31, 2026 vs $0.27 in Q3 2025
Fiscal 2026 Net Sales Guidance
$1.40–$1.46B
Affirmed full-year 2026 net sales guidance range
Fiscal 2026 Adjusted Op Margin Guidance
4.2%–4.5%
Adjusted operating income as % of net sales, expected high end
Nine-month Operating Cash Flow
$29.8M
Net cash from operating activities for nine months ended March 31, 2026
ROIC
7.1%
Twelve months ended March 31, 2026 vs 6.1% prior year
Open Orders
$602M
Open orders at or for the three months ended March 31, 2026
Key Terms
adjusted operating income, constant currency growth, Cash Conversion Days, non-GAAP financial measures, +1 more
5 terms
adjusted operating income financial
"Adjusted Operating Income (non-GAAP) $ 14,781 ... $ 47,623 ..."
Adjusted operating income is a company's profit from its main activities, excluding certain one-time or unusual costs and gains. It helps investors see how well the business is performing in its normal operations, without distractions from rare events or expenses. This way, they get a clearer picture of the company’s true profitability.
constant currency growth financial
"Constant Currency Growth (9) % ... (6) % ... (14) %"
Constant currency growth measures how a company’s sales or revenue would have changed if exchange rates had stayed the same as in a prior period, removing the ups and downs caused by currency swings. Investors use it to see the underlying business trend—like comparing two baking recipes using the same-sized cups—so performance comparisons across periods and markets aren’t distorted by changing exchange rates.
Cash Conversion Days financial
"Cash Conversion Days (CCD) (1) 90 ... 91 ... 99 ..."
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.
non-GAAP financial measures financial
"This press release contains non-GAAP financial measures."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
ROIC financial
"ROIC 7.1 % ... 6.1 %"
Return on invested capital (ROIC) measures how well a company turns the money it uses to run and grow the business into profit, expressed as a percentage. Think of it like how much fruit a tree yields for each seed and watering dollar invested: higher ROIC means management is extracting more value from each dollar put into the company. Investors use it to compare how efficiently different companies deploy capital and whether returns justify the risk of holding the stock.
Earnings Snapshot
Net Sales: $352.9M · Guidance included
Q3 2026
Net Sales
$352.9M
-6% vs Q3 2025
Net Income
$5.7M
Adjusted Diluted EPS
$0.33
Adjusted Operating Margin
4.2%
Guidance
Fiscal 2026 net sales $1.40–$1.46B; adjusted operating income 4.2%–4.5% of net sales with results expected at the high end; capex $50–$60M.
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) May 5, 2026
________________________________________________________________________________________________________
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of | (Commission File | (IRS Employer Identification No.) | ||||||||||||
| incorporation) | Number) | |||||||||||||
| (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):
| 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 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 May 5, 2026, the Company issued an earnings release for the third quarter ended March 31, 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 May 5, 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: May 5, 2026
3
Exhibit 99.1
 | KIMBALL ELECTRONICS REPORTS Q3 RESULTS WITH DOUBLE-DIGIT SEQUENTIAL MEDICAL SALES GROWTH; COMPANY AFFIRMS GUIDANCE FOR FISCAL 2026 WITH ADJUSTED OPERATING MARGIN EXPECTED AT HIGH END OF RANGE | ||||
JASPER, Ind., May 5, 2026 -- (BUSINESS WIRE) -- Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the third quarter ended March 31, 2026.
“Results for the third quarter were in line with expectations. Sales increased sequentially compared to Q2, driven by strong growth in our medical vertical market, margins remained solid, and cash from operations was positive for the ninth consecutive quarter. We expect Q4 to be a good finish to the year and we are affirming our guidance for fiscal 2026 with adjusted operating margin estimated to be at the high end of the range. As we look forward, the medical CMO continues to be a key part of our strategy and we are making deliberate investments in our capabilities, operating capacity, and commercial focus. When volumes ramp, we expect it to become a meaningful driver of both top line growth and margin expansion. In addition, we continue to focus on inorganic growth as a possible complement to this strategy. We believe this could be a powerful combination for the future of our Company.” Richard D. Phillips Chief Executive Officer | Third Quarter 2026 Highlights •Revenue of $352.9 million, a sequential increase of 3.4% compared to Q2 •Sales in the medical vertical increased 10.2% versus the prior quarter •Operating income of $11.8 million, or 3.3% of net sales, adjusted operating margin of 4.2% •Cash from operations of $14.9 million, the ninth consecutive quarter of positive operating cash generation •Debt of $163.0 million and borrowing capacity of $276.0 million •Cash Conversion Days of 90, an improvement compared to both the prior quarter and Q3 of fiscal 2025 •Invested $4.0 million to repurchase 165,000 shares of common stock •Company affirms guidance for fiscal 2026 with adjusted operating margin expected at the high end of the range | |||||||||||||||||||
Net Sales by Vertical Market For Q3 Fiscal 2026 | ||||||||
Sales in the automotive vertical market decreased 3% compared to the third quarter of fiscal 2025, while sales in medical and industrial each decreased 8%. As a reminder, in the third quarter of fiscal 2025, the Company reported a non-recurring sale of consigned medical inventory totaling $24 million, or 21% of medical sales in that quarter. | ||||||||
 | ||||||||
* | Percentage of net sales. | |||||||
| ** | Percentage changes compared to Q3 of fiscal 2025. | |||||||
FISCAL YEAR 2026 GUIDANCE
As part of today’s announcement, the Company affirmed its guidance for fiscal year 2026.
•Net sales in the range of $1,400 - $1,460 million
•Adjusted operating income is estimated to be 4.2% - 4.5% of net sales, with results expected at the high end of the range
•Capital expenditures of $50 - $60 million
 | Conference Call / Webcast | ||||
Wednesday, May 6, 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, 2025.
Non-GAAP Financial Measures | ||
This press release contains non-GAAP financial measures. The non-GAAP financial measures contained herein include constant currency growth, net sales excluding Automation, Test & Measurement, adjusted selling and administrative expenses, adjusted operating income, adjusted net income, adjusted diluted EPS, and ROIC. 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, Inc. | ||
Kimball Electronics is a global, multifaceted manufacturer offering Electronics Manufacturing Services (EMS) and Contract Manufacturing Organization (CMO) solutions to customers around the world. From our operations in the United States, China, Mexico, 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@kimballelectronics.com | |||||||
Financial highlights for the third quarter and year-to-date period ended March 31, 2026 are as follows:
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| March 31, | March 31, | ||||||||||||||||||||||
| (Amounts in Thousands, except EPS) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net Sales | $ | 352,922 | $ | 374,607 | $ | 1,059,805 | $ | 1,106,255 | |||||||||||||||
Operating Income | $ | 11,755 | $ | 11,716 | $ | 36,976 | $ | 29,061 | |||||||||||||||
Adjusted Operating Income (non-GAAP) | $ | 14,781 | $ | 15,706 | $ | 47,623 | $ | 41,629 | |||||||||||||||
| Operating Income % | 3.3 | % | 3.1 | % | 3.5 | % | 2.6 | % | |||||||||||||||
| Adjusted Operating Income (non-GAAP) % | 4.2 | % | 4.2 | % | 4.5 | % | 3.8 | % | |||||||||||||||
| Net Income | $ | 5,719 | $ | 3,817 | $ | 19,442 | $ | 10,403 | |||||||||||||||
Adjusted Net Income (non-GAAP) | $ | 8,033 | $ | 6,837 | $ | 27,208 | $ | 19,718 | |||||||||||||||
Diluted EPS | $ | 0.23 | $ | 0.15 | $ | 0.78 | $ | 0.41 | |||||||||||||||
Adjusted Diluted EPS (non-GAAP) | $ | 0.33 | $ | 0.27 | $ | 1.10 | $ | 0.79 | |||||||||||||||
Net Sales by Vertical Market for Q3 Fiscal 2026:
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, | March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Amounts in Millions) | 2026 | * | 2025 (2) | * | Percent Change | 2026 | * | 2025 (2) | * | Percent Change | |||||||||||||||||||||||||||||||||||||||||||||||||
Automotive | $ | 160.5 | 46 | % | $ | 165.5 | 44 | % | (3) | % | $ | 487.2 | 46 | % | $ | 533.7 | 48 | % | (9) | % | |||||||||||||||||||||||||||||||||||||||
Medical | 106.1 | 30 | % | 115.2 | 31 | % | (8) | % | 304.0 | 29 | % | 288.9 | 26 | % | 5 | % | |||||||||||||||||||||||||||||||||||||||||||
Industrial excluding AT&M (1) | 86.3 | 24 | % | 93.9 | 25 | % | (8) | % | 268.6 | 25 | % | 281.6 | 26 | % | (5) | % | |||||||||||||||||||||||||||||||||||||||||||
Net Sales excluding AT&M (1) | $ | 352.9 | 100 | % | $ | 374.6 | 100 | % | (6) | % | $ | 1,059.8 | 100 | % | $ | 1,104.2 | 100 | % | (4) | % | |||||||||||||||||||||||||||||||||||||||
AT&M (1) | — | — | % | — | — | % | — | % | — | — | % | 2.1 | — | % | (100) | % | |||||||||||||||||||||||||||||||||||||||||||
| Total Net Sales | $ | 352.9 | 100 | % | $ | 374.6 | 100 | % | (6) | % | $ | 1,059.8 | 100 | % | $ | 1,106.3 | 100 | % | (4) | % | |||||||||||||||||||||||||||||||||||||||
*As a percent of Total Net Sales | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1)Sales from our Automation, Test, and Measurement business (AT&M), which was divested effective July 31, 2024, were previously included in the industrial vertical | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2)In the third quarter of fiscal 2025, the Company reported a non-recurring sale of consigned medical inventory totaling $24 million, or 21% of medical sales in that quarter. In addition, beginning in the first quarter of fiscal year 2026, sales to customers related to commercial transportation, previously included in the automotive vertical, are now reflected in the industrial vertical; prior periods have been recast to conform to current period presentation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
–Automotive includes electronic power steering, body controls, advanced driver-assistance systems, and electronic braking systems | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
–Medical includes sleep therapy and respiratory care, image guided therapy, in vitro diagnostics, drug delivery, AED, and patient monitoring | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
–Industrial includes climate controls, automation controls, public safety, IoT and factory automation, efficient energy, off highway equipment, and commercial transportation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||||||||||||
| (Unaudited) | Three Months Ended | ||||||||||||||||||||||
| (Amounts in Thousands, except Per Share Data) | March 31, 2026 | March 31, 2025 | |||||||||||||||||||||
| Net Sales | $ | 352,922 | 100.0 | % | $ | 374,607 | 100.0 | % | |||||||||||||||
| Cost of Sales | 325,107 | 92.1 | % | 347,711 | 92.8 | % | |||||||||||||||||
| Gross Profit | 27,815 | 7.9 | % | 26,896 | 7.2 | % | |||||||||||||||||
| Selling and Administrative Expenses | 15,214 | 4.4 | % | 13,154 | 3.6 | % | |||||||||||||||||
| Restructuring Expense | 850 | 0.2 | % | 2,026 | 0.5 | % | |||||||||||||||||
Asset Impairment | (4) | — | % | — | — | % | |||||||||||||||||
Operating Income | 11,755 | 3.3 | % | 11,716 | 3.1 | % | |||||||||||||||||
| Interest Income | 203 | 0.1 | % | 100 | — | % | |||||||||||||||||
| Interest Expense | (2,072) | (0.6) | % | (2,936) | (0.8) | % | |||||||||||||||||
| Non-Operating Income (Expense), net | (1,099) | (0.3) | % | (1,726) | (0.4) | % | |||||||||||||||||
| Other Income (Expense), net | (2,968) | (0.8) | % | (4,562) | (1.2) | % | |||||||||||||||||
| Income Before Taxes on Income | 8,787 | 2.5 | % | 7,154 | 1.9 | % | |||||||||||||||||
| Provision (Benefit) for Income Taxes | 3,068 | 0.9 | % | 3,337 | 0.9 | % | |||||||||||||||||
Net Income | $ | 5,719 | 1.6 | % | $ | 3,817 | 1.0 | % | |||||||||||||||
| Earnings Per Share of Common Stock: | |||||||||||||||||||||||
| Basic | $ | 0.23 | $ | 0.15 | |||||||||||||||||||
| Diluted | $ | 0.23 | $ | 0.15 | |||||||||||||||||||
| Average Number of Shares Outstanding: | |||||||||||||||||||||||
| Basic | 24,469 | 24,728 | |||||||||||||||||||||
| Diluted | 24,648 | 24,872 | |||||||||||||||||||||
| (Unaudited) | Nine Months Ended | ||||||||||||||||||||||
| (Amounts in Thousands, except Per Share Data) | March 31, 2026 | March 31, 2025 | |||||||||||||||||||||
| Net Sales | $ | 1,059,805 | 100.0 | % | $ | 1,106,255 | 100.0 | % | |||||||||||||||
| Cost of Sales | 975,286 | 92.0 | % | 1,032,332 | 93.3 | % | |||||||||||||||||
| Gross Profit | 84,519 | 8.0 | % | 73,923 | 6.7 | % | |||||||||||||||||
| Selling and Administrative Expenses | 43,166 | 4.1 | % | 37,107 | 3.4 | % | |||||||||||||||||
| Restructuring Expense | 4,083 | 0.4 | % | 9,019 | 0.8 | % | |||||||||||||||||
| Asset Impairment (Gain on Disposal) | 294 | — | % | (1,264) | (0.1) | % | |||||||||||||||||
| Operating Income | 36,976 | 3.5 | % | 29,061 | 2.6 | % | |||||||||||||||||
| Interest Income | 717 | 0.1 | % | 575 | 0.1 | % | |||||||||||||||||
| Interest Expense | (6,520) | (0.6) | % | (11,969) | (1.1) | % | |||||||||||||||||
| Non-Operating Income (Expense), net | (4,403) | (0.5) | % | (4,155) | (0.4) | % | |||||||||||||||||
| Other Income (Expense), net | (10,206) | (1.0) | % | (15,549) | (1.4) | % | |||||||||||||||||
| Income Before Taxes on Income | 26,770 | 2.5 | % | 13,512 | 1.2 | % | |||||||||||||||||
Provision (Benefit) for Income Taxes | 7,328 | 0.7 | % | 3,109 | 0.3 | % | |||||||||||||||||
| Net Income | $ | 19,442 | 1.8 | % | $ | 10,403 | 0.9 | % | |||||||||||||||
| Earnings Per Share of Common Stock: | |||||||||||||||||||||||
| Basic | $ | 0.79 | $ | 0.42 | |||||||||||||||||||
| Diluted | $ | 0.78 | $ | 0.41 | |||||||||||||||||||
| Average Number of Shares Outstanding: | |||||||||||||||||||||||
| Basic | 24,559 | 24,859 | |||||||||||||||||||||
| Diluted | 24,822 | 25,047 | |||||||||||||||||||||
| Condensed Consolidated Statements of Cash Flows | Nine Months Ended | ||||||||||
| (Unaudited) | March 31, | ||||||||||
| (Amounts in Thousands) | 2026 | 2025 | |||||||||
| Net Cash Flow provided by Operating Activities | $ | 29,837 | $ | 105,870 | |||||||
Net Cash Flow used for Investing Activities | (38,090) | (5,160) | |||||||||
Net Cash Flow provided by (used for) Financing Activities | 2,455 | (126,615) | |||||||||
| Effect of Exchange Rate Change on Cash, Cash Equivalents, and Restricted Cash | 540 | 13 | |||||||||
Net Decrease in Cash, Cash Equivalents, and Restricted Cash | (5,258) | (25,892) | |||||||||
| Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 89,467 | 78,779 | |||||||||
| Cash, Cash Equivalents, and Restricted Cash at End of Period | $ | 84,209 | $ | 52,887 | |||||||
| (Unaudited) | |||||||||||
| Condensed Consolidated Balance Sheets | March 31, 2026 | June 30, 2025 | |||||||||
| (Amounts in Thousands) | |||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 82,462 | $ | 88,781 | |||||||
| Receivables, net | 225,983 | 222,623 | |||||||||
| Contract assets | 75,711 | 71,812 | |||||||||
| Inventories | 273,251 | 273,500 | |||||||||
| Prepaid expenses and other current assets | 43,351 | 36,027 | |||||||||
| Assets held for sale | 6,610 | 6,861 | |||||||||
| Property and Equipment, net | 274,937 | 264,804 | |||||||||
| Goodwill | 6,191 | 6,191 | |||||||||
| Other Intangible Assets, net | 2,039 | 2,427 | |||||||||
Other Assets, net | 113,770 | 104,286 | |||||||||
| Total Assets | $ | 1,104,305 | $ | 1,077,312 | |||||||
LIABILITIES AND SHARE OWNERS’ EQUITY | |||||||||||
| Current portion of long-term debt | $ | 34,682 | $ | 17,400 | |||||||
| Accounts payable | 229,068 | 218,805 | |||||||||
| Advances from customers | 18,590 | 35,867 | |||||||||
| Accrued expenses | 53,178 | 46,489 | |||||||||
| Long-term debt, less current portion | 127,850 | 129,650 | |||||||||
| Other long-term liabilities | 63,295 | 59,217 | |||||||||
| Share Owners’ Equity | 577,642 | 569,884 | |||||||||
| Total Liabilities and Share Owners’ Equity | $ | 1,104,305 | $ | 1,077,312 | |||||||
| Other Financial Metrics | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| (Amounts in Millions, except CCD) | |||||||||||||||||
| At or For the | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||
| Depreciation and Amortization | $ | 10.3 | $ | 9.3 | $ | 9.2 | |||||||||||
Cash Conversion Days (CCD) (1) | 90 | 91 | 99 | ||||||||||||||
Open Orders (2) | $ | 602 | $ | 557 | $ | 642 | |||||||||||
(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 Automation, Test and Measurement | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
(Amounts in Millions) | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| March 31, | March 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net Sales | $ | — | $ | — | $ | — | $ | 2.1 | |||||||||||||||
Operating Income (Loss) (1) | $ | — | $ | — | $ | (0.4) | $ | 0.8 | |||||||||||||||
(1)Amounts include gain (loss) on sale adjustments following the close of the sale on July 31, 2024: ($0.4 million) in the nine months ended March 31, 2026 and $1.3 million for the nine months ended March 31, 2025.
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||
| (Unaudited, Amounts in Thousands, except Per Share Data) | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| March 31, | March 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net Sales Growth (vs. same period in prior year) | (6) | % | (12) | % | (4) | % | (14) | % | |||||||||||||||
| Foreign Currency Exchange Impact | 3 | % | (1) | % | 2 | % | — | % | |||||||||||||||
| Constant Currency Growth | (9) | % | (11) | % | (6) | % | (14) | % | |||||||||||||||
| Selling and Administrative Expenses, as reported | $ | 15,214 | $ | 13,154 | $ | 43,166 | $ | 37,107 | |||||||||||||||
| Stock Compensation Expense | (2,256) | (1,955) | (6,036) | (4,528) | |||||||||||||||||||
| SERP | 76 | (9) | (234) | (285) | |||||||||||||||||||
| Adjusted Selling and Administrative Expenses | $ | 13,034 | $ | 11,190 | $ | 36,896 | $ | 32,294 | |||||||||||||||
Operating Income, as reported | $ | 11,755 | $ | 11,716 | $ | 36,976 | $ | 29,061 | |||||||||||||||
| Stock Compensation Expense | 2,256 | 1,955 | 6,036 | 4,528 | |||||||||||||||||||
| SERP | (76) | 9 | 234 | 285 | |||||||||||||||||||
| Restructuring Expense | 850 | 2,026 | 4,083 | 9,019 | |||||||||||||||||||
| Asset Impairment (Gain on Disposal) | (4) | — | 294 | (1,264) | |||||||||||||||||||
| Adjusted Operating Income | $ | 14,781 | $ | 15,706 | $ | 47,623 | $ | 41,629 | |||||||||||||||
Net Income, as reported | $ | 5,719 | $ | 3,817 | $ | 19,442 | $ | 10,403 | |||||||||||||||
| Stock Compensation Expense, After-Tax | 1,711 | 1,483 | 4,577 | 3,434 | |||||||||||||||||||
| Restructuring Expense, After-Tax | 606 | 1,537 | 2,966 | 6,840 | |||||||||||||||||||
| Asset Impairment (Gain on Disposal), After-Tax | (3) | — | 223 | (959) | |||||||||||||||||||
| Adjusted Net Income | $ | 8,033 | $ | 6,837 | $ | 27,208 | $ | 19,718 | |||||||||||||||
| Diluted Earnings per Share, as reported | $ | 0.23 | $ | 0.15 | $ | 0.78 | $ | 0.41 | |||||||||||||||
| Stock Compensation Expense | 0.07 | 0.06 | 0.19 | 0.14 | |||||||||||||||||||
| Restructuring Expense | 0.03 | 0.06 | 0.12 | 0.27 | |||||||||||||||||||
| Asset Impairment (Gain on Disposal) | — | — | 0.01 | (0.03) | |||||||||||||||||||
| Adjusted Diluted Earnings per Share | $ | 0.33 | $ | 0.27 | $ | 1.10 | $ | 0.79 | |||||||||||||||
| Twelve Months Ended | |||||||||||||||||||||||
| March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
Operating Income, as reported | $ | 53,450 | $ | 48,669 | |||||||||||||||||||
| SERP | 563 | 381 | |||||||||||||||||||||
| Restructuring Expense | 6,054 | 9,783 | |||||||||||||||||||||
| Asset Impairment (Gain on Disposal) | (833) | (788) | |||||||||||||||||||||
| Stock Compensation Expense | 8,027 | 6,278 | |||||||||||||||||||||
Adjusted Operating Income | $ | 67,261 | $ | 64,323 | |||||||||||||||||||
| Tax Effect | 20,770 | 20,174 | |||||||||||||||||||||
| After-tax Adjusted Operating Income | $ | 46,491 | $ | 44,149 | |||||||||||||||||||
Average Invested Capital (1) | $ | 650,994 | $ | 726,208 | |||||||||||||||||||
| ROIC | 7.1 | % | 6.1 | % | |||||||||||||||||||
(1) Average invested capital is computed using Share Owners’ equity plus current and non-current debt less cash and cash equivalents averaged for the last five quarters.
FAQ
How did Kimball Electronics (KE) perform in Q3 fiscal 2026?
Kimball Electronics delivered lower sales but higher profit in Q3 fiscal 2026. Net sales were $352.9 million, down 6% year over year, while net income increased to $5.7 million from $3.8 million and adjusted diluted EPS rose to $0.33 from $0.27.
What fiscal 2026 guidance did Kimball Electronics (KE) affirm?
Kimball Electronics affirmed fiscal 2026 guidance for net sales between $1,400 million and $1,460 million. The company expects adjusted operating income of 4.2%–4.5% of net sales, with results anticipated at the high end of that range, and plans capital expenditures of $50–$60 million.
How are Kimball Electronics’ key vertical markets performing in Q3 2026?
In Q3 fiscal 2026, automotive net sales decreased 3% year over year, while medical and industrial each declined 8%. The medical comparison is against a strong prior-year quarter that included a non-recurring $24 million sale of consigned medical inventory, representing 21% of that quarter’s medical sales.
What were Kimball Electronics’ margins and profitability trends in Q3 2026?
Kimball Electronics’ Q3 2026 operating margin was 3.3%, up from 3.1% a year earlier, and adjusted operating margin was steady at 4.2%. Net income improved to $5.7 million, while adjusted net income reached $8.0 million, reflecting better profitability on lower sales.
How strong were Kimball Electronics’ cash flows in the first nine months of fiscal 2026?
For the nine months ended March 31, 2026, Kimball Electronics generated $29.8 million in net cash from operating activities, compared with $105.9 million in the prior-year period. Net cash used for investing activities was $38.1 million, and period-end cash and restricted cash totaled $84.2 million.
What return on invested capital (ROIC) is Kimball Electronics generating?
For the twelve months ended March 31, 2026, Kimball Electronics reported ROIC of 7.1%, calculated from after-tax adjusted operating income of $46.5 million on average invested capital of $651.0 million. This compares with ROIC of 6.1% for the prior twelve-month period.