Kimball Electronics reported a solid Q2 FY2026 with net sales of $341 million, driven by strong performance in the Medical vertical, although overall sales declined 5% year-over-year.

• Medical sales grew by 15% year-over-year, reflecting strong demand and strategic focus on this sector, now making up 28% of total sales.
• Gross margin improved to 8.2%, up 160 basis points, benefitting from operational efficiencies and restructuring efforts.
• Adjusted operating income reached $15.3 million (4.5% of net sales), marking a year-over-year increase from $13.3 million.
• Automotive sales declined by 13% due to lower demand in North America and challenges from tariffs, representing 48% of total revenue.
• The company raised its guidance for FY2026, underscoring confidence in operational execution and growth potential.