Kimball Electronics, Inc. Earnings Recaps
Q2 2026
Feb 5, 2026
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.
Key takeaways
- 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.
Q4 2025
Aug 14, 2025
Kimball Electronics reported a solid fourth quarter, driven by sequential sales growth and effective cost management, positioning the company for a promising fiscal 2026.
Key takeaways
- Net sales reached $381 million, reflecting an 8% annual decline, yet showed a 2% sequential increase from Q3.
- The Medical division grew by 5% year-over-year, contributing 28% of total revenue, bolstered by new sole supplier contracts with a key client.
- Adjusted operating income for Q4 was $19.6 million, representing 5.2% of net sales, indicating improving profitability metrics.
- SG&A expenses decreased 23% year-over-year, showcasing successful cost control efforts; adjusted SG&A was 2.8% of sales.
- The company anticipates continued revenue growth in FY '27, benefiting from enhanced production capabilities and market demand in the medical sector.