Kimball Electronics, Inc. (KE): Results of Operations and Financial Condition
Kimball Electronics, Inc. (KE) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 KIMBALL ELECTRONICS REPORTS Q4 RESULTS; COMPANY PROVIDES GUIDANCE FOR FISCAL 2027 HIGHLIGHTED BY ORGANIC SALES GROWTH AND ACCRETIVE IMPACT OF THE HELVOET ACQUISITION JASPER, Ind., August 12, 2026 -- (BUSINESS WIRE) -- Kimball Electronics, Inc. (Nasdaq: KE) today anno
How this was made
The 30-second read
Why it matters
The most tradable elements are the quantified FY2027 net sales range, organic growth assumptions, Helvoet sales contribution, and adjusted operating income margin guidance, plus balance-sheet improvements (lower debt, strong operating cash flow).
Market read
Guidance plus acquisition contribution and margin range provide a fresh forward earnings framework for KE, likely driving immediate repricing ahead of the conference call.
What to watch
The release notes automotive and industrial vertical declines in Q4; traders may focus on whether those weaknesses persist into FY2027 despite Medical outperformance.
KIMBALL ELECTRONICS REPORTS Q4 RESULTS; COMPANY PROVIDES GUIDANCE FOR FISCAL 2027 HIGHLIGHTED BY ORGANIC SALES GROWTH AND ACCRETIVE IMPACT OF THE HELVOET ACQUISITION
Fourth-quarter sales declined year over year and adjusted operating income margin declined, while GAAP operating income, gross margin, net income, operating cash generation, debt reduction, and fiscal 2027 sales guidance were favorable.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 Net SalesGAAP | $ 371,573 | 5% sequential increase | (2) % |
| Q4 Gross ProfitGAAP | $ 32,949 | – | – |
| Q4 Gross Profit MarginGAAP | 8.9 % | – | – |
| Q4 Cost of SalesGAAP | $ 338,624 | – | – |
| Q4 Selling and Administrative ExpensesGAAP | $ 17,989 | – | – |
| Q4 Restructuring ExpenseGAAP | $ 894 | – | – |
| Q4 Gain on DisposalGAAP | $ (15,015) | – | – |
| Q4 Operating IncomeGAAP | $ 29,081 | – | – |
| Q4 Operating Income MarginGAAP | 7.8 % | – | – |
| Q4 Adjusted Operating Incomenon-GAAP | $ 18,112 | – | – |
| Q4 Adjusted Operating Income Marginnon-GAAP | 4.9 % | – | – |
| Q4 Net IncomeGAAP | $ 8,518 | – | – |
| Q4 Adjusted Net Income (Loss)non-GAAP | $ (163) | – | – |
| Q4 Diluted EPSGAAP | $ 0.35 | – | – |
| Q4 Adjusted Diluted EPSnon-GAAP | $ (0.01) | – | – |
| Fiscal Year 2026 Net SalesGAAP | $ 1,431,378 | – | (4) % |
| Fiscal Year 2026 Gross ProfitGAAP | $ 117,468 | – | – |
| Fiscal Year 2026 Gross Profit MarginGAAP | 8.2 % | – | – |
| Fiscal Year 2026 Operating IncomeGAAP | $ 66,057 | – | – |
| Fiscal Year 2026 Operating Income MarginGAAP | 4.6 % | – | – |
| Fiscal Year 2026 Adjusted Operating Incomenon-GAAP | $ 65,735 | – | – |
| Fiscal Year 2026 Adjusted Operating Income Marginnon-GAAP | 4.6 % | – | – |
| Fiscal Year 2026 Net IncomeGAAP | $ 27,960 | – | – |
| Fiscal Year 2026 Diluted EPSGAAP | $ 1.13 | – | – |
| Fiscal Year 2026 Adjusted Diluted EPSnon-GAAP | $ 1.09 | – | – |
| Q4 Cash from OperationsGAAP | $42.4 million | – | – |
| Fiscal Year 2026 Net Cash Flow provided by Operating ActivitiesGAAP | $ 72,267 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| AutomotiveAutomotive includes electronic power steering, electronic braking systems, and body controls. | $ 169.7 | – | (3) % |
| MedicalMedical includes sleep therapy and respiratory care, AED, surgical devices, in vitro diagnostics, image guided therapy, drug delivery/autoinjectors, patient monitoring, and blood separation. | $ 108.8 | – | 1 % |
| Industrial excluding AT&MIndustrial includes climate controls, public safety, smart metering, off highway equipment/commercial transportation, IoT and factory automation, efficient energy, and automation controls. | $ 93.1 | – | (5) % |
Fiscal year 2027 outlook
- RevenueNet sales in the range of $1,535 - $1,560 million, a 7% - 9% increase compared to fiscal 2026
- NoteOrganic sales growth of 3% - 5%, with Medical increasing in the high single to low double-digit range
- NoteHelvoet sales of approximately $60 million
- NoteAdjusted operating income of 4.4% - 4.7% of net sales
- NoteCapital expenditures of $50 - $60 million
Capital returns
- Invested $2.1 million to repurchase 83,000 shares of common stock
- Invested $11.9 million to repurchase 447,000 shares of common stock
What drove it
- Net sales increased 5% sequentially, with all end-market verticals posting gains.
- Medical sales increased 1% compared to the fourth quarter of fiscal 2025.
- The company expects Medical to continue to outpace the other two verticals and represent more than one-third of total Company sales in fiscal 2027.
- Fiscal 2027 guidance includes organic sales growth of 3% - 5% and Helvoet sales of approximately $60 million.
- The company cited the buildout of its new medical facility in Indianapolis and the acquisition of Helvoet Polymer Technologies as strategic investments in growth in the medical CDMO space.
Concerns
- Q4 total net sales decreased (2) % compared with the fourth quarter of fiscal 2025.
- Q4 automotive sales decreased (3) % and industrial excluding AT&M sales decreased (5) % compared with the fourth quarter of fiscal 2025.
- Q4 adjusted operating income decreased to $ 18,112 from $ 19,638, and adjusted operating income margin decreased to 4.9 % from 5.2 %.
- Q4 adjusted net income (loss) was $ (163), compared with $ 8,438, and adjusted diluted EPS was $ (0.01), compared with $ 0.34.
- Fiscal year 2026 net sales decreased (4) % to $ 1,431,378 from $ 1,486,727.
- Fiscal year 2026 net cash flow provided by operating activities was $ 72,267, compared with $ 183,937.
What to watch
- Delivery of fiscal 2027 net sales in the range of $1,535 - $1,560 million.
- Organic sales growth of 3% - 5% and Medical growth in the high single to low double-digit range.
- Helvoet sales of approximately $60 million and the stated accretive impact of the acquisition.
- Adjusted operating income of 4.4% - 4.7% of net sales.
- Capital expenditures of $50 - $60 million.
- The pace of improvement in automotive and industrial excluding AT&M sales.
Balance sheet and cash flow
- Debt of $116.6 million, the lowest level in over 4 years
- Cash of $88.9 million and borrowing capacity of $322.4 million
- Cash Conversion Days of 82, the best result in 17 quarters
- Cash from operations of $42.4 million, the tenth consecutive quarter of positive operating cash generation
- Net Cash Flow provided by Operating Activities of $ 72,267
- Net Cash Flow used for Investing Activities of $ (25,947)
- Net Cash Flow used for Financing Activities of $ (47,050)
Analysis
Kimball Electronics ended fiscal 2026 with Q4 net sales of $ 371,573, down from $ 380,472 in the fourth quarter of fiscal 2025, although sales increased 5% sequentially. Medical was the only vertical to grow year over year, increasing 1% to $ 108.8. Automotive declined (3) % to $ 169.7 and industrial excluding AT&M declined (5) % to $ 93.1. For the full year, total net sales declined (4) % to $ 1,431,378, with medical sales increasing 4%, automotive declining (7) %, and industrial excluding AT&M declining (5) %.
Profitability showed a material GAAP improvement in the quarter. Gross profit margin was 8.9 % versus 8.0 %, and GAAP operating income was $ 29,081 versus $ 16,474. The GAAP result included a $ (15,015) gain on disposal, compared with a $ (1,127) gain in the prior-year quarter. On an adjusted basis, operating income was $ 18,112 versus $ 19,638, while adjusted operating income margin was 4.9 % versus 5.2 %. Adjusted net income (loss) was $ (163) and adjusted diluted EPS was $ (0.01), compared with adjusted net income of $ 8,438 and adjusted diluted EPS of $ 0.34.
Cash generation and balance-sheet metrics were central to management's message. Q4 cash from operations was $42.4 million, marking the tenth consecutive quarter of positive operating cash generation. The company reported debt of $116.6 million, cash of $88.9 million, borrowing capacity of $322.4 million, and Cash Conversion Days of 82. For fiscal 2026, net cash flow provided by operating activities was $ 72,267, compared with $ 183,937 in fiscal 2025. The company repurchased 83,000 shares for $2.1 million in Q4 and 447,000 shares for $11.9 million during fiscal 2026.
The fiscal 2027 outlook calls for net sales of $1,535 - $1,560 million, representing a 7% - 9% increase compared to fiscal 2026. The plan includes organic sales growth of 3% - 5%, Medical growth in the high single to low double-digit range, and Helvoet sales of approximately $60 million. Management guides to adjusted operating income of 4.4% - 4.7% of net sales, which brackets the fiscal 2026 adjusted operating income margin of 4.6 %. The company also guides to capital expenditures of $50 - $60 million as it pursues growth investments including the Indianapolis medical facility buildout and Helvoet acquisition.
Management, verbatim
Sales in Q4 were in line with expectations, adjusted operating income was better than estimates, and we generated strong cash from operations, which was used to pay down debt to its lowest level in over 4 years.
Richard D. Phillips, Chief Executive Officer
We are expecting Medical to continue to outpace the other two verticals and represent more than one-third of total Company sales in the fiscal year, which is in line with our objective to balance the portfolio across the markets we serve.
Richard D. Phillips, Chief Executive Officer
Our guidance for fiscal 2027 projects a return to top line growth and we will be leveraging the balance sheet to support those efforts.
Jana T. Croom, Chief Financial Officer
Not in the filing
stated, not guessed- Previous-quarter revenue for Q4 fiscal 2026
- Previous-quarter comparisons for operating income, gross profit, operating margins, net income, EPS, segments, and cash flow
- Q4 free cash flow
- Fiscal year 2026 free cash flow
- Q4 operating cash flow prior-year comparison
- Q4 cash flow from investing activities and financing activities
- Cash balance prior-year comparison
- Debt prior-year comparison
- Dividend amount or dividend declaration
- Fiscal 2027 gross margin guidance
- Fiscal 2027 operating expense guidance
- Fiscal 2027 tax-rate guidance
- Prior fiscal-year guidance for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Kimball Electronics filed an 8-K with Exhibit 99.1 covering Q4 and full fiscal year ended June 30, 2026 results and fiscal 2027 guidance, including the Helvoet acquisition impact.
Ticker impact
Kimball Electronics reported Q4 FY2026 results and issued FY2027 guidance, including $1,535-$1,560M net sales and Helvoet sales of about $60M.
Near-term bias higher as guidance implies organic growth plus accretive Helvoet impact, alongside lower debt and strong operating cash flow.
The filing discloses specific Q4 and full-year results plus quantified FY2027 guidance ranges and Helvoet sales contribution, which typically re-rates forward expectations.
Market effects
Signals continued demand strength in medical CDMO/EMS mix, with management expecting Medical to exceed one-third of sales.
Limited direct regional read-through; operations span US and Asia/Europe but guidance is company-wide.
Moderate, as it reflects medical manufacturing outsourcing demand and acquisition-driven growth rather than a macro shock.
Counterpoint
Organic growth is only 3% to 5% and adjusted operating income margin is guided to 4.4% to 4.7%, so upside may be capped if integration costs or customer mix shifts.
Key entities
- issuerKimball Electronics, Inc.
Nasdaq-listed EMS/CDMO provider reporting Q4 FY2026 results and issuing FY2027 guidance.
- acquisition_targetHelvoet Polymer Technologies
Acquired business whose sales contribution is guided at approximately $60M for FY2027.
- executiveRichard D. Phillips
CEO quoted on Q4 performance, balance-sheet strength, and FY2027 outlook.
- executiveJana T. Croom
CFO quoted on balance-sheet condition and FY2027 guidance.
