Kimball Electronics Q4 2025 Results: Net Sales Up 2%, Debt Reduced by 50%, Guidance for Fiscal 2026 Announced

Kimball Electronics reported Q4 2025 net sales of $380.5 million, a 2% increase from the previous quarter, and fiscal 2025 net sales of $1.49 billion, a decrease from $1.71 billion in fiscal 2024. The company reduced its debt by $147.3 million, or 50% year-over-year. For fiscal 2026, Kimball Electronics expects net sales between $1.35 billion and $1.45 billion, a potential decrease of 2% to 9% compared to fiscal 2025.

Kimball Electronics, Inc. (Nasdaq: KE) has reported its financial results for the fourth quarter and fiscal year ended June 30, 2025, highlighting a solid performance with a 2% sequential increase in net sales to $380.5 million [1]. The company's net sales for the fiscal year 2025 totaled $1,486.7 million, a decrease from the previous year's $1,714.5 million.

Operating income for Q4 2025 was $16.5 million, or 4.3% of net sales, while adjusted operating income was $19.6 million, or 5.2% of net sales [1]. Kimball Electronics also reported positive cash flow from operating activities for the sixth consecutive quarter, totaling $78.1 million, and reduced its debt by $147.3 million, or 50% year-over-year [1].

For fiscal 2026, the company expects net sales between $1,350 million and $1,450 million, a potential decrease of 2% to 9% compared to fiscal 2025 [1]. Adjusted operating income is projected to be between 4.0% and 4.25% of net sales, while capital expenditures are expected to range from $50 million to $60 million [1].

Kimball Electronics ended the fourth quarter with cash and cash equivalents of $88.8 million and borrowing capacity of $291.7 million [1]. The company also invested $3.0 million to repurchase 162,000 shares of common stock during the fiscal year [1].

The company's Chief Executive Officer, Richard D. Phillips, commented on the results, stating, "I’m encouraged by the results for the fourth quarter and solid finish to the fiscal year. Q4 came in better than expected, as sales increased sequentially, margins improved, and working capital management drove our sixth consecutive quarter of positive cash flow which was used to pay down debt. Our balance sheet is now in a position of competitive strength with ample liquidity to weather an unpredictable environment, while providing dry powder for opportunistic investments." [1]

Jana T. Croom, Chief Financial Officer, added, "Fiscal 2026 will be a year of transition. We expect modest top line growth in our medical and industrial businesses, but it will be offset by a decline in automotive, with a full year impact from the loss of the braking program in Reynosa. Margins are estimated to be in line with FY25, but it’s important to note that when top line growth returns, enhancements to our cost structure should support margin improvement. Capital expenditures will be heavily weighted toward our new facility in Indianapolis, with the balance supporting growth, automation, and maintenance." [1]

References:

[1] Kimball Electronics Reports Q4 Results with Solid Finish to the Fiscal Year, Company Provides Guidance for Fiscal 2026 - Business Wire. Retrieved from https://www.businesswire.com/news/home/20250813325066/en/Kimball-Electronics-Reports-Q4-Results-With-Solid-Finish-to-the-Fiscal-Year-Company-Provides-Guidance-for-Fiscal-2026