Kimball Electronics Q2 CY2025 Earnings: Revenue Down 11.6% YoY, Adjusted EPS Beats Estimates by 83.8%

Kimball Electronics reported Q2 CY2025 revenue of $380.5 million, an 11.6% year-on-year decline, but beat analyst estimates by 14.2%. Non-GAAP profit of $0.34 per share was 83.8% above analyst consensus estimates. The company expects full-year revenue to be around $1.4 billion, close to analyst estimates. Operating margin was 4.3%, in line with the same quarter last year.

Kimball Electronics (NYSE:KE), a global electronics contract manufacturer, reported its Q2 CY2025 results, showing a 11.6% year-on-year decline in revenue to $380.5 million, but this figure still beat analyst estimates by 14.2%. The company's non-GAAP profit of $0.34 per share was an impressive 83.8% above analysts' consensus estimates [1].

The company expects full-year revenue to be around $1.4 billion, aligning closely with analyst estimates. Operating margin for the quarter was 4.3%, matching the same quarter last year [1].

Kimball Electronics' Chief Executive Officer, Richard D. Phillips, commented on the results, highlighting the company's solid finish to the fiscal year, improved margins, and positive cash flow, which was used to pay down debt and provide liquidity for future investments [1].

Over the last five years, Kimball Electronics has grown its sales at a sluggish 4.4% compounded annual growth rate, with a recent two-year revenue decline of 9.7% annually [1]. The company's operating margin has been weak, averaging 4.5% over the past five years, raising questions about its cost structure and profitability [1].

While the latest quarter's results show a stable cost structure, Kimball Electronics' long-term performance has been lackluster, with a flat EPS over the last five years and a two-year annual EPS decline of 29.1% [1]. The company's stock traded up 13.3% immediately after reporting, but investors should consider longer-term fundamentals and valuation when deciding to invest.

References:
[1] https://finance.yahoo.com/news/kimball-electronics-nasdaq-ke-reports-205427436.html