What is Kimball Electronics's latest dividend and current dividend yield?

What were the key takeaways from Kimball Electronics’s earnings call?

What is Kimball Electronics's gross profit margin?

What factors drove the changes in Kimball Electronics's revenue and profit?

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What were the key takeaways from Kimball Electronics's earnings call?

- **Medical Dominance**: 15% YoY growth in Medical (28% of revenue), driven by Poland/Thailand. New Indianapolis facility to boost U.S. medical capacity.
- **Automotive Recovery**: Q3 expected stabilization post-EV100, with Europe leading. EPP program and ADAS opportunities signal future growth.
- **Guidance Uptick**: FY26 sales raised to $1.4B-$1.46B, operating margin 4.2%-4.5%, reflecting Medical strength and European Automotive ramp.
- **Strategic Moves**: Rebranding to Kimball Solutions, acquisitions in medical diagnostics/cardiology, and $18.2M capex for Indianapolis facility.

**【CEO Summary Section】**
- **Medical Vertical Growth**: Q2 sales of $96 million (+15% YoY), accounting for 28% of total revenue. Poland and Thailand drove growth, with North America flat. New Indianapolis facility to expand U.S. medical manufacturing capacity.
- **Automotive Challenges**: Q2 sales $162 million (-13% YoY), impacted by North American tariff pressures and the EV100 program transfer. Europe shows strength with steering and braking programs in Poland and Romania.
- **Industrial Decline**: Q2 sales $83 million (-5% YoY), driven by North American HVAC weakness, partially offset by European smart meter rebound.
- **Strategic Initiatives**: Rebranding to Kimball Solutions to emphasize end-to-end manufacturing services. Actively pursuing acquisitions for new customers, geographic expansion, and vertical integration.

**【CFO Financial Commentary】**
- **Q2 Financials**: Net sales $341 million (-5% YoY), adjusted operating income $15.3 million (4.5% of sales vs. 3.7% YoY). Gross margin improved to 8.2% (vs. 6.6% YoY) due to mix, restructuring, and FX benefits.
- **Cash Flow**: 8th consecutive quarter of positive cash flow ($6.9 million). Inventory down 8% YoY, capital expenditures $18.2 million (largely for Indianapolis facility).
- **Updated Guidance**: FY26 net sales $1.4B-$1.46B (vs. prior $1.35B-$1.45B), operating margin 4.2%-4.5% (vs. 4.0%-4.25%).

**【Q&A Key Highlights】**
- **Automotive Outlook**: Q3 expected to stabilize post-EV100 anniversary, with Europe rebounding. EPP program (2/3 size of braking) and ADAS opportunities noted.
- **Medical Facility Impact**: Near-term margin drag from depreciation, but long-term accretive potential. Q3 Medical growth will exclude one-time $24M inventory sale.
- **Win Rates & Acquisitions**: Consistent win rates in competitive markets. Exploring in vitro diagnostics and cardiology adjacencies for Medical expansion.
- **Customer Concentration**: Nexteer remains largest customer at 20% of sales, but diversification efforts underway with ZF and HL Mondo in Automotive.

Kimball Electronics, Inc. (KE) Q2 2026 Earnings Call Transcript

- **Medical Dominance**: 28% of Q1 revenue, +13% YoY, with new Indianapolis facility driving device manufacturing expansion.
- **Profitability Boost**: Gross margin up 160bps to 7.9%, operating income +4.8% of sales, lowest debt in 3 years.
- **Growth Catalysts**: Medical CMO M&A pipeline and FY27 return to top-line growth via tariff mitigation and restructuring.
- **Risks**: Automotive softness (-10% YoY), industrial HVAC weakness, and geopolitical tariff uncertainty.

**【CEO Summary Section】**
- **Medical Segment Growth**: Q1 sales of $102 million (+13% YoY), driven by Asia and Europe. New Indianapolis facility to expand into medical devices and single-use instruments.
- **Tariff Management**: Passing on tariffs to customers; restructuring costs may occur if recovery fails.
- **Long-Term Strategy**: Focus on medical CMO (contract manufacturing organization) with potential tuck-in acquisitions to diversify end markets and geographies.
- **Financial Health**: 7 consecutive quarters of positive cash flow; debt reduced by 44% YoY to $138 million.

**【CFO Financial Commentary】**
- **Revenue & Margin**: Net sales $365.6 million (-2% YoY). Gross margin improved 160bps to 7.9% due to product mix and Tampa facility closure.
- **Cost Control**: Adjusted S&A expenses flat YoY at $11.3 million; operating income $17.5 million (+4.8% of sales vs 3.4% last year).
- **Liquidity**: $75.7 million cash; $370 million short-term liquidity. Shares repurchased: 49,000 in Q1, $105.2 million returned since 2015.
- **Guidance**: FY26 net sales $1.35-1.45B; operating income 4-4.25% of sales.

**【Q&A Key Highlights】**
- **Medical Pipeline**: Diversified growth across geographies and customers; new programs ramping up in Europe and Asia.
- **Automotive Challenges**: Softness in North America (braking program transfer) offset by Europe growth. Long-term outlook positive for e-braking systems.
- **M&A Strategy**: Seeking medical CMO tuck-ins with scalable capabilities; disciplined approach to valuation.
- **Working Capital**: Expect cash conversion days to stabilize in low 80s as growth resumes; inventory management tight.
- **Tariff Impact**: FY26 guidance assumes full recovery of tariffs; monitoring geopolitical risks.


Kimball Electronics, Inc. (KE) Q1 2026 Earnings Call Transcript

- **Medical Segment Growth**: Q4 Medical revenue up 5% YoY to $107M, driven by sole-supplier respiratory care program; new Indianapolis facility could add >$500M annual revenue.
- **Cash Flow Strength**: Sixth consecutive quarter of positive cash flow ($78.1M Q4), debt reduced 50% YoY to $147.5M.
- **FY 2026 Guidance**: $1.35B-$1.44B net sales (-2% to +9% YoY), 4.0%-4.25% operating margin, $50M-$60M CapEx.
- **Strategic Focus**: Shifting to high-margin CMO services in medical, with investments in automation and business development.
- **Tariff Mitigation**: Proactive supplier diversification and pass-through agreements to minimize impact.

**【Management Opening Remarks】**
- CEO Ric Phillips highlighted Q4 2025 results as better-than-expected, with sequential sales growth, margin improvements, and sixth consecutive quarter of positive cash flow.
- FY 2025 achievements included record medical wins, quality ratings at 15-year highs, and $183.9M in operating cash flow.
- The new 300,000 sq. ft. medical facility in Indianapolis (scheduled to open in November 2025) is a key growth driver for CMO (Contract Manufacturing Organization) services.

**【CEO Commentary】**
- Q4 net sales: $381M (-8% YoY, excluding divested automation business), with Medical segment up 5% YoY to $107M (28% of total revenue).
- Medical growth driven by sole-supplier respiratory care program in Thailand, with potential expansion into cardiology, orthopedics, and drug delivery.
- Automotive (-13% YoY) impacted by braking program transfer; Industrial (-12% YoY) showed early signs of stabilization in climate control.
- FY 2026 outlook: $1.35B-$1.44B net sales (-2% to +9% YoY), 4.0%-4.25% operating margin, and $50M-$60M CapEx (primarily for Indianapolis facility).

**【CFO Financial Commentary】**
- Q4 gross margin: 8.0% (down 50bps YoY due to lower absorption), with sequential improvement.
- Adjusted SG&A: $10.8M (-23% YoY), at 2.8% of sales (vs. 3.2% YoY).
- Cash & equivalents: $88.8M; cash flow from operations: $78.1M (sixth consecutive quarter positive).
- Debt reduced by 50% YoY to $147.5M; share buybacks: $3M (162,000 shares).
- FY 2025 effective tax rate: 35%; FY 2026 expected ~30%.

**【Q&A Highlights】**
- **Medical Facility**: Indianapolis plant could generate >$500M annual revenue; grand opening in November 2025 with equipment installation underway.
- **Tariff Strategy**: Pass-through approach with customers; qualify alternative suppliers to mitigate risk.
- **Cash Conversion Days (CCD)**: Improved to 85 days (vs. 100Q4 2024), targeting 75 days via AR factoring and supplier financing.
- **Medical Customer Expansion**: Actively pursuing blue-chip customers with long product cycles; FDA experience a competitive advantage.
- **Margin Outlook**: Higher EBITDA margins in CMO due to lower cost of sales and higher revenue potential.


Kimball Electronics, Inc. (KE) Q4 2025 Earnings Conference Call Transcript

- **Medical CMO Expansion**: New Indianapolis facility leased to expand medical device manufacturing, with $115M Q3 Medical sales (+2% YoY) driven by non-recurring inventory sale.
- **Financial Resilience**: Q3 operating income $15.7M despite 10% YoY sales decline. Cash flow positive, borrowings reduced 40% to $178.8M.
- **Tariff Uncertainty**: Monitoring potential production shifts amid tariffs. Q4 sales guidance at high end ($1.44B) but cautious on Auto recovery.
- **Cost Control**: SG&A down 24% YoY. Inventory reduced $100M YoY, CCD improved to 99 days.
- **Share Buybacks**: $3M invested in Q3, $19.3M remaining under $100M program.

**【CEO Summary Section】**
- **Q3 Sales and Margins**: Net sales of $375 million (-10% YoY, excluding AT&M). Gross margin improved sequentially but declined YoY to 7.2% due to lower absorption and consigned inventory sales. Operating income was $15.7 million (4.2% of sales).
- **Medical CMO Growth**: New 300,000 sq. ft. Indianapolis facility leased to expand medical device manufacturing. Q3 Medical sales $115 million (+2% YoY), driven by $24 million non-recurring consigned inventory sale. Launching respiratory care devices in Q3 with customer in Thailand.
- **Automotive Challenges**: North America sales down due to declining electronic steering systems. China and Europe sales strong, but overall Auto segment (-14% YoY). Romania breaking program ramping up.
- **Industrial Decline**: Smart meters, climate control, and public safety products down across regions. Climate control stabilizing, but smart meters no longer significant.
- **Financial Health**: Cash flow positive ($30.9M), cash conversion days 99, inventory down $100M YoY. Borrowings reduced 40% to $178.8M. $3M share buybacks, $19.3M remaining.
- **Tariff Uncertainty**: Monitoring potential tariff impacts on production locations and supply chains. Restructuring and cost control measures ongoing.

**【CFO Financial Commentary】**
- **Top Line**: Q3 sales $374.6M (-12% YoY), 5% sequential increase from consigned inventory sale. Medical vertical 31% of sales, Auto 46%.
- **Margins**: Gross margin 7.2% (-70bps YoY). SG&A $11.2M (-24% YoY). Operating margin 4.2% (-0.2pts YoY).
- **Cash Flow**: Operating cash flow $30.9M (5th consecutive positive quarter). CCD 99 days (vs. 110 YoY). Inventory $296.6M (-$9.6M QoQ, -25% YoY).
- **Balance Sheet**: Cash $51.4M, liquidity $304.6M. CapEx $4M (low end of $40-50M guidance).
- **Guidance**: FY25 sales $1.4-1.44B, operating margin 3.4-3.6% (expecting high end). Tampa exit costs $6.5-8.5M (mostly Q4).

**【Q&A Highlights】**
- **Medical Facility**: Leased to minimize upfront costs. Rent deferred during build-out. No significant proceeds expected from selling existing Indianapolis facility.
- **Tariff Impact**: No material pull-forward of orders. Q4 funnel healthy but cautious due to tariff uncertainty.
- **OpEx Trends**: FY26 SG&A likely to increase from 3% of sales to support growth initiatives.
- **Auto Recovery**: Breaking program in Romania ramping up. Expect sequential improvement in Auto as steering systems decline offsets by new programs.
- **Inventory Management**: Continued progress in reducing excess inventory across all segments. No significant customer inventory rebuilds yet.


Kimball Electronics (KE)-7 May 25-2025 Q3 Earnings call transcript

- **Revenue decline**: Q2 sales $357M (-13% YoY), driven by auto (-4%), medical (-22%), industrial (-20%).
- **Cash flow strength**: 4Q+ of positive cash flow, $29M Q2, inventory down $29M, debt -30% YoY.
- **Strategic shifts**: AT&M divestiture, medical CMO focus, Romania braking program ramping. FY25 sales guidance cut to $1.4-1.44B.
- **Tariff response**: 25% of Mexico production at risk, evaluating Thailand relocation.
- **Medical growth**: FY26 respiratory care launch, expanding CMO in drug delivery devices.
- **OpEx management**: 3.5% target, but inflation limiting cuts beyond $10.1M Q2 level.


**【CEO Opening Remarks】**
- Q2 net sales: $357M (-13% YoY, excluding AT&M). Auto down 4%, medical -22%, industrial -20%. 
- Positive cash flow ($29.5M) for 4th straight quarter. Inventory reduced $29M QoQ, debt down $90M YoY.
- Strategic repositioning: AT&M divestiture, Tampa plant closure, medical CMO focus. Romania braking program ramping up.
- FY25 updated guidance: $1.4-1.44B sales (prev $1.44-1.54B), 3.4-3.6% op margin (prev 4-4.5%).

**【CFO Financial Review】**
- Q2 gross margin: 6.6% (-160bps YoY). SG&A: $10.1M (-34% YoY). Adj. net income: $7.4M ($0.29 EPS).
- Cash: $53.9M. CCO days: 107 (vs 117 YoY). Capex: $6.5M. 
- FY25 tax rate: ~25%. Share buybacks: $3M Q2, $22.3M remaining in program.

**【Q&A Highlights】**
- **Tariffs & Mexico production**: 25% of Mexico output at risk. Potential shift to Thailand to avoid tariffs. 
- **Jasper utilization**: ~65%, capacity available for new business. 
- **Medical growth**: Respiratory care program launch in late FY26. CMO capabilities in drug delivery devices. 
- **Industrial challenges**: Smart meter commoditization bottoming out. 
- **OpEx sustainability**: 3.5% target, but inflationary pressures limit further cuts.


Actual									0.25	0.34	0.65	0.6	0.39	0.58	0.06	0.2	0.54	0.4	0.38	0.44	0.65	0.76	0.4216	0.33	0.34	0.33	0.22	0.29	0.27	0.34	0.49	0.28
Forecast									0.18	0.2	0.33	0.34	0.43	0.43	0.33	0.4	0.48	0.5667	0.4667	0.5167	0.68	0.664	0.4883	0.404	0.402	0.438	0.26	0.2027	0.166	0.185	0.2594	0.255
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+38.89%	+70.00%	+96.97%	+76.47%	-9.30%	+34.88%	-81.82%	-50.00%	+12.50%	-29.42%	-18.58%	-14.84%	-4.41%	+14.46%	-13.66%	-18.32%	-15.42%	-24.66%	-15.38%	+43.07%	+62.65%	+83.78%	+88.90%	+9.80%

KE

KE fundamentals

KE Q2 2026 Earnings

Earnings Call

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KE

KE fundamentals

KE Q2 2026 Earnings

Earnings Call

KE Earnings Call Summary for Q2/202610:00 AM on Feb 5, 2026

KE Earnings Call Summary for Q1/202610:00 AM on Nov 6, 2025

KE Earnings Call Summary for Q4/202510:00 AM on Aug 14, 2025

KE Earnings Call Summary for Q3/202510:00 AM on May 7, 2025

KE Earnings Call Summary for Q2/202510:00 AM on Feb 5, 2025

You can ask Aime