Kimball Electronics, Inc. reported a net sales decline of 4% for the fiscal year ending June 30, 2026, totaling $1.431 billion, down from $1.487 billion in the previous year. The decrease was primarily attributed to reduced demand in the automotive and industrial markets, which was partially offset by growth in the medical sector. The company’s gross profit increased by 13% to $117.5 million, resulting in a gross margin of 8.2%, up from 7.0% in the prior year. Net income rose significantly by 65% to $28 million, or $1.13 per diluted share, compared to $17 million, or $0.68 per diluted share, in fiscal 2025.
In terms of operational changes, Kimball Electronics completed the sale of its Tampa facility in April 2026, which was part of a broader restructuring strategy aimed at aligning its cost structure with market demand. The company also announced the acquisition of Helvoet Polymer Technologies, which closed on July 1, 2026, expanding its capabilities in precision molded plastics and medical device manufacturing. This acquisition is expected to enhance Kimball's offerings in the medical and pharmaceutical markets.
The company’s customer base saw a slight contraction, with a total of 50 customers as of June 30, 2026, down from 58 the previous year. Notably, sales to its three largest customers—Nexteer Automotive, Philips, and ZF—accounted for approximately 40% of total net sales. The automotive sector represented 46% of sales, while medical and industrial sectors accounted for 29% and 25%, respectively. The company reported flat open orders at $643 million, indicating stable demand despite the overall sales decline.
Kimball Electronics maintained a strong balance sheet with a current ratio of 2.1 and a debt-to-equity ratio of 0.2 as of June 30, 2026. The company’s liquidity position improved, with cash and cash equivalents totaling $88.9 million and unused credit facilities amounting to $314.9 million. Looking ahead, Kimball anticipates challenges related to the integration of Helvoet, ongoing demand pressures in the automotive sector, and potential changes in U.S. and foreign tariff policies. The company remains focused on leveraging its global footprint and enhancing its service offerings to drive future growth.
About Kimball Electronics, Inc.
Kimball Electronics is a contract manufacturer providing high-reliability electronic assemblies, medical devices, and plastic components across automotive, medical, and industrial markets. The company offers design, engineering, supply chain, and manufacturing services globally, emphasizing quality, reliability, and sustainability. Its business model focuses on long-term customer relationships, global footprint expansion, and innovative solutions in electronics and medical product life cycle management.
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