Kimball Electronics Restores Year-Over-Year Sales Growth

The Tip Desk · November 11, 2026 · 3 min read

First-quarter net sales reached $390.8 million as the company reiterated fiscal 2027 sales at the high end of a $1,535 million to $1,560 million range.

Kimball Electronics, Inc. (KE), a global electronics manufacturing services and contract development and manufacturing organization, reported net sales of $390.8 million for the first quarter ended September 30, 2026, a 7% increase from a year earlier that reversed a 2% year-over-year decline in the prior year’s first quarter.

Organic sales rose 3% year over year, after a 3% organic decline a year earlier. Acquisition impact added 3% and foreign currency 1%. Chief Executive Officer Richard D. Phillips said the top line benefited from organic growth and the contribution from Helvoet Polymer Technologies, a recent tuck-in acquisition in medical CDMO, and that organic growth was in line with expectations and driven by a high single-digit increase in Medical.

Medical sales were $115.7 million, up 14% from a year earlier, with 9% organic growth and 5% acquisition impact. Helvoet contributed $12.4 million of net sales in the quarter. Automotive sales were $170.5 million, or 44% of net sales, up 4% year over year. Industrial sales were $104.6 million, or 27%, up 5%.

Operating income was $12.4 million, or 3.2% of net sales, versus $14.5 million, or 4.0%, a year earlier. Adjusted operating income was $17.0 million, or 4.3% of net sales, versus $17.5 million, or 4.8%. Gross profit was $30.9 million, or 7.9% of sales, matching the 7.9% gross margin a year earlier. Selling and administrative expenses rose to $18.1 million, or 4.6% of sales, from $13.1 million, or 3.5%. Adjusted EBITDA was $27.6 million.

Net income was $2.6 million, or $0.11 a share, versus $10.1 million, or $0.40 a share, a year earlier. Adjusted net income was $6.1 million, or $0.25 a share, versus $12.3 million, or $0.49 a share. The company recorded $1.98 million of acquisition costs and $532,000 of acquisition amortization in the quarter, items excluded from adjusted results.

Cash conversion days were 82, equaling the prior quarter’s multiyear low and versus 83 a year earlier. Open orders were $690 million at September 30, 2026, versus $643 million at June 30, 2026 and $593 million a year earlier.

Debt totaled $235.7 million and cash $72.8 million, with borrowing capacity of $198.0 million, after the Helvoet acquisition. Cash and cash equivalents were $72.8 million versus $88.9 million at June 30, 2026. The company invested $3.1 million to repurchase 127,000 shares in the quarter.

Phillips said the company is investing in medical growth by integrating Helvoet, ramping operations in Indianapolis, leveraging capabilities as a full-service provider, and unlocking synergies across its global footprint. The company reiterated guidance for fiscal 2027 with net sales expected at the high end of the range of $1,535 million to $1,560 million, adjusted operating income of 4.4% to 4.7% of net sales, and capital expenditures of $50 million to $60 million, driven by continued strength in Medical.