Kimball Electronics, Inc. filed its Form 10-Q for the quarterly period ended September 30, 2026 with the U.S. Securities and Exchange Commission on November 5, 2026, reporting first-quarter results that included a significant decline in net income and a $100.9 million acquisition.

Key Highlights

  • Net income: $2,642 thousand for the three months ended September 30, 2026, compared to $10,086 thousand in the same period of the prior year.
  • Net sales: $390,803 thousand for the quarter, up from $365,603 thousand in the prior-year quarter.
  • Earnings per share: Basic and diluted EPS both reported at $0.11, versus $0.41 basic and $0.40 diluted in the prior-year quarter.
  • Acquisition spending: Payments for acquisitions, net of cash acquired, totaled $100,951 thousand during the quarter, compared to none in the prior-year quarter.
  • Total assets: $1,237,198 thousand as of September 30, 2026, up from $1,092,070 thousand as of June 30, 2026.
  • Provision for income taxes: $5,161 thousand for the quarter, compared to $913 thousand in the prior-year quarter.
  • Shares outstanding: 23,976,241 as of October 22, 2026.

Kimball Electronics Reports Lower Quarterly Earnings Amid Acquisition Activity

According to the filing, Kimball Electronics (NASDAQ:KE) reported net sales of $390,803 thousand for the three months ended September 30, 2026, an increase from $365,603 thousand in the comparable prior-year period. Gross profit rose to $30,874 thousand from $28,836 thousand, while selling and administrative expenses increased to $18,055 thousand from $13,090 thousand. Operating income declined to $12,374 thousand from $14,454 thousand in the prior-year quarter.

The company disclosed a sharp increase in its provision for income taxes, which rose to $5,161 thousand in the current quarter from $913 thousand a year earlier. Combined with higher interest expense of $3,519 thousand versus $2,353 thousand in the prior-year period, these factors contributed to net income falling to $2,642 thousand from $10,086 thousand. Total comprehensive income for the quarter was reported at $665 thousand, compared to $10,478 thousand in the prior-year quarter, reflecting an other comprehensive loss of $1,977 thousand net of tax.

The balance sheet reflected the impact of acquisition activity during the quarter. Goodwill increased to $50,459 thousand as of September 30, 2026, from $6,191 thousand as of June 30, 2026, and other intangible assets, net, rose to $25,491 thousand from $1,921 thousand. Cash flows from investing activities showed payments for acquisitions, net of cash acquired, of $100,951 thousand, funded in part by $143,000 thousand in proceeds from credit facilities. Long-term debt, less current portion, grew to $195,650 thousand from $108,000 thousand, and the current portion of long-term debt increased to $39,700 thousand from $8,202 thousand. Net cash used for operating activities was $(19,324) thousand, compared to net cash provided of $8,065 thousand in the prior-year quarter.

What Was Disclosed

Kimball Electronics filed its quarterly report for the period ended September 30, 2026, disclosing a year-over-year decline in net income to $2,642 thousand, an increase in net sales to $390,803 thousand, and $100,951 thousand in acquisition payments that significantly expanded goodwill and long-term debt.