Key Highlights

  • Fiscal first quarter net sales were USD 390.8 million against a USD 387.2 million estimate, up 7% year over year.
  • Adjusted diluted EPS was USD 0.25 against an estimate of USD 0.40, while GAAP diluted EPS was USD 0.11.
  • Medical sales increased 14%, including 9% organic growth, and Helvoet contributed USD 12.4 million of net sales.
  • Fiscal 2027 net sales guidance of USD 1,535 million to USD 1,560 million was reiterated, pointing to the high end.

Kimball Electronics, Inc. (NASDAQ:KE) opened fiscal 2027 by reiterating full year guidance, following a first quarter in which sales rose both sequentially and from a year earlier. Net sales of USD 390.8 million compare with an estimate of USD 387.2 million, while adjusted diluted EPS of USD 0.25 compares with an estimate of USD 0.40.

Fiscal 2027 Guidance and the Medical Focus

Management reiterated fiscal 2027 net sales guidance of USD 1,535 million to USD 1,560 million and said net sales point to the high end of that range, citing continued strength in the Medical vertical. Adjusted Operating Income is guided at 4.4% to 4.7% of net sales, and capital expenditures at USD 50 million to USD 60 million.

The chief executive said the company is investing in medical growth by integrating Helvoet Polymer Technologies, ramping operations in Indianapolis, using its position as a full service provider and pursuing synergies across its global footprint. He described organic growth in the quarter as in line with plans and driven by a high single-digit increase in Medical.

The Quarter in Detail

Net sales were USD 390.8 million, compared with USD 365.6 million a year earlier, and rose 5% from the previous quarter. Of the 7% year-over-year increase, organic growth accounted for 3%, acquisitions for 3% and foreign currency for 1%. GAAP diluted EPS was USD 0.11, against USD 0.40, while adjusted diluted EPS was USD 0.25, against USD 0.49.

Gross profit was USD 30.87 million, or 7.9% of net sales, the same percentage as a year earlier. Selling and administrative expenses were USD 18.06 million against USD 13.09 million, and Acquisition costs were USD 1.98 million. Operating income was USD 12.37 million, or 3.2% of net sales, against USD 14.45 million, or 4.0%. Adjusted operating income was USD 16.99 million, or 4.3% of net sales, against USD 17.53 million, or 4.8%. Net Income was USD 2.64 million against USD 10.09 million, with a tax provision of USD 5.16 million against USD 0.91 million.

Verticals, Orders and Cash Position

Automotive sales were USD 170.5 million, up 4%, and Medical sales were USD 115.7 million, up 14%. Industrial sales were USD 104.6 million, up 5%. Open orders stood at USD 690 million, against USD 643 million at June 30 and USD 593 million a year earlier.

Operating activities used USD 19.32 million of cash in the quarter, against USD 8.07 million provided a year earlier, while investing activities used USD 109.73 million and financing activities provided USD 114.03 million. Cash conversion days were 82, equal to the multiyear low of the prior quarter. Debt totaled USD 235.7 million, cash was USD 72.8 million and borrowing capacity was USD 198.0 million. The company spent USD 3.1 million to repurchase 127,000 shares.

Signposts for the Next Quarter

Net sales of USD 390.8 million sit alongside adjusted EPS of USD 0.25, open orders of USD 690 million and cash conversion days of 82. Debt of USD 235.7 million compares with cash of USD 72.8 million.

Management named a short set of items going forward: net sales toward the high end of the USD 1,535 million to USD 1,560 million range, adjusted operating income of 4.4% to 4.7% of net sales, and capital expenditures of USD 50 million to USD 60 million. It also pointed to Helvoet integration and the Indianapolis ramp as medical priorities. A conference call and webcast is scheduled for Thursday, November 5, 2026.