Kimball Electronics, Inc. (KE) Earnings Call Transcripts

Kimball Electronics, Inc.'s Latest Earnings Call - Q3 FY2026

In Q3 FY 2026, Kimball Electronics reported net sales of $353 million, a 3.4% sequential increase, driven primarily by a 10% growth in the Medical vertical. However, year-over-year sales declined by 6% due to a nonrecurring inventory sale last year. Management affirmed its fiscal 2026 revenue guidance of $1.4 billion to $1.46 billion, with adjusted operating income margin expected at the high end of the range, indicating a strong finish to the fiscal year.

Reported metrics

Guidance from management

Management affirmed their revenue guidance for FY 2026 at $1.4 billion to $1.46 billion, expecting adjusted operating income margin at the high end of the range of 4.2% to 4.5%. They anticipate Q4 sales in the range of $370 million to $380 million.

What management said

So Mike, to give you a little more color on the margin impact. We expect a 40 to 50 basis point impact to gross margin in fiscal '2y related to the costs associated with ramping that facility. Because remember, we still have all the costs associated with the current facility. We have not closed that facility, it's continuing to operate. And so you're going to feel it. We will feel it in FY '27 while we're bringing on...

In terms of calendar -- it depends on the timing of the -- it depends on the timing and speed of the ramp of new business, which is difficult to predict until -- I'm hesitant to give you for sure. But first half, we'll definitely feel it because there won't be much production there covering the expense. It depends on how Q3 and Q4 ramp as we are bringing in new business. And I can give you a better update on that in ...

What analysts pressed on

Analysts expressed concerns regarding the Automotive segment's dependence on macroeconomic conditions, particularly the demand for EV programs. There were also inquiries about the ramp-up timeline for the new Indianapolis facility and its impact on margins.

Main topics on the call

• Medical Vertical Growth — Medical sales increased to $106 million, representing 30% of total sales and a robust 17% year-over-year growth when adjusted for last year's inventory sale. Management stated, "This would represent our third consecutive...
• Automotive Market Challenges — Automotive sales declined 3% year-over-year to $161 million, with management noting that demand for electronic steering systems for EVs has been impacted by macroeconomic factors. They stated, "The biggest pressure there...
• Operational Efficiency — The company achieved positive cash flow for the ninth consecutive quarter, with cash generated from operations amounting to $14.9 million. Management emphasized their focus on improving cash conversion days, which improv...
• Guidance Affirmation — Management affirmed their revenue guidance for FY 2026, projecting sales between $1.4 billion and $1.46 billion, and adjusted operating income margin at the high end of 4.2% to 4.5%. They expect Q4 sales to be in the ran...

Read the full Kimball Electronics, Inc. transcript (Q3 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 28 Kimball Electronics, Inc. earnings call transcripts on record, spanning February 6, 2020 to July 1, 2026. Based on this history, Kimball Electronics, Inc. reports quarterly. The most recent call on file is dated July 1, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

KE

Exchange

NasdaqGS

Country

US

Sector

Information Technology

Industry

Electronic Equipment, Instruments and Components

Calls on record

28

First call

February 6, 2020

Most recent

July 1, 2026

Reporting cadence

quarterly