Q2 2025 Kimball Electronics Inc Earnings Call Transcript
Key Points
- Kimball Electronics Inc (KE) reported positive cash flow from operating activities for the fourth consecutive quarter.
- The company successfully reduced inventory levels by $149 million or 33% year-over-year.
- Debt was significantly reduced, with borrowings nearly 40% lower than a year ago.
- Kimball Electronics Inc (KE) is strategically repositioning for growth with a restructuring plan, including divesting non-core assets and focusing on medical CMO.
- The company was recognized with the highest overall customer rating in all seven categories by Circuits Assembly Service Excellence Awards.
- Net sales in the second quarter declined by 13% year-over-year, excluding A T&M, with significant declines in North America and Europe.
- The automotive segment experienced a 4% decrease in net sales compared to the previous year.
- The medical segment saw a 22% decrease in net sales, primarily due to program end-of-life and impacts from an FDA recall.
- Industrial net sales were down 20% year-over-year, with declines in smart metering programs and other areas.
- Kimball Electronics Inc (KE) revised its fiscal year 2025 guidance downward, anticipating more time needed to stabilize the business and return to historical growth patterns.
Good morning. Ladies and gentlemen, welcome to the Kimball Electronics second quarter, fiscal 2025 earnings conference call. My name is Darryl and I will be the facilitator for today's call. All lines have been placed in a listen-only mode to prevent any background noise. After the completion of the prepared remarks from the Kimball Electronics leadership team, there will be a question-and-answer period to ask a question.
Simply press star and then the number one on your telephone keypad. Today's call February 5th 2025 is being recorded. A replay of the call will be available on the investor relations page of the Kimball Electronics website. At this time, I would like to turn the call over to Andrew Regrut, treasurer and investor relations officer, Mr Regrut. You may begin.
Thank you and good morning, everyone. Welcome to our second quarter conference call with me here. Today is Rick Phillips, our Chief Executive Officer, Steve Corn, Chief Operating Officer and Janet
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