Q4 2025 Kimball Electronics Inc Earnings Call Transcript
Key Points
- Kimball Electronics Inc (KE) reported a better-than-expected Q4 with sequential sales increase and improved margins.
- The company achieved its sixth consecutive quarter of positive cash flow, which was used to pay down debt, strengthening its balance sheet.
- The Medical business grew year over year, with a significant increase in sales from its largest medical customer.
- The new 300,000-square-foot medical facility in Indianapolis is set to expand production capabilities and support future growth.
- Kimball Electronics Inc (KE) has a strong focus on high-complexity, high-reliability programs, aligning well with its medical CMO strategy.
- Net sales for Q4 were $381 million, an 8% decline compared to the previous year when excluding divested businesses.
- The Automotive segment saw a 13% decrease in net sales due to the loss of an electronic braking program.
- Industrial sales declined by 12% year over year, with broad-based declines in North America and Europe.
- The gross margin rate in Q4 decreased by 50 basis points compared to the same period last year.
- Fiscal 2026 is expected to be a year of transition with a projected 2% to 9% decrease in net sales compared to fiscal 2025.
Good morning, ladies and gentlemen. Welcome to the Kimball Electronics fourth-quarter fiscal 2025 earnings conference call.
My name is [Darryl]. I will be the facilitator for today's call.
(Operator Instructions) Today's call, August 14, 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 Andy Regrut, Treasurer and Investor Relations Officer. Mr. Regrut, you may begin.
Thank you. Good morning, everyone. Welcome to our fourth-quarter conference call.
With me here today is Ric Phillips, our Chief Executive Officer; and Jana Croom, Chief Financial Officer.
We issued a press release yesterday afternoon, with our results for the fourth-quarter and full fiscal year ended June 30, 2025. To accompany today's call, a presentation has been posted to the Investor Relations page on our company website.
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