Q2 2026 Kimball Electronics Inc Earnings Call Transcript

Feb 5, 2026 / 03:00 PM GMT

Release Date Price: €25.8 (-0.77%)

Transcript 10-Q8-K

Key Points

Positve

Kimball Electronics Inc (KE) reported strong double-digit year-over-year growth in the medical vertical, marking the fourth consecutive quarter of revenue growth in this segment.
The company achieved an 8th consecutive quarter of positive cash flow from operations, demonstrating strong financial management.
Margins improved compared to the same period last year, with a 160 basis point increase in gross margin rate.
The company is expanding its capabilities with the grand opening of a new medical manufacturing facility in Indianapolis, which is expected to drive future growth.
Kimball Electronics Inc (KE) raised its guidance for fiscal 2026, driven by strength in the medical vertical and ramping automotive programs in Europe.

Negative

Net sales for the quarter were $341 million, representing a 5% decline compared to the same period last year.
The automotive segment experienced a 13% decline in sales, primarily due to lower sales in North America and pressure from tariffs.
Sales in the industrial segment decreased by 5% compared to the previous year, with significant declines in North America.
The effective tax rate for the quarter was significantly higher at 47.9%, driven by tax adjustments related to the sale of the Tampa facility.
The company anticipates a short-term drag on margins due to the costs associated with opening the new Indianapolis facility and running dual operations during the transition.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

KE.OQ - Kimball Electronics Inc
Q2 2026 Kimball Electronics Inc Earnings Call
Feb 05, 2026 / 03:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning ladies and gentlemen.

Welcome to the Kimball Electronics second quarter fiscal 2026 earnings conference call.

My name is Alicia and I'll be your 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 the question, simply press star and the number one on your telephone keypad.

Today's call, February 5, 2026 is being recorded.

A replay of the call will be available on the Invest relations page of the Kimball Electronics website.

At this

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