Kimball Electronics Reports Q4 Results; Company Provides Guidance for Fiscal 2027 Highlighted by Organic Sales Growth and Accretive Impact of the Helvoet Acquisition

Kimball Electronics Reports Q4 Results; Company Provides Guidance for Fiscal 2027 Highlighted by Organic Sales Growth and Accretive Impact of the Helvoet Acquisition August 12, 2026 Fourth Quarter 2026 Highlights Net sales of $371.6 million, a 5% sequential increase with all end-market verticals posting gains Operating income of $29.1 million, or 7.8% of net sales; adjusted operating income margin of 4.9% of net sales Cash from operations of $42.4 million, the tenth consecutive quarter of positive operating cash generation Debt of $116.6 million, the lowest level in over 4 years Cash of $88.9 million and borrowing capacity of $322.4 million Cash Conversion Days of 82, the best result in 17 quarters Invested $2.1 million to repurchase 83,000 shares of common stock Company provides guidance for fiscal 2027 highlighted by organic sales growth and the accretive impact of Helvoet Polymer Technologies Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the fourth quarter and full fiscal year ended June 30, 2026. Three Months Ended Fiscal Year Ended June 30, June 30, (Amounts in Thousands, except EPS) 2026 2025 2026 2025 Net Sales $ 371,573 $ 380,472 $ 1,431,378 $ 1,486,727 Operating Income $ 29,081 $ 16,474 $ 66,057 $ 45,535 Adjusted Operating Income (non-GAAP) $ 18,112 $ 19,638 $ 65,735 $ 61,267 Operating Income % 7.8 % 4.3 % 4.6 % 3.1 % Adjusted Operating Income (non-GAAP) % 4.9 % 5.2 % 4.6 % 4.1 % Net Income $ 8,518 $ 6,581 $ 27,960 $ 16,984 Adjusted Net Income (Loss) (non-GAAP) $ (163 ) $ 8,438 $ 27,045 $ 28,156 Diluted EPS $ 0.35 $ 0.26 $ 1.13 $ 0.68 Adjusted Diluted EPS (non-GAAP) $ (0.01 ) $ 0.34 $ 1.09 $ 1.12 Commenting on today’s announcement, Richard D. Phillips, Chief Executive Officer, stated, “I’m proud of our results in the fourth quarter and very good finish to fiscal 2026. Sales in Q4 were in line with expectations, adjusted operating income was better than estimates, and we generated strong cash from operations, which was used to pay down debt to its lowest level in over 4 years. Our balance sheet continued to strengthen and we are actively leveraging it to make strategic investments in growth in the medical CDMO space, such as the buildout of our new medical facility in Indianapolis and the acquisition of Helvoet Polymer Technologies.” Mr. Phillips continued, “Our guidance for fiscal 2027 is highlighted by organic sales growth and the accretive impact from Helvoet. We are expecting Medical to continue to outpace the other two verticals and represent more than one-third of total Company sales in the fiscal year, which is in line with our objective to balance the portfolio across the markets we serve. Our strategic journey continues to build, and so does my excitement for the future of this Company.” Fiscal Year 2026 Highlights Net sales totaled $1,431.4 million, with Medical increasing over 10%, after normalizing fiscal 2025 for a consigned inventory saleOperating income of $66.1 million, or 4.6% of net sales, adjusted operating income margin of 4.6% of net salesCash generated from operating activities of $72.3 millionInvested $11.9 million to repurchase 447,000 shares of common stock Net Sales by Vertical Market for Q4 and Full Year Fiscal 2026: Three Months Ended Fiscal Year Ended June 30, June 30, (Amounts in Millions) 2026 * 2025(2) * Percent Change 2026 * 2025(2) * Percent Change Automotive $ 169.7 46 % $ 175.0 46 % (3 )% $ 656.9 46 % $ 708.5 47 % (7 )% Medical 108.8 29 % 107.2 28 % 1 % 412.8 29 % 396.2 27 % 4 % Industrial excluding AT&M (1) 93.1 25 % 98.3 26 % (5 )% 361.7 25 % 379.9 26 % (5 )% Net Sales excluding AT&M(1) $ 371.6 100 % $ 380.5 100 % (2 )% $ 1,431.4 100 % $ 1,484.6 100 % (4 )% AT&M(1) — — % — — % — % — — % 2.1 — % (100 )% Total Net Sales $ 371.6 100 % $ 380.5 100 % (2 )% $ 1,431.4 100 % $ 1,486.7 100 % (4 )% * As a percent of Total Net Sales (1) Sales from our Automation, Test, and Measurement business (AT&M), which was divested effective July 31, 2024, were previously included in the industrial vertical (2) Beginning in the first quarter of fiscal year 2026, sales to customers related to commercial transportation, previously included in the automotive vertical, are now reflected in the industrial vertical; prior periods have been recast to conform to current period presentation: $8.8 million for the three months ended June 30, 2025 and $29.4 million for the fiscal year ended June 30, 2025  - Automotive includes electronic power steering, electronic braking systems, and body controls - Medical includes sleep therapy and respiratory care, AED, surgical devices, in vitro diagnostics, image guided therapy, drug delivery/autoinjectors, patient monitoring, and blood separation - Industrial includes climate controls, public safety, smart metering, off highway equipment/commercial transportation, IoT and factory automation, efficient energy, and automation controls “As we expected, fiscal 2026 was a year of transition and I am impressed with our team’s resilience and ability to deliver results in a challenging environment. As a CFO who takes great pride in the condition of our balance sheet, we exited the fiscal year in a position of strength, with plenty of dry powder in the form of borrowing capacity and available cash to strategically invest. Our guidance for fiscal 2027 projects a return to top line growth and we will be leveraging the balance sheet to support those efforts.” Jana T. Croom Chief Financial Officer Fiscal Year 2027 Guidance Net sales in the range of $1,535 - $1,560 million, a 7% - 9% increase compared to fiscal 2026Organic sales growth of 3% - 5%, with Medical increasing in the high single to low double-digit rangeHelvoet sales of approximately $60 millionAdjusted operating income of 4.4% - 4.7% of net salesCapital expenditures of $50 - $60 million Forward-Looking Statements Certain statements contained within this release are considered forward-looking, including our guidance, under the Private Securities Litigation Reform Act of 1995. The statements may be identified by the use of words such as “expect,” “should,” “goal,” “predict,” “will,” “future,” “optimistic,” “confident,” and “believe.” Undue reliance should not be placed on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. These forward-looking statements are subject to risks and uncertainties including, without limitation, global economic conditions, geopolitical environment and conflicts such as war, global health emergencies, availability or cost of raw materials and components, tariffs and other trade barriers, foreign exchange rate fluctuations, and our ability to convert new business opportunities into customers and revenue. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the company are contained in its Annual Report on Form 10-K for the year ended June 30, 2025. Non-GAAP Financial Measures This press release contains non-GAAP financial measures. The non-GAAP financial measures contained herein include constant currency growth, net sales excluding Automation, Test & Measurement, adjusted selling and administrative expenses, adjusted operating income, adjusted EBITDA, adjusted net income, adjusted diluted EPS, and normalized sales growth. Reconciliations of the reported GAAP numbers to these non-GAAP financial measures are included in the Reconciliation of Non-GAAP Financial Measures section below. Management believes these measures are useful and allow investors to meaningfully trend, analyze, and benchmark the performance of the company’s core operations. The company’s non-GAAP financial measures are not necessarily comparable to non-GAAP information used by other companies. About Kimball Electronics/Kimball Solutions Kimball Electronics is a global, multifaceted manufacturer offering Electronics Manufacturing Services (EMS) and Contract Development and Manufacturing Organization (CDMO) solutions to customers around the world. From our operations in the United States, China, India, Mexico, The Netherlands, Poland, Romania, and Thailand, our teams are proud to provide manufacturing services for a variety of industries. Recognized for a reputation of excellence, we are committed to a high-performance culture that values quality, reliability, value, speed, and ethical behavior. Kimball Electronics, Inc. (Nasdaq: KE) is headquartered in Jasper, Indiana. To learn more about Kimball Electronics, visit www.kimballelectronics.com. Lasting relationships. Global success. Condensed Consolidated Statements of Income (Unaudited) Three Months Ended (Amounts in Thousands, except Per Share Data) June 30, 2026 June 30, 2025 Net Sales $ 371,573 100.0 % $ 380,472 100.0 % Cost of Sales 338,624 91.1 % 349,991 92.0 % Gross Profit 32,949 8.9 % 30,481 8.0 % Selling and Administrative Expenses 17,989 4.9 % 13,163 3.5 % Restructuring Expense 894 0.2 % 1,971 0.5 % Gain on Disposal (15,015 ) (4.0 )% (1,127 ) (0.3 )% Operating Income 29,081 7.8 % 16,474 4.3 % Interest Income 515 0.1 % 196 0.1 % Interest Expense (1,984 ) (0.5 )% (2,776 ) (0.7 )% Non-Operating Income (Expense), net (1,161 ) (0.3 )% (1,177 ) (0.4 )% Other Income (Expense), net (2,630 ) (0.7 )% (3,757 ) (1.0 )% Income Before Taxes on Income 26,451 7.1 % 12,717 3.3 % Provision (Benefit) for Income Taxes 17,933 4.8 % 6,136 1.6 % Net Income $ 8,518 2.3 % $ 6,581 1.7 % Earnings Per Share of Common Stock: Basic $ 0.35 $ 0.27 Diluted $ 0.35 $ 0.26 Average Number of Shares Outstanding: Basic 24,330 24,552 Diluted 24,547 24,840 (Unaudited) Fiscal Year Ended (Amounts in Thousands, except Per Share Data) June 30, 2026 June 30, 2025 Net Sales $ 1,431,378 100.0 % $ 1,486,727 100.0 % Cost of Sales 1,313,910 91.8 % 1,382,323 93.0 % Gross Profit 117,468 8.2 % 104,404 7.0 % Selling and Administrative Expenses 61,155 4.3 % 50,270 3.4 % Restructuring Expense 4,977 0.3 % 10,990 0.7 % Gain on Disposal (14,721 ) (1.0 )% (2,391 ) (0.2 )% Operating Income 66,057 4.6 % 45,535 3.1 % Interest Income 1,232 0.1 % 771 0.1 % Interest Expense (8,504 ) (0.6 )% (14,745 ) (1.0 )% Non-Operating Income (Expense), net (5,564 ) (0.4 )% (5,332 ) (0.4 )% Other Income (Expense), net (12,836 ) (0.9 )% (19,306 ) (1.3 )% Income Before Taxes on Income 53,221 3.7 % 26,229 1.8 % Provision (Benefit) for Income Taxes 25,261 1.7 % 9,245 0.7 % Net Income $ 27,960 2.0 % $ 16,984 1.1 % Earnings Per Share of Common Stock: Basic $ 1.14 $ 0.68 Diluted $ 1.13 $ 0.68 Average Number of Shares Outstanding: Basic 24,501 24,782 Diluted 24,768 25,017 Condensed Consolidated Statements of Cash Flows Fiscal Year Ended (Unaudited) June 30, (Amounts in Thousands) 2026 2025 Net Cash Flow provided by Operating Activities $ 72,267 $ 183,937 Net Cash Flow used for Investing Activities (25,947 ) (14,700 ) Net Cash Flow used for Financing Activities (47,050 ) (160,874 ) Effect of Exchange Rate Change on Cash, Cash Equivalents, and Restricted Cash 904 2,325 Net Increase in Cash, Cash Equivalents, and Restricted Cash 174 10,688 Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 89,467 78,779 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 89,641 $ 89,467 (Unaudited) Condensed Consolidated Balance Sheets June 30, 2026 June 30, 2025 (Amounts in Thousands) ASSETS Cash and cash equivalents $ 88,925 $ 88,781 Receivables, net 218,840 222,623 Contract assets 70,497 71,812 Inventories 271,906 273,500 Prepaid expenses and other current assets 42,836 36,027 Assets held for sale — 6,861 Property and Equipment, net 274,192 264,804 Goodwill 6,191 6,191 Other Intangible Assets, net 1,921 2,427 Other Assets, net 116,762 104,286 Total Assets $ 1,092,070 $ 1,077,312 LIABILITIES AND SHARE OWNERS’ EQUITY Current portion of long-term debt $ 8,202 $ 17,400 Accounts payable 234,361 218,805 Advances from customers 30,672 35,867 Accrued expenses 58,860 46,489 Long-term debt, less current portion 108,000 129,650 Other long-term liabilities 66,843 59,217 Share Owners’ Equity 585,132 569,884 Total Liabilities and Share Owners’ Equity $ 1,092,070 $ 1,077,312 Other Financial Metrics (Unaudited) (Amounts in Millions, except CCD) At or For the Three Months Ended June 30, March 31, June 30, 2026 2026 2025 Cash Conversion Days (CCD)(1) 82 90 85 Open Orders(2) $ 643 $ 602 $ 642 (1) Cash Conversion Days (“CCD”) are calculated as the sum of Days Sales Outstanding plus Contract Asset Days plus Production Days Supply on Hand less Accounts Payable Days and less Advances from Customers Days. CCD, or a similar metric, is used in our industry and by our management to measure the efficiency of managing working capital. (2) Open Orders are the aggregate sales price of production pursuant to unfulfilled customer orders. The total reported for June 30, 2025 has been revised to $642 million, from the $702 million originally reported, to more accurately reflect the calculation of open order activity impacting all three verticals. Select Financial Results of Automation, Test and Measurement (Unaudited) (Amounts in Millions) Three Months Ended Fiscal Year Ended June 30, June 30, 2026 2025 2026 2025 Net Sales $ — $ — $ — $ 2.1 Operating Income (Loss)(1) $ — $ 1.1 $ (0.4 ) $ 2.0 (1) Includes gain (loss) on sale adjustments following the close of the sale on July 31, 2024: ($0.4 million) for fiscal year 2026, $1.1 million for the three months ended June 30, 2025, and $2.4 million for fiscal year 2025. Reconciliation of Non-GAAP Financial Measures (Unaudited, Amounts in Thousands, except Per Share Data) Three Months Ended Fiscal Year Ended June 30, June 30, 2026 2025 2026 2025 Net Sales Growth (vs. same period in prior year) (2 )% (12 )% (4 )% (13 )% Foreign Currency Exchange Impact 1 % 1 % 2 % 1 % Constant Currency Growth (3 )% (13 )% (6 )% (14 )% Selling and Administrative Expenses, as reported $ 17,989 $ 13,163 $ 61,155 $ 50,270 Stock Compensation Expense (2,196 ) (1,991 ) (8,232 ) (6,519 ) SERP (432 ) (329 ) (666 ) (614 ) Acquisition Costs (524 ) — (524 ) — Adjusted Selling and Administrative Expenses $ 14,837 $ 10,843 $ 51,733 $ 43,137 Operating Income, as reported $ 29,081 $ 16,474 $ 66,057 $ 45,535 Stock Compensation Expense 2,196 1,991 8,232 6,519 SERP 432 329 666 614 Restructuring Expense 894 1,971 4,977 10,990 Asset Impairment (Gain on Disposal) (15,015 ) (1,127 ) (14,721 ) (2,391 ) Acquisition Costs 524 — 524 — Adjusted Operating Income $ 18,112 $ 19,638 $ 65,735 $ 61,267 Adjusted Operating Income $ 18,112 $ 19,638 $ 65,735 $ 61,267 Depreciation & Amortization 10,041 9,582 38,705 36,994 Adjusted EBITDA $ 28,153 $ 29,220 $ 104,440 $ 98,261 Net Income, as reported $ 8,518 $ 6,581 $ 27,960 $ 16,984 Stock Compensation Expense, After-Tax 1,665 1,510 6,242 4,944 Restructuring Expense, After-Tax 644 1,474 3,610 8,314 Asset Impairment (Gain on Disposal), After-Tax (11,387 ) (1,127 ) (11,164 ) (2,086 ) Acquisition Costs, After-Tax 397 — 397 — Adjusted Net Income (Loss) $ (163 ) $ 8,438 $ 27,045 $ 28,156 Diluted Earnings per Share, as reported $ 0.35 $ 0.26 $ 1.13 $ 0.68 Stock Compensation Expense 0.07 0.06 0.25 0.19 Restructuring Expense 0.03 0.06 0.15 0.33 Asset Impairment (Gain on Disposal) (0.47 ) (0.04 ) (0.45 ) (0.08 ) Acquisition Costs 0.01 — 0.01 — Adjusted Diluted Earnings (Loss) per Share $ (0.01 ) $ 0.34 $ 1.09 $ 1.12 Reconciliation of Non-GAAP Financial Measures (Unaudited, Amounts in Thousands, except Per Share Data) Three Fiscal Months Ended Year Ended March 31, June 30, 2026 2026 Net Sales Growth (vs. same period in prior year), Consolidated (6 )% (4 )% Non-Recurring Consignment Inventory Sales Impact(1) 7 % 2 % Normalized Sales Growth, Consolidated 1 % (2 )% Net Sales Growth (vs. same period in prior year), Medical Vertical (8 )% 4 % Non-Recurring Consignment Inventory Sales Impact(1) 25 % 7 % Normalized Sales Growth, Medical Vertical 17 % 11 % (1) Q3’26 included a non-recurring inventory sale of $24 million to a customer for completed programs. Andrew D. Regrut Vice President, Investor Relations, Strategic Development, and Treasurer 812.827.4151 [email protected] Source: Kimball Electronics, Inc.