Kimball Electronics (KE) Fiscal Q4 2026 Earnings Call: Medical Growth and FY2027 Guidance
Source Tradingkey
Key Takeaways
- Kimball Electronics (NASDAQ: KE) reported fiscal Q4 2026 net sales of $371.6 million, down 2% year over year but up 5% sequentially, with all three vertical markets improving from Q3.
- Gross margin increased 90 basis points to 8.9%. Adjusted operating income was $18.1 million, or 4.9% of sales, versus $19.6 million and 5.2% a year earlier.
- Medical remained the main growth driver. Q4 Medical sales rose 1% to $109 million, while normalized fiscal 2026 Medical growth exceeded 10% after adjusting for the prior-year consigned inventory sale.
- Operating cash flow reached $42.4 million in Q4, marking the tenth consecutive positive quarter. Borrowings fell 21% year over year to $116.6 million, the lowest level in more than four years.
- Management expects fiscal 2027 sales of $1.535 billion to $1.56 billion, representing 7% to 9% growth, including 3% to 5% organic growth and approximately $60 million from Helvoet Polymer Technologies.
- The Indianapolis medical CDMO facility is expected to begin early production near the end of calendar 2026. Management estimates its fiscal 2027 earnings drag at approximately $6.5 million to $7 million, roughly offset by Helvoet’s accretive contribution.
Core Financial Data
| Metric | Fiscal Q4 2026 | Change / context |
|---|---|---|
| Net sales | $371.6 million | Down 2% year over year; up 5% sequentially |
| Gross margin | 8.9% | Up 90 basis points year over year |
| Adjusted operating income | $18.1 million | Versus $19.6 million a year earlier |
| Adjusted operating margin | 4.9% | Versus 5.2% a year earlier |
| EBITDA | $28.2 million | 7.6% margin |
| Net income | $8.5 million | $0.35 per diluted share |
| Adjusted net result | Loss of $163,000 | Loss of $0.01 per diluted share, affected by the tax rate |
| Operating cash flow | $42.4 million | Tenth consecutive quarter of positive cash generation |
| Cash and cash equivalents | $88.9 million | As of June 30, 2026 |
| Borrowings | $116.6 million | Down $30.9 million, or 21%, year over year |
| Cash conversion days | 82 days | Improved by eight days sequentially and three days year over year |
| Q4 capital expenditures | $8.5 million | Primarily Indianapolis improvements and European program investments |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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