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Kimball Electronics Inc (KE)
NASDAQ:KE
Earnings Data
Report Date
May 12, 2026After Close (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
0.34Last Year’s EPS
0.27Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
Balanced but cautiously optimistic. The company delivered clear progress on strategic initiatives — notably strong Medical growth (+15% YoY), improved gross and operating margins (+160 bps gross margin improvement; adjusted operating income up to 4.5% of sales), positive operating cash flow for eight consecutive quarters, reduced net debt versus prior year and raised FY26 revenue and margin guidance. Offsetting these positives are a 5% decline in consolidated sales, a material 13% decline in Automotive (48% of sales), near-term margin drag from the Indianapolis CMO ramp, and an unusually high Q2 tax rate. Given the combination of sustainable Medical momentum, raised guidance and improved margins and liquidity, tempered by near-term headwinds in Automotive/Industrial and facility ramp costs, the call skews positive overall.Company Guidance
Medical Vertical Strong Growth
Medical sales of $96.0M in Q2, up 15% year-over-year and representing 28% of company sales; fourth consecutive quarter of YoY revenue growth in Medical with growth driven by Poland and Thailand and balanced contributions across North America, Europe and Asia.
Raised Full-Year Guidance
Fiscal 2026 net sales guidance raised to $1.40B–$1.46B (prior: $1.35B–$1.45B) driven by Medical strength and Automotive program ramps in Europe; adjusted operating income guidance increased to 4.2%–4.5% of net sales (prior: 4.0%–4.25%).
Gross Margin and Operating Margin Improvement
Q2 gross margin rate improved to 8.2% from 6.6% in prior-year period, a +160 basis point improvement; adjusted operating income of $15.3M, or 4.5% of net sales, versus $13.3M or 3.7% last year.
Positive Operating Cash Flow and Strong Liquidity
Operating cash flow in Q2 was $6.9M — the eighth consecutive quarter of positive cash from operations. Cash and cash equivalents of $77.9M and combined short-term liquidity (cash + unused credit) of $363M at quarter end.
Lower Interest Expense and Reduced Debt
Other expense improved to $3.8M from $4.8M a year ago with interest expense down ~50% YoY. Total borrowings of $154M were down ~$51M (~25%) compared to a year ago.
Inventory and Working Capital Progress
Inventory decreased to $281.7M, down $24.5M (8%) year-over-year. Cash conversion days were 91 days, a 16-day improvement versus Q2 FY25 despite an 8-day increase from the prior quarter; management expects continuing focus and improvement.
Strategic Investments and New CMO Capacity
Grand opening of a 300,000 sq ft medical CMO facility in Indianapolis (adds U.S. capacity for single-use surgical instruments, drug delivery devices and plastic injection molding). Company is rebranding to "Kimball Solutions" to reflect expanded capabilities and pursuing disciplined M&A to expand customers and capabilities.
Shareholder Returns
Repurchased $4.3M of stock in Q2 (149,000 shares); since program inception $109.5M returned to shareholders (6.8M shares) with $10.5M remaining on the repurchase authorization.
KE Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
KE Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 04, 2026 | $30.72 | $23.55 | -23.34% |
Nov 05, 2025 | $30.38 | $28.16 | -7.31% |
Aug 13, 2025 | $20.97 | $24.71 | +17.84% |
May 06, 2025 | $14.71 | $18.38 | +24.95% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Kimball Electronics Inc (KE) report earnings?
Kimball Electronics Inc (KE) is schdueled to report earning on May 12, 2026, After Close (Confirmed).
What is Kimball Electronics Inc (KE) earnings time?
Kimball Electronics Inc (KE) earnings time is at May 12, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is KE EPS forecast?
KE EPS forecast for the fiscal quarter 2026 (Q3) is 0.34.