The Marketing Minute: Why I Wrote 'Marketing in 17 Minutes'
Happy’s Tech Talk #49: Stop! Do You Have a Digital Strategy for the Future?
It’s Only Common Sense: Why Engineering Expertise Has Become the Ultimate Competitive Advantage
Kimball Electronics, Inc. announced financial results for the fourth quarter and full fiscal year ended June 30, 2026.
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 sale
- Operating income of $66.1 million, or 4.6% of net sales, adjusted operating income margin of 4.6% of net sales
- Cash generated from operating activities of $72.3 million
- Invested $11.9 million to repurchase 447,000 shares of common stock
“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,” said 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 2026
- Organic sales growth of 3% - 5%, with Medical increasing in the high single to low double-digit range
- Helvoet sales of approximately $60 million
- Adjusted operating income of 4.4% - 4.7% of net sales
- Capital expenditures of $50 - $60 million
