UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-36454 KIMBALL ELECTRONICS, INC. (Exact name of registrant as specified in its charter) incorporation or organization) Indiana 35 ...

Kimball Electronics (KE) Q3 2025 Earnings Call May 07, 2025 10:00 AM ET Speaker0 Good morning, ladies and gentlemen, and welcome to the Kimball Electronics Third Quarter Fiscal twenty twenty five Earnings Conference Call. My name is Kevin, 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 session. Today's ...

Quarter Ended March 31, 2025 Supplementary Information to the May 7, 2025, Earnings Conference Call & Webcast Lasting relationships. Global success. Kimball Electronics Third Quarter Fiscal 2025 Results Safe Harbor Statement Certain statements contained within this supplementary information, including our fiscal year 2025 guidance, and any statements made during our earnings conference call today may be considered forward-looking under the Private Securities Litigation Reform Act of 1995. The statements may ...

Kimball Electronics (KE) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.85%. A quarter ago, it was expected that this electronics manufacturing services company would post earnings of $0.24 per share when it actually produced earnings of $0.29, delivering a surprise of 20.83%.Over ...

Financial Performance - Net sales for Q3 fiscal 2025 totaled $374.6 million, a decrease of 12% compared to $425.0 million in Q3 fiscal 2024[4] - Operating income for Q3 was $11.7 million, representing 3.1% of net sales, with adjusted operating income at 4.2%[4] - Net sales for the three months ended March 31, 2025, were $374.6 million, a decrease of 11.8% compared to $425.0 million for the same period in 2024[19] - Gross profit margin decreased to 7.2% for the three months ended March 31, 2025, down from 7.9% in the prior year[19] - Operating income improved to $11.7 million for the three months ended March 31, 2025, compared to an operating loss of $6.4 million in the same period last year[19] - Net income for the three months ended March 31, 2025, was $3.8 million, a significant recovery from a net loss of $6.1 million in the prior year[19] - Net sales growth for the three months ended March 31, 2025, decreased by 12% compared to the same period in the prior year[25] - Adjusted operating income for the nine months ended March 31, 2025, was $41,629, down from $58,802 in the prior year[25] - Adjusted net income for the nine months ended March 31, 2025, was $19,718, compared to $31,607 in the prior year[25] - Operating income for the twelve months ended March 31, 2025, was $48,669, compared to $61,118 in the prior year[25] - Return on invested capital (ROIC) for the twelve months ended March 31, 2025, was 6.1%, down from 9.0% in the prior year[25] Cash Flow and Liquidity - Cash generated from operating activities was $30.9 million, marking the fifth consecutive quarter of positive cash flow[4] - Cash flow from operating activities for the nine months ended March 31, 2025, was $105.9 million, a substantial increase from $24.7 million in the same period of 2024[20] - The company has cash and cash equivalents of $51.4 million and available borrowing capacity of $253.2 million[4] - Borrowings on credit facilities decreased by $26.2 million from Q2, totaling $178.8 million, and down $116 million, or 40%, year-to-date[4] Inventory and Orders - Inventory decreased by $9.6 million from Q2 to $296.6 million[4] - The company reported a decrease in open orders to $642 million as of March 31, 2025, compared to $831 million a year earlier, primarily due to demand reductions[22][23] Expenses and Restructuring - Selling and administrative expenses for the three months ended March 31, 2025, were reported at $13,154, down from $16,861 in the prior year[25] - The company incurred restructuring expenses of $2.0 million for the three months ended March 31, 2025, compared to $1.6 million in the same period of 2024[19] - Restructuring expenses for the twelve months ended March 31, 2025, totaled $9,783, compared to $1,622 in the prior year[25] - Stock compensation expense for the nine months ended March 31, 2025, was $4,528, compared to $5,435 in the prior year[25] Future Outlook - The company expects fiscal 2025 net sales to be in the range of $1.40 billion to $1.44 billion, with adjusted operating income projected at 3.4% to 3.6% of net sales[9] - Capital expenditures for fiscal 2025 are estimated to be at the low-end of the guidance range of $40 million to $50 million[9] - A new manufacturing facility in Indianapolis is being added to support the company's strategy to drive growth in the medical CMO sector[4] Earnings Per Share - Basic earnings per share for the three months ended March 31, 2025, was $0.15, a recovery from a loss of $0.24 per share in the same period last year[19] - Diluted earnings per share, as reported, for the three months ended March 31, 2025, was $0.15, a decrease from $(0.24) in the prior year[25] - Adjusted diluted earnings per share for the nine months ended March 31, 2025, was $0.79, down from $1.25 in the prior year[25] - The current portion of long-term debt decreased to $28.9 million as of March 31, 2025, from $59.8 million in the previous year[21]

Safe Harbor Statement Certain statements contained within this supplementary information, including our fiscal year 2025 guidance, and any statements made during our earnings conference call today may be considered forward-looking 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 ...

Financial Data and Key Metrics Changes - Net sales in Q2 totaled $357 million, a 13% decrease year-over-year, with a 15% decrease when excluding AT and M [10][20] - Gross margin rate in Q2 was 6.6%, a decline of 160 basis points compared to the same period last year [21] - Adjusted net income in Q2 was $7.4 million or $0.29 per diluted share, down from $9.8 million or $0.39 per diluted share in Q2 last year [29] Business Line Data and Key Metrics Changes - Automotive net sales were $193 million, a 4% decrease year-over-year, representing 54% of total company sales [11] - Medical net sales were $84 million, a 22% decrease year-over-year, accounting for 23% of total company sales [14] - Industrial net sales were $81 million, down 20% year-over-year, representing 23% of total company sales [18] Market Data and Key Metrics Changes - North America and Europe experienced double-digit declines, while Asia saw an increase in sales [10] - The automotive business in China showed strong results, with record high production rates [11] Company Strategy and Development Direction - The company is strategically repositioning for growth, focusing on divesting non-core assets and increasing emphasis on the medical CMO [9] - Plans include improved facility utilization and the closing of the Tampa plant [9] - The company aims to elevate its prominence as a CMO by expanding manufacturing capabilities and vertical integration [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a sustained period of declining customer demand and revised expectations for the full fiscal year [10] - The company remains optimistic about future growth opportunities, particularly in the medical vertical [17][42] - Management emphasized the importance of controlling costs and maintaining a strong balance sheet to navigate current challenges [33] Other Important Information - Cash and cash equivalents at the end of Q2 were $53.9 million, with a cash flow generated from operating activities of $29.5 million [29][30] - The company has reduced borrowings by nearly 40% compared to a year ago [8] - A share repurchase program has returned $97.7 million to shareholders since October 2015, with $22.3 million remaining [35] Q&A Session Summary Question: How is the company navigating the tariff situation? - Management is evaluating the impact of tariffs and working with customers to find solutions, including potential shifts in production locations [38][39] Question: What is the current inventory situation? - Inventory has been reduced significantly, and management expects a continued positive trend in inventory reduction over the next six to twelve months [51][56] Question: How is the company tracking its bid and proposal pipeline? - The company is working on disclosing more information regarding its bid pipeline and win rates in the coming quarters [60][61] Question: Is the revised guidance driven by a specific vertical? - The revised guidance reflects broad-based softness across all verticals, although the automotive sector is holding steady due to strength in Asia [84][85] Question: What is the utilization rate in the Jasper facility? - The current utilization rate in the Jasper facility is around 65%, with available capacity for additional customers [80][81]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to KIMBALL ELECTRONICS, INC. (Exact name of registrant as specified in its charter) incorporation or organization) Indiana 35-2047713 (State or other juris ...

Company Performance - Kimball Electronics reported quarterly earnings of $0.29 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, but down from $0.33 per share a year ago, representing an earnings surprise of 20.83% [1] - The company posted revenues of $357.39 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.87%, and down from $421.24 million year-over-year [2] - Over the last four quarters, Kimball Electronics has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - Kimball Electronics shares have declined approximately 6.4% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $369.2 million, and for the current fiscal year, it is $1.06 on revenues of $1.48 billion [7] Industry Outlook - The Zacks Industry Rank for Electronics - Miscellaneous Products is in the top 34% of over 250 Zacks industries, indicating a favorable outlook as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] - The estimate revisions trend for Kimball Electronics is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Financial Performance - Net sales for Q2 Fiscal 2025 totaled $357.4 million, a decrease of 15% compared to $421.2 million in Q2 Fiscal 2024[5] - Operating income was $8.2 million, representing 2.3% of net sales, down from 3.9% in the same quarter last year[5] - Net sales for the three months ended December 31, 2024, were reported at $12.5 million, a decline of 15% compared to the same period in 2023[21] - Adjusted operating income for the six months ended December 31, 2024, was $25,923,000, down from $40,069,000 in the same period of 2023, representing a decrease of approximately 35%[22] - The company reported a net income of $3,432,000 for the three months ended December 31, 2024, compared to $8,290,000 in the same period of 2023, indicating a decline of approximately 59%[22] - The diluted earnings per share for the three months ended December 31, 2024, was $0.14, down from $0.33 in the same period of 2023[22] Cash Flow and Liquidity - Cash generated from operating activities was $29.5 million, marking the fourth consecutive quarter of positive cash flow[5] - Net cash flow provided by operating activities for the six months ended December 31, 2024, was $74,932,000, a significant improvement from a cash outflow of $(17,922,000) in the same period of 2023[18] - Cash conversion days (CCD) improved to 107 days for the three months ended December 31, 2024, compared to 117 days in the same period of 2023[19] Inventory and Assets - Inventory levels decreased by $29 million from Q1 and are down $182 million, or 37%, from peak levels[5] - Total assets decreased to $1,074,436,000 as of December 31, 2024, down from $1,207,919,000 on June 30, 2024, reflecting a reduction of approximately 11%[18] - Open orders decreased to $564 million as of December 31, 2024, down from $836 million in the same period of 2023, primarily due to demand reductions[20] Liabilities and Debt - Borrowings on credit facilities decreased to $205 million, down $90 million, or 30%, from the beginning of the fiscal year[5] - The company’s total liabilities decreased to $536,960,000 as of December 31, 2024, from $667,458,000 on June 30, 2024, reflecting a reduction of approximately 20%[18] Guidance and Forecast - Fiscal year 2025 guidance revised to net sales in the range of $1.40 - $1.44 billion, down from previous guidance of $1.44 - $1.54 billion[8] - Adjusted operating income forecasted at 3.4% - 3.6% of net sales, reduced from the previous guidance of 4.0% - 4.5%[8] - Capital expenditures for Fiscal 2025 are estimated to remain unchanged at $40 - $50 million[8] Market Performance - Sales in the automotive, medical, and industrial vertical markets declined by 4%, 22%, and 20%, respectively[6] Restructuring and Impairment - The company is implementing a restructuring plan, including divestiture of non-core assets and closing the Tampa plant to focus on medical CMO[4] - The company recognized a goodwill impairment of $5,820,000 during the twelve months ended December 31, 2024[23]