Kimball Electronics(US:KE)2025-11-05 21:45Revenue and Sales Performance - Revenue for Q1 fiscal 2026 was $365.6 million, a decrease of 2% compared to Q1 fiscal 2025[5] - Medical vertical sales increased by 13% year-over-year, while automotive sales decreased by 10%[6] - Net sales for the three months ended September 30, 2025, were $0 million, compared to $2.1 million for the same period in 2024[23] - Net sales growth decreased by 2% compared to the same period in the prior year, while constant currency growth declined by 3%[24] - The company reiterated its fiscal 2026 guidance, expecting net sales between $1,350 million and $1,450 million, with adjusted operating income of 4.0% to 4.25% of net sales[9] - Open orders totaled $593 million, reflecting a decrease from $642 million at the end of the previous quarter[21] Income and Earnings - Operating income was $14.5 million, representing 4.0% of net sales, with adjusted operating income at 4.8%, up 140 basis points year-over-year[5] - Net income reached $10.1 million, or $0.40 per diluted share, with adjusted EPS of $0.49, more than double that of Q1 fiscal 2025[5] - Operating income for the three months ended September 30, 2025, was $0 million, compared to $0.8 million for the same period in 2024[23] - Reported net income for the three months ended September 30, 2025, was $10.1 million, compared to $3.2 million in 2024[24] - Adjusted diluted earnings per share for the three months ended September 30, 2025, increased to $0.49 from $0.22 in 2024[24] Cash Flow and Debt Management - Cash from operations was $8.1 million, marking the seventh consecutive quarter of positive cash generation[5] - Total debt decreased by $9.5 million to $138.0 million, with a borrowing capacity of $294.3 million[5] - Cash Conversion Days improved to 83, the lowest level in three years[5] - The company invested $1.5 million to repurchase 49,000 shares of common stock[5] Restructuring and Capital Management - The company reported a restructuring expense of $1.4 million for the three months ended September 30, 2025, compared to $2.3 million in 2024[24] - The average invested capital for the twelve months ended September 30, 2025, was $669.5 million, down from $773.0 million in 2024[24] - Return on invested capital (ROIC) for the twelve months ended September 30, 2025, was 6.4%, compared to 7.3% in 2024[24] - The company recognized a gain on sale of $1.3 million following the close of a sale on July 31, 2024, impacting the operating income for the three months ended September 30, 2024[23]