Financial Data and Key Metrics Changes - Net sales for Q2 were $341 million, a 5% decline year-over-year, with a 2% favorable impact from foreign exchange [6][11] - The gross margin rate improved to 8.2%, a 160 basis point increase from 6.6% in the same period last year [11] - Adjusted operating income was $15.3 million, or 4.5% of net sales, compared to $13.3 million, or 3.7% of net sales last year [12] Business Line Data and Key Metrics Changes - Medical sales were $96 million, up 15% year-over-year, representing 28% of total company sales [6][10] - Automotive sales totaled $162 million, down 13% year-over-year, accounting for 48% of total sales [8][10] - Industrial sales were $83 million, a 5% decrease year-over-year, making up 24% of total sales [10] Market Data and Key Metrics Changes - Medical vertical growth was driven by increases in Poland and Thailand, while North America remained flat [6][7] - Automotive sales declined primarily in North America due to the transfer of an electronic braking program and tariff pressures [8][9] - Industrial business saw a decline in North America, offset by higher sales in Europe due to a rebound in the smart meter business [10] Company Strategy and Development Direction - The company is focusing on the medical vertical as a key growth area, leveraging its capabilities in a highly regulated industry [5][7] - A rebranding to Kimball Solutions reflects the company's evolution beyond traditional manufacturing services, expanding into design, engineering, and supply chain management [18] - The grand opening of a new medical manufacturing facility in Indianapolis is part of the strategy to enhance capabilities and capacity [5][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the medical vertical's growth potential, driven by megatrends such as an aging population and increasing healthcare access [7] - The company is monitoring the outlook for FY27, particularly in North American automotive and industrial sectors, due to economic concerns and tariff impacts [17] - Management raised guidance for fiscal 2026, expecting net sales to be in the range of $1.4-$1.46 billion, driven by strength in the medical vertical [15][16] Other Important Information - Cash and cash equivalents at the end of Q2 were $77.9 million, with positive cash flow for the eighth consecutive quarter [14] - The company invested $4.3 million in share repurchases during Q2, with a total of $109.5 million returned to shareholders since October 2015 [15] Q&A Session Summary Question: What percentage was Nexteer in December? - Nexteer accounted for 20% of sales in December [23][24] Question: What is the capacity and ramp expectations for the new facility in Indianapolis? - The new facility is 300,000 sq ft, significantly larger than the current footprint, with significant growth opportunities anticipated [26] Question: How should we think about growth in the automotive piece for Q3 and Q4? - Q3 automotive is expected to be flat to slightly up as the company anniversaries the end of the EB100 program [34] Question: What are the win rates and sizes of new programs? - Win rates remain consistent, with larger programs expected from lift and shift opportunities and CMO discussions [36][39] Question: How will the new facility impact margins? - In the near term, the new facility will drag margins due to depreciation and additional expenses, but long-term margins are expected to improve [42][43] Question: How do you see cash cycle days play out in the coming quarters? - Cash conversion days are expected to decrease in Q3 from elevated levels in Q2 [46]

Financial Data and Key Metrics Changes - Net sales for Q2 were $341 million, a 5% decline compared to Q2 last year [6][12] - Gross margin rate improved to 8.2%, a 160 basis point increase from 6.6% in the same period last year [12] - Adjusted operating income was $15.3 million, or 4.5% of net sales, compared to $13.3 million, or 3.7% of net sales last year [13] - Adjusted net income was $6.9 million, or $0.28 per diluted share, compared to $7.4 million, or $0.29 per diluted share last year [15] Business Line Data and Key Metrics Changes - Medical sales were $96 million, up 15% year-over-year, representing 28% of total company sales [6][8] - Automotive sales totaled $162 million, down 13% year-over-year, accounting for 48% of total sales [9] - Industrial sales were $83 million, a 5% decrease compared to Q2 last year, representing 24% of total sales [11] Market Data and Key Metrics Changes - Medical vertical growth was driven by increases in Poland and Thailand, while North America remained flat [7][8] - Automotive sales decline was primarily due to lower sales in North America and China, with some offset from growth in Poland and Romania [9][10] - Industrial business decline was concentrated in North America, with some recovery in Europe [11] Company Strategy and Development Direction - The company is focusing on the medical vertical as a key growth area, leveraging its capabilities in a highly regulated industry [5][8] - A rebranding to Kimball Solutions reflects the company's evolution beyond traditional manufacturing services, expanding into design, engineering, and supply chain management [20] - The grand opening of a new medical manufacturing facility in Indianapolis is part of the strategy to enhance capabilities and capacity [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the medical vertical's growth potential, driven by megatrends such as an aging population and increasing healthcare access [8] - The company raised its guidance for fiscal 2026, expecting net sales between $1.4 billion and $1.46 billion, driven by strength in the medical vertical and automotive programs [17][18] - Management is monitoring the outlook for FY27, particularly in North America automotive and industrial sectors, due to economic concerns and tariff impacts [19] Other Important Information - Cash and cash equivalents at the end of Q2 were $77.9 million, with cash generated from operations at $6.9 million [15][16] - The company invested $4.3 million in share repurchases during Q2, with a total of $109.5 million returned to shareholders since October 2015 [17] - The effective tax rate for Q2 was 47.9%, significantly higher than the previous year due to adjustments related to the sale of the Tampa facility [15] Q&A Session Summary Question: What percentage was Nexteer in December? - Nexteer accounted for 20% of sales in December [25][26] Question: What is the capacity and ramp expectations for the new facility in Indianapolis? - The new facility is 300,000 sq ft, significantly larger than the current footprint, with substantial growth opportunities [28] Question: How should we think about growth in the automotive piece for Q3 and Q4? - Q3 automotive is expected to be flat to slightly up as the company anniversaries the end of the EB100 program [37] Question: What are the win rates and sizes of new programs? - Win rates remain consistent, with larger programs expected from lift and shift opportunities and CMO discussions [39][40] Question: How will the new facility impact margins? - The new facility is expected to drag margins in the near term due to depreciation and additional expenses, but long-term margins are expected to improve [44][45] Question: How do you see cash cycle days play out in the coming quarters? - Cash conversion days are expected to decrease in Q3 from elevated levels in Q2 [49] Question: What are the opportunities in the medical space for acquisitions? - The company is interested in in vitro diagnostics and cardiology as potential areas for expansion [58]

Financial Data and Key Metrics Changes - Net sales for Q2 were $341 million, a 5% decline compared to Q2 last year [5] - The growth margin rate improved to 8.2%, a 160 basis point increase from 6.6% in the same period last year [10] - Adjusted net income was $6.9 million, or $0.28 per diluted share, compared to $7.4 million, or $0.29 per diluted share last year [12] - Cash generated by operating activities was $6.9 million, marking the eighth consecutive quarter of positive cash flow [13] - The company raised its guidance for fiscal 2026, expecting net sales in the range of $1.4-$1.46 billion, up from previous guidance of $1.35-$1.45 billion [15] Business Line Data and Key Metrics Changes - Medical sales were $96 million, up 15% year-over-year, representing 28% of total company sales [5] - Automotive sales totaled $162 million, down 13% year-over-year, accounting for 48% of total sales [7] - Industrial sales were $83 million, a 5% decrease compared to Q2 last year, making up 24% of total sales [9] Market Data and Key Metrics Changes - The medical vertical showed strong growth, particularly in Poland and Thailand, while North America remained flat [5] - The automotive sector faced declines in North America and China, primarily due to the transfer of an electronic braking program and tariff pressures [7] - Industrial demand in North America decreased, although there was a rebound in Europe due to smart meter sales [9] Company Strategy and Development Direction - The company is focusing on the medical vertical as a key growth area, leveraging its capabilities in a highly regulated industry [6] - A new facility in Indianapolis is part of the strategy to expand manufacturing capacity for medical products [6] - The company is pursuing disciplined acquisitions to enhance geographic reach and manufacturing capabilities [7] - A rebranding to Kimball Solutions reflects the company's evolution beyond traditional manufacturing services [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the medical vertical's growth potential, driven by megatrends such as an aging population and increasing healthcare access [6] - The company is monitoring the North American automotive and industrial markets due to economic concerns and tariff impacts [17] - Future growth in automotive is expected to stabilize as the company anniversaries the end of a significant program [33] Other Important Information - The effective tax rate for Q2 was 47.9%, significantly higher than the previous year's rate of 1.2% [12] - Capital expenditures in Q2 were $18.2 million, primarily for the new facility in Indianapolis [14] - The company has $10.5 million remaining on its share repurchase program, having returned $109.5 million to shareholders since October 2015 [15] Q&A Session Summary Question: What percentage was Nexteer in December? - Nexteer accounted for 20% of sales in December [22] Question: What is the capacity and ramp expectations for the new facility in Indianapolis? - The new facility is 300,000 sq ft, significantly larger than the current footprint, with substantial growth opportunities anticipated [25] Question: How should we think about growth in the automotive piece for Q3 and Q4? - Q3 automotive is expected to be flat to slightly up as the company anniversaries the end of the EB100 program [33] Question: What are the win rates and size of wins across the business? - Win rates remain consistent, with larger programs expected from lift and shift opportunities and CMO discussions [36] Question: How will the new facility impact margins? - The CMO space is expected to be margin accretive long-term, but will initially drag margins due to depreciation and additional expenses [40][41] Question: How do you see cash cycle days play out in the coming quarters? - Cash conversion days are expected to decrease in Q3 from elevated levels in Q2 [44] Question: What are the opportunities in the medical space for acquisitions? - The company is interested in in vitro diagnostics and cardiology as potential areas for expansion [54]

Second Quarter Fiscal 2026 Results Quarter Ended December 31, 2025 Supplementary Information to the February 5, 2026, Earnings Conference Call & Webcast Lasting relationships. Global success. Kimball Electronics Confidential Jana Croom CFO Safe Harbor Statement Certain statements contained within this supplementary information, including our fiscal year 2026 guidance, and any statements made during our earnings conference call today may be considered forward-looking under the Private Securities Litigation R ...

Group 1 - Foxconn reported a 35.5% year-on-year increase in revenue for January, indicating strong performance expectations for the first quarter [1] - The company is optimistic about its financial outlook, suggesting potential growth opportunities in the upcoming quarter [1]

Core Viewpoint - Kimball Electronics, Inc. reported a decline in net sales for the second quarter of fiscal year 2025 compared to the same period in 2024, while operating income showed an improvement [1]. Financial Performance - Net Sales for the three months ended December 31, 2025, were $341,280,000, down from $357,392,000 in the same period of 2024, representing a decrease of approximately 14.5% [1]. - For the six months ended December 31, 2025, net sales totaled $706,883,000, compared to $731,648,000 in 2024, indicating a decline of about 3.4% [1]. - Operating Income for the three months ended December 31, 2025, was $10,767,000, an increase from $8,230,000 in 2024, reflecting a growth of approximately 30.9% [1]. - Adjusted Operating Income (non-GAAP) for the same quarter was $15,308,000, up from $13,300,000 in 2024, marking an increase of around 15.1% [1].

Group 1 - Jabil Inc has signed a long-term lease for over 413,287 sq ft of warehousing space in Pune, indicating a commitment to its manufacturing and supply chain operations in India [1][6][8] - The lease agreement includes a monthly rent of over Rs 94.84 lakh and a security deposit of approximately Rs 5.39 crore [1] - The long tenure of the lease reflects Jabil's strategy to establish a stable operational base in response to increasing demand from global OEM clients and supply chain diversification towards India [2][6] Group 2 - The transaction is part of a broader trend where global manufacturing firms are expanding their presence in India due to supply chain diversification, rising domestic consumption, and supportive local manufacturing policies [6][7] - Jabil is preparing to expand its production capabilities in India, particularly for Apple's AirPods enclosure, as part of its strategy to diversify manufacturing beyond China [5][6] - The growing trend of large, long-term leases for industrial and warehousing assets is driven by occupiers seeking operational certainty and scalability in their operations [7]

Core Viewpoint - Jabil Inc. is recognized as a strong investment opportunity, particularly due to its strategic acquisition of Hanley Energy Group and the sustained demand in data centers, which is expected to enhance its growth outlook [2][3][4]. Group 1: Company Performance and Outlook - Goldman Sachs raised its price target for Jabil Inc. to $282 from $255, maintaining a Buy rating, reflecting confidence in the company's growth driven by data center demand [2]. - Jabil confirmed the acquisition of Hanley Energy Group for approximately $725 million in cash, with potential additional earnouts of up to $58 million based on future revenue targets [3]. - The acquisition is seen as a strategic fit, enhancing Jabil's capabilities in energy management and critical power systems, which are increasingly important for data center infrastructure [4]. Group 2: Industry Trends - The rising importance of power management is highlighted as hyperscalers increase AI deployments, indicating a growing market for Jabil's enhanced solutions [5]. - Jabil's focus on providing customized solutions across the full data center lifecycle aligns with industry trends towards energy optimization and efficient power systems [5]. Group 3: Company Overview - Jabil Inc. offers engineering, manufacturing, and supply chain solutions across various industries, supporting electronics design, production, and product management [6].

Risks and non-GAAP disclosures This presentation contains forward-looking statements within the meaning of U.S. securities laws, including statements related to our future financial results and our guidance for future financial performance (including expected revenues, operating income, margins and earnings per share). These forward-looking statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause the actual outcomes and results to differ mate ...

Group 1 - Pomerantz LLP is investigating claims on behalf of investors of Celestica Inc. regarding potential securities fraud or unlawful business practices by the company and its officers or directors [1] - On January 22, 2026, news from Digitimes indicated that Alphabet Inc.'s Google may shift assembly work for its tensor processing units to other suppliers, which could reduce Celestica's role in assembling Google's AI servers [3] - Following the news about Google's potential shift, Celestica's stock price dropped by $18.83 per share, or 6.08%, closing at $290.92 per share on January 22, 2026 [3]