Kimball Electronics, Inc.: Q1 FY2027 earnings call

What management said about Q1 FY2027, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 3 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Sales rose on sequential and yearly basis: Net sales were $390.8 million, up 5% from the prior quarter and 7% year over year. Acquisitions contributed 3 points of the year-over-year growth. Source
• Medical sales rose 14%: Medical sales were $115.7 million, 29% of net sales, up 14%, with 9% organic growth. Source
• Adjusted margin fell to 4.3%: Adjusted operating income was $17.0 million, or 4.3% of net sales, against $17.5 million, or 4.8%, a year earlier. Source
• Open orders rose to $690 million: Open orders, the aggregate sales price of production on unfulfilled customer orders, were $690 million, up from $643 million at June 30, 2026 and $593 million a year earlier. Source
• Cash conversion days held at 82: Cash conversion days were 82, equal to the prior quarter and down from 83 a year earlier. Management called it a multiyear low. Source
• Operating cash flow was negative: Operating activities used $19.3 million of cash, against $8.1 million provided a year earlier. Source
• Debt rose to $235.7 million: Debt totaled $235.7 million, up from $116.6 million at June 30, 2026. Cash was $72.8 million, and borrowing capacity was $198.0 million, down from $322.4 million. Source
• Medical investment across four areas: Management said it is investing in medical growth by integrating Helvoet, ramping Indianapolis operations, using its full-service capabilities, and unlocking global synergies. Source

“I’m encouraged by our first quarter results and solid start to fiscal 2027. Sales increased both sequentially and year-over-year, margins were healthy, and cash conversion days were once again at a multiyear low.”

Richard D. Phillips Chief Executive Officer

Guidance

What changed from last quarter

• Guidance kept: Fiscal 2027 net sales guidance of $1,535 - $1,560 million was reiterated, with sales expected at the high end of the range. Source
• Guidance kept: Adjusted operating income margin of 4.4% to 4.7% and capital expenditures of $50 million to $60 million were also reiterated. Source
• New: Helvoet net sales of $12.4 million for the quarter were reported in a separate table. Source

Results and growth drivers

• Sales rose on sequential and yearly basis: Net sales were $390.8 million, up 5% from the prior quarter and 7% year over year. Acquisitions contributed 3 points of the year-over-year growth. Source
• Organic growth was 3%: Organic sales growth was 3%, with increases in all verticals. Management described the organic growth as in line with expectations. Currency added 1 point. Source
• Operating margin fell to 3.2%: Operating income was $12.4 million, or 3.2% of net sales, compared with $14.5 million, or 4.0%, a year earlier. Source
• Diluted EPS fell to $0.11: Diluted EPS was $0.11 against $0.40 a year earlier. Adjusted diluted EPS was $0.25 against $0.49. Source
• Tax provision rose sharply: The income tax provision was $5.2 million, or 1.3% of net sales, against $0.9 million a year earlier. Net income was $2.6 million, against $10.1 million. Source

Verticals: medical, industrial, automotive

• Medical sales rose 14%: Medical sales were $115.7 million, 29% of net sales, up 14%, with 9% organic growth. Source
• Industrial and automotive grew modestly: Industrial sales were $104.6 million, up 5%. Automotive sales were $170.5 million, up 4%, and were 44% of net sales. Source
• Acquisition added to medical growth: Medical net sales growth of 14% included 5 points from the acquisition, with foreign exchange at nil. Prior-year Medical growth was 13%. Source

“Fiscal 2027 marks an important milestone in our journey and we are reiterating our guidance for the year with sales expected at the high end of the range, driven by continued strength in Medical.”

Richard D. Phillips Chief Executive Officer

Products, customers and Helvoet

• Helvoet adds medical CDMO sales: Helvoet Polymer Technologies, a recent tuck-in acquisition in the medical CDMO space, contributed $12.4 million of net sales in the quarter. Source
• Medical product scope listed: Medical covers sleep and oxygen therapy, defibrillation, surgical systems, in vitro diagnostics, imaging, drug delivery, patient monitoring and microfluidics. Source
• Industrial scope listed: Industrial covers climate controls, off-highway and commercial equipment, IoT and factory automation, energy, and public safety. Source

Costs, margins and restructuring

• Gross margin held at 7.9%: Gross profit was $30.9 million, or 7.9% of net sales, the same percentage as a year earlier. Source
• Selling and admin costs rose: Selling and administrative expenses were $18.1 million, or 4.6% of net sales, against $13.1 million, or 3.5%. Acquisition costs of $2.0 million are among the adjustments. Source
• Adjusted margin fell to 4.3%: Adjusted operating income was $17.0 million, or 4.3% of net sales, against $17.5 million, or 4.8%, a year earlier. Source
• Restructuring costs declined: Restructuring expense was $0.4 million, down from $1.4 million a year earlier. Source

“Our excitement for the overall fit and growth opportunities of Helvoet are higher now than ever.”

Richard D. Phillips Chief Executive Officer

Demand and open orders

• Open orders rose to $690 million: Open orders, the aggregate sales price of production on unfulfilled customer orders, were $690 million, up from $643 million at June 30, 2026 and $593 million a year earlier. Source
• Medical expected to drive sales: Management said fiscal 2027 sales are expected at the high end of the range, driven by continued strength in Medical. Source

Working capital and cash flow

• Cash conversion days held at 82: Cash conversion days were 82, equal to the prior quarter and down from 83 a year earlier. Management called it a multiyear low. Source
• Operating cash flow was negative: Operating activities used $19.3 million of cash, against $8.1 million provided a year earlier. Source
• Inventories and payables rose: Inventories were $312.1 million, up from $271.9 million at June 30, 2026. Prepaid and other current assets rose to $49.4 million from $42.8 million. Source
• Receivables and contract assets rose: Receivables, net, were $236.1 million, up from $218.8 million. Contract assets were $83.0 million, up from $70.5 million. Source

Debt, cash and share repurchases

• Debt rose to $235.7 million: Debt totaled $235.7 million, up from $116.6 million at June 30, 2026. Cash was $72.8 million, and borrowing capacity was $198.0 million, down from $322.4 million. Source
• Shares repurchased in quarter: The company invested $3.1 million to repurchase 127,000 shares of common stock in the quarter. Source

Strategy and medical investment

• Medical investment across four areas: Management said it is investing in medical growth by integrating Helvoet, ramping Indianapolis operations, using its full-service capabilities, and unlocking global synergies. Source
• Goodwill and intangibles increased: Goodwill rose to $50.5 million from $6.2 million, and other intangible assets rose to $25.5 million from $1.9 million between June and September 2026. Source
• Property and equipment increased: Property and equipment, net, rose to $304.5 million from $274.2 million. The prior release described a new medical facility build-out in Indianapolis. Source

Figures management reported

Earlier plans management reported on

• On track: Management described organic growth of 3% and Medical growth of 9% as in line with expectations. Source
• Not stated: Management reiterated fiscal 2027 guidance, with sales expected at the high end of the range driven by Medical. Source

Other quarters

• Q4 FY2026 earnings call
• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q1 FY2026 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.