Short answer
Kimball Electronics, Inc. (KE) filed its fiscal 2026 10-K annual report with the SEC on Aug 19, 2026. It reported revenue of $1.4B (−3.7% year over year) and net income of $28M.
- Top risk flagged: Regulatory/legal risk: Supreme Court vacated IEEPA tariffs imposed in Feb 2025; resulting tariff refunds began in Q4 FY2026 impacting customer cost recoveries
FY2026 key financial metrics · XBRL
- Revenue
- $1.4B
- −3.7% YoY
- Net income
- $28M
- +64.6% YoY
- Operating margin
- 4.6%
- +1.6 pp YoY
- Gross margin
- 8.2%
- +1.2 pp YoY
- EPS (diluted)
- $1.13
- +66.2% YoY
- ROE
- 4.8%
- +1.8 pp YoY
- Operating cash flow
- $72M
- −60.7% YoY
Source: XBRL data from the Kimball Electronics, Inc. (KE) FY2026 10-K on SEC EDGAR. USD.
Kimball Electronics, Inc. FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Contract manufacturer and CDMO serving global customers with integrated supply chain solutions, extensive international operations in China, Mexico, Europe, India, Thailand
- Completed largest acquisition to date: Helvoet on July 1, 2026, expanding manufacturing footprint into India and the Netherlands and adding precision molded plastics and medical device capabilities
- Increased focus on AI deployment across engineering, manufacturing, quality, and back-office functions; compliance with evolving AI-specific laws (EU AI Act, Colorado AI Act) emphasized
- Inflation, tariffs, and supply chain disruptions increased costs; tariffs recovered mainly through contractual pass-through; currency fluctuations positively impacted net sales by 2%
- Workforce and facility expansion complexity heightened, alongside intensified cybersecurity risks and regulatory compliance pressures, including global data privacy and sustainability requirements
Management Discussion & Analysis
- Revenue $1,431.4M, down 4% YoY from $1,486.7M; automotive sales fell 7% to $656.9M, medical grew to $412.8M (+4%), industrial down 5% to $361.7M
- Operating margin 4.6% vs 3.1%; gross margin 8.2% vs 7.0%; S&A 4.3% vs 3.4%; net income $28M, EPS $1.13 vs $17M, $0.68, +64.6%
- Medical segment best performer with 4% sales growth and margin contribution; automotive worst with 7% sales decline due to lost major program
- Operating cash flow $72.3M vs $183.9M; capex $51.7M vs $33.7M (incl. Indianapolis medical facility); repurchased $11.9M stock, total buybacks $115.6M to date; debt reduced $30.9M
- 2027 outlook includes Helvoet acquisition integration, new Indianapolis facility start-up costs, tariff uncertainties, ongoing automotive weakness offset by medical growth, and tax rate variability due to geographic earnings mix
Risk Factors
- Regulatory/legal risk: Supreme Court vacated IEEPA tariffs imposed in Feb 2025; resulting tariff refunds began in Q4 FY2026 impacting customer cost recoveries
- Geopolitical/macroeconomic threat: Ongoing Middle East conflict involving U.S., Israel, and Iran risks supply chain disruptions and freight/component cost increases
- Operational/supply chain vulnerability: Closure of Tampa facility completed FY2025; production shifted mainly to Mexico and Jasper plants, with ongoing restructuring expected
- Competitive/market disruption risk: Loss of major automotive program in FY2026 caused 7% sales decline; pressure from competitors in mid-sized EMS space noted
- Financial/structural risk: Acquisition of Helvoet (approx. $103M paid Jul 2026) creating integration costs and synergies risk; liquidity strong with $403.8M cash + credit lines as of June 30, 2026
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