--- title: "Kimball Electron | 8-K: FY2026 Q3 Revenue Misses Estimate at USD 352.92 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285265708.md" datetime: "2026-05-05T20:48:17.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285265708.md) - [en](https://longbridge.com/en/news/285265708.md) - [zh-HK](https://longbridge.com/zh-HK/news/285265708.md) --- # Kimball Electron | 8-K: FY2026 Q3 Revenue Misses Estimate at USD 352.92 M Revenue: As of FY2026 Q3, the actual value is USD 352.92 M, missing the estimate of USD 356.27 M. EPS: As of FY2026 Q3, the actual value is USD 0.23, missing the estimate of USD 0.2725. EBIT: As of FY2026 Q3, the actual value is USD 13.62 M. #### Q3 Fiscal 2026 Highlights Kimball Electronics, Inc. reported revenue of $352.9 million, a sequential increase of 3.4% compared to Q2, with sales in the medical vertical increasing by 10.2% versus the prior quarter. Operating income for the quarter was $11.8 million, representing 3.3% of net sales, while adjusted operating margin was 4.2%. The company generated $14.9 million in cash from operations, marking the ninth consecutive quarter of positive operating cash generation. Debt stood at $163.0 million, with a borrowing capacity of $276.0 million. Cash Conversion Days (CCD) improved to 90, compared to both the prior quarter and Q3 of fiscal 2025. Kimball Electronics, Inc. also invested $4.0 million to repurchase 165,000 shares of common stock. #### Segment Revenue (Three Months Ended March 31) - **Total Net Sales:** For Q3 2026, total net sales were $352,922 thousand, a -6% change compared to $374,607 thousand in Q3 2025. - **Automotive:** Sales were $160.5 million (46% of net sales) in Q3 2026, down -3% from $165.5 million (44% of net sales) in Q3 2025. - **Medical:** Sales were $106.1 million (30% of net sales) in Q3 2026, a -8% decrease from $115.2 million (31% of net sales) in Q3 2025. The prior year’s Q3 2025 included a non-recurring sale of consigned medical inventory totaling $24 million. - **Industrial (excluding AT&M):** Sales were $86.3 million (24% of net sales) in Q3 2026, a -8% decrease from $93.9 million (25% of net sales) in Q3 2025. #### Segment Revenue (Nine Months Ended March 31) - **Total Net Sales:** For the nine months ended March 31, 2026, total net sales were $1,059,805 thousand, a -4% change compared to $1,106,255 thousand for the same period in 2025. - **Automotive:** Sales were $487.2 million (46% of net sales) for the nine months ended March 31, 2026, a -9% change from $533.7 million (48% of net sales) in the prior year. - **Medical:** Sales increased by 5% to $304.0 million (29% of net sales) for the nine months ended March 31, 2026, from $288.9 million (26% of net sales) in the prior year. - **Industrial (excluding AT&M):** Sales were $268.6 million (25% of net sales) for the nine months ended March 31, 2026, a -5% change from $281.6 million (26% of net sales) in the prior year. - **AT&M:** Sales were $0 for the nine months ended March 31, 2026, a -100% change from $2.1 million in the prior year, following its divestment effective July 31, 2024. #### Operational Metrics (Three Months Ended March 31) - **Gross Profit:** $27,815 thousand (7.9% of net sales) in Q3 2026, up from $26,896 thousand (7.2% of net sales) in Q3 2025. - **Operating Income:** $11,755 thousand (3.3% of net sales) in Q3 2026, compared to $11,716 thousand (3.1% of net sales) in Q3 2025. - **Adjusted Operating Income (non-GAAP):** $14,781 thousand (4.2% of net sales) in Q3 2026, compared to $15,706 thousand (4.2% of net sales) in Q3 2025. - **Net Income:** $5,719 thousand in Q3 2026, up from $3,817 thousand in Q3 2025. - **Adjusted Net Income (non-GAAP):** $8,033 thousand in Q3 2026, up from $6,837 thousand in Q3 2025. - **Selling and Administrative Expenses:** $15,214 thousand (4.4% of net sales) in Q3 2026, compared to $13,154 thousand (3.6% of net sales) in Q3 2025. - **Restructuring Expense:** $850 thousand (0.2% of net sales) in Q3 2026, down from $2,026 thousand (0.5% of net sales) in Q3 2025. - **Asset Impairment:** - $4 thousand in Q3 2026. - **Interest Expense:** - $2,072 thousand (-0.6% of net sales) in Q3 2026, compared to - $2,936 thousand (-0.8% of net sales) in Q3 2025. #### Operational Metrics (Nine Months Ended March 31) - **Gross Profit:** $84,519 thousand (8.0% of net sales) for the nine months ended March 31, 2026, up from $73,923 thousand (6.7% of net sales) in the prior year. - **Operating Income:** $36,976 thousand (3.5% of net sales) for the nine months ended March 31, 2026, up from $29,061 thousand (2.6% of net sales) in the prior year. - **Adjusted Operating Income (non-GAAP):** $47,623 thousand for the nine months ended March 31, 2026, up from $41,629 thousand in the prior year. - **Net Income:** $19,442 thousand for the nine months ended March 31, 2026, up from $10,403 thousand in the prior year. - **Adjusted Net Income (non-GAAP):** $27,208 thousand for the nine months ended March 31, 2026, up from $19,718 thousand in the prior year. - **Selling and Administrative Expenses:** $43,166 thousand (4.1% of net sales) for the nine months ended March 31, 2026, compared to $37,107 thousand (3.4% of net sales) in the prior year. - **Restructuring Expense:** $4,083 thousand (0.4% of net sales) for the nine months ended March 31, 2026, down from $9,019 thousand (0.8% of net sales) in the prior year. - **Asset Impairment (Gain on Disposal):** $294 thousand for the nine months ended March 31, 2026, compared to - $1,264 thousand in the prior year. - **Interest Expense:** - $6,520 thousand (-0.6% of net sales) for the nine months ended March 31, 2026, compared to - $11,969 thousand (-1.1% of net sales) in the prior year. #### Cash Flow (Nine Months Ended March 31) - **Net Cash Flow provided by Operating Activities:** $29,837 thousand for the nine months ended March 31, 2026, compared to $105,870 thousand in the prior year. - **Net Cash Flow used for Investing Activities:** - $38,090 thousand for the nine months ended March 31, 2026, compared to - $5,160 thousand in the prior year. - **Net Cash Flow provided by (used for) Financing Activities:** $2,455 thousand for the nine months ended March 31, 2026, compared to - $126,615 thousand in the prior year. #### Other Financial Metrics - **Cash Conversion Days (CCD):** 90 as of March 31, 2026, an improvement from 91 in December 2025 and 99 in March 2025. - **Open Orders:** $602 million as of March 31, 2026, compared to $557 million as of December 31, 2025, and $642 million as of March 31, 2025. - **ROIC:** 7.1% for the twelve months ended March 31, 2026, up from 6.1% for the same period in 2025. #### Fiscal Year 2026 Guidance Kimball Electronics, Inc. affirmed its guidance for fiscal year 2026, expecting net sales in the range of $1,400 million to $1,460 million. Adjusted operating income is estimated to be between 4.2% and 4.5% of net sales, with results anticipated at the high end of this range. Capital expenditures are projected to be between $50 million and $60 million. ### Related Stocks - [KE.US](https://longbridge.com/en/quote/KE.US.md) ## Related News & Research - [The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance | HD Stock News](https://longbridge.com/en/news/286890512.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [Capstone corrects eBliss LOI no-shop expiration date to July 31, 2026](https://longbridge.com/en/news/287092891.md) - [Keysight Technologies Reports Second Quarter 2026 Results | KEYS Stock News](https://longbridge.com/en/news/286959830.md) - [Autohome Inc. to Announce First Quarter 2026 Financial Results on May 28, 2026 | ATHM Stock News](https://longbridge.com/en/news/286390966.md)