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.<h4>Q3 Fiscal 2026 Highlights</h4>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.<h4>Segment Revenue (Three Months Ended March 31)</h4><ul><li>Total Net Sales: For Q3 2026, total net sales were $352,922 thousand, a -6% change compared to $374,607 thousand in Q3 2025.</li><li>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.</li><li>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.</li><li>Industrial (excluding AT&amp;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.</li></ul><h4>Segment Revenue (Nine Months Ended March 31)</h4><ul><li>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.</li><li>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.</li><li>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.</li><li>Industrial (excluding AT&amp;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.</li><li>AT&amp;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.</li></ul><h4>Operational Metrics (Three Months Ended March 31)</h4><ul><li>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.</li><li>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.</li><li>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.</li><li>Net Income: $5,719 thousand in Q3 2026, up from $3,817 thousand in Q3 2025.</li><li>Adjusted Net Income (non-GAAP): $8,033 thousand in Q3 2026, up from $6,837 thousand in Q3 2025.</li><li>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.</li><li>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.</li><li>Asset Impairment: - $4 thousand in Q3 2026.</li><li>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.</li></ul><h4>Operational Metrics (Nine Months Ended March 31)</h4><ul><li>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.</li><li>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.</li><li>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.</li><li>Net Income: $19,442 thousand for the nine months ended March 31, 2026, up from $10,403 thousand in the prior year.</li><li>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.</li><li>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.</li><li>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.</li><li>Asset Impairment (Gain on Disposal): $294 thousand for the nine months ended March 31, 2026, compared to - $1,264 thousand in the prior year.</li><li>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.</li></ul><h4>Cash Flow (Nine Months Ended March 31)</h4><ul><li>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.</li><li>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.</li><li>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.</li></ul><h4>Other Financial Metrics</h4><ul><li>Cash Conversion Days (CCD): 90 as of March 31, 2026, an improvement from 91 in December 2025 and 99 in March 2025.</li><li>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.</li><li>ROIC: 7.1% for the twelve months ended March 31, 2026, up from 6.1% for the same period in 2025.</li></ul><h4>Fiscal Year 2026 Guidance</h4>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.

Kimball Electron | 8-K: FY2026 Q3 Revenue Misses Estimate at USD 352.92 M