Kimball Electronics, Inc. (KE) · Nov 4, 2026 · Earnings
Miss — Adjusted EPS $0.25 vs ~$0.34 consensus
Kimball Electronics earnings brought back top-line growth and reaffirmed fiscal 2027 guidance, but adjusted EPS, margins and cash flow weakened.
Kimball Electronics is in a planned transition from fiscal 2026's downturn toward profitable growth, using the Indianapolis facility and the Helvoet acquisition to build a broader medical CDMO platform. That strategy was already public before this release: fiscal 2027 guidance called for 3%-5% organic growth, roughly $60 million of Helvoet sales, and a 4.4%-4.7% adjusted operating margin.
The top line is tracking slightly ahead, but the earnings conversion is not. Revenue reached $390.8 million versus published consensus of roughly $385.9 million, helped by 3% organic growth and a 14% increase in Medical. However, adjusted diluted EPS was $0.25 versus an approximately $0.34 consensus, while adjusted operating margin declined to 4.3% from 4.8% a year ago. The growth story is working; profitability is lagging it. 〔0〕
| Q1 2027 | Q1 2026 | Consensus | |
|---|---|---|---|
| Net sales (Financial Highlights) | $390.8M (+6.9%) | $365.6M | $385.9M |
| Adjusted diluted EPS (Financial Highlights) | $0.25 (-49.0%) | $0.49 | $0.34 |
| Adjusted operating margin (Financial Highlights) | 4.3% | 4.8% | 4.4%-4.7% FY27 guide |
| Organic sales growth (Non-GAAP reconciliation) | 3% | -3% | 3%-5% FY27 guide |
| Medical sales growth (Vertical market results) | 14% | 13% | — |
| Operating cash flow (Cash Flow statement) | $(19.3)M | $8.1M | — |
Management preserved the strategic growth narrative, but did not improve the benchmark. Fiscal 2027 guidance was reiterated, with sales expected at the high end of the $1.535-$1.560 billion range, but the adjusted operating-income margin target stayed at 4.4%-4.7%. That makes the quarter more of an execution check than a new positive catalyst: Medical is delivering, while the company still needs to show that Helvoet and the broader medical investment can produce earnings rather than just revenue. 〔1〕
The balance sheet is carrying a heavier investment load. Debt rose to $235.7 million after the Helvoet transaction, operating cash flow turned negative, and cash declined to $72.8 million; financing inflows more than offset the acquisition and capital spending cash use. Cash conversion days held at 82, which is encouraging operationally, but the quarter gives less evidence yet that the acquisition is self-funding. 〔2〕
Bottom line: Kimball is back to organic growth and Medical is outperforming, but the first quarter did not convert that growth into better earnings. With guidance merely reaffirmed and margins, EPS, and operating cash flow weaker, this is a modest setback to the quality—not the direction—of the recovery.
Q1 earnings call, November 5, 2026
A buy-side analyst on every ticker — it reads every public company's filing the instant it drops and decodes it into plain English.
A buy-side analyst on every ticker — the whole market decoded the second it moves, before it's a headline. Free gives you a taste. Pro takes the cap off and opens the full read on every company.
by Signing in NOW, claim your FREE 14-day Pro trial!