Kimball Electronics Rises On Q4 Earnings Beat And Improved Margins

Kimball Electronics (NASDAQ:KE) saw its shares climb more than 5% in pre-market trading Thursday after delivering fourth-quarter fiscal 2025 results that handily beat expectations, supported by stronger sales and higher profitability.

The electronics manufacturing services provider posted adjusted earnings of $0.34 per share, surpassing the $0.20 consensus estimate. Revenue totaled $380.5 million, above forecasts of $345.01 million, though down 12% from the prior year.

CEO Richard D. Phillips said he was “encouraged” by the strong quarter, noting sequential sales growth, margin expansion, and improved working capital management that delivered a sixth consecutive quarter of positive cash flow, which was used to pay down debt.

Operating income came in at $16.5 million, or 4.3% of net sales, while adjusted operating income reached $19.6 million, or 5.2% of sales. Cash flow from operations totaled $78.1 million for the quarter.

For fiscal 2026, Kimball forecast revenue between $1.35 billion and $1.45 billion, slightly below the $1.439 billion consensus, with adjusted operating income expected at 4.0% to 4.25% of sales, compared with 4.1% in fiscal 2025.