revenue growth
—
FY 2027
management framework
KIMBALL ELECTRONICS, INC.
Last · NasdaqGS$27.23-1.08 (-3.81%)close · yahoo · 15h ago
Market cap$653.30M24.0M sh
P/E · TTM25.2fwd 14.9 · eps 1.08
Beta—vs S&P 500
Div yield0.00%annual · TTM
52w range
$21.01$32.00
Volume352.4Ksession
| Revenue | $1.4B |
|---|---|
| Operating income | $66.1M |
| Net income | $27.9M |
| Free cash flow | $20.8M |
| Operating margin | 4.6% |
| Net margin | 2.0% |
| Return on equity | 4.8% |
| Period | 2026 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Attractive strategic fit and reasonable valuation support a positive call despite execution risk.
Buy: Kimball acquired Helvoet for €90 million (~$103 million), or approximately 9x expected 2026 adjusted EBITDA, adding a $56 million-revenue business with mid-teens EBITDA margins and roughly 70% medical exposure. The deal is expected to be accretive to fiscal 2027 adjusted earnings and expands Kimball into attractive microfluidics, diagnostics, and drug-delivery markets, though synergy realization, required growth investment, and limited transaction disclosure remain the key risks.
Themes
- Helvoet Acquisition
- Medical Cmo
- Microfluidics
- Diagnostics
- Drug Delivery
- India Expansion
Near term
Integration begins immediately across the Tilburg, Pune, and Indianapolis operations; early customer outreach and cross-selling efforts should provide initial evidence of synergy traction.
Management plans to invest capital in India and potentially port Helvoet processes and IP to Indianapolis, creating near-term execution and spending risk.
Investors should look for acquisition-specific revenue, margin, and earnings disclosure in subsequent results, since the call did not provide precise 2026 EBITDA or free-cash-flow figures.
Longer term
Helvoet adds differentiated precision molding, automation, materials science, and quality-system capabilities in microfluidics, diagnostics, and drug delivery, where technical barriers may support durable customer relationships.
The complementary customer bases and Kimball's greater funding capacity could allow Helvoet to pursue larger and more complex programs; management said initial discussions with major Helvoet customers were encouraging.
The European and Indian footprint, plus potential use of Kimball's Indianapolis facility, creates a broader medical CDMO platform and a path to higher medical mix over time.
Top-10 customers account for approximately 70% of Helvoet revenue, so the durability of its long-tenured programs and ability to diversify customers remain important to the thesis.
Red flags
Management did not quantify expected 2026 adjusted EBITDA, gross margin, synergy value, integration costs, capex requirements, or leverage after funding the $103 million purchase with cash and borrowing capacity.
The acquisition was won in a competitive process involving strategic and private-equity bidders, raising the risk that the approximately 9x expected 2026 adjusted EBITDA price leaves limited room for execution error.
Growth and cross-selling claims are largely qualitative; the call cited customer enthusiasm and pipeline opportunities but gave no committed program wins or revenue contribution targets.
Customer concentration is meaningful: the top 10 customers represent approximately 70% of revenue, even though the largest customer is below 10%.
Forward outlook
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-08-19
- Earnings Recovery
- Automotive Demand
- Customer Concentration
- Medical Cdmo
- Helvoet Acquisition
- Inventory Risk
- Tariff Exposure
Red flags
- Three customers represented 40% of fiscal 2026 sales: Nexteer Automotive 18%, Philips 11%, and ZF 11%. Nexteer also represented 21% of trade receivables.
- Revenue declined 4% despite a favorable 2% foreign-exchange impact; automotive fell 7% and industrial fell 5%, indicating underlying demand weakness.
- Fiscal 2026 operating income included a $15.0 million gain on the Tampa property sale, while restructuring expense remained $5.0 million and selling and administrative expense increased 22% to $61.1 million.
- Raw-material inventory was $271.9 million, including $57.0 million classified as long term, against $35.4 million of customer deposits for long-term inventory, creating working-capital and demand-risk exposure.
- Factoring fees and accounts-receivable program discounts rose to $3.9 million from $2.4 million, while debt remained $116.6 million despite the improved balance sheet.
Upcoming earnings
9:00 PM UTC+1
Period
Sep 2026
Est. EPS
$0.37
Est. revenue
385.7M
Earnings transcripts
- Issuer webcast
Q4 2026 earnings call transcript
KIMBALL ELECTRONICS, INC.
- Issuer IR
Q4 2026 earnings call transcript
KIMBALL ELECTRONICS, INC.
- Issuer IR
2026 investor day transcript
KIMBALL ELECTRONICS, INC.
- Issuer webcast
Webcast
KIMBALL ELECTRONICS, INC.
- Issuer webcast
Transcript of Q3 2026 Report
KIMBALL ELECTRONICS, INC.
Documents
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