Slide 1: Fourth Quarter Fiscal 2025 Results
Fourth Quarter Fiscal 2025 Results Quarter Ended June 30, 2025 Supplementary Information to the August 14, 2025, Earnings Conference Call & Webcast Lasting relationships. Global success. Kimball Electronics
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements contained within this supplementary information, including our fiscal year 2025 guidance, and any statements made during our earnings conference call today may be considered forward-looking under the Private Securities Litigation Reform Act of 1995. The state
Slide 3: Today's speakers
Today’s speakers • Opening comments • Financial results for the quarter • Guidance for fiscal 2026 • Closing comments Ric Phillips CEO • Q&A Jana Croom CFO Lasting relationships. Global success. Kimball Electronics | 3
Slide 4: Encouraged by the results for the fourth quarter and solid finish to the fiscal year
Encouraged by the results for the fourth quarter and solid finish to the fiscal year… Q4 came in better than expectations: • Sales increased sequentially • Margins continued to improve • Working capital management drove our 6th consecutive quarter of positive cash flow, which was used to paydown deb
Slide 5: Fiscal 2025 was a year of controlling what we could control
In total, fiscal 2025 was a year of “controlling what we could control” Positioning the Company for a return to profitable growth: • Record number of wins for future business • Meaningful increase in the number of “green” customer scorecards • Quality ratings at a 15-year high • Adjusting the cost s
Slide 6: New medical facility in Indianapolis is an important milestone
New medical facility in Indianapolis is an important milestone • Provides space needed to expand production capabilities • Encompasses cold chain management, complete device assembly, and precision-molded plastics • Currently manufacturing medical disposables, single-use surgical instruments, and se
Slide 7: Expect fiscal 2026 to be another step forward
Expect fiscal 2026 to be another step forward • This journey will unfold over time • Anticipating a return to growth in FY27 • Better capacity utilization will result in higher margins Lasting relationships. Global success. Kimball Electronics | 7
Slide 8: Net sales in the fourth quarter were $381 million
Net sales in the fourth quarter were $381 million • Represents a 12% decline compared to Q4 last year • When excluding AT&M, the decrease was 8% • For the second consecutive quarter, Medical grew year-over-year, the other two verticals we serve reported declines • Sequentially, the top line increase
Slide 9: Sales in Medical were $107 million
Sales in Medical were $107 million • Up 5% compared to the same period last year • 28% of total company revenue • Increase driven by a step-up in sales with our largest medical customer • Expect growth with customer to continue • Sole supplier for Respiratory Care Final Assembly and Higher-Level Ass
Slide 10: Similar opportunities are possible…
Similar opportunities are possible… • Population ages • Access & affordability to healthcare increases • Medical devices get smaller in size and require higher levels of precision and accuracy • Connected drug delivery systems become more common as consumer adoption increases • In general, HLAs and
Slide 11: Automotive net sales were $184 million
Automotive net sales were $184 million • 13% decrease compared to the fourth quarter last year • 48% of total company sales • Decline driven by the electronic braking program no longer being produced in Reynosa • Commercial agreement by the OEM to transfer it to another source • Partially offset by
Slide 12: Industrial net sales of $90 million
Industrial net sales of $90 million • Down 12% year-over-year, when excluding AT&M • 24% of total company sales • Early signs of stability with climate control systems • Offset by broad-based declines in other industrial segments in North America and Europe • Asia was approximately flat in Q4 Lastin
Slide 13: Net sales in the fourth quarter were $380.5 million
Net sales in the fourth quarter were $380.5 million • Represents a 12% decrease year- over-year • Down 8% when excluding AT&M • Foreign exchange had a 1% favorable impact Lasting relationships. Global success. Kimball Electronics | 13
Slide 14: Gross margin rate in Q4 was 8.0%
Gross margin rate in Q4 was 8.0% • 50 bps decline compared to the fourth quarter of fiscal 2024 • Lower absorption – an outcome from reduced year-over-year sales – driving the decline • Representing significant sequential improvement over the course of the year Lasting relationships. Global success.
Slide 15: Adjusted selling & administrative expense (%)
Adjusted selling & administrative expense (%)(1)(2) • Fourth quarter totaled $10.8 million • $3.2 million – or 23% - reduction compared to the $14.0 million reported in Q4 last year • Decrease from cost reduction efforts, reduced bonus, and not having AT&M in our portfolio this year • 2.8% when meas
Slide 16: Adjusted operating income
Adjusted operating income (1)(2) • $19.6 million, or 5.2% of net sales • Last year’s adjusted result of $22.7 million, or 5.3% of net sales • Third consecutive quarter of growth in dollars and as a percentage of net sales (1) Adjusted Operating Income is a Non-GAAP measure – refer to Reconciliation
Slide 17: Other income and expense
Other income and expense • In the fourth quarter, other income and expense was expense of $3.8 million • Last year was expense of $6.1 million • Reduction driven by lower interest expense – down 50% year-over-year Lasting relationships. Global success. Kimball Electronics | 17
Slide 18: Effective tax rate
Effective tax rate • In the fourth quarter, the effective tax rate was 48.3%, compared to 44.0% in Q4 of fiscal 2024 • Last year’s rate skewed higher by the impacts of a domestic valuation allowance and impairment and restructuring charges associated with AT&M • Ended fiscal 2025 with an effective t
Slide 19: Adjusted net income and adjusted diluted EPS
Adjusted net income and adjusted diluted EPS (1)(2) (1) Adjusted Net Income and Adjusted Diluted EPS are Non-GAAP measures – refer to Reconciliation of Non-GAAP Results on the final slide of this supplementary information. (2) Beginning in Q1’25, Adjusted Net Income and Adjusted Diluted EPS exclude
Slide 20: Balance sheet
Balance sheet • Cash and cash equivalents at June 30, 2025, were $88.8 million • Cash generated by operating activities in the quarter was $78.1 million, our sixth consecutive quarter of positive cash flow • Cash conversion days were 85 days, compared to 100 days in Q4 of fiscal ‘24, and 99 days las
Slide 21: Inventory ended the quarter at $273.5 million
Inventory ended the quarter at $273.5 million • Represents a $23.1 million reduction compared to Q3 • $64.6 million, or 19%, lower than a year ago Lasting relationships. Global success. Kimball Electronics | 21
Slide 22: Capital expenditures were $9.6 million
Capital expenditures were $9.6 million (1) • For the full year, CapEx was $33.7 million • Primarily to support new product introductions and maintenance needs (1) Capital Expenditures include purchases of capitalized software. Lasting relationships. Global success. Kimball Electronics | 22
Slide 23: Borrowings at June 30, 2025, were $147.5 million
Borrowings at June 30, 2025, were $147.5 million • $31.3 million reduction from the third quarter • Down $147.3 million, or 50%, from the beginning of the fiscal year • Short-term liquidity available totaled $380.5 million at the end of the fourth quarter Lasting relationships. Global success. Kimba
Slide 24: Share repurchases
Share repurchases • Invested $3 million to repurchase 162,000 shares • Since October 2015, under our Board authorized share repurchase program: • A total of $103.7 million returned to Share Owners by repurchasing 6.6 million shares of common stock • $16.3 million remaining on the repurchase program
Slide 25: Fiscal year 2025… controlling what we could control
Fiscal year 2025… “controlling what we could control” • Net sales totaling $1.487 billion, the 3rd highest annual revenue total in the 60+ year history of the Company • Adjusted operating income of $61.3 million, or 4.1% of net sales • Inventory down nearly 20% year-over-year • Cash generated by ope
Slide 26: Fiscal 2026 will be a year of transition
Fiscal 2026 will be a year of transition • Net sales of $1.350 - $1.450 billion, a 2% to 9% decrease compared to fiscal 2025 • Adjusted operating income of 4.0% - 4.25% of net sales, compared to 4.1% in fiscal 2025 • Capital expenditures of $50 - $60 million Lasting relationships. Global success. Ki
Slide 27: Sales guidance in perspective…
Sales guidance in perspective… • Two important events occurred in fiscal 2025 that have been normalized when planning for FY26 • Loss of braking program in Reynosa will have a $60 million unfavorable impact in the year • Do not expect another large consigned inventory sale, similar to Q3, to occur a
Slide 28: Margins are estimated to be in line with FY25
Margins are estimated to be in line with FY25 • Repurpose some of the benefit of the Tampa closure • Focus on growing the CMO and core EMS business • When top line growth returns, enhancements to our cost structure should support margin improvement • Capital expenditures will be heavily weighted tow
Slide 29: Company has always focused on high-complexity, high-reliability programs
Company has always focused on high-complexity, high-reliability programs • Braking and steering systems in vehicles, motor controls for HVAC systems, or diagnostic and therapeutic equipment in the medical field • Emphasis on quality and reliability is deeply embedded in how we operate • Five “9s” re
Slide 30: Approaching medical CMO strategy with additional steps to position Company for long-term, profitable growth
Approaching medical CMO strategy with additional steps to position Company for long-term, profitable growth • Continue to generate positive cash flow, deploy capital toward growing CMO • Medical CMO presents opportunity for higher EBITDA margins • Serve blue-chip customers with long product life cyc
Slide 31: Throughout this journey, stay true to Guiding Principles
Throughout this journey, stay true to Guiding Principles • Be collaborative and team-oriented • Set high long-term aspirations… not unrealistic goals, but attainable targets that require stretching • Communicate openly and proactively • Remain accountable to our Company, to our customers, to each ot
Slide 32: Questions
Questions Lasting relationships. Global success. Kimball Electronics | 32
Slide 33: Appendix
Appendix Lasting relationships. Global success. Kimball Electronics | 33
Slide 34: Reconciliation of non-GAAP results
Reconciliation of non-GAAP results Lasting relationships. Global success. Kimball Electronics | 34
Slide 35: Reconciliation of non-GAAP results continued…
Reconciliation of non-GAAP results continued…. Lasting relationships. Global success. Kimball Electronics | 35
Slide 36: Net Sales in Automotive
Net Sales in Automotive (1) (1) Beginning in fiscal year 2024, miscellaneous sales previously reported in Other are now reported in the respective three end market verticals; all prior periods have been recast to conform to current period presentation Lasting relationships. Global success. Kimball E
Slide 37: Net Sales in Medical
Net Sales in Medical (1) (1) Beginning in fiscal year 2024, miscellaneous sales previously reported in Other are now reported in the respective three end market verticals; all prior periods have been recast to conform to current period presentation. Q3’25 includes $24 million of non-recurring consig
Slide 38: Net Sales in Industrial
Net Sales in Industrial (1) (1) Beginning in fiscal year 2024, miscellaneous sales previously reported in Other are now reported in the respective three end market verticals; all prior periods have been recast to conform to current period presentation Lasting relationships. Global success. Kimball E
Slide 39: For more information, please contact:
For more information, please contact: Andy Regrut Treasurer and Investor Relations Officer 812.827.4151 andy.regrut@kimballelectronics.com Lasting relationships. Global success. Kimball Electronics | 39