Slide 1: First Quarter Fiscal 2026 Results
First Quarter Fiscal 2026 Results Quarter Ended September 30, 2025 Supplementary Information to the November 6, 2025, Earnings Conference Call & Webcast Lasting relationships. Global success. Kimball Electronics Confidential
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements contained within this supplementary information, including our fiscal year 2026 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: Pleased with the results for the first quarter and start to the new fiscal year
Pleased with the results for the first quarter and start to the new fiscal year • Sales were in line with expectations, driven by strength in the medical vertical • Margins improved year-over-year • Cash from operations was positive for the seventh consecutive quarter • Debt at the end of Q1 was the
Slide 5: Net sales for the Company were $366 million
Net sales for the Company were $366 million • A decline of 2% compared to Q1 fiscal 2025 • From an end market perspective: • Strong results in Medical • Offset by declines in Automotive and Industrial * Percentage decrease compared to Q1 of fiscal 2025 Lasting relationships. Global success. Kimball
Slide 6: Sales in Medical were $102 million
Sales in Medical were $102 million • Up 13% compared to the same period last year • 28% of total company revenue • Nearly half of our medical sales were in North America… • The other half roughly split between Asia and Europe • Increase in Q1 driven by robust sales growth – of ** approximately the s
Slide 7: We expect the growth to continue…
We expect the growth to continue… • Leaning further into the medical space with production capabilities beyond electronics and printed circuit boards • Expanding into Higher Level Assemblies and Finished Medical Devices • New medical facility in Indianapolis will add capacity for manufacturing medic
Slide 8: Automotive sales of $164 million
Automotive sales of $164 million • Down 10% compared to the first quarter of last year • 45% of total company sales • Decline driven by North America – a result of the braking program transferred out of Reynosa in mid fiscal 2025, and a decline in Asia • Combined impact was partially offset by sales
Slide 9: Sales in Industrial totaled $100 million
Sales in Industrial totaled $100 million • 1% decrease compared to Q1 last year • 27% of total company sales • Industrial business heavily concentrated in North America • Decline this quarter was in the low single digit range due to softening demand for HVAC driven by the slowing housing market ** •
Slide 10: Beginning in February 2025, the U.S. implemented tariffs on a variety of countries and commodities
Beginning in February 2025, the U.S. implemented tariffs on a variety of countries and commodities • Global tariff landscape is evolving at a rapid pace, with changes impacting businesses and markets around the world • While increased tariffs have and may continue to impact end customer demand, we e
Slide 11: Net sales in the first quarter were $365.6 million
Net sales in the first quarter were $365.6 million • 2% decrease year-over-year • Foreign exchange had a 1% favorable impact • Beginning this quarter: • Certain customers previously included in Automotive were reclassified to Industrial • Our work for these customers is more aligned with commercial
Slide 12: Gross margin rate in the first quarter was 7.9%
Gross margin rate in the first quarter was 7.9% • 160 bps increase compared to the same period of fiscal 2025 • Improvement driven by • Favorable product mix • The closure of our Tampa facility • Global restructuring efforts Lasting relationships. Global success. Kimball Electronics | 12
Slide 13: Adjusted selling & administrative expense (%)
Adjusted selling & administrative expense (%)(1) • First quarter totaled $11.3 million • When measured as percent of sales the rate was 3.1% this year compared to 2.9% last year • Received $2 million for the recovery of costs incurred associated with a customer program termination • Anticipate adjus
Slide 14: Adjusted operating income
Adjusted operating income (1) • $17.5 million, or 4.8% of net sales • Last year’s adjusted result of $12.6 million, or 3.4% of net sales • Expect Q1 to be the strongest quarter as demand and costs related to tariffs and softening in the U.S. housing market pressure margin in North America (1) Adjust
Slide 15: Other income and expense
Other income and expense • Expense of $3.5 million • Compared to $6.2 million of expense last year • Once again, this quarter interest expense drove the decrease, down 50% year-over-year Lasting relationships. Global success. Kimball Electronics | 15
Slide 16: Effective tax rate
Effective tax rate • 8.3%, compared to a tax benefit of 9.4% last year • Lower tax rate in Q1 of this fiscal year was driven by tax opportunity related to OBBA • Last year’s negative rate was a result of a favorable ruling on a prior period audit • For the full year of fiscal 2026, we continue to ex
Slide 17: Adjusted net income and adjusted diluted EPS
Adjusted net income and adjusted diluted EPS (1) (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. Lasting relationships. Global success. Kimball Electronics | 17
Slide 18: Balance sheet
Balance sheet • Cash and cash equivalents at September 30, 2025, were $75.7 million • Cash generated by operating activities in the quarter was $8.1 million, our seventh consecutive quarter of positive cash flow • Cash conversion days were 83, a 2-day improvement compared to Q4 of fiscal 2025, and 2
Slide 19: Inventory ended the quarter at $272.7 million
Inventory ended the quarter at $272.7 million • Roughly flat vs. Q4 • $62.6 million, or 19%, lower than a year ago Lasting relationships. Global success. Kimball Electronics | 19
Slide 20: Capital expenditures were $10.6 million
Capital expenditures were $10.6 million (1) • Much of the spend on leasehold improvements in the new facility in Indianapolis (1) Capital Expenditures include purchases of capitalized software. Lasting relationships. Global success. Kimball Electronics | 20
Slide 21: Borrowings at September 30, 2025, were $138 million
Borrowings at September 30, 2025, were $138 million • $9.5 million reduction from the fourth quarter • Down $108 million, or 44%, from a year ago • Short-term liquidity totaled $370 million at the end of the first quarter Lasting relationships. Global success. Kimball Electronics | 21
Slide 22: Share repurchases
Share repurchases • Invested $1.5 million to repurchase 49,000 shares • Since October 2015, under our Board authorized share repurchase program: • A total of $105.2 million returned to Share Owners by repurchasing 6.7 million shares of common stock • $14.8 million remaining on the repurchase program
Slide 23: Reiterating our guidance for fiscal 2026
Reiterating our guidance for fiscal 2026 • Net sales of $1.35 - $1.45 billion • Adjusted operating income of 4.0% - 4.25% of net sales • Capital expenditures of $50 - $60 million Lasting relationships. Global success. Kimball Electronics | 23
Slide 24: Profit sharing bonus tour
Profit sharing bonus tour • Opportunity to travel to each location in our global footprint, connect with the teams, and experience the strides we’re making to return to profitable growth • Winning new business – in all verticals • Improvements in operations • Quality • On-time delivery • Cost initia
Slide 25: Early impacts on the top line in the Medical business
Early impacts on the top line in the Medical business • Accelerated growth and higher margins over time • Strategy is to pursue growth with blue chip customers with long product life cycles and a high degree of visibility • Scalable platform that supports the work we already do well, creates opportu
Slide 26: Augment this growth with a tuck-in acquisition strategy
Augment this growth with a tuck-in acquisition strategy • Add new end-markets • Manufacturing capabilities • New customer relationships Lasting relationships. Global success. Kimball Electronics | 26
Slide 27: Proud of how our entire organization addressed the challenges of the past two years….
Proud of how our entire organization addressed the challenges of the past two years…. • Look forward to a return to growth in FY27 • Centered on the medical space • Aligning with our goal to even out our verticals and improve margins Lasting relationships. Global success. Kimball Electronics | 27
Slide 28: Questions
Questions Lasting relationships. Global success. Kimball Electronics | 28
Slide 29: 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 | 29
Slide 30: Appendix
Appendix Lasting relationships. Global success. Kimball Electronics | 30
Slide 31: Reconciliation of non-GAAP results
Reconciliation of non-GAAP results (Unaudited, Amounts in Thousands, Except Per Share Data) Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Net Sales Growth (vs. same quarter in prior year) (15) % (15) % (12) % (12) % (2) % Foreign Currency Exchange Impact — % — % (1) % 1 % 1 % Constant Currency Growth (15) % (15) %
Slide 32: Reconciliation of non-GAAP results continued….
Reconciliation of non-GAAP results continued…. (Unaudited, Amounts in Thousands, Except Per Share Data) Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Operating Income (GAAP) (TTM) $ 38,902 $ 30,522 $ 48,669 $ 45,535 $ 50,874 Add: Goodwill Impairment (TTM) 5,820 5,820 — — — Add: Asset Impairment (Gain on Disposal) (
Slide 33: Net Sales in Automotive
Net Sales in Automotive (1) (1) Beginning in the first quarter of fiscal year 2026, sales to customers related to commercial transportation, previously included in the automotive vertical, are now reflected in the industrial vertical. Prior periods have been recast to conform to current period prese
Slide 34: Net Sales in Medical
Net Sales in Medical (1) (1) Q3’25 includes $24 million of non-recurring consignment inventory sales. Lasting relationships. Global success. Kimball Electronics | 34
Slide 35: Net Sales in Industrial
Net Sales in Industrial (1) (1) Beginning in the first quarter of fiscal year 2026, sales to customers related to commercial transportation, previously included in the automotive vertical, are now reflected in the industrial vertical. Prior periods have been recast to conform to current period prese