Slide 1: Fourth Quarter Fiscal 2026 Results
Fourth Quarter Fiscal 2026 Results Quarter Ended June 30, 2026 Supplementary Information to the August 13, 2026, 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 2027 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 2027 • Closing comments Ric Phillips • Q&A CEO Jana Croom CFO Lasting relationships. Global success. Kimball Electronics | 3
Slide 4: Proud of fourth quarter results and good finish to the fiscal year
Proud of fourth quarter results and good finish to the fiscal year • Sales in Q4 were in line with expectations • Adjusted Operating Income exceeded estimates • Strong cash from operations used to paydown debt • Lowest debt levels in over 4 years • Balance sheet continued to strengthen… actively lev
Slide 5: Guidance for fiscal 2027 highlights
Guidance for fiscal 2027 highlights • Highlighted by organic sales growth • The accretive impact from Helvoet • Expect Medical to continue to outpace the other two verticals • Represent more than one-third of total Company sales in the fiscal year • In line with our objectives to balance the portfol
Slide 6: $372M Net Sales
$372M Net Sales • Decline of (2%) compared to Q4 last year • Sequential increase of 5%, experiencing growth in all three verticals compared to Q3 • Geographically, sales in the fourth quarter were more evenly distributed around the world versus prior periods * Percentage decrease compared to Q4 of f
Slide 7: $109M Medical Net Sales
Medical $109M Net Sales • Growth year-over-year and compared to Q3 • Completing a fiscal year: • With year-over-year growth in all 4 quarters • Total Growth exceeded +10%*** • ~30% of these sales occurred in both Asia and Europe, with the same year-over-year increases in each region ** • North Ameri
Slide 8: $170M Automotive Net Sales
Automotive $170M Net Sales • Down (3%) compared to same period LY • 46% of total • Q4 revenue roughly divided in thirds: • Poland & Romania up mid-single digits ** • China increased low-single digits • North America offsetting increases • Steering programs continue to account for ~70% of Automotive
Slide 9: $93M Industrial Net Sales
Industrial Net Sales $93M • Decreased (5%) compared to Q4 last year • 25% of total • Industrial business heavily concentrated in North America • Majority of the decline due to lower ** demand for HVAC systems • Partially offset by higher sales in smart meters in Europe • Continues to recover from pr
Slide 10: Net sales in the fourth quarter were $371.6 million
Net sales in the fourth quarter were $371.6 million • (2%) decrease year-over-year • Foreign exchange +1% favorable impact Lasting relationships. Global success. Kimball Electronics | 10
Slide 11: Gross margin rate in the fourth quarter was 8.9%
Gross margin rate in the fourth quarter was 8.9% • Improvement of +90 bps compared to 8.0% in Q4 of fiscal year 2025 • Favorable mix • Partially offset by incremental costs associated with the ramp-up of our medical CDMO facility in Indianapolis Lasting relationships. Global success. Kimball Electro
Slide 12: Adjusted selling & administrative expense
Adjusted selling & administrative expense (1) • Fourth quarter $14.8 million, increase of $4 million year-over-year • Higher expenses from investments in future growth initiatives • Personnel costs • IT infrastructure • When measured as percent of sales the rate was 4.0% this year compared to 2.8% s
Slide 13: Adjusted operating income in the fourth quarter
Adjusted operating income in the fourth quarter (1) • $18.1 million, or 4.9% of net sales • Compares to last year’s adjusted result of $19.6 million, or 5.2% of net sales (1) Adjusted Operating Income is a Non-GAAP measure – refer to Reconciliation of Non-GAAP Results in the supplementary informatio
Slide 14: Other income / expense
Other income / expense • Expense of $2.6 million, compared to $3.8 million of expense last year • Interest expense drove the decrease, down nearly 30% year-over-year • Lower average debt levels • Lower borrowing rates Lasting relationships. Global success. Kimball Electronics | 14
Slide 15: Effective tax rate
Effective tax rate • ETR in Q4 was 67.8% compared to 48.3% last year • Rate this quarter impacted by the resolution of two long-standing dividend withholding matters with tax authorities at international locations • Ended the fiscal year at 47.5% • Expecting the rate in fiscal 2027 to be in the low
Slide 16: 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 in the supplementary information. v Lasting relationships. Global success. Kimball Electronics | 16
Slide 17: Turning to the balance sheet…
Turning to the balance sheet… • Cash and cash equivalents at June 30, 2026, were $88.9 million • Cash generated by operating activities in the quarter was a robust $42.4 million • Tenth consecutive quarter of positive cash flow • Cash conversion days were 82, 8-day improvement compared to last quart
Slide 18: Inventory ended the quarter at $271.9 million… down slightly
Inventory ended the quarter at $271.9 million… down slightly • $1.4 million decline compared to Q3 • $1.6 million lower than a year ago Lasting relationships. Global success. Kimball Electronics | 18
Slide 19: Capital expenditures in Q4 were $8.5 million
Capital expenditures in Q4 were $8.5 million (1) • Leasehold improvements in the new facility in Indianapolis • Investments to support new programs in Europe • Full year of fiscal 2026: • Invested $51.7 million in capex • In line with our estimates (1) Capital Expenditures include purchases of capit
Slide 20: Borrowings were $116.6 million… the lowest level of debt in 4+ years
Borrowings were $116.6 million… the lowest level of debt in 4+ years • Decrease of $46.4 million from the third quarter • Down $30.9 million, or ~21%, from a year ago • Short-term liquidity totaled $411.3 million at the end of the fourth quarter Reminder: Acquisition of Helvoet occurred on July 1st
Slide 21: Share repurchases
Share repurchases • Invested $2.1 million to repurchase 83,000 shares • Since October 2015, under our Board authorized share repurchase program: • A total of $115.6 million returned to Share Owners by repurchasing 7.1 million shares of common stock • In May, our Board of Directors unanimously increa
Slide 22: As we expected, fiscal 2026 was a year of transition…
As we expected, fiscal 2026 was a year of transition… • Net sales of $1.431 billion • Medical end-market vertical up over 10%, after normalizing last year for a consigned inventory sales • Adjusted operating income was $65.7 million, or 4.6% of net sales • Cash generated from operating activities wa
Slide 23: CFO who takes great pride in the condition of the balance sheet
CFO who takes great pride in the condition of the balance sheet • Exited fiscal year in a position of strength • Plenty of dry powder in the form of borrowing capacity and available cash to strategically invest • Guidance for fiscal 2027 projects a return to growth • We will be leveraging the balanc
Slide 24: Guidance for fiscal 2027
Guidance for fiscal 2027 • Sales growth of 7% - 9% FY27 Guidance • Organic sales growth of 3% - 5% Sales $1.535 -$1.560 billion • Medical in the high single digit to low double-digit range Adjusted OI% 4.4% - 4.7% of net sales • Industrial in line with Company CapEx $50 - $60 million average • Autom
Slide 25: Closing thoughts…
Closing thoughts… • Base business stabilizing, returning to organic sales growth • Medical vertical will approach 35% of the total Company in fiscal 2027 • Helvoet is an important contributor • Since announcement in July, integration efforts have gone very well • Number one priority is unlocking top
Slide 26: How we talk about our Medical business…
How we talk about our Medical business… • Co-development work done by both Kimball and Helvoet • Now incorporating “D” in our reference to the Medical CDMO business • Reflective of our go-to-market strategy as a full-service provider in Kimball Solutions Lasting relationships. Global success. Kimbal
Slide 27: Looking ahead…
Looking ahead… • Evaluate strategic opportunities, potentially accelerating the expansion of our medical CDMO business • “Lift & shift” of an active program • Production of new medical products • Possible future inorganic growth… overtime • Helvoet adds to this strategy: • Expertise in precision man
Slide 28: For more information, please contact…
For more information, please contact… Andy Regrut Vice President, Investor Relations, Strategic Development, and Treasurer 812–827–4151 andy.regrut@kimballelectronics.com Lasting relationships. Global success. Kimball Electronics | 28
Slide 29: Appendix
Appendix Lasting relationships. Global success. Kimball Electronics | 29
Slide 30: Reconciliation of non-GAAP results
Reconciliation of non-GAAP results Lasting relationships. Global success. Kimball Electronics | 30
Slide 31: Reconciliation of non-GAAP results continued…
Reconciliation of non-GAAP results continued… Lasting relationships. Global success. Kimball Electronics | 31
Slide 32: Net Sales Mix by Market Vertical
Net Sales Mix by Market Vertical(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 peri
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 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
Slide 36: Adjusted EBITDA
Adjusted EBITDA(1) (1) Adjusted EBITDA is a Non-GAAP measure - refer to Reconciliation of Non-GAAP Results in the supplementary information. Lasting relationships. Global success. Kimball Electronics | 36
Slide 37: Operating cash flow
Operating cash flow Lasting relationships. Global success. Kimball Electronics | 37