Revenue contraction remains a persistent headwind, with the company reporting a 5.8% year-over-year decline in 2026Q3 alongside thin gross margins of 7.9%.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 |
|---|
| Sales/Revenue | 1.44B | 1.49B | 1.71B | 1.82B | 1.35B | 1.29B | 1.2B | 1.18B | 1.07B | 930.91M | 842.06M | 819.35M | 741.53M | 703.13M | 616.75M |
| Revenue Growth % | -6.26% | -13.29% | -5.97% | 35.12% | 4.47% | 7.6% | 1.58% | 10.24% | 15.16% | 10.55% | 2.77% | 10.49% | 5.46% | 14.01% | - |
| Cost of Goods Sold | 1.33B | 1.38B | 1.57B | 1.67B | 1.24B | 1.17B | 1.12B | 1.09B | 985.86M | 855.32M | 777.52M | 746.93M | 680.53M | 645.97M | 579.82M |
| COGS % of Revenue | - | 92.98% | 91.82% | 91.44% | 92.25% | 90.86% | 93.02% | 92.52% | 91.96% | 91.88% | 92.34% | 91.16% | 91.77% | 91.87% | 94.01% |
| Gross Profit | 115.15M | 104.4M | 140.26M | 156.16M | 104.6M | 118.03M | 83.84M | 88.41M | 86.2M | 75.59M | 64.54M | 72.42M | 61M | 57.16M | 36.93M |
| Gross Margin % | 8% | 7.02% | 8.18% | 8.56% | 7.75% | 9.14% | 6.98% | 7.48% | 8.04% | 8.12% | 7.66% | 8.84% | 8.23% | 8.13% | 5.99% |
| Gross Profit Growth % | - | -25.56% | -10.19% | 49.29% | -11.38% | 40.78% | -5.16% | 2.56% | 14.03% | 17.13% | -10.89% | 18.73% | 6.72% | 54.77% | - |
| Operating Expenses | 57.17M | 58.87M | 90.98M | 68.44M | 52.05M | 52.33M | 51.84M | 46.35M | 43.85M | 32.54M | 34.82M | 36.07M | 30.66M | 30.01M | 25.74M |
| OpEx % of Revenue | - | 3.96% | 5.31% | 3.75% | 3.86% | 4.05% | 4.32% | 3.92% | 4.09% | 3.5% | 4.13% | 4.4% | 4.14% | 4.27% | 4.17% |
| Selling, General & Admin | 56.33M | 50.27M | 66.63M | 68.65M | 53.44M | 52.7M | 43.92M | 46.65M | 43.85M | 36.54M | 34.82M | 36.07M | 36.35M | 30.01M | 25.74M |
| SG&A % of Revenue | - | 3.38% | 3.89% | 3.76% | 3.96% | 4.08% | 3.66% | 3.95% | 4.09% | 3.93% | 4.13% | 4.4% | 4.9% | 4.27% | 4.17% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 20.9M | 0 | 15M | 11M | 10M | 9M | 9M | 8M | 8M | 0 |
| R&D % of Revenue | - | - | - | - | - | 1.62% | - | 1.27% | 1.03% | 1.07% | 1.07% | 1.1% | 1.08% | 1.14% | - |
| Other Operating Expenses | 844K | 8.6M | 24.35M | -212K | -1.38M | -21.27M | 7.92M | -307K | 2.43M | 1.2M | -1.75M | -1.58M | 273K | -39K | 140K |
| Operating Income | 57.13M | 45.53M | 49.28M | 87.73M | 52.55M | 65.7M | 32M | 38.05M | 42.35M | 43.06M | 29.72M | 36.35M | 29.93M | 26.73M | 7.77M |
| Operating Margin % | 3.97% | 3.06% | 2.87% | 4.81% | 3.89% | 5.09% | 2.67% | 3.22% | 3.95% | 4.63% | 3.53% | 4.44% | 4.04% | 3.8% | 1.26% |
| Operating Income Growth % | - | -7.59% | -43.83% | 66.95% | -20.02% | 105.35% | -15.92% | -10.14% | -1.65% | 44.87% | -18.25% | 21.47% | 11.98% | 243.99% | - |
| EBITDA | 85.12M | 82.53M | 87.31M | 120.14M | 81.96M | 99.72M | 62.87M | 66.93M | 68.72M | 66.98M | 49.59M | 55.96M | 47.82M | 44.17M | 24.55M |
| EBITDA Margin % | 5.91% | 5.55% | 5.09% | 6.59% | 6.07% | 7.72% | 5.24% | 5.66% | 6.41% | 7.2% | 5.89% | 6.83% | 6.45% | 6.28% | 3.98% |
| EBITDA Growth % | -0.55% | -5.47% | -27.33% | 46.59% | -17.81% | 58.62% | -6.06% | -2.62% | 2.6% | 35.07% | -11.38% | 17.03% | 8.25% | 79.95% | - |
| D&A (Non-Cash Add-back) | 27.98M | 36.99M | 38.03M | 32.42M | 29.41M | 34.02M | 30.87M | 28.87M | 26.38M | 23.92M | 19.87M | 19.61M | 17.89M | 17.45M | 16.78M |
| EBIT | 37.92M | 40.97M | 48.04M | 91.01M | 46.39M | 72.22M | 29.58M | 42.55M | 45.3M | 44.53M | 29.72M | 38.95M | 26.84M | 26.79M | 8.08M |
| Net Interest Income | -6.51M | -13.97M | -26.47M | -20.91M | -4.17M | -2.06M | -4.36M | -4.01M | -454K | -207K | -1K | 25K | 39K | 87K | 161K |
| Interest Income | 913K | 771K | 638K | 153K | 81K | 102K | 60K | 62K | 73K | 64K | 79K | 36K | 41K | 96K | 167K |
| Interest Expense | 5.15M | 14.74M | 27.11M | 21.06M | 4.25M | 2.17M | 4.42M | 4.07M | 527K | 271K | 80K | 11K | 2K | 9K | 6K |
| Other Income/Expense | -17.65M | -19.31M | -24.08M | -12.98M | -8.82M | 4.35M | -6.84M | -3.58M | 2.74M | 1.48M | -1.75M | -1.58M | 312K | -368K | 301K |
| Pretax Income | 39.49M | 26.23M | 25.2M | 74.74M | 43.73M | 70.05M | 25.16M | 38.48M | 44.77M | 44.26M | 27.98M | 34.77M | 30.24M | 26.78M | 8.07M |
| Pretax Margin % | 2.74% | 1.76% | 1.47% | 4.1% | 3.24% | 5.42% | 2.1% | 3.26% | 4.18% | 4.75% | 3.32% | 4.24% | 4.08% | 3.81% | 1.31% |
| Income Tax | 13.46M | 9.24M | 4.69M | 18.91M | 12.48M | 13.26M | 6.96M | 6.93M | 28.02M | 10.08M | 5.69M | 8.57M | 5.63M | 5.26M | -15.83M |
| Effective Tax Rate % | 34.1% | 35.25% | 18.6% | 25.3% | 28.53% | 18.93% | 27.67% | 18% | 62.59% | 22.77% | 20.34% | 24.64% | 18.61% | 19.63% | -196.16% |
| Net Income | 26.02M | 16.98M | 20.51M | 55.83M | 31.25M | 56.79M | 18.2M | 31.56M | 16.75M | 34.18M | 22.29M | 26.2M | 24.61M | 21.52M | 23.9M |
| Net Margin % | 1.81% | 1.14% | 1.2% | 3.06% | 2.32% | 4.4% | 1.52% | 2.67% | 1.56% | 3.67% | 2.65% | 3.2% | 3.32% | 3.06% | 3.88% |
| Net Income Growth % | 45.01% | -17.2% | -63.26% | 78.64% | -44.97% | 212.11% | -42.34% | 88.38% | -50.99% | 53.36% | -14.95% | 6.47% | 14.37% | -9.97% | - |
| Net Income (Continuing) | 26.02M | 16.98M | 20.51M | 55.83M | 31.25M | 56.79M | 18.2M | 31.56M | 16.75M | 34.18M | 22.29M | 26.2M | 24.61M | 21.52M | 23.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.06 | 0.68 | 0.81 | 2.22 | 1.24 | 2.24 | 0.71 | 1.21 | 0.62 | 1.24 | 0.76 | 0.89 | 0.84 | 0.75 | 0.83 |
| EPS Growth % | 46.48% | -16.05% | -63.51% | 79.03% | -44.64% | 215.49% | -41.32% | 95.16% | -50% | 63.16% | -14.61% | 5.95% | 12% | -9.64% | - |
| EPS (Basic) | - | 0.68 | 0.82 | 2.24 | 1.24 | 2.26 | 0.72 | 1.22 | 0.63 | 1.25 | 0.77 | 0.90 | 0.84 | 0.75 | 0.83 |
| Diluted Shares Outstanding | 24.65M | 25.02M | 25.28M | 25.08M | 25.22M | 25.28M | 25.43M | 26.08M | 27.01M | 27.53M | 29.18M | 29.39M | 29.14M | 28.8M | 28.8M |
| Basic Shares Outstanding | 24.47M | 24.78M | 25.08M | 24.9M | 25.11M | 25.09M | 25.24M | 25.86M | 26.75M | 27.41M | 28.92M | 29.16M | 29.14M | 28.8M | 28.8M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Automotive cyclical demand exposure
As reported in recent financial statements, Kimball Electronics has experienced a sustained period of top-line decline, with revenue contracting by 13.29% year-over-year, suggesting that the company is currently navigating a challenging environment characterized by program transitions and broader cyclical softening within its core automotive and industrial segments.
The consistent negative growth trajectory indicates that the company's high-mix, low-volume model is currently struggling to offset the loss of legacy program volume. Investors should monitor whether the current NPI pipeline is sufficient to return the company to organic growth or if the revenue base will continue to reset at lower levels.
Based on the company's latest quarterly filings, gross margins have remained thin at approximately 7.9%, reflecting the competitive nature of the EMS industry and suggesting that Kimball Electronics possesses limited pricing power to mitigate inflationary pressures or fluctuations in factory utilization across its global manufacturing footprint.
The narrow margin profile leaves the firm with minimal buffer to absorb operational inefficiencies or unexpected cost spikes. This structural limitation implies that any meaningful expansion in profitability would likely require a significant shift in the revenue mix toward higher-complexity medical assemblies rather than standard automotive electronics.
According to the income statement data, operating margins have fluctuated significantly, reaching a low of -1.5% in 2024Q3, which highlights the company's high sensitivity to fixed-cost absorption and suggests that current volume levels are insufficient to drive meaningful operating leverage in the near term.
The volatility in operating income relative to gross profit suggests that the company's cost structure is heavily weighted toward fixed overheads that do not scale efficiently during periods of revenue contraction. Management's ability to maintain profitability appears contingent on achieving higher factory utilization rates, which remains a primary concern for investors.
While the company's low debt-to-equity ratio of 0.26% provides a safety net, the recent net margin compression to 1.14% warrants investigation, as it suggests that the firm's competitive moat in safety-critical markets may not be sufficient to protect earnings during periods of severe automotive industry downturns.
Short-sellers may focus on the potential for further margin erosion if the company fails to successfully pivot its capital allocation toward more stable, higher-margin medical segments. The current reliance on automotive volumes appears to be a significant risk factor that could continue to pressure the bottom line if end-market demand remains soft.
Quick answers to the most common questions about buying KE stock.
For fiscal year 2025, Kimball Electronics, Inc. (KE) reported total revenue of $1.49B. This represents a 141.1% increase compared to $616.8M in 2012.
Kimball Electronics, Inc. (KE) is profitable, generating $17.0M in net income for the fiscal year ending 2025 with a net profit margin of 1.1%.
Kimball Electronics, Inc. (KE) reported an operating income of $45.5M, resulting in an operating profit margin of 3.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Kimball Electronics, Inc. (KE) generated $104.4M in gross profit for the year, representing a gross profit margin of 7.0%. This demonstrates the company's core pricing power and production efficiency.