Kimball Electronics reported net sales of $352.9 million [1] for the third quarter of fiscal 2026 on Wednesday.
These results signal a strategic pivot toward the medical sector to offset fluctuations in other markets. The company's expansion into a new production facility suggests a long-term bet on increasing manufacturing capacity within the U.S.
CEO Richard Phillips said results for the third quarter were in line with expectations. He said that sales increased sequentially compared to the second quarter, driven by strong growth in the medical vertical market.
Financial results for the quarter included adjusted earnings of $0.33 per share [2] and GAAP earnings of $0.23 per share [2]. While unadjusted net sales saw a six% decrease year-over-year [1], the company reported an approximate one% increase when adjusted for a one-time consigned inventory sale [1].
Kimball Electronics reaffirmed its revenue guidance for the full fiscal year 2026, projecting between $1.4 billion and $1.46 billion [3]. The company also provided a sales forecast for the fourth quarter of between $370 million and $380 million [3]. Adjusted operating margin guidance for the fiscal year is set at 4.2% to 4.5% [4].
To support this growth, the company announced a new 300,000-square-foot production facility in Indianapolis, Indiana [4]. This plant is projected to begin production by the end of the calendar year 2026 [4].
"We reaffirm our FY 2026 revenue guidance of $1.4 billion to $1.46 billion," Phillips said [3].
The company, which is headquartered in Jasper, Indiana, continues to align its infrastructure with the demands of high-growth sectors. The new Indianapolis site represents a significant footprint expansion to meet the sequential growth observed this quarter.
“"Results for the third quarter were in line with expectations, and sales increased sequentially compared to Q2 driven by strong growth in our Medical vertical market."”
The reaffirmation of full-year guidance despite a year-over-year dip in unadjusted sales suggests that Kimball Electronics is successfully transitioning its portfolio. By investing in a massive new facility in Indianapolis and leaning into the medical vertical, the company is attempting to reduce volatility and capitalize on the steady demand for medical technology manufacturing.
