Kimball Electronics, Inc. (NASDAQ: KE)

Kimball Electronics delivers a package of value that includes durable, high-reliability electronics, higher level and final assemblies, and contract manufacturing organization solutions. The company provides engineering and supply chain support for the production of electronic assemblies and other products, including medical devices, medical disposables, and precision molded plastics. Kimball Electronics serves customers primarily in automotive, medical, and industrial applications across its global manufacturing footprint.

Kimball Electronics generates revenue through contract manufacturing services, including production and testing of printed circuit board assemblies, high-level and final assembly of medical, automotive, and industrial products, design services and support, supply chain services, rapid prototyping, new product introduction support, product design and process validation, industrialization and automation of manufacturing processes, reliability testing, aftermarket services, production and assembly of medical devices and medical disposables, drug delivery devices with and without electronics, Class 7 and 8 clean room assembly, cold chain and product sterilization management, design engineering and production of precision molded plastics, and complete product life cycle management. The company markets its services globally via its business development team and customer relationship management model, offering convenient access to its integrated global footprint and standardized operating systems throughout the entire product life cycle.

The company operates through the following segments:

• Contract Manufacturing: This segment provides engineering and supply chain support for the production of electronic assemblies and other products, including medical devices, medical disposables, and precision molded plastics, to the specifications and designs of customers. The segment serves customers in automotive, medical, and industrial end markets. Kimball Electronics offers services such as production and testing of printed circuit board assemblies, high-level and final assembly, design for excellence solutions, supply chain management, rapid prototyping, new product introduction support, product design and process validation, industrialization and automation, reliability testing, aftermarket services, medical device and disposable assembly, drug delivery solutions, Class 7 and 8 clean room assembly, cold chain management, product sterilization, precision molded plastics design and production, and complete product life cycle management.

Kimball Electronics competes in the global electronics manufacturing services industry against companies such as Benchmark Electronics, Inc., Flex Ltd., Jabil Inc., Plexus Corp., and Sanmina Corporation. The company was ranked the 24th largest global EMS provider for calendar year 2024 by Manufacturing Market Insider in the March 2025 edition published by New Venture Research. Kimball Electronics derives its competitive strengths from 40 years of experience producing safety-critical electronic assemblies for automotive customers, which it leverages to deliver innovative solutions across industries, supported by its highly integrated global footprint, fully integrated engineering and supply chain services, customer relationship management model, customer scorecard process, quality systems, industry certifications, regulatory compliance, integrated supply chain solutions, competitive bid processes, and complete product life cycle management capabilities.

Kimball Electronics serves customers concentrated in the automotive, medical, and industrial end markets. Sales by industry as a percent of net sales for the year ended June 30, 2025 were 49% automotive, 27% medical, and 24% industrial. Included in sales were significant amounts to Nexteer Automotive, Philips, and ZF, which accounted for 19%, 14%, and 11% of net sales, respectively, for the year ended June 30, 2025. The company’s customer agreements are often not for a definitive term and are amended and extended, but generally continue for the relevant product’s life cycle, with customers typically having the right to cancel a program subject to contractual provisions.