share_log

Kimball Electronics, Inc. (KE) Q1 2025 Earnings Call Transcript Summary

Futu News ·  Nov 6 01:45  · Conference Call

The following is a summary of the Kimball Electronics, Inc. (KE) Q1 2025 Earnings Call Transcript:

Financial Performance:

  • Kimball Electronics reported a Q1 FY 2025 revenue of $374 million, a 15% decrease year-over-year when excluding AT&M.

  • Gross margin rate decreased to 6.3%, down 180 basis points from the same quarter last year, primarily due to lower sales absorption.

  • Adjusted operating income was $12.6 million, down from $21 million in Q1 FY 2024.

  • Net income was adjusted to $5.5 million, or $0.22 per diluted share.

Business Progress:

  • Restructured by divesting non-core AT&M business and integrating medical CMO into EMS operations.

  • Announced the closure of the Tampa manufacturing facility to streamline operations and improve efficiency.

  • Focused on high-value manufacturing in medical devices and automotive, with new programs launching.

  • Achieved a $147 million reduction in inventory, enhancing working capital efficiency.

Opportunities:

  • Strategic focus on high-level medical device assemblies and new automotive programs presents growth opportunities.

  • Continuing restructuring efforts anticipated to bring improved margins and profitability.

Risks:

  • Persistent end market softness poses ongoing challenges for demand and revenue.

  • Closure of the Tampa facility involves risks related to transferring operations and potential disruptions.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
    Write a comment