Customer and program concentration
Revenue depends on a limited number of OEM programs, so a loss or reduction can materially hurt sales and profitability.
- Scope
- Major automotive program loss was cited as a driver of lower sales.
- Materiality
- High
Kimball Electronics, Inc.
Kimball Electronics, Inc. is a U.S.-based contract manufacturer that builds durable electronic assemblies and related products for customers in automotive, medical, and industrial markets. The company also provides engineering, supply chain, and CMO services for medical disposables, drug delivery devices, and precision molded plastics, using a globally integrated manufacturing footprint.
7,3 %
8,2 %
2,0 %
−3,7 %
2.09
1.27
| % | |
|---|---|
| Electronic manufacturing services | 55% Contract build-to-print electronic assemblies and related manufacturing services for customer-designed products. |
| Medical contract manufacturing | 20% CMO services for medical disposables, drug delivery devices, and regulated medical programs. |
| Precision molded plastics | 10% Molded plastic components and subassemblies used in medical and industrial applications. |
| Engineering and supply chain services | 15% Design-for-manufacturability input, sourcing, procurement, and program support across the product life cycle. |
Kimball Electronics sells primarily to OEMs that outsource complex, quality-critical production rather than build it...
- Automotive OEMs and suppliersprimary
Buy durable electronics and assemblies for vehicle programs; they value quality, reliability, and global supply continuity.
- Medical device and medtech customersprimary
Buy regulated assemblies, disposables, and CMO services for devices that require clean room, sterilization, and traceability controls.
- Industrial OEMssecondary
Buy electronics and subassemblies for industrial applications where cost, lead time, and dependable delivery matter.
- Drug delivery and medical disposable programssecondary
Buy precision molded plastics and integrated manufacturing services for recurring healthcare programs.
Kimball Electronics manufactures in the United States, China, Mexico, Poland, Romania, and Thailand, giving it a...
- •Headquartered in Jasper, Indiana, United States
- •Manufacturing sites in the U.S., China, Mexico, Poland, Romania, and Thailand
- •North America is a key production hub for transferred programs
- •Mexico expansion supports cost and capacity for customer programs
- •Global footprint helps serve multinational OEMs and reduce supply risk
The company is focused on profitable growth by supporting customers’ global expansion with a broader manufacturing...
01
Portfolio simplification and footprint optimizationshort-term
Divestitures and facility closures reduce complexity and align capacity with demand.
02
Margin improvement through cost controlshort-term
Competitive EMS pricing and program start-up dilution pressure margins, so cost discipline is essential.
03
Capability expansion in higher-value programsmedium-term
New capabilities help win more complex work and deepen customer relationships over the product life cycle.
Kimball Electronics is exposed to customer concentration, program loss, and the cyclical nature of EMS demand, where...
Margin pressure from EMS pricing dynamics
Competitive bidding and life-cycle price erosion can compress margins, especially early in a program.
- Scope
- Automotive, industrial, and medical programs are subject to price competition.
- Materiality
- High
Supply chain and component availability
The company must source components globally, and shortages or cost spikes can delay production and raise working capital needs.
- Scope
- Inventory levels and customer advance payments fluctuate with program ramps.
- Materiality
- High
Cybersecurity and IT disruption
Manufacturing, data management, and customer operations rely on IT systems that can be targeted by attacks or outages.
- Scope
- Sensitive customer and employee data plus operational systems.
- Materiality
- Medium
Restructuring and facility transition execution
Closing or moving production can disrupt customer programs and create one-time costs if not managed well.
- Scope
- Tampa shutdown and transfer of work to other plants.
- Materiality
- Medium
Over-time revenue recognition
Can shift revenue and gross margin between periods
Inventory and excess/obsolete reserves
Affects cost of sales and working capital
Restructuring and facility closure charges
Can create non-recurring operating expense
Contract assets and customer advances
Affects cash conversion and balance sheet presentation
: 28.4.2026