Kimball Electronics, Inc. announced financial results for the second quarter ended December 31, 2024, with net sales totaling $357.4 million, a 15% decrease year-over-year. Adjusted diluted EPS for the quarter was $0.29, compared to $0.39 in the prior year period. Adjusted operating income was $13.3 million, or 3.7% of net sales.
The company continued to demonstrate strong operational execution, generating positive cash flow from operating activities for the fourth consecutive quarter. Borrowings on credit facilities were nearly 40% lower than a year ago, and inventory levels were reduced to $306.2 million. Cash conversion days improved to 107 days from 117 days in the prior year period.
Kimball Electronics updated its guidance for fiscal year 2025, now expecting net sales in the range of $1.4 billion to $1.44 billion, a reduction from the previous range of $1.44 billion to $1.54 billion. Adjusted operating income is projected to be between 3.4% and 3.6% of net sales, down from the prior guidance of 4.0% to 4.5%. Capital expenditures are still estimated at $40 million to $50 million.
The company reiterated its strategic repositioning efforts, which include the divestiture of the non-core AT&M business, the planned closing of the Tampa facility, and an increased focus on the medical Contract Manufacturing Organization (CMO) segment. Management stated that these changes are necessary for a return to growth, acknowledging that stabilization will take time.
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