Kimball Electronics, Inc. (Nasdaq: KE) reported fourth-quarter net sales of $371.6 million for the period ended June 30, 2026, a 5% sequential increase, with operating income of $29.1 million, or 7.8% of net sales, according to a company press release.

For the full fiscal year 2026, net sales totaled $1.43 billion, down from $1.49 billion in fiscal 2025. Net income for the year was $28.0 million, compared with $17.0 million in the prior year. Diluted earnings per share were $1.13 for fiscal 2026, up from $0.68 in fiscal 2025.

The company ended the quarter with $88.9 million in cash and total debt of $116.6 million, which it described as the lowest debt level in more than four years. Cash from operations for the quarter was $42.4 million, marking the tenth consecutive quarter of positive operating cash generation.

For fiscal 2027, Kimball Electronics issued guidance projecting net sales of $1.535 billion to $1.560 billion, representing a 7% to 9% increase from fiscal 2026. The company said organic sales growth is expected to be 3% to 5%, with the medical vertical forecast to grow in the high single to low double-digit range. The guidance also includes approximately $60 million in sales from Helvoet Polymer Technologies, a recently announced acquisition. Adjusted operating income is expected to be 4.4% to 4.7% of net sales, with capital expenditures of $50 million to $60 million.

The medical vertical accounted for $412.8 million in fiscal 2026 net sales, or 29% of total revenue, up from $396.2 million in fiscal 2025. Automotive represented 46% of sales at $656.9 million, while industrial made up 25% at $361.7 million.

During fiscal 2026, the company repurchased 447,000 shares of common stock for $11.9 million. The company also noted it is building a new medical facility in Indianapolis as part of its contract development and manufacturing organization strategy.