Kimball Electronics, Inc.

Contract electronics manufacturer with razor-thin margins but strong cash flow this year.

Strengths

• Strong cash generation this year — FCF margin 10.1% (45th), OCF margin 12.4% (88th), FCF $150.7M
• Adequate liquidity, coverage — current ratio 2.20 (77th), interest coverage 3.09

Risks

• Razor-thin margins — gross margin 7.0% (11th), net margin 1.1%
• Revenue decline — -13.3% (3rd)
• Low-margin, customer-concentrated EMS model — per 10-K

Notable findings

• Customer concentration~77% of revenue from one customer/distributor — Year End Customer Service Years 2025 2024 2023 More than 10 Years % of Net Sales 77 % 76 % 77 % # of Customers 36 38 31 5 to 10 Years % of Net Sales 17 % 18 % 19 % # of Customers 13 15 2
• Fund exitedNotable fund(s) exited this quarter: VANGUARD GROUP INC
• Notable holderHeld by 4 notable fund(s): STATE STREET CORP, GOLDMAN SACHS GROUP INC, CITADEL ADVISORS LLC +1 more (as of 2026-03-31)