KIMBALL ELECTRONICS

To create quality for a lifetime by being the indispensable partner for the world's most essential and complex technologies.

KIMBALL ELECTRONICS SWOT Analysis

Updated: October 4, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for KIMBALL ELECTRONICS was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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This Kimball Electronics SWOT analysis reveals a company at a strategic inflection point. Its core strength in the high-margin medical sector provides a powerful hedge against the pronounced cyclical weakness in its traditional automotive base. However, persistent margin pressure and a scale disadvantage relative to industry giants represent significant headwinds. The primary opportunity lies in capitalizing on the nearshoring trend and medical device innovation. The greatest threat is a prolonged economic downturn exacerbating its end-market cyclicality. The strategic imperative is clear: Kimball Electronics must leverage its operational discipline to pivot more aggressively toward its growth verticals, using its strong balance sheet to pursue acquisitions that can accelerate this transformation and build a more resilient, higher-margin business.

Jabil Flex Sanmina Plexus Benchmark Electronics

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To create quality for a lifetime by being the indispensable partner for the world's most essential and complex technologies.

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Strengths

MEDICAL: Robust growth in the high-margin medical segment (Q3 FY24).
LIQUIDITY: Strong balance sheet and cash flow provide operational stability.
RELATIONSHIPS: Long-term contracts with key customers ensure steady demand.
FOOTPRINT: Global manufacturing presence allows for supply chain flexibility.
DISCIPLINE: Proven ability to manage costs and working capital effectively.

Weaknesses

AUTOMOTIVE: Significant revenue decline due to program timing & soft demand.
MARGINS: Persistent gross margin pressure from competition and cost inflation.
INVENTORY: Elevated inventory levels continue to be a drag on working capital.
DEPENDENCE: High revenue concentration in automotive makes company cyclical.
SCALE: Lacks the purchasing power and scale of competitors like Jabil/Flex.

Opportunities

VERTICALS: Capitalize on growing complexity in medical and industrial devices.
NEARSHORING: Leverage US/Mexico footprint as OEMs shift supply chains.
ACQUISITIONS: Use strong balance sheet for strategic, tuck-in acquisitions.
EV REBOUND: Position for long-term growth in electric vehicle electronics.
EFFICIENCY: Drive further operational improvements via automation and data.

Threats

ECONOMY: A global economic slowdown would severely impact industrial/auto.
COMPETITION: Aggressive pricing from larger EMS players erodes profitability.
SUPPLY CHAIN: Renewed semiconductor or component shortages could halt lines.
LABOR: Rising labor costs in all operating regions pressures margins.
CURRENCY: Unfavorable foreign exchange rate fluctuations impact earnings.

Key Priorities

PIVOT: Aggressively expand medical vertical to counter automotive cyclicality.
OPTIMIZE: Drive margin expansion via disciplined cost and inventory management.
ACQUIRE: Pursue strategic acquisitions to add new tech or market capabilities.
DE-RISK: Diversify customer base and enhance supply chain resilience.

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KIMBALL ELECTRONICS OKR

Updated: October 4, 2025 • 2025-Q4 Analysis

The Kimball Electronics OKR plan is a focused and pragmatic blueprint for navigating its current challenges. It wisely prioritizes dominating the high-margin medical vertical while fortifying core profitability through disciplined operational improvements. The objectives to accelerate growth via acquisition and build resilience by de-risking the supply chain and customer base are direct, actionable responses to the key weaknesses and threats identified in the analysis. This plan provides a clear, measurable path to transforming Kimball into a more profitable, resilient, and diversified manufacturing partner. Its success hinges on rigorous execution, particularly in M&A and new technology adoption like AI.

Jabil Flex Sanmina Plexus Benchmark Electronics

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To create quality for a lifetime by being the indispensable partner for the world's most essential and complex technologies.

DOMINATE MEDICAL

Become the undisputed EMS leader in complex medical devices.

WINS: Secure 5 new multi-year medical device manufacturing programs with a total contract value over $100M.
GROWTH: Increase medical segment revenue by 20% year-over-year, outpacing the overall market growth rate.
CAPABILITY: Achieve a new advanced medical device manufacturing certification (e.g., for active implantables).
NPS: Achieve a Net Promoter Score of 60+ among our top 10 strategic medical segment customers this year.

FORTIFY MARGINS

Drive profitability through operational and supply excellence.

INVENTORY: Reduce inventory days on hand from 110 to 95 to free up $50M in working capital for growth.
AUTOMATION: Deploy 3 new AI/automation projects in quality and logistics to reduce operational costs by 5%.
PROCUREMENT: Realize $15M in cost savings through strategic sourcing and supplier negotiation initiatives.
MARGIN: Increase adjusted operating income margin from 4.5% to a consistent 5.5% across all business units.

ACCELERATE GROWTH

Expand market presence through strategic acquisition & sales.

M&A: Identify and complete one strategic acquisition valued at $50-75M in a new, high-growth technology area.
PIPELINE: Grow the qualified sales pipeline for non-automotive business by 40%, focusing on industrial IoT.
NEARSHORING: Win 3 major 'nearshoring' manufacturing transfer projects for our facilities in Mexico.
DIVERSIFY: Reduce the automotive segment's share of total revenue from 45% to below 38% through growth.

BUILD RESILIENCE

Strengthen our supply chain and diversify our customer base.

SUPPLIERS: Qualify a second source for 80% of our top 50 critical, single-source electronic components.
CONCENTRATION: Reduce revenue from our single largest customer from 15% to less than 12% of total revenue.
UPTIME: Implement a predictive maintenance AI pilot on one production line to increase asset uptime by 10%.
RISK: Complete a full geopolitical risk assessment of our top 100 suppliers and establish mitigation plans.

METRICS

Annual Revenue Growth: Achieve 5-7% YoY
Adjusted Operating Margin: Exceed 5.5%
New Program Introductions (NPIs): 25+

VALUES

Customer Focus
Empowered People
Unwavering Integrity
Operational Excellence

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KIMBALL ELECTRONICS Retrospective

AI-Powered Insights

Claude

Gemini

GPT

Kimball Electronics Q3 FY2024 Earnings Report and Webcast
Kimball Electronics 2023 Form 10-K Annual Report
Kimball Electronics Official Corporate Website
Public financial data from Yahoo Finance for stock symbol KE

Jabil Flex Sanmina Plexus Benchmark Electronics

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To create quality for a lifetime by being the indispensable partner for the world's most essential and complex technologies.

Toggle Theme

What Went Well

MEDICAL: Continued double-digit growth in the medical vertical.
CASHFLOW: Generated strong operating cash flow through working capital focus.
EXECUTION: Maintained operational discipline despite challenging demand.
RELATIONSHIPS: Successfully managed key customer relationships during downturn.

Not So Well

AUTOMOTIVE: Sharp decline in revenue from automotive sector softness.
INDUSTRIAL: Sales decreased due to customer inventory destocking.
MARGINS: Gross margin percentage remained under pressure from lower volume.
OUTLOOK: Full-year guidance was revised downward, reflecting weak demand.

Learnings

DIVERSIFICATION is crucial for mitigating the impact of cyclical markets.
INVENTORY management is a key lever for cash flow in a downturn.
COST control is essential when fixed cost absorption is a headwind.
DEMAND signals must be monitored closely to adjust production schedules.

Action Items

INVENTORY: Continue aggressive actions to reduce inventory levels.
COSTS: Implement further cost-saving measures to protect profitability.
MEDICAL: Allocate resources to support continued strong growth in medical.
SALES: Focus business development on diversifying revenue streams further.

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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KIMBALL ELECTRONICS Market

AI-Powered Insights

Claude

Gemini

GPT

Kimball Electronics Q3 FY2024 Earnings Report and Webcast
Kimball Electronics 2023 Form 10-K Annual Report
Kimball Electronics Official Corporate Website
Public financial data from Yahoo Finance for stock symbol KE

Founded: 1961 (Spun off from Kimball Int'l in 2014)
Market Share: Estimated <1% of the global EMS market.
Customer Base: OEMs in Automotive, Medical, Industrial.
Category:
Electronics Manufacturing Services
SIC Code: 3672
NAICS Code: 334418 Printed Circuit Assembly (Electronic Assembly) Manufacturing
Location: Jasper, Indiana
Zip Code: 47546
Congressional District: IN-8 EVANSVILLE
Employees: 7100

Competitors

Jabil View Analysis

Flex View Analysis

Sanmina View Analysis

Plexus View Analysis

Benchmark Electronics View Analysis

Products & Services

No products or services data available

Distribution Channels

KIMBALL ELECTRONICS Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Kimball Electronics Q3 FY2024 Earnings Report and Webcast
Kimball Electronics 2023 Form 10-K Annual Report
Kimball Electronics Official Corporate Website
Public financial data from Yahoo Finance for stock symbol KE

Problem

OEMs need to manufacture complex electronics.
OEMs need to scale production globally.
OEMs must ensure the highest quality.

Solution

End-to-end engineering & mfg services.
Global footprint in Americas, Europe, Asia.
Rigorous quality management systems.

Key Metrics

Revenue Growth
Operating Income Margin %
New Program Introductions (NPIs)

Unique

Long-term partnership approach.
Focus on high-reliability markets.
Culture of 'Creating Quality for a Lifetime'.

Advantage

Multi-decade customer relationships.
Regulatory certs (e.g., medical ISO 13485).
Kimball Business System (KBS) for execution.

Channels

Direct global sales team.
Executive relationship selling.

Customer Segments

Automotive OEMs & Tier 1s
Medical device manufacturers
Industrial automation & controls companies

Costs

Direct material & component costs
Direct labor and manufacturing overhead
SG&A (Sales, General & Administrative)

KIMBALL ELECTRONICS Product Market Fit Analysis

Updated: October 4, 2025

Kimball Electronics provides high-complexity manufacturing solutions for global OEMs in critical industries. By delivering uncompromising quality and acting as an enduring partner, it enables companies to launch essential products faster and more reliably. Its global execution capabilities ensure seamless production scaling, turning complex manufacturing challenges into a competitive advantage for its clients, ensuring their products' quality for a lifetime.

Uncompromising Quality: Ensuring your critical products work every time.

Enduring Partnership: Acting as a seamless extension of your team.

Global Execution: Delivering complex solutions anywhere in the world.

Before State

OEMs face manufacturing complexity
Volatile supply chains disrupt production
In-house production is capital intensive

After State

Seamlessly scale complex manufacturing
De-risked supply chain and operations
Focus on core R&D and marketing

Negative Impacts

Delayed product launches and lost revenue
High costs of quality escapes or recalls
Inability to scale production efficiently

Positive Outcomes

Faster time-to-market for new products
Improved product quality and reliability
Lower total cost of ownership (TCO)

Key Metrics

Customer Retention Rate

>95%

Net Promoter Score (NPS)

Est. 45-55 B2B

User Growth Rate

Tied to new program wins

Customer Feedback/Reviews

Not on G2; B2B

Repeat Purchase Rates

Contract-based

Requirements

Deep technical and engineering alignment
Transparent communication and forecasting
Long-term strategic partnership mindset

Why KIMBALL ELECTRONICS

Dedicated program management teams
Global footprint for flexible production
Rigorous quality management system

KIMBALL ELECTRONICS Competitive Advantage

Decades of multi-industry expertise
Culture of quality and customer service
Financial stability and long-term view

Proof Points

Multi-decade relationships with top OEMs
Numerous customer quality awards
Successful launches of life-saving devices

KIMBALL ELECTRONICS Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Kimball Electronics Q3 FY2024 Earnings Report and Webcast
Kimball Electronics 2023 Form 10-K Annual Report
Kimball Electronics Official Corporate Website
Public financial data from Yahoo Finance for stock symbol KE

Strategic pillars derived from our vision-focused SWOT analysis

Deepen expertise in medical & industrial sectors.

Leverage automation for world-class efficiency.

Become extensions of our customers' teams.

Optimize footprint to mitigate supply chain risks.

What You Do

High-complexity electronics manufacturing.

Target Market

Global OEMs in regulated industries.

Differentiation

Focus on quality and reliability.
Long-term partnership model.

Revenue Streams

Contract manufacturing fees.
Engineering & design services.

KIMBALL ELECTRONICS Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Kimball Electronics Q3 FY2024 Earnings Report and Webcast
Kimball Electronics 2023 Form 10-K Annual Report
Kimball Electronics Official Corporate Website
Public financial data from Yahoo Finance for stock symbol KE

Company Operations

Organizational Structure: Matrix structure by geography and business.
Supply Chain: Global network of component suppliers.
Tech Patents: Focus on process innovation, not patents.
Website: https://www.kimballelectronics.com

Top Clients

Board Members

KIMBALL ELECTRONICS Competitive Forces

Threat of New Entry

MODERATE: High capital investment for factories and equipment is a barrier, but smaller niche players can and do enter.

Supplier Power

MODERATE to HIGH: Power is high for critical, sole-sourced components like semiconductors, but lower for commoditized parts.

Buyer Power

HIGH: Large OEM customers have significant negotiating leverage due to high volume and the ability to switch suppliers.

Threat of Substitution

LOW: The primary substitute is in-house manufacturing by OEMs, which is capital-intensive and often less efficient for them.

Competitive Rivalry

HIGH: Fragmented market with many large (Jabil, Flex) and small competitors. Price is a key factor, creating intense rivalry.

Analysis of AI Strategy

Updated: October 4, 2025 • 2025-Q4 Analysis

The Kimball Electronics AI SWOT analysis highlights a significant opportunity tempered by an execution gap. The company's wealth of manufacturing data is a powerful, untapped asset. However, a lack of specialized talent and a clear strategic vision for AI are major internal weaknesses. The most immediate opportunities are in leveraging AI for operational efficiency—specifically in quality control, predictive maintenance, and supply chain optimization, which align perfectly with its core business. The primary threat is not AI itself, but the speed at which competitors adopt it to create a cost and quality advantage. Kimball Electronics must move from a reactive to a proactive stance, starting with targeted, high-ROI pilot projects to build momentum and prove the value of a dedicated AI strategy.

Jabil Flex Sanmina Plexus Benchmark Electronics

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To create quality for a lifetime by being the indispensable partner for the world's most essential and complex technologies.

Strengths

DATA: Decades of manufacturing process and quality control data available.
SYSTEMS: Existing operational excellence framework (KBS) to build upon.
QUALITY: Strong culture of quality provides clear use cases for AI vision.
FOOTPRINT: Global operations offer diverse datasets for model training.

Weaknesses

TALENT: Lack of a dedicated, in-house AI and machine learning expert team.
INFRASTRUCTURE: Legacy factory systems may require significant IT investment.
STRATEGY: No clearly articulated, top-down AI vision or implementation plan.
BUDGET: AI initiatives may compete for capital with other operational needs.

Opportunities

INSPECTION: Use computer vision AI for automated quality control checks.
MAINTENANCE: Implement predictive AI to forecast machine failures, cut downtime.
SUPPLY CHAIN: Leverage AI for demand forecasting and inventory optimization.
QUOTING: Develop AI models to accelerate the complex new business quoting.

Threats

COMPETITION: Larger rivals are heavily investing in 'smart factory' AI.
SECURITY: AI systems and the data they use are new targets for cyberattacks.
COST: High cost of implementation and talent could yield negative ROI.
INTEGRATION: Difficulty integrating AI into existing complex workflows.

Key Priorities

QUALITY: Pilot computer vision AI to automate inspections and reduce defects.
UPTIME: Deploy predictive maintenance AI on critical assets to cut downtime.
INVENTORY: Use AI forecasting models to optimize supply chain inventory levels.
CAPABILITY: Build a small AI team or partner with a specialist AI firm.

Create professional SWOT analyses in minutes with our AI template. Get insights that drive real results.

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KIMBALL ELECTRONICS Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Kimball Electronics Q3 FY2024 Earnings Report and Webcast
Kimball Electronics 2023 Form 10-K Annual Report
Kimball Electronics Official Corporate Website
Public financial data from Yahoo Finance for stock symbol KE

Profit: TTM Net Income: $58.2 Million USD

Market Cap: $550 Million USD (Mid-2024)

Stock Performance

Annual Report: View Report

Debt: Long-term debt approximately $200M.

ROI Impact: Margin pressure impacts ROIC metrics.

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Contender

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Kimball Electronics is a solid operator in a competitive industry. Its Iconic Index reflects a category-level ambition, not a world-shaping one. The SWOT is balanced, with significant opportunities in medical and nearshoring offset by cyclical market threats. The OKRs are well-defined and achievable, targeting the right levers for margin and growth. The 10-year growth potential is modest, reflecting a mature market and intense competition, limiting exponential expansion.

SWOT Factors

Upside: 69.3 Risk: 72.7

OKR Impact

AI Leverage

Top 3 Strategic Levers

Aggressively scale the high-margin medical business.

Execute a strategic, capability-enhancing acquisition.

Deploy AI/automation to achieve best-in-class margins.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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