INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page No. Management’s Report on Internal Control Over Financial Reporting 34 Report of Independent Registered Public Accounting Firm (PCAOB No. 34) 35 Consolidated Balance Sheets as of June 30, 2026 and 2025 38 Consolidated Statements of Income for Each of the Three Years in the Period Ended June 30, 2026 39 Consolidated Statements of Comprehensive Income for Each of the Three Years in the Period Ended June 30, 2026 40 Consolidated Statements of Cash Flows for Each of the Three Years in the Period Ended June 30, 2026 41 Consolidated Statements of Share Owners’ Equity for Each of the Three Years in the Period Ended June 30, 2026 42 Notes to Consolidated Financial Statements 43 33 MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING The management of Kimball Electronics, Inc. is responsible for establishing and maintaining adequate internal control over financial reporting and for the preparation and integrity of the accompanying financial statements and other related information in this report. The consolidated financial statements of the Company and its subsidiaries, including the footnotes, were prepared in accordance with accounting principles generally accepted in the United States of America and include judgments and estimates, which in the opinion of management are applied on an appropriately conservative basis. We maintain a system of internal and disclosure controls intended to provide reasonable assurance that assets are safeguarded from loss or material misuse, transactions are authorized and recorded properly, and that the accounting records may be relied upon for the preparation of the financial statements. This system is tested and evaluated regularly for adherence and effectiveness by employees who work within the internal control processes and by our staff of internal auditors. The Audit Committee of the Board of Directors, which is comprised of directors who are not employees of the Company, meets regularly with management, our internal auditors, and the independent registered public accounting firm to review our financial policies and procedures, our internal control structure, the objectivity of our financial reporting, and the independence of the independent registered public accounting firm. The internal auditors and the independent registered public accounting firm have free and direct access to the Audit Committee, and they meet periodically, without management present, to discuss appropriate matters. Because of inherent limitations, a system of internal control over financial reporting may not prevent or detect misstatements and even when determined to be effective, can only provide reasonable assurance with respect to financial statement preparation and presentation. These consolidated financial statements are subject to an evaluation of internal control over financial reporting conducted under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer. Based on that evaluation, conducted under the criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, management concluded that our internal control over financial reporting was effective as of June 30, 2026. /s/ RICHARD D. PHILLIPS Richard D. Phillips Chief Executive Officer August 19, 2026 /s/ JANA T. CROOM Jana T. Croom Chief Financial Officer August 19, 2026 34 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Share Owners and the Board of Directors of Kimball Electronics, Inc. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Kimball Electronics, Inc. and subsidiaries (the “Company”) as of June 30, 2026 and 2025, the related consolidated statements of income, comprehensive income, share owners’ equity, and cash flows for each of the three years in the period ended June 30, 2026, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). We also have audited the Company’s internal control over financial reporting as of June 30, 2026, based on the criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of June 30, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2026, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO. Basis for Opinions The Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying management’s report on internal control over financial reporting. Our responsibility is to express an opinion on these financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 35 Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Revenue Recognition—Contracts Recognized Over Time— Refer to Notes 1 and 2 to the financial statements Critical Audit Matter Description The majority of the Company’s revenue is recognized over time as manufacturing services are performed when the Company manufactures a product to customer specifications with no alternative use and for which the Company has an enforceable right to payment for performance completed to date. The Company generally recognizes revenue over time to depict the Company’s progress towards meeting its performance obligations, using costs based input methods, in which judgment is required to evaluate assumptions including the anticipated margins to estimate the corresponding amount of revenue to recognize. The timing differences of revenue recognition, billings to the Company’s customers, and cash collections from the Company’s customers result in billed accounts receivable and unbilled accounts receivable. Contract assets on the consolidated balance sheets relate to unbilled accounts receivable and occur when revenue is recognized over time as manufacturing services are provided and the billing to the customer has not yet occurred as of the balance sheet date, which are generally transferred to receivables in the next fiscal quarter due to the short-term nature of the manufacturing cycle. We identified the Company’s revenue recognition over time for contracts with customers as a critical audit matter because of the judgments required to evaluate assumptions, including the anticipated margins to estimate the corresponding amount of revenue to recognize and contract assets to record. This required an increased extent of audit effort due to the significant number of contracts on which the Company recognizes revenue over time and a high degree of auditor judgment when performing procedures to audit management’s estimate of anticipated margins used to recognize revenue over time and evaluating the results of those procedures. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to management’s estimates of the anticipated margins used to recognize revenue over time and record contract assets included the following, among others: •We tested the effectiveness of controls over the Company’s recognition of revenue over time and the related contract asset balance, including management’s process for estimating the anticipated margins for manufactured products. We evaluated management’s ability to estimate revenue accurately by comparing actual margins to management’s historical estimates for completed contracts. •We selected a sample of contracts with customers and performed the following: –Evaluated whether the contracts with customers were properly included or excluded in management’s calculation of over time contract revenue based on the terms and conditions of each contract, including whether the Company determined the product has no alternative use and that the Company has an enforceable right to payment for performance completed to date. –Compared the transaction prices to the consideration expected to be received based on current rights and obligations under the contracts and any modifications that were agreed upon with the customers. –Tested the accuracy and completeness of the costs incurred to date for the respective performance obligations by comparing the quantities on hand and standard cost per the calculation to the Company’s perpetual inventory information and testing any manufacturing variances and purchase price adjustments. –Evaluated the calculation of the amount of revenue to recognize for the performance obligation by: ◦Evaluating the reasonableness of management’s anticipated margins used in the Company’s calculation of revenue. 36 ◦Evaluating the appropriateness and consistency of the methods and assumptions used by management to develop the estimates of anticipated margin at completion. •We tested the mathematical accuracy of management’s calculation of revenue recognized over time and the related contract asset balance. /s/ Deloitte & Touche LLP Indianapolis, Indiana August 19, 2026 We have served as the Company’s auditor since 2014. 37 KIMBALL ELECTRONICS, INC. CONSOLIDATED BALANCE SHEETS (Amounts in Thousands, Except for Share Data) June 30, 2026 June 30, 2025 ASSETS Current Assets: Cash and cash equivalents $ 88,925 $ 88,781 Receivables, net of allowances of $536 and $102, respectively 218,840 222,623 Contract assets 70,497 71,812 Inventories 271,906 273,500 Prepaid expenses and other current assets 42,836 36,027 Assets held for sale — 6,861 Total current assets 693,004 699,604 Property and Equipment, net of accumulated depreciation of $354,854 and $334,465, respectively 274,192 264,804 Goodwill 6,191 6,191 Other Intangible Assets, net of accumulated amortization of $28,253 and $28,227, respectively 1,921 2,427 Other Assets, net 116,762 104,286 Total Assets $ 1,092,070 $ 1,077,312 LIABILITIES AND SHARE OWNERS’ EQUITY Current Liabilities: Current portion of long-term debt $ 8,202 $ 17,400 Accounts payable 234,361 218,805 Advances from customers 30,672 35,867 Accrued expenses 58,860 46,489 Total current liabilities 332,095 318,561 Other Liabilities: Long-term debt under credit facilities, less current portion 108,000 129,650 Other long-term liabilities 66,843 59,217 Total other liabilities 174,843 188,867 Share Owners’ Equity: Preferred stock-no par value Shares authorized: 15,000,000Shares issued: None — — Common stock-no par value Shares authorized: 150,000,000Shares issued: 29,430,000Shares outstanding: 23,967,000 and 24,218,500, respectively — — Additional paid-in capital 325,787 323,309 Retained earnings 361,508 333,548 Accumulated other comprehensive income (loss) (4,672) 1,063 Treasury stock, at cost: Shares: 5,463,000 and 5,211,500, respectively (97,491) (88,036) Total Share Owners’ Equity 585,132 569,884 Total Liabilities and Share Owners’ Equity $ 1,092,070 $ 1,077,312 See Notes to Consolidated Financial Statements 38 KIMBALL ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF INCOME (Amounts in Thousands, Except for Per Share Data) Year Ended June 30 2026 2025 2024 Net Sales $ 1,431,378 $ 1,486,727 $ 1,714,510 Cost of Sales 1,313,910 1,382,323 1,574,253 Gross Profit 117,468 104,404 140,257 Selling and Administrative Expenses 61,155 50,270 66,626 Other General Income — — (892) Restructuring Expense 4,977 10,990 2,386 Goodwill Impairment — — 5,820 (Gain on Disposal) Asset Impairment (14,721) (2,391) 17,040 Operating Income 66,057 45,535 49,277 Other Income (Expense): Interest income 1,232 771 638 Interest expense (8,504) (14,745) (22,839) Non-operating income (expense), net (5,564) (5,332) (1,877) Other expense, net (12,836) (19,306) (24,078) Income Before Taxes on Income 53,221 26,229 25,199 Provision for Income Taxes 25,261 9,245 4,688 Net Income $ 27,960 $ 16,984 $ 20,511 Earnings Per Share of Common Stock: Basic $ 1.14 $ 0.68 $ 0.82 Diluted $ 1.13 $ 0.68 $ 0.81 Average Number of Shares Outstanding: Basic 24,501 24,782 25,079 Diluted 24,768 25,017 25,278 See Notes to Consolidated Financial Statements 39 KIMBALL ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in Thousands) Year Ended June 30, 2026 Year Ended June 30, 2025 Year Ended June 30, 2024 Pre-tax Tax Net of Tax Pre-tax Tax Net of Tax Pre-tax Tax Net of Tax Net Income $ 27,960 $ 16,984 $ 20,511 Other Comprehensive Income (Loss): Foreign currency translation adjustments $ (5,737) $ — $ (5,737) $ 16,523 $ — $ 16,523 $ (2,620) $ 192 $ (2,428) Postemployment actuarial change 114 78 192 113 (69) 44 (916) 275 (641) Derivative gain (loss) 3,968 (991) 2,977 (82) 18 (64) 2,621 (524) 2,097 Reclassification to (earnings) loss: Derivatives (4,495) 1,163 (3,332) 2,960 (762) 2,198 (7,530) 1,670 (5,860) Amortization of actuarial change 217 (52) 165 222 (53) 169 94 (23) 71 Other Comprehensive Income (Loss) $ (5,933) $ 198 $ (5,735) $ 19,736 $ (866) $ 18,870 $ (8,351) $ 1,590 $ (6,761) Total Comprehensive Income $ 22,225 $ 35,854 $ 13,750 See Notes to Consolidated Financial Statements 40 KIMBALL ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in Thousands) Year Ended June 30 2026 2025 2024 Cash Flows From Operating Activities: Net income $ 27,960 $ 16,984 $ 20,511 Adjustments to reconcile net income to net cash provided by: Depreciation and amortization 38,705 36,994 38,030 (Gain)/loss on sales of assets 506 (1,139) (15) Deferred income taxes 530 (6,243) (8,852) Goodwill impairment — — 5,820 (Gain on disposal) asset impairment (14,721) (2,391) 17,040 Stock-based compensation 8,232 6,519 7,185 Other, net 1,568 5,802 2,928 Change in operating assets and liabilities: Receivables (6,030) 71,769 8,485 Contract assets 1,155 4,508 2,478 Inventories (19,937) 74,646 64,219 Prepaid expenses and other assets (2,198) (466) (6,412) Accounts payable 20,037 (2,790) (102,574) Advances from customers 3,181 (6,119) 34,922 Accrued expenses and taxes payable 13,279 (14,137) (10,548) Net cash provided by operating activities 72,267 183,937 73,217 Cash Flows From Investing Activities: Capital expenditures (51,488) (33,276) (46,074) Proceeds from sales of assets 4,012 383 499 Purchases of capitalized software (187) (399) (966) Net proceeds from disposal 21,674 18,507 — Other, net 42 85 20 Net cash used for investing activities (25,947) (14,700) (46,521) Cash Flows From Financing Activities: Proceeds from credit facilities 43,000 100,000 — Payments on credit facilities (76,000) (237,500) — Additional net change in revolving credit facilities 2,052 (9,830) 13,450 Repurchases of common stock (11,872) (12,032) (2,847) Payments related to tax withholding for stock-based compensation (3,340) (1,013) (1,479) Debt issuance costs (890) (499) (150) Net cash (used for) provided by financing activities (47,050) (160,874) 8,974 Effect of Exchange Rate Change on Cash, Cash Equivalents, and Restricted Cash 904 2,325 (755) Net Increase in Cash, Cash Equivalents, and Restricted Cash 174 10,688 34,915 Cash, Cash Equivalents, and Restricted Cash at Beginning of Year (1) 89,467 78,779 43,864 Cash, Cash Equivalents, and Restricted Cash at End of Year (1) $ 89,641 $ 89,467 $ 78,779 Supplemental Disclosure of Cash Flow Information Cash paid during the year for: Income taxes $ 14,218 $ 12,825 $ 27,265 Interest expense $ 9,037 $ 18,147 $ 19,444 Non-cash investing activity: Unpaid purchases of property and equipment at the end of the year $ 2,826 $ 4,000 $ 1,442 (1) The following table reconciles cash and cash equivalents in the consolidated balance sheets to cash, cash equivalents, and restricted cash per the consolidated statements of cash flows. The restricted cash included in Prepaid expenses and other current assets on the consolidated balance sheet represents funds held by the Company for a foreign subsidiary’s employee savings plan. Year Ended June 30 2026 2025 2024 Cash and Cash Equivalents $ 88,925 $ 88,781 $ 77,965 Restricted Cash included in Prepaid expenses and other current assets $ 716 $ 686 $ 814 Total Cash, Cash Equivalents, and Restricted Cash at end of period $ 89,641 $ 89,467 $ 78,779 See Notes to Consolidated Financial Statements 41 KIMBALL ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF SHARE OWNERS’ EQUITY (Amounts in Thousands, Except for Share Data) Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Share Owners’ Equity Amounts at June 30, 2023 $ 315,482 $ 296,053 $ (11,046) $ (76,495) $ 523,994 Net income 20,511 20,511 Other comprehensive income (loss) (6,761) (6,761) Issuance of non-restricted stock (18,000 shares) 235 222 457 Compensation expense related to stock compensation plans 6,773 6,773 Performance and restricted share issuance (108,000 and 19,000 shares, respectively) (3,027) 1,549 (1,478) Repurchase of Common Stock (136,000 shares) (including excise tax) (3,035) (3,035) Amounts at June 30, 2024 $ 319,463 $ 316,564 $ (17,807) $ (77,759) $ 540,461 Net income 16,984 16,984 Other comprehensive income (loss) 18,870 18,870 Issuance of non-restricted stock (26,000shares) 180 320 500 Compensation expense related to stock compensation plans 6,035 6,035 Performance and restricted share issuance (83,000 and 27,000 shares, respectively) (2,379) 1,341 (1,038) Charitable donation of common stock (2,000 shares) 10 20 30 Repurchase of Common Stock (653,000 shares) (including excise tax) (11,958) (11,958) Amounts at June 30, 2025 $ 323,309 $ 333,548 $ 1,063 $ (88,036) $ 569,884 Net income 27,960 27,960 Other comprehensive income (loss) (5,735) (5,735) Issuance of non-restricted stock (21,000 shares) 309 274 583 Compensation expense related to stock compensation plans 7,676 7,676 Performance and restricted share issuance (123,000 and 51,000 shares, respectively) (5,524) 2,184 (3,340) Charitable donation of common stock (1,000 shares) 17 13 30 Repurchase of Common Stock (447,000 shares) (including excise tax) (11,926) (11,926) Amounts at June 30, 2026 $ 325,787 $ 361,508 $ (4,672) $ (97,491) $ 585,132 See Notes to Consolidated Financial Statements 42 KIMBALL ELECTRONICS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 Business Description and Summary of Significant Accounting Policies Business Description: Kimball Electronics, Inc. (also referred to herein as “Kimball Electronics,” the “Company,” “we,” “us,” or “our”) is a global, multifaceted manufacturing solutions provider. We provide electronics manufacturing services (“EMS”), including engineering and supply chain support, to customers in the automotive, medical, and industrial end markets. We further produce higher level and final assemblies and offer contract development and manufacturing organization (“CDMO”) solutions which include the production of medical disposables and drug delivery devices, from precision molded plastics and cold chain management to drug integration. Our design and manufacturing expertise coupled with robust processes and procedures help us ensure that we deliver the highest levels of quality, reliability, and service throughout the entire life cycle of our customers’ products. We deliver award-winning service across our highly integrated global footprint, which is enabled by our largely common operating system, procedures, and standardization. We are well recognized by customers and industry trade publications for our excellent quality, reliability, and innovative service. We intend to change our name to Kimball Solutions, Inc., subject to Share Owners’ approval, to reflect our strategic focus as a full-service provider. Principles of Consolidation: The Consolidated Financial Statements include the accounts of all domestic and foreign subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts included in the Consolidated Financial Statements and related note disclosures. While efforts are made to assure estimates used are reasonably accurate based on management’s knowledge of current events, actual results could differ from those estimates. Segment Information: Kimball Electronics has business units located in the United States, China, Mexico, Poland, Romania, and Thailand, and each of these business units qualify as operating segments. Our operating segments meet the aggregation criteria under the current accounting guidance for segment reporting. As of June 30, 2026, all of our operating segments provide contract manufacturing services, including engineering and supply chain support, for the production of electronic assemblies and other products including precision molded plastics and drug delivery devices. Our contract manufacturing services support primarily automotive, medical, and industrial applications, to the specifications and designs of our customers. The nature of the products, the production process, the type of customers, and the methods used to distribute the products have similar characteristics across all our operating segments. Each of our operating segments service customers in multiple markets, and many of our customers’ programs are manufactured and serviced by multiple operating segments. We leverage global processes such as component procurement and customer pricing that provide commonality and consistency among the various regions in which we operate. All of our operating segments have similar long-term economic characteristics, and as such, have been aggregated into one reportable segment. See Note 17 - Segment Reporting for more information. Revenue Recognition: We recognize revenue in accordance with the standard issued by the Financial Accounting Standards Board (“FASB”), Revenue from Contracts with Customers and all the related amendments. Our revenue from contracts with customers is generated primarily from manufacturing services provided for the production of electronic assemblies, components, medical devices, medical disposables, and precision molded plastics built to customers’ specifications. Our customer agreements are generally not for a definitive term but continue for the relevant product’s life cycle. Typically, our customer agreements do not commit the customer to purchase our services until a purchase order or a contractually binding forecast is provided, which are generally short term in nature. Customer purchase orders and contractually binding forecasts primarily have a single performance obligation. Generally, the prices stated in the customer purchase orders or committed to in contractually binding forecasts are agreed upon prices for the manufactured product and do not vary over the term of the order or the contractually binding forecast period, and therefore, the majority of our contracts do not contain variable consideration. In limited circumstances, we may enter into a contract which contains minimum quantity thresholds to cover our capital costs, and we may offer our customer a rebate for specific volume thresholds or other incentives; in these cases, the rebates or incentives are accounted for as variable consideration. 43 The majority of our revenue is recognized over time as manufacturing services are performed as we manufacture a product to customer specifications with no alternative use and we have an enforceable right to payment for performance completed to date. The remaining revenue for manufacturing services is recognized when the customer obtains control of the product, typically either upon shipment or delivery of the product dependent on the terms of the contract, and the customer is able to direct the use of and obtain substantially all of the remaining benefits from the asset. We generally recognize revenue over time using costs based input methods, in which judgment is required to evaluate assumptions including anticipated margins to estimate the corresponding amount of revenue to recognize. Costs used as a basis for estimating anticipated margins include material, direct and indirect labor, and appropriate applied overheads. Anticipated margins are determined based on historical or quoted customer pricing. Costs based input methods are considered a faithful depiction of our efforts and progress toward satisfying our performance obligations for manufacturing services and for which we believe we are entitled to payment for performance completed to date. The cumulative effect of revisions to estimates related to net contract revenues or costs are recorded in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated. We have elected to account for shipping and handling activities related to contracts with customers as costs to fulfill our promise to transfer the associated services and products. Accordingly, we record customer payments of shipping and handling costs as a component of net sales and classify such costs as a component of cost of sales. We recognize sales net of applicable sales or value add taxes. Based on estimated product returns and price concessions, a reserve for returns and allowances is recorded at the time revenue is recognized, resulting in a reduction of net revenue. Direct incremental costs to obtain and fulfill a contract are capitalized as a contract asset only if they are material, expected to be recovered, and are not accounted for in accordance with other guidance. Incidental items that are immaterial in the context of the contract are recognized as expense in the period incurred. Cash and Cash Equivalents: Cash equivalents consist primarily of highly liquid investments with original maturities of three months or less at the time of acquisition. Cash and cash equivalents consist of bank accounts and money market funds. Bank accounts are stated at cost, which approximates fair value, and money market funds are stated at fair value. Trade Accounts Receivable: The Company’s trade accounts receivable are recorded per the terms of the agreement or sale, and accrued interest is recognized when earned. Our policy for estimating the allowance for credit losses on trade accounts receivable includes analysis of such items as aging, credit worthiness, payment history, and historical bad debt experience. Management uses these specific analyses in conjunction with an evaluation of the general economic and market conditions to estimate expected credit losses. Management believes that historical loss information generally provides a basis for its assessment of expected credit losses. Trade accounts receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. Adjustments to the allowance for credit losses are recorded in Selling and Administrative Expenses on our Consolidated Statements of Income. In the ordinary course of business, customers periodically negotiate extended payment terms on trade accounts receivable. Customary terms require payment within 30 to 45 days, with any terms beyond 45 days being considered extended payment terms. We participate in our customers’ supply chain financing arrangements for certain of our accounts receivable in order to extend terms for the customer without negatively impacting our cash flow. These arrangements in all cases do not contain recourse provisions which would obligate us in the event of our customers’ failure to pay. Receivables are considered sold when they are transferred beyond the reach of Kimball Electronics and its creditors, the purchaser has the right to pledge or exchange the receivables, and we have surrendered control over the transferred receivables. During fiscal years 2026, 2025, and 2024, we sold $315.8 million, $338.4 million, and $410.0 million of accounts receivable under these arrangements, respectively. Factoring fees were $2.7 million, $2.3 million, and $3.4 million during fiscal years 2026, 2025, and 2024, respectively. Factoring fees are recorded in Non-operating income (expense), net on our Consolidated Statements of Income for the fiscal years ended June 30, 2026 and June 30, 2025. Prior to fiscal year 2025, factoring fees were recorded in Selling and Administrative Expenses. We are also a party to receivables purchase agreements (“RPA’s”) with third-party banking institutions for the sale of trade receivables generated from sales to certain customers, subject to acceptance by, and a funding commitment from, the banks that are a party to the RPA’s. Receivables sold pursuant to the RPA’s are serviced by us. Under the RPA’s, we sell our entire interest in certain receivables at the invoice amount less a discount. Upon sale, these receivables are removed from the Consolidated Balance Sheets and cash received is presented as cash provided by operating activities in the Consolidated Statements of Cash Flows. We are required to remit amounts collected as a servicer under the RPA’s timely to the financial institution that purchased the receivables. Our risks with respect to receivables we service include 44 commercial disputes regarding such receivables and, under one of the RPA’s, no greater than 5% of sold and outstanding receivables in the event of customer insolvency. In fiscal years 2026 and 2025, under the RPA’s, we sold $171.3 million and $19.4 million of receivables and incurred discount fees of $1.1 million and $0.1 million, respectively, recorded in Non-operating income (expense), net on our Consolidated Statements of Income. Receivables sold under the RPA and subject to our servicing that remained outstanding and uncollected as of June 30, 2026 and June 30, 2025 were $49.0 million and $19.4 million, respectively. Of the $49.0 million outstanding and uncollected at June 30, 2026, $22.0 million is subject to the 5% customer insolvency provision. In limited circumstances, our China operation may receive banker’s acceptance drafts from customers as payment on account. The banker’s acceptance drafts are non-interest bearing and primarily mature within six months from the origination date. The Company has the ability to sell the drafts at a discount or transfer the drafts in settlement of current accounts payable prior to the scheduled maturity date. There are no drafts outstanding at June 30, 2026 and 2025, respectively. Drafts received and outstanding would be reflected in Receivables on the Consolidated Balance Sheets until the banker’s drafts are sold at a discount, transferred in settlement of current accounts payable, or cash is received at maturity. Banker’s acceptance drafts sold at a discount or transferred in settlement of current accounts payable during fiscal years 2026 and 2025 were $46.3 million and $14.3 million, respectively. No banker’s acceptance drafts were sold at a discount or transferred in settlement of current accounts payable during fiscal year 2024. In fiscal year 2024, changes to the expected timing of payments from and risk of default for a customer resulted in the recording of an allowance for credit losses of $2.0 million in Selling and Administrative Expenses on our Consolidated Statements of Income. An additional $0.4 million allowance was recorded in fiscal year 2026. Although the customer is not in bankruptcy and we will continue to pursue full recovery, an allowance was deemed necessary in consideration of the expected timing of payments and risk of default. The amount expected to be collected after twelve months is included in Other Assets, net on the Consolidated Balance Sheet. At June 30, 2026, the noncurrent receivable associated with this customer in Other Assets, net totaled $2.3 million, which is net of the $2.4 million allowance for expected credit losses. The $2.4 million allowance for expected credit losses does not include fully reserved unpaid late payment fees. The current portion of receivables from this customer is $1.8 million at June 30, 2026. Inventories: Inventories are stated at the lower of cost and net realizable value. Cost includes material, labor, and applicable manufacturing overhead. Costs associated with underutilization of capacity are expensed as incurred. Inventories are valued using the first-in, first-out (“FIFO”) method. Inventories are adjusted for excess and obsolete inventory. Evaluation of excess inventory includes such factors as anticipated usage, inventory turnover, inventory levels, and product demand levels. Factors considered when evaluating obsolescence include the age of on-hand inventory and reduction in value due to damage, design changes, or cessation of product lines. Evaluation of both excess inventory and obsolescence also considers whether customer agreements specify customer obligation to pay for such inventory. Property, Equipment, and Depreciation: Property and equipment are stated at cost less accumulated depreciation and depreciated over the estimated useful life of the assets using the straight-line method for most assets and units of production method for certain fully dedicated machinery and equipment. Generally, maintenance and repairs are expensed as incurred. Depreciation and expenses for maintenance and repairs are included in both Cost of Sales and Selling and Administrative Expense on the Consolidated Statements of Income. Impairment of Long-Lived Assets: We perform reviews for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Impairment is recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. When an impairment is identified, the carrying amount of the asset is reduced to its estimated fair value. Assets to be disposed of are recorded at the lower of net book value or fair market value less cost to sell at the date management commits to a plan of disposal. In fiscal year 2024, we recognized $17.0 million of impairment with the decision to divest of GES. In addition, on November 4, 2024, the Company announced that its Board of Directors has approved a plan to cease operations at our Tampa facility, which concluded with the assets being held for sale at the end of the fiscal year. No impairment was recorded on the Tampa assets as we deemed them recoverable. See Note 3 - Sale of GES and Note 4 - Restructuring Activities, respectively, for more information on the GES divestiture and Tampa Closure. Impairment of long-lived assets was not material during fiscal years 2026 and 2025. 45 Goodwill: Goodwill represents the difference between the purchase price and the related underlying tangible and intangible net asset fair values resulting from business acquisitions. Annually, or if conditions indicate an earlier review is necessary, goodwill is assessed or tested at the reporting unit level. If the estimated fair value of the reporting unit is less than the carrying value, goodwill is written down to its estimated fair value. See Note 7 - Goodwill and Other Intangible Assets for more information on Goodwill. To test GES, our automation, test, and measurement business unit, for goodwill impairment in fiscal year 2024, we used a combination of the Income Approach and the Market Approach. The discounted cash flow method (Income Approach) uses forecasted information based on management’s strategic plans and projections. Discount rates are developed using a weighted average cost of capital (“WACC”) methodology. The WACC represents the blended average required rate of return for equity and debt capital based on observed market return data and company specific risk factors. In the Market Approach, fair value is determined using transactional evidence for similar publicly traded equity. During fiscal year 2024, the Company made the decision to divest of GES and committed to a plan to sell the business. As a result, the business unit met the criteria to be classified as held for sale, and goodwill and asset impairment were recorded. See Note 3 - Sale of GES for more information on the sale of GES. Other Intangible Assets: Other Intangible Assets reported on the Consolidated Balance Sheets consist of capitalized software. Intangible assets are reviewed for impairment, and their remaining useful lives evaluated for revision, when events or circumstances indicate that the carrying value may not be recoverable over the remaining lives of the assets. Internal-use software is stated at cost less accumulated amortization and is amortized using the straight-line method. During the software application development stage, capitalized costs include external consulting costs, cost of software licenses, and could include internal payroll and payroll-related costs for employees who are directly associated with a software project. Upgrades and enhancements are capitalized if they result in added functionality which enable the software to perform tasks it was previously incapable of performing. Software maintenance, training, data conversion, and business process reengineering costs are expensed in the period in which they are incurred. Leases: The Company leases certain office facilities, manufacturing facilities, warehouse facilities, and equipment under operating leases, in addition to land on which certain office and manufacturing facilities reside. These operating leases expire from fiscal year 2027 to 2056. The Company determines if a contract is or contains a lease at inception. Lease assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our estimated incremental borrowing rate, unless the implicit rate is readily determinable. The estimated incremental borrowing rate is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. See Note 21 - Leases for more information on leases. Research and Development: The costs of research and development are expensed as incurred and are included in Cost of Sales on the Consolidated Statements of Income. Research and development costs were approximately $19.1 million, $17.5 million, and $18.3 million in fiscal years 2026, 2025, and 2024, respectively. Insurance and Self-insurance: We are self-insured up to certain limits for general liability, workers’ compensation, and certain domestic employee health benefits including medical, short-term disability, and dental, with the related liabilities included in the accompanying financial statements. Our policy is to estimate reserves based upon a number of factors including known claims, estimated incurred but not reported claims, and other analyses, which are based on historical information along with certain assumptions about future events. Approximately 14% of the workforce is covered under self-insured medical and short-term disability plans. At June 30, 2026 and 2025, accrued liabilities for self-insurance exposure were $2.3 million and $1.4 million, respectively. The remainder of our workforce not covered by self-insured plans have medical and disability coverage through either our external plans or government plans. Insurance benefits are not provided to retired employees. Income Taxes: Deferred income tax assets and liabilities, recorded in Other Assets and Other long-term liabilities, respectively, in the Consolidated Balance Sheets, are recognized for the estimated future tax consequences attributable to temporary differences 46 between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. These assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse. We evaluate the recoverability of deferred tax assets each quarter by assessing the likelihood of future taxable income and available tax planning strategies that could be implemented to realize our deferred tax assets. If recovery is not likely, we provide a valuation allowance based on our best estimate of future taxable income in the various taxing jurisdictions and the amount of deferred taxes ultimately realizable. Future events could change management’s assessment. We operate within multiple taxing jurisdictions and are subject to tax audits in these jurisdictions. These audits can involve complex uncertain tax positions, which may require an extended period of time to resolve. A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. We maintain a liability for uncertain income tax and other tax positions, including accrued interest and penalties on those positions. As tax positions are effectively settled, the tax liability is adjusted accordingly. We recognize interest and penalties related to unrecognized tax benefits in Provision for Income Taxes on the Consolidated Statements of Income. See Note 12 - Income Taxes for more information. Concentrations of Credit Risk: We have business and credit risks associated with our customers. The Company monitors credit quality and associated risks of receivables on an individual basis based on criteria such as financial stability of the party and collection experience in conjunction with general economic and market conditions. A summary of significant customers’ net sales and trade receivables as a percentage of consolidated net sales and consolidated trade receivables is as follows: Net Sales Trade Receivables Year Ended June 30 As of June 30 2026 2025 2024 2026 2025 Nexteer Automotive 18% 19% 16% 21% 30% Philips 11% * * 13% * ZF 11% 11% 13% 13% * HL Mando * * * * 10% *amount is less than 10% of total Off-Balance Sheet Risk: Off-balance sheet arrangements are limited to standby letters of credit entered into in the normal course of business as described in Note 8 - Commitments and Contingent Liabilities. Non-operating Income and Expense: Non-operating income (expense), net includes the impact of such items as foreign currency rate movements and related derivative gain or loss, fair value adjustments on supplemental employee retirement plan (“SERP”) investments, government subsidies, credit facility fees, factoring fees, bank charges, and other miscellaneous non-operating income and expense items that are not directly related to operations. Prior to fiscal year 2025, factoring fees were recorded in Selling and Administrative Expenses on our Consolidated Statements of Income. The gain (loss) on SERP investments is offset by a change in the SERP liability that is recognized in Selling and Administrative Expense. Components of Non-operating income (expense), net: Year Ended June 30 (Amounts in Thousands) 2026 2025 2024 Foreign currency/derivative gain (loss) $ (1,263) $ (1,751) $ (1,425) Gain (loss) on SERP investments 666 614 680 Factoring fees/AR program discounts (3,862) (2,415) — Credit facilities fees and bank charges (910) (1,018) (873) Other (195) (762) (259) Non-operating income (expense), net $ (5,564) $ (5,332) $ (1,877) 47 Foreign Currency Translation: The Company uses the U.S. dollar and Euro as its functional currencies. Foreign currency assets and liabilities are remeasured into functional currencies at end-of-period exchange rates, except for nonmonetary assets and equity, which are remeasured at historical exchange rates. Revenue and expenses are remeasured at the weighted average exchange rate during the fiscal year, except for expenses related to nonmonetary assets, which are remeasured at historical exchange rates. Gains and losses from foreign currency remeasurement are reported in Non-operating income or expense on the Consolidated Statements of Income. For business units whose functional currency is other than the U.S. dollar, the translation of functional currency statements to U.S. dollar statements uses end-of-period exchange rates for assets and liabilities, weighted average exchange rates for revenue and expenses, and historical rates for equity. The resulting currency translation adjustment is recorded in Accumulated Other Comprehensive Income (Loss), as a component of Share Owners’ Equity. Derivative Instruments and Hedging Activities: Derivative financial instruments are recognized on the balance sheet as assets and liabilities and are measured at fair value. Changes in the fair value of derivatives are recorded each period in earnings or Accumulated Other Comprehensive Income (Loss), depending on whether a derivative is designated and effective as part of a hedge transaction, and if it is, the type of hedge transaction. Hedge accounting is utilized when a derivative is expected to be highly effective upon execution and continues to be highly effective over the duration of the hedge transaction. Hedge accounting permits gains and losses on derivative instruments to be deferred in Accumulated Other Comprehensive Income (Loss) and subsequently included in earnings in the periods in which earnings are affected by the hedged item. For transactions and balances denominated in currencies other than functional currencies, we use forward purchases to manage exposure to the variability of cash flows and foreign exchange contracts to hedge intercompany balances and other balance sheet positions. Cash receipts and cash payments related to derivative instruments are recorded in the same category as the cash flows from the items being hedged on the Consolidated Statements of Cash Flows. See Note 15 - Derivative Instruments for more information on derivative instruments and hedging activities. Stock-Based Compensation: As described in Note 11 - Stock Compensation Plans, the Company maintains the 2023 Equity Incentive Plan, which allows for the issuance of incentive stock options, stock appreciation rights, restricted shares, unrestricted shares, restricted share units, or performance shares and performance units for grant to officers and other key employees, and to members of the Board of Directors who are not employees. The Company also maintains the Kimball Electronics, Inc. Non-Employee Directors Stock Compensation Deferral Plan (the “Deferral Plan”), which allows Non-Employee Directors to elect to defer all, or a portion of, their retainer fees in stock. We recognize the cost resulting from share-based payment transactions using a fair-value-based method on a majority of our transactions. The estimated fair value of outstanding performance shares is based on the stock price at the date of the grant. Stock-based compensation expense is recognized for the portion of the award for which performance targets have been established and is expected to vest. The Company has elected to account for forfeitures by reversing the compensation costs at the time a forfeiture occurs. New Accounting Standards: Adopted in Fiscal Year 2026: In December 2023, the Financial Accounting Standards Board (“FASB”) issued guidance on Improvements to Income Tax Disclosures, intended to enhance the transparency and decision usefulness of income tax disclosures. The guidance is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company adopted the standard for the year ended June 30, 2026. See Note 12 - Income Taxes for more information. Not Yet Adopted: In December 2025, FASB issued guidance on Interim Reporting, intended to improve the navigability of the guidance in ASC 270, Interim Reporting, and clarify when it applies. The guidance is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted, and the guidance can be applied prospectively or retrospectively. We are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements. In September 2025, the FASB issued guidance on Accounting for Internal-Use Software, intended to modernize the accounting for software costs and changing the requirements for capitalization of software costs. The guidance is effective for fiscal years beginning after December 15, 2027 and for interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period, and the guidance can be applied prospectively, retrospectively, or 48 on a modified transition approach. We will adopt this guidance prospectively on July 1, 2026, and the adoption of this guidance will not have a material impact on our consolidated financial statements. In November 2024, the FASB issued guidance on Expense Disaggregation Disclosures, requiring more disclosure about the types of expenses presented in our expense captions. The guidance is effective for fiscal years beginning after December 15, 2026 and for interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted, and the guidance can be applied prospectively or retrospectively. We are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements. Note 2 Revenue from Contracts with Customers Our revenue from contracts with customers is generated primarily from manufacturing services provided for the production of electronic assemblies, electronic and non-electronic components, medical devices, medical disposables, and precision molded plastics in automotive, medical, and industrial applications, to the specifications and designs of our customers. The following table disaggregates our revenue by end market vertical for fiscal years 2026, 2025, and 2024: Year Ended (Amounts in Millions) 2026 2025 2024 Vertical Markets: Automotive (1) $ 656.9 $ 708.5 $ 793.3 Medical 412.8 396.2 425.7 Industrial (1) 361.7 382.0 495.5 Total net sales $ 1,431.4 $ 1,486.7 $ 1,714.5 (1)For the years ended 2025 and 2024, $29.4 million and $33.1 million of the industrial net sales to certain customers previously included in the automotive vertical, specifically those customers more aligned with commercial vehicle applications versus passenger vehicles, are now reflected in the industrial vertical to better reflect the nature of the program. For fiscal years 2026, 2025, and 2024, approximately 99%, 98%, and 96% of our net sales, respectively, were recognized over time as manufacturing services were performed under a customer contract on a product with no alternative use and we have an enforceable right to payment for performance completed to date. The remaining sales revenues were recognized at a point in time when the customer obtained control of the products. The timing differences of revenue recognition, billings to our customers, and cash collections from our customers result in billed accounts receivable and unbilled accounts receivable. Contract assets on the Consolidated Balance Sheets relate to unbilled accounts receivable and occur when revenue is recognized over time as manufacturing services are provided and the billing to the customer has not yet occurred as of the balance sheet date, which are generally transferred to receivables in the next fiscal quarter due to the short-term nature of the manufacturing cycle. Contract assets were $70.5 million and $71.8 million as of June 30, 2026 and 2025, respectively. The Company may receive payments from customers in advance of the satisfaction of performance obligations primarily for material price variances, inventory purchases, tooling, or other miscellaneous services or costs. These payments are recognized as contract liabilities until the performance obligations are completed and are included in Advances from customers, if inventory related, and Accrued expenses, if not inventory related, on the Consolidated Balance Sheets which amounted to $40.6 million and $41.5 million as of June 30, 2026 and 2025, respectively. Other than deposits associated with inventory purchases classified as long term, our performance obligations are generally short term in nature and therefore our contract liabilities are all expected to be settled within twelve months. See Note 5 - Inventories for further discussion. 49 Note 3 Sale of GES Following approval by our Board of Directors, on July 31, 2024, we entered into a definitive agreement and closed on the sale of 100% of the equity interests in GES to Averna Test Systems, Inc., resulting in cash proceeds after costs to sell of $18.5 million at the time of closing. The following table summarizes net sales and income (loss) before taxes on income for GES: Year Ended (Amounts in Thousands) 2026 2025 2024 Net Sales $ — $ 2,075 $ 45,674 Income (Loss) Before Taxes on Income (1) $ (383) $ 2,112 $ (23,518) (1)Amounts include loss on sale adjustments of $0.4 million in the year ended June 30, 2026, gain on sale of $2.4 million in the year ended June 30, 2025, and $22.9 million of pre-tax impairment charges in the year ended June 30, 2024. The years ended June 30, 2025 and June 20, 2024 also include allocated corporate overhead expenses. Note 4 Restructuring Activities During fiscal years 2026, 2025, and 2024, we undertook restructuring efforts to align our cost structure with reduced end market demand levels, including resizing our workforce and taking specific cost actions, and recorded restructuring expense of $3.4 million, $5.7 million, and $2.4 million, respectively, which were primarily employee-related costs. The cumulative amount incurred since inception of these efforts beginning in fiscal year 2024 through June 30, 2026 was $11.5 million. We expect to incur $1.5 million to $3.0 million of additional restructuring costs through fiscal year 2027. This is the final phase of this restructuring plan. No additional restructuring costs are anticipated to be recognized under this plan after fiscal year 2027. Additionally, on November 4, 2024, the Company announced that its Board of Directors approved a plan to cease operations at our Tampa facility (“Tampa Closure Plan”). The decision was made to leverage capacity within our global footprint and streamline the operating structure. These costs are predominantly cash expenditures. We recorded restructuring expense of $1.6 million in fiscal year 2026 for the Tampa Closure Plan. The cumulative amount incurred since inception of the Tampa Closure Plan during fiscal years 2025 and 2026 was $6.9 million. The restructuring charges are complete at June 30, 2026. Accrued restructuring is recorded in Accrued expenses in the Consolidated Balance Sheets. The changes in the Company’s accrued restructuring costs under the Tampa Closure Plan were as follows: (Amounts in Thousands) Severance and Termination Benefits Other Exit Costs Total Balance at June 30, 2025 $ 2,018 $ — $ 2,018 Restructuring charges 164 1,435 1,599 Payments (2,182) (1,435) (3,617) Non-cash activity — — — Balance at June 30, 2026 $ — $ — $ — At June 30, 2025, Tampa’s operations had ceased, and the related land, building, and certain equipment met the criteria to be classified as held for sale, and we ceased recording depreciation on the held for sale assets. On April 22, 2026, the Company completed the sale of the Tampa land and buildings for $21.6 million and recognized a gain on sale of $15.0 million. The gain on sale is recorded in (Gain on Disposal) Asset Impairment on our Consolidated Statements of Income. 50 Note 5 Inventories Inventories were valued using the lower of first-in, first-out (“FIFO”) cost and net realizable value. Inventory components were as follows: (Amounts in Thousands) 2026 2025 Finished products $ 199 $ 111 Work-in-process 775 628 Raw materials 270,932 272,761 Total inventory $ 271,906 $ 273,500 Additionally, as of June 30, 2026 and 2025, we have raw materials inventory totaling $57.0 million and $39.4 million, respectively, classified as long-term included in Other Assets, net in our Consolidated Balance Sheets. Inventory classified as long term is raw materials inventory we do not expect to be consumed and sold within twelve months. As of June 30, 2026 and 2025, we have received deposits for long-term inventory totaling $35.4 million and $27.0 million, respectively, which is included in Other long-term liabilities in our Consolidated Balance Sheets. Note 6 Property and Equipment Major classes of property and equipment consist of the following at June 30, exclusive of the amounts classified as held for sale as of June 30, 2025: (Amounts in Thousands) 2026 2025 Land $ 8,041 $ 13,268 Buildings and improvements 148,194 116,899 Machinery and equipment 416,172 417,017 Machinery and equipment - fully dedicated 34,452 18,079 Construction-in-progress 22,187 34,006 Total $ 629,046 $ 599,269 Less: Accumulated depreciation (354,854) (334,465) Property and equipment, net $ 274,192 $ 264,804 The useful lives used in computing straight-line depreciation are based on estimated service lives for classes of property, as follows: Years Buildings and improvements 5 to 40 Machinery and equipment 3 to 11 Leasehold improvements Lesser of Useful Life or Term of Lease Effective April 1, 2025, the Company implemented a new class of asset, fully dedicated machinery and equipment, which is depreciated using the units of production method. As of June 30, 2026 and 2025, the net book value of the equipment was $28.5 million and $15.3 million, respectively. This equipment is highly customized for specific customer programs and has substantially no value other than production for that program. The units of production method more accurately reflects the pattern of usage and expected benefits of these assets than other depreciation methods. Depreciation of property and equipment totaled $38.0 million, $36.0 million, and $35.7 million for each of the three years in the period ended June 30, 2026, 2025 and 2024, respectively. 51 Note 7 Goodwill and Other Intangible Assets A summary of goodwill is as follows: (Amounts in Thousands) Balance as of June 30, 2025 Goodwill $ 19,017 Accumulated impairment (12,826) Goodwill, net $ 6,191 Derecognition of Tampa goodwill (8,575) Derecognition of Tampa accumulated impairment 8,575 Balance as of June 30, 2026 Goodwill 10,442 Accumulated impairment (4,251) Goodwill, net $ 6,191 Other Intangible Assets includes capitalized software. A summary of the capitalized software’s cost and accumulated amortization is as follows: June 30, 2026 June 30, 2025 (Amounts in Thousands) Cost Accumulated Amortization Net Value Cost Accumulated Amortization Net Value Capitalized Software $ 30,174 $ (28,253) $ 1,921 $ 30,654 $ (28,227) $ 2,427 The estimated useful life of internal-use software ranges from 3 to 10 years. During fiscal years 2026, 2025, and 2024, amortization expense of other intangible assets was, in millions, $0.7, $1.0, and $2.3, respectively. Amortization expense in future periods is expected to be, in millions, $0.6, $0.4, $0.3, $0.2, and $0.2 in the five years ending June 30, 2031, and $0.2 thereafter. We have no intangible assets with indefinite useful lives which are not subject to amortization. Note 8 Commitments and Contingent Liabilities Guarantees: As of June 30, 2026 and 2025, we had no guarantees issued which were contingent on the future performance of another entity. Standby letters of credit may be issued to third-party suppliers and insurance institutions and can only be drawn upon in the event of the Company’s failure to pay its obligations to the beneficiary. We had a maximum financial exposure from unused standby letters of credit totaling $0.4 million as of both June 30, 2026 and 2025. We do not expect circumstances to arise that would require us to perform under any of these arrangements and believe that the resolution of any claims that might arise in the future, either individually or in the aggregate, would not materially affect our consolidated financial statements. Accordingly, no liability has been recorded as of June 30, 2026 and 2025 with respect to the standby letters of credit. We also may enter into commercial letters of credit to facilitate payments to vendors and from customers. Product Warranties: The Company provides only assurance-type warranties for a limited time period, which cover primarily workmanship and assure that products comply with specifications provided by or agreed upon with the customer. We maintain a provision for limited warranty repair or replacement of products manufactured and sold pursuant to specific manufacturing contract agreements that require such provisions. We estimate this product warranty liability at the time of sale based on historical repair or replacement cost trends in conjunction with the length of the warranty offered. Management refines this warranty liability periodically based on changes in historical cost trends and in certain cases where specific warranty issues become known. This product warranty liability and expense were immaterial during fiscal years 2026, 2025, and 2024. 52 Note 9 Credit Facilities Credit facilities consisted of the following: Available Borrowing Capacity at Borrowings Outstanding at Borrowings Outstanding at (Amounts in Millions, in U.S. Dollar Equivalents) June 30, 2026 June 30, 2026 June 30, 2025 Primary credit facility, revolving (1) $ 275.5 $ 24.1 $ 50.0 Primary credit facility, term (1) — 92.5 97.5 Thailand overdraft credit facility (2,3) 10.1 — — China revolving credit facility (2,4) 7.4 — — Netherlands revolving credit facility (2,5) 10.5 — — Poland revolving credit facility (2,6) 11.4 — — Total credit facilities $ 314.9 116.6 147.5 Unamortized deferred debt financing fees $ (0.4) $ (0.4) Total long-term debt $ 116.2 $ 147.1 Less: current portion (8.2) (17.4) Long-term debt under credit facilities, less current portion (7) $ 108.0 $ 129.7 (1)The Company maintained a U.S. primary credit facility that provided for revolving borrowings of $300 million, with the option to increase the amount available for revolving borrowings by an additional $150 million (to a total of $450 million) at the Company’s request, subject to the consent of each lender participating in such increase, which was scheduled to mature on May 4, 2027. The U.S. primary credit facility also included a term loan borrowing facility that provides for term loan borrowings (“term borrowings”) of $100 million repayable in scheduled quarterly installments, scheduled to mature December 20, 2029. On April 30, 2026, the Company entered into an amended and restated credit agreement (the “restated primary credit facility”) among the Company, the lenders party thereto, and JPMorgan Chase Bank, N. A., as Administrative Agent, and Bank of America, N.A., as Documentation Agent. The restated primary credit facility continues to provide for revolving borrowings of $300 million, with the option to increase the amount available for revolving borrowings by an additional $150 million (to a total of $450 million) at the Company’s request, subject to the consent of each lender participating in such increase, now with a maturity date of April 30, 2031. The terms for the term loan borrowings remain largely unchanged in the restated primary credit facility as it continues to maintain the maturity date of December 20, 2029 for such term loan borrowings and the quarterly payment schedule for such term loan borrowings. This facility is maintained for working capital and general corporate purposes of the Company, and the Company is permitted to use the proceeds to refinance existing indebtedness. The restated primary credit facility defines the limitations for a supply chain financing program, and as part of its rebranding, subject to Share Owners’ approval, provides for updates to the Company’s trade name to Kimball Solutions, Inc. and also its subsidiaries. A commitment fee is payable on the unused portion of the credit facility at a rate that ranges from 10.0 to 25.0 basis points per annum as determined by the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA, as defined in the restated primary credit facility. Types of borrowings available on the restated primary credit facility include term loans, revolving loans, multi-currency term loans, and swingline loans. At June 30, 2026, the Company had $22.0 million Term Benchmark and $2.1 million ABR, both denominated in U.S. dollars, outstanding borrowings under the restated primary credit facility. At June 30, 2025, all outstanding borrowings under the primary credit facility were Term Benchmark borrowings denominated in U.S. dollars. The interest rate on borrowings is dependent on the class, type and currencies of borrowings and will be one of the following options: •any Term Benchmark borrowing denominated in U.S. Dollars will utilize the Secured Overnight Financing Rate (“SOFR”), which is a rate per annum equal to the secured overnight financing rate for such business day published by the SOFR Administrator, the Federal Reserve Bank of New York, on the immediately succeeding business day, plus the Revolving Commitment Term Benchmark spread or Term Loan Benchmark spread which can range from 110.0 to 185.0 basis points based on the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA; •any Term Benchmark borrowing denominated in Euros will utilize the Euro Interbank Offered Rate (“EURIBOR”) in effect two target days prior to the advance (adjusted upwards to reflect bank reserve costs) for 53 such interest period as defined in the agreement, plus the Revolving Commitment Term Benchmark spread or Term Loan Term Benchmark spread which can range from 110.0 to 185.0 basis points based on the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA; or •the Alternate Base Rate (“ABR”), which is defined as the highest of the fluctuation rate per annum equal to the higher of: a.Prime Rate in the U.S. last quoted by the Wall Street Journal, and if this is ceased to be quoted, the highest bank prime loan rate or similar loan rate quoted by the Federal Reserve Board; b.1/2 of 1% per annum above the Federal Reserve Bank of New York (NYFRB) Rate (as defined under the Credit Agreement); or c.1% per annum above the Term SOFR Rate (as defined under the Credit Agreement); plus the Revolving Commitment ABR spread which can range from 0.0 to 75.0 basis points based on the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA. Under the restated primary credit facility, the ABR Spread and Benchmark Spread for term loan borrowings remain the same as for revolving commitment borrowings. The Company’s financial covenants under the restated primary credit facility are largely unchanged, with the exception of the change in the first covenant below from “unencumbered U.S. cash on hand in the United States in excess of $15 million” to “unrestricted Cash in an amount not to exceed $25 million,” and require: •a ratio of consolidated total indebtedness minus unrestricted cash, as defined in the restated primary credit facility, in an amount not to exceed $25 million to adjusted consolidated EBITDA, determined as of the end of each of its fiscal quarters for the then most recently ended four fiscal quarters, to not be greater than 3.0 to 1.0, provided, however, that for each fiscal quarter end during the four quarter period following a material permitted acquisition, as defined in the restated primary credit facility, the Company will not permit this financial covenant to be greater than 3.5 to 1.0 for each such fiscal quarter end, and, •an interest coverage ratio, defined as that ratio of consolidated EBITDA for such period to cash interest expense for such period, for any period of four consecutive fiscal quarters, to not be less than 3.5 to 1.0. The Company had $0.4 million in letters of credit contingently committed against the primary credit facility at both June 30, 2026 and June 30, 2025. (2)The Company also maintains foreign credit facilities for working capital and general corporate purposes at specific foreign locations rather than utilizing funding from intercompany sources. These foreign credit facilities can be canceled at any time by either the bank or us and generally include renewal clauses. Interest on borrowing under these facilities is charged at a rate as defined under the respective foreign credit facility. (3)The Company maintains a foreign credit facility for its operation in Thailand which allows for borrowings of up to $10.1 million. (4)The Company maintains a foreign credit facility for its operation in China which allows for borrowings up to 50.0 million RMB (approximately $7.4 million at June 30, 2026 exchange rates). (5)The Company maintains an uncommitted revolving credit facility for our Netherlands subsidiary. The Netherlands credit facility allows for borrowings of up to 9.2 million Euro (approximately $10.5 million at June 30, 2026 exchange rates), which borrowings can be made in Euro, U.S. dollars, or other optional currency. Interest on borrowing under this facility is charged at a rate of interest dependent on the denomination of the currency borrowed. (6)The Company maintains a foreign credit facility for its operation in Poland which allows for borrowings up to 10.0 million Euro (approximately $11.4 million at June 30, 2026 exchange rates). (7)The amount of Long-term debt under credit facilities, less current maturities reflects the borrowings on the primary credit facility that the Company intends, and has the ability, to refinance for a period longer than twelve months. The revolving borrowings on the primary credit facility matures on April 30, 2031. 54 As of June 30, 2026, the contractual maturities of the term borrowings on the primary credit facility were as follows: (Amounts in Millions) Contractual Maturities Fiscal year: 2027 $ 6.25 2028 7.50 2029 8.75 2030 70.00 Total $ 92.50 The weighted-average interest rate on borrowings outstanding under the credit facilities at June 30, 2026 and June 30, 2025 were 5.0% and 5.9%, respectively. Capitalized interest expense was $0.5 million during fiscal year 2026 and immaterial for fiscal years 2025 and 2024. Note 10 Employee Benefit Plans Defined Contribution Retirement Plans: The Company maintains a trusteed defined contribution retirement plan which is in effect for substantially all domestic employees meeting the eligibility requirements. The Company matches 50% of eligible employee contributions up to 6%. The Company also provides a discretionary contribution determined annually by the Talent, Culture, and Compensation Committee of the Company’s Board of Directors. Total expense related to employer contributions to the domestic retirement plans was $2.1 million, $2.1 million, and $4.8 million for fiscal years 2026, 2025, and 2024, respectively. The Company also maintains a supplemental employee retirement plan (“SERP”) for executives and other key employees which enables them to defer cash compensation on a pre-tax basis and restore amounts that would be otherwise payable under our tax-qualified retirement plans if the IRS did not have limits on includable compensation and maximum benefits. The SERP is structured as a rabbi trust, and therefore, assets in the SERP portfolio are subject to creditor claims in the event of bankruptcy. We recognize SERP investment assets on the balance sheet at current fair value. A SERP liability of the same amount is recorded on the balance sheet representing an obligation to distribute SERP funds to participants. As of June 30, 2026, both total investments and obligations under SERP were $4.4 million, of which $1.1 million were short term and $3.3 million were long term. As of June 30, 2025, both total investments and obligations under SERP were $4.1 million, of which $0.5 million were short term and $3.6 million were long term. The SERP investment assets are classified as trading, and accordingly, realized and unrealized gains and losses are recognized in the Other Income (Expense) category on our Consolidated Statements of Income. Adjustments made to revalue the SERP liability are also recognized in income as selling and administrative expenses and offset valuation adjustments on SERP investment assets. The change in net unrealized holding gains for the fiscal years ended June 30, 2026, 2025, and 2024 was approximately $0.3 million, $(0.1) million, and $0.5 million, respectively. Defined Benefit Postemployment Plans: The Company established and maintains severance plans for all domestic employees and other postemployment plans for certain foreign subsidiaries. There are no statutory requirements for us to contribute to the plans, nor do employees contribute to the plans. The plans hold no assets. Benefits are paid using available cash on hand when eligible employees meet plan qualifications for payment. As of June 30, 2026, total obligations under these plans were $9.2 million of which $8.3 million were long term and $0.9 million were short term. As of June 30, 2025, total obligations under these plans were $8.2 million of which $7.3 million were long term and $0.9 million were short term. Net periodic benefit costs were not material for the fiscal years ended June 30, 2026, 2025, and 2024. Note 11 Stock Compensation Plans A stock compensation plan was created and adopted by the Company’s Board of Directors (the “Board”) on September 20, 2023 and approved by our Share Owners at our 2023 Annual Meeting on November 17, 2023. The 2023 Plan (the “Plan”) allows for the issuance of up to 2 million shares and replaced our former 2014 plan. The shares under the 2023 Plan may be granted in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted awards, performance share awards, cash awards, and other equity awards. The Plan is a ten-year plan that terminates automatically on November 17, 2033. No award shall be granted pursuant to the Plan after such date, but awards theretofore granted may extend beyond that date. 55 On October 20, 2016, the Board approved a nonqualified deferred stock compensation plan, the Kimball Electronics, Inc. Non-Employee Directors Stock Compensation Deferral Plan (the “Deferral Plan”), which allows Non-Employee Directors to elect to defer all, or a portion of, their retainer fees in stock until retirement or termination from the Board or death. The Deferral Plan allows for issuance of up to 1.0 million shares of the Company’s common stock. Pre-tax stock compensation charged against income in fiscal years 2026, 2025, and 2024 was $8.2 million, $6.5 million, and $7.2 million, respectively. These costs are included in Selling and Administrative Expenses. Performance Shares: We made long-term performance share grants to leadership team members and other key employees. The Talent, Culture, and Compensation Committee of the Board approved these annual performance share grants. Grants cliff vest at the third anniversary of the award date. Under the awards granted to leadership team members, a number of shares will be issued to each participant based on the Company’s economic profit for fiscal years 2026 through 2028 as compared to the Board approved plan. The number of shares issued could be zero if minimum thresholds are not met up to a maximum of 200%. Under the awards granted to key employees, a number of shares will be awarded to each participant based upon a combination of the Company’s profitability based on its operating income over the performance period as defined in the Company’s operating business plans for the applicable fiscal years and the Company’s growth based on a comparison of its three-year revenue compounded annual growth rate (“CAGR”) with the Electronics Manufacturing Services Industry’s three-year revenue CAGR. The number of shares issued will be less than the targeted shares issuable if the Company does not reach 100% of one or both of the above-mentioned performance metrics, and could be zero if the Company does not reach the required minimum thresholds of both metrics. The number of shares issued will exceed the number of targeted issuable shares granted (up to a maximum of 125%) if the Company exceeds 100% of one or both of the above-mentioned incentive metrics. The Company recognizes expense, for both leadership team and key employee awards, based on management’s expectation of achievement of the specific performance metrics monitored throughout the service period of the awards. If a participant is not employed on the date shares are issued, the performance share award is forfeited, except in the case of a Qualifying Termination (a termination of service due to death, Disability, or Retirement), as defined by the Plan. A summary of the Company’s performance share activity during fiscal year 2026 is presented below: Number of Shares Weighted Average Grant Date Fair Value Performance shares outstanding at July 1, 2025 544,063 $ 24.33 Granted 121,261 $ 28.35 Vested (182,839) $ 23.35 Forfeited (3,829) $ 23.45 Performance shares outstanding at June 30, 2026 478,656 $ 25.32 As of June 30, 2026, there was approximately $2.7 million of unrecognized compensation cost related to performance shares, based on the latest estimated attainment of performance goals. That cost is expected to be recognized over performance periods ending August 2026 through August 2028, with a weighted average vesting period of 1.3 years. The fair value of performance shares is based on the stock price at the date of grant. During fiscal years 2026, 2025, and 2024, respectively, 182,839, 93,870, and 82,744 performance shares vested at a fair value of $4.3 million, $2.2 million, and $1.6 million. The performance shares vested represent the total number of shares vested prior to the reduction of shares withheld to satisfy tax withholding obligations. Total Shareholder Return Performance Shares: The Talent, Culture, and Compensation Committee of the Board approved total shareholder return awards granted to leadership team members during fiscal year 2026 based on the Company’s relative total shareholder return (rTSR) for the performance period as compared to a group of peer companies selected by the Talent, Culture, and Compensation Committee of the Board. The number of shares issued could be zero if minimum thresholds are not met up to a maximum of 200%. 56 A summary of the Company’s total shareholder return performance share activity during fiscal year 2026 is presented below: Number of Shares Weighted Average Grant Date Fair Value Total shareholder return performance shares outstanding at July 1, 2025 101,417 $ 22.96 Granted 61,286 $ 48.49 Vested — $ — Forfeited (42,626) $ 16.88 Total shareholder return performance shares outstanding at June 30, 2026 120,077 $ 38.14 As of June 30, 2026, there was approximately $2.8 million of unrecognized compensation cost related to total shareholder return performance shares. That cost is expected to be recognized over performance periods ending August 2027 through August 2028, with a weighted average vesting period of 1.7 years. The fair value of total shareholder return performance shares is based on the grant date fair value calculated using a Monte Carlo simulation, with the assistance of a third-party valuation specialist. No shares vested during fiscal years 2026, 2025, and 2024. Unrestricted Share Grants: Unrestricted shares were granted to non-employee members of the Board as consideration for services rendered. Unrestricted share grants do not have vesting periods, holding periods, restrictions on sale, or other restrictions. The fair value of unrestricted shares is based on the stock price at the date of the award. During fiscal years 2026, 2025, and 2024, respectively, the Company granted a total of 20,555, 26,192, and 18,128 unrestricted shares at an average grant date fair value of $28.34, $19.09, and $25.24 for a total fair value of $0.6 million, $0.5 million, and $0.5 million. Unrestricted shares are awarded to non-employee members of the Board as compensation for director’s fees, including fees that directors elected to receive as unrestricted shares in lieu of cash payment. Directors’ fees are expensed over the period that directors earn the compensation. Unrestricted shares that are awarded to key employees are expensed immediately. Restricted Shares: Restricted shares were granted to employees as consideration for services rendered. The contractual life of the restricted shares is three years, with one-third of the interest in the restricted shares vested after year one of the grant, another one-third after year two of the grant, and the final one-third after year three of the grant. Restricted shares are expensed over the contractual vesting period as earned. If a participant is not employed on the date shares are issued, the restricted share award is forfeited, except in the case of a Qualifying Termination (a termination of service due to death, Disability, or Retirement), as defined by the Plan. During fiscal years 2026, 2025, 2024 the Company granted restricted shares to officers and other key employees for a total fair value of $4.8 million, $2.9 million, and $2.8 million. Number of Shares Weighted Average Grant Date Fair Value Restricted shares outstanding at July 1, 2025 232,617 $ 21.63 Granted 169,851 $ 28.35 Vested (89,295) $ 22.17 Forfeited (1,988) $ 23.86 Restricted shares outstanding at June 30, 2026 311,185 $ 25.05 As of June 30, 2026, there was approximately $3.0 million of unrecognized compensation cost related to restricted shares. The cost is expected to be recognized over vesting periods ending August 2026 through August 2028, with a weighted average vesting period of 0.9 years. The fair value of the restricted shares is based on the stock price at the date of grant. During fiscal years 2026, 2025, and 2024 respectively, 89,295, 46,497, and 20,768 restricted shares vested. The restricted shares vested represent the total number of shares vested prior to the reduction of shares withheld to satisfy tax withholding obligations. Deferred Share Units: Deferred share units may be granted to non-employee members of the Board under the Deferral Plan as compensation for the portion of their annual retainer fees resulting from their election to receive deferred share units in lieu of cash payment or unrestricted shares. Directors’ fees are expensed over the period that directors earn the compensation. Deferred share units are participating securities and are payable in common stock in a lump sum or installments in accordance with deferral elections 57 upon a director’s death, retirement, or termination of service with the Board. During fiscal years 2026, 2025, and 2024, respectively, 16,232, 28,288, and 26,347 deferred share units were granted to non-employee members of the Board at an average grant date fair value of $28.34, $19.09, and $25.24 for a total fair value of $0.5 million, $0.5 million, and $0.7 million. During fiscal year 2026, no shares of common stock were issued under the Deferral Plan. Note 12 Income Taxes On July 4, 2025, the One Big Beautiful Bill Act (“2025 U.S. tax reform”) was enacted into law. The 2025 U.S. tax reform contains several key tax laws, including extensions and modifications of the Tax Cuts and Jobs Act. In accordance with ASC 740, Income Taxes, the Company is required to recognize the effect of the tax law changes in the period of enactment, such as remeasuring the estimated U.S. deferred tax assets and liabilities, as well as potential impacts to previously existing valuation allowances. The legislation has multiple effective dates, with certain provisions effective in fiscal year 2026 and others implemented through fiscal year 2028. Due to the 2025 U.S. tax reform, the Company recorded a $0.2 million tax benefit for the year as a decrease in valuation allowance on part of our deferred tax assets. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the deferred tax assets and liabilities as of June 30, 2026 and 2025, were as follows: (Amounts in Thousands) 2026 2025 Deferred Tax Assets: Receivables $ 751 $ 336 Inventory 2,218 2,252 Employee benefits 341 322 Deferred compensation 8,445 7,224 Capitalized research and development 7,916 10,180 Tax credit carryforwards 9,928 9,650 Capital Loss 3,587 5,259 Net operating loss carryforward 3,916 4,676 Net foreign currency losses 131 90 Business interest carryforward 5,059 6,919 Operating Leases 3,868 — Miscellaneous 6,280 4,672 Valuation Allowance (16,016) (16,418) Total asset $ 36,424 $ 35,162 Deferred Tax Liabilities: Property and equipment 4,082 8,101 Right-of-use Asset 2,433 — Goodwill 594 535 Miscellaneous 3,760 1,336 Total liability $ 10,869 $ 9,972 Net Deferred Income Taxes $ 25,555 $ 25,190 Since fiscal year 2023, we have capitalized research and development expenses that are required to be capitalized as an amortizable asset under Section 174 of the Internal Revenue Code and amortized over a period of five years. This requirement was based on the implementation of Tax Reform effective in tax years beginning as of January 1, 2022, While this requirement was eliminated with the 2025 U.S. tax reform, the Company elected to capitalize research and development expenses in fiscal year 2026. As of June 30, 2026 and 2025, we have a net deferred tax asset from capitalized research and development expenses of $7.9 million and $10.2 million, respectively. Income tax benefits associated with the net operating loss carryforwards expire from fiscal year 2030 to 2045. Income tax benefits associated with tax credit carryforwards primarily expire from fiscal year 2027 to 2046. A valuation allowance was provided as of June 30, 2026 and 2025 for deferred tax assets related to certain state credits of $7.4 million and $7.2 million, respectively. As of June 30, 2026 and 2025, we have full valuation allowances of $5.0 million and $6.9 million, respectively on the business interest carryforward deferred tax asset, following a determination that it is not more likely than not that it will be realized. As of June 30, 2026 and 2025, the Company has a deferred tax asset from the capital loss on the sale of GES for $3.6 58 million and $5.3 million, on which a valuation allowance of $3.6 million and $2.3 million has been provided. The capital loss deferred tax asset declined in fiscal year 2026 as a portion was utilized with the sale of the Tampa facility. The reserve increased in fiscal year 2026 as the utilization of the capital loss deferred tax asset was less than estimated at June 30, 2025, as the final sale price of the Tampa facility was less than estimated. See Note 3 - Sale of GES for further information regarding the sale of GES and Note 4 - Restructuring Activities for further information regarding the sale of the Tampa facility. Except as reserved for in the valuation allowance, we believe our deferred income taxes are more likely than not to be realized in the future. The components of income before taxes on income are as follows: Year Ended June 30 (Amounts in Thousands) 2026 2025 2024 United States $ 2,551 $ (9,681) $ (35,055) Foreign 50,670 35,910 60,254 Total income before taxes on income $ 53,221 $ 26,229 $ 25,199 The Company currently operates in international jurisdictions which expose the Company to taxation in various regions. The Company continually evaluates its global cash needs. Most of our accumulated unremitted foreign earnings have been invested in active non-U.S. business operations. The aggregate unremitted earnings of the Company’s foreign subsidiaries were approximately $472 million as of June 30, 2026. If such funds were repatriated or we determined that all or a portion of such foreign earnings are no longer permanently reinvested, we may be subject to applicable non-U.S. income and withholding taxes. Determination of the amount of any potential future unrecognized deferred tax liability on such unremitted earnings is not practicable and is recorded in the period when any foreign earnings are determined to be no longer permanently reinvested. The provision for income taxes is composed of the following items: Year Ended June 30 (Amounts in Thousands) 2026 2025 2024 Current Taxes: Federal $ (73) $ (2,034) $ 2,024 Foreign 24,196 12,097 12,372 State 429 (1,688) 587 Total payable $ 24,552 $ 8,375 $ 14,983 Deferred Taxes: Federal $ 3,933 $ (3,344) $ (12,280) Foreign (2,960) (1,701) 91 State 138 (1,261) (3,094) Valuation allowance (402) 7,176 4,988 Total deferred $ 709 $ 870 $ (10,295) Total provision for income taxes $ 25,261 $ 9,245 $ 4,688 59 The amount of income taxes paid (net of refunds) were: Year Ended June 30 (Amounts in Thousands) 2026 U.S. Federal $ 3,162 State 286 Foreign Mexico $ 4,226 Poland 875 Thailand 758 China 4,913 Other $ (2) Total $ 14,218 60 The Company adopted ASU 2023-09 prospectively for the year ended June 30, 2026, and a reconciliation of the income tax provision to the amount computed applying the U.S. federal statutory tax rate of 21% to income (loss) before income taxes was as follows: Year Ended June 30 2026 Amount % Tax Computed at U.S. Statutory Tax Rate $ 11,176 21.0 % State and Local Income Taxes, Net of Federal Income Tax (1) 575 1.1 Foreign Tax Effect China Statutory rate difference between China and United States 874 1.6 Other (433) (0.8) Mexico Impact of foreign exchange rate 699 1.3 Non-Deductible Employee Benefits 815 1.5 Inflation Adjustment 766 1.4 Fixed Assets basis difference (623) (1.2) Other 670 1.3 Poland(2) (727) (1.3) Thailand(2) (949) (1.8) Romania Minimum Tax 809 1.5 Other 15 — Netherlands Withholding Taxes(3) 8,958 16.8 Other 18 — Effects of Cross Border Tax Laws Global Intangible low-taxed income (4) 2,982 5.6 Other 96 0.2 Tax Credits Research and Development tax credits (206) (0.4) Other 165 0.3 Change in Valuation Allowance(5) Valuation Allowance - Capital Loss 1,089 2.1 Valuation Allowance - Capitalized Interest Expense (1,668) (3.1) Non Taxable or Nondeductible Items Executive Compensation 930 1.8 Other (474) (0.9) Changes in unrecognized tax benefits — — Other Adjustments (296) (0.5) Total $ 25,261 47.5 % (1)For the year ended June 30, 2026, state taxes in California, Florida, Michigan, and Indiana comprised the majority (greater than 50%) of the tax effect in this category. (2)All rate reconciling items for Poland and Thailand are separately below posting threshold. (3)During fiscal year 2026, the Company recorded dividend withholding tax expense in Netherlands of $8.9 million. This includes $4.4 million and $4.5 million of dividend withholding taxes and related interest from Poland and China, respectively. The dividend withholding taxes from Poland relate to a 2018 dividend, and reflect a 19% dividend withholding tax rate. The expense was recorded in fiscal year 2026 following an unfavorable court decision. The Company may pursue other means of recovery. The dividend withholding taxes from China include $1.3 million on dividends paid in fiscal year 2026 and $3.2 million on dividends paid from fiscal years 2021 through 2025. The withholding tax expense reflects a 10% dividend on the fiscal year 2026 dividend as well as the fiscal year 2021 through 2025 dividends, applied retroactively, following a rate settlement reached in 2026. 61 (4)The effect of Global Intangible low-taxed income is presented net of foreign tax credit for the year ended June 30, 2026. (5)In 2026, we released $1.9 million of valuation allowance on capitalized interest expense and recorded an additional $1.5 million valuation allowance on capitalized loss carryforward & state income tax credits. A reconciliation of the income tax provision, prior to the adoption of ASU 2023-09, to the amount computed applying the U.S. federal statutory tax rate of 21% to income (loss) before income taxes was as follows: Year Ended June 30 2025 2024 (Amounts in Thousands) Amount % Amount % Tax computed at U.S. federal statutory rate $ 5,508 21.0 % $ 5,292 21.0 % State income taxes, net of federal income tax benefit (2,810) (10.7) (2,433) (9.7) Foreign tax rate differential 2,267 8.6 592 2.3 Impact of foreign exchange rates on foreign income taxes 637 2.4 (995) (3.9) Valuation allowance 7,176 27.4 4,988 19.8 Asset impairment/Disposal (4,732) (18.0) (2,882) (11.4) Research credit (1,479) (5.6) (1,150) (4.6) Global intangible low tax income 2,913 11.1 1,339 5.3 Non-deductible compensation 244 0.9 385 1.5 Other - net (479) (1.9) (448) (1.7) Total provision for income taxes $ 9,245 35.2 % $ 4,688 18.6 % The Asset impairment/Disposal line in the table above includes, in fiscal year 2024, the tax effects of recording deferred tax assets resulting from the impairment recorded following the held for sale classification of GES. In fiscal year 2025, the line reflects the $5.3 million tax benefit on the capital loss from the GES sale as well as the tax impact of other adjustments to GES deferred tax assets following the disposal. See Note 3 - Sale of GES for further information regarding the sale. 62 Changes in the unrecognized tax benefit, excluding accrued interest and penalties, during fiscal years 2026, 2025, and 2024 were as follows: (Amounts in Thousands) 2026 2025 2024 Beginning balance - July 1 $ 166 $ 216 $ 408 Tax positions related to prior fiscal years: Additions 17 5 10 Reductions — — — Tax positions related to current fiscal year: Additions — — — Reductions — — — Settlements — — — Lapses in statute of limitations — (55) (202) Ending balance - June 30 $ 183 $ 166 $ 216 Portion that, if recognized, would reduce tax expense and effective tax rate $ 145 $ 131 $ 182 We do not expect the change in the amount of unrecognized tax benefits in the next 12 months to have a significant impact on our results of operations or financial position. We recognize interest and penalties related to unrecognized tax benefits in Provision for Income Taxes on the Consolidated Statements of Income. Interest and penalties accrued for unrecognized tax benefits were $0.6 million at each of June 30, 2026, 2025, and 2024 . Expenses related to interest and penalties in fiscal years 2026, 2025, and 2024 were not material. The Company or its wholly-owned subsidiaries file U.S. federal income tax returns and income tax returns in various state, local, and foreign jurisdictions. We are no longer subject to any significant U.S. federal tax examinations by tax authorities for years before fiscal year 2023. We are subject to income tax examinations by various, state, local, and foreign jurisdiction tax authorities for years after June 30, 2020. Note 13 Share Owners’ Equity The Company has a Board-authorized stock repurchase plan (the “repurchase plan”) allowing the purchase of up to $140 million of our common stock. Purchases may be made under various programs, including in open-market transactions, block transactions on or off an exchange, or in privately negotiated transactions, all in accordance with applicable securities laws and regulations. The Repurchase Plan has no expiration date but may be suspended or discontinued at any time. During fiscal years 2026, 2025, and 2024, the Company repurchased $11.9 million, $11.9 million, and $3.0 million respectively, of common stock under the Repurchase Plan at an average price of $26.56 per share, $18.19 per share, and $22.12 per share respectively, which was recorded as Treasury stock, at cost in the Consolidated Balance Sheets. Since the inception of the Repurchase Plan, the Company has repurchased $115.6 million of common stock at an average cost of $16.39 per share. Note 14 Fair Value The Company categorizes assets and liabilities measured at fair value into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas level 3 generally requires significant management judgment. The three levels are defined as follows: •Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. •Level 2: Observable inputs other than those included in level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. •Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. There were no changes in the inputs or valuation techniques used to measure fair values during fiscal year 2026. 63 Financial Instruments Recognized at Fair Value: The following methods and assumptions were used to measure fair value: Financial Instrument Level Valuation Technique/Inputs Used Derivative Assets: Foreign exchange contracts 2 Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates, considering counterparty credit risk Trading securities: Mutual funds held in SERP 1 Market - Quoted market prices Derivative Liabilities: Foreign exchange contracts 2 Market - Based on observable market inputs using standard calculations, such as time value, forward interest rate yield curves, and current spot rates adjusted for Kimball Electronics’ non-performance risk Recurring Fair Value Measurements: As of June 30, 2026 and 2025, the fair values of financial assets and liabilities that are measured at fair value on a recurring basis using the market approach are categorized as follows: June 30, 2026 (Amounts in Thousands) Level 1 Level 2 Total Assets Derivatives: foreign exchange contracts $ — $ 1,024 $ 1,024 Trading securities: mutual funds held in nonqualified SERP 4,388 — 4,388 Total assets at fair value $ 4,388 $ 1,024 $ 5,412 Liabilities Derivatives: foreign exchange contracts $ — $ 330 $ 330 Total liabilities at fair value $ — $ 330 $ 330 June 30, 2025 (Amounts in Thousands) Level 1 Level 2 Total Assets Derivatives: foreign exchange contracts $ — $ 3,017 $ 3,017 Trading securities: mutual funds held in nonqualified SERP 4,114 — 4,114 Total assets at fair value $ 4,114 $ 3,017 $ 7,131 Liabilities Derivatives: foreign exchange contracts $ — $ 1,910 $ 1,910 Total liabilities at fair value $ — $ 1,910 $ 1,910 We had no level 3 assets or liabilities as of June 30, 2026 and 2025, or any activity in level 3 assets or liabilities during fiscal years 2026, 2025, and 2024. The nonqualified supplemental employee retirement plan (“SERP”) assets consist primarily of equity funds, balanced funds, bond funds, and a money market fund. The SERP investment assets are offset by a SERP liability which represents the Company’s obligation to distribute SERP funds to participants. See Note 10 - Employee Benefit Plans for further information regarding the SERP. 64 Financial Instruments Not Carried At Fair Value: Financial instruments that are not reflected in the Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following: Financial Instrument Level Valuation Technique/Inputs Used Notes receivable 2 Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account non-performance risk Borrowings under credit facilities 2 Market - Based on observable market rates, taking into account Kimball Electronics’ non-performance risk The carrying values of our cash deposit accounts, trade accounts receivable, and trade accounts payable approximate fair value due to their relatively short maturity and immaterial non-performance risk. Note 15 Derivative Instruments Foreign Exchange Contracts: We operate internationally and are therefore exposed to foreign currency exchange rate fluctuations in the normal course of business. Our primary means of managing this exposure is to utilize natural hedges, such as aligning currencies used in the supply chain with the sale currency. To the extent natural hedging techniques do not fully offset currency risk, we use derivative instruments with the objective of reducing the residual exposure to certain foreign currency rate movements. Factors considered in the decision to hedge an underlying market exposure include the materiality of the risk, the volatility of the market, the duration of the hedge, the degree to which the underlying exposure is committed to, and the availability, effectiveness, and cost of derivative instruments. Derivative instruments are only utilized for risk management purposes and are not used for speculative or trading purposes. We use forward contracts designated as cash flow hedges to protect against foreign currency exchange rate risks inherent in forecasted transactions denominated in a foreign currency. Non-designated foreign exchange contracts are also used to hedge against foreign currency exchange rate risks related to intercompany balances and other balance sheet positions denominated in currencies other than the functional currencies. As of June 30, 2026, we had outstanding foreign exchange contracts to hedge currencies against the U.S. dollar in the aggregate notional amount of $2.7 million and to hedge currencies against the Euro in the aggregate notional amount of 45.6 million Euro. The notional amounts are indicators of the volume of derivative activities but may not be indicators of the potential gain or loss on the derivatives. In limited cases due to unexpected changes in forecasted transactions, cash flow hedges may cease to meet the criteria to be designated as cash flow hedges. Depending on the type of exposure hedged, we may either purchase a derivative contract in the opposite position of the undesignated hedge or may retain the hedge until it matures if the hedge continues to provide an adequate offset in earnings against the currency revaluation impact of foreign currency denominated liabilities. The fair value of outstanding derivative instruments is recognized on the Consolidated Balance Sheets as a derivative asset or liability and presented with Prepaid expenses and other current assets and Accrued expenses, respectively. When derivatives are settled with the counterparty, the derivative asset or liability is relieved and cash flow is impacted for the net settlement. For derivative instruments that meet the criteria of hedging instruments under FASB guidance, the gain or loss on the derivative instrument is initially recorded net of related tax effect in Accumulated Other Comprehensive Income (Loss), a component of Share Owners’ Equity, and is subsequently reclassified into earnings in the period or periods during which the hedged transaction is recognized in earnings. The gain or loss associated with derivative instruments that are not designated as hedging instruments or that cease to meet the criteria for hedging under FASB guidance is reported immediately in Non-operating income (expense), net on the Consolidated Statements of Income. Based on fair values as of June 30, 2026, we estimate that approximately $0.7 million of pre-tax derivative gain deferred in Accumulated Other Comprehensive Loss will be reclassified into earnings, along with the earnings effects of related forecasted transactions, within the next twelve months. Losses on foreign exchange contracts are generally offset by gains in operating income in the income statement when the underlying hedged transaction is recognized in earnings. Because gains or losses on foreign exchange contracts fluctuate partially based on currency spot rates, the future effect on earnings of the cash flow hedges alone is not determinable, but in conjunction with the underlying hedged transactions, the result is expected to be a decline in currency risk. The maximum length of time we had hedged our exposure to the variability in future cash flows was 12 months as of both June 30, 2026 and June 30, 2025. 65 See Note 14 - Fair Value for further information regarding the fair value of derivative assets and liabilities and Note 20 - Accumulated Other Comprehensive Income (Loss) for the changes in deferred derivative gains and losses. Information on the location and amounts of derivative fair values in the Consolidated Balance Sheets and derivative gains and losses in the Consolidated Statements of Income are presented below. Fair Values of Derivative Instruments on the Consolidated Balance Sheets Asset Derivatives Liability Derivatives Fair Value As of Fair Value As of (Amounts in Thousands) Balance Sheet Location June 30 2026 June 30 2025 Balance Sheet Location June 30 2026 June 30 2025 Derivatives Designated as Hedging Instruments: Foreign exchange contracts Prepaid expenses and other current assets $ 1,023 $ 2,540 Accrued expenses $ 327 $ 927 Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Prepaid expenses and other current assets 1 477 Accrued expenses 3 983 Total derivatives $ 1,024 $ 3,017 $ 330 $ 1,910 The Effect of Derivative Instruments on Other Comprehensive Income (Loss) June 30 (Amounts in Thousands) 2026 2025 2024 Amount of Pre-Tax Gain or (Loss) Recognized in Other Comprehensive Income (Loss) (OCI) on Derivatives: Foreign exchange contracts $ 3,968 $ (82) $ 2,621 The Effect of Derivative Instruments on Consolidated Statements of Income (Amounts in Thousands) Year Ended June 30 Derivatives in Cash Flow Hedging Relationships Location of Gain or (Loss) 2026 2025 2024 Amount of Pre-Tax Gain or (Loss) Reclassified from Accumulated OCI into Income: Foreign exchange contracts Cost of Sales $ 4,495 $ (2,960) $ 7,530 Derivatives Not Designated as Hedging Instruments Amount of Pre-Tax Gain or (Loss) Recognized in Income on Derivatives: Foreign exchange contracts Non-operating income (expense) $ (3,005) $ (1,069) $ 64 Total Derivative Pre-Tax Gain (Loss) Recognized in Income $ 1,490 $ (4,029) $ 7,594 Note 16 Accrued Expenses Accrued expenses consisted of the following: June 30 (Amounts in Thousands) 2026 2025 Compensation $ 22,487 $ 18,714 Non-inventory advance payments 9,976 5,636 Taxes 15,138 9,077 Interest 816 1,449 Retirement plan 335 251 Derivatives 330 1,910 Insurance 2,299 1,368 Operating leases 2,338 520 Restructuring 33 2,018 Other expenses 5,108 5,546 Total accrued expenses $ 58,860 $ 46,489 66 Note 17 Segment Reporting The Company’s operations are managed by its Chief Executive Officer, who has been identified as our chief operating decision maker “CODM.” The CODM evaluates the performance of multiple business units domestically and globally. Each of these business units qualify as operating segments, providing contract manufacturing services, including engineering and supply chain support, for the production of electronic assemblies and other products including medical devices, medical disposables, precision molded plastics, and complete device assembly primarily in automotive, medical, and industrial applications, to the specifications and designs of our customers. These operating segments are aggregated into one reportable segment, Business Unit Operations, due to similarities in the nature of the products, the production process, the type of customer, the methods used to distribute the products, and long-term economic characteristics. The accounting policies for the Business Unit Operations segment are consistent with those described in the Summary of Significant Accounting Policies. The CODM uses operating income as the measure of profitability to evaluate income or loss generated from each operating segment and to guide decisions on capital investments and assess performance. These decisions may include capital expenditures and/or acquisitions. Expenditures for long-lived assets for fiscal years 2026, 2025, and 2024 are $51.7 million, $33.7 million, and $47.0 million, respectively. The measure of segment assets is reported on the Consolidated Balance Sheet as Total Assets; however, it should be noted the discrete balance sheet information is not utilized by the CODM in assessing performance and allocating resources. Certain corporate administrative expenses have been allocated to the Business Unit Operations Segment based upon the nature of the expenses. The following table presents significant operations segment net sales and expenses: Year Ended June 30 (Amounts in Thousands) 2026 2025 2024 Net Sales Business Unit Operations $ 1,457,293 $ 1,519,456 $ 1,748,218 Corporate/Eliminations (25,915) (32,729) (33,708) Total Net Sales $ 1,431,378 $ 1,486,727 $ 1,714,510 Cost of Sales (Excluding Depreciation and Amortization) 1,275,552 1,345,624 1,537,813 Selling and Administrative (Excluding Depreciation and Amortization) 60,808 49,975 65,036 Depreciation and Amortization 38,705 36,994 38,030 Other General Income — — (892) Restructuring Expense 4,977 10,990 2,386 Goodwill Impairment — — 5,820 (Gain on Disposal) Asset Impairment (14,721) (2,391) 17,040 Total Operating Income $ 66,057 $ 45,535 $ 49,277 67 Note 18 Geographic Information The following geographic area data includes net sales based on the country location of the Company’s business unit providing the manufacturing or other service and long-lived assets based on physical location. Long-lived assets include property and equipment and capitalized software, and amounts as of June 30, 2025 exclude the amounts classified as held for sale. Year Ended June 30 (Amounts in Thousands) 2026 2025 2024 Net Sales: Mexico $ 359,707 $ 445,717 $ 519,279 United States 293,600 341,817 404,974 Poland 288,653 241,939 261,433 China 236,513 258,896 248,095 Thailand 158,610 132,298 171,340 Other Foreign 94,295 66,060 109,389 Total net sales $ 1,431,378 $ 1,486,727 $ 1,714,510 June 30 (Amounts in Thousands) 2026 2025 Long-Lived Assets: Mexico $ 89,290 $ 99,687 United States 63,604 39,143 Poland 55,498 54,356 China 26,662 30,470 Thailand 24,579 25,579 Other Foreign 16,480 17,996 Total long-lived assets $ 276,113 $ 267,231 Note 19 Earnings Per Share Basic and diluted earnings per share were calculated as follows under the two-class method: (Amounts in thousands, except per share data) Year Ended June 30 2026 2025 2024 Basic and Diluted Earnings Per Share: Net Income $ 27,960 $ 16,984 $ 20,511 Less: Net Income allocated to participating securities 23 19 24 Net Income allocated to common Share Owners $ 27,937 $ 16,965 $ 20,487 Basic weighted average common shares outstanding 24,501 24,782 25,079 Dilutive effect of average outstanding stock compensation awards 267 235 199 Dilutive weighted average shares outstanding 24,768 25,017 25,278 Earnings Per Share of Common Stock: Basic $ 1.14 $ 0.68 $ 0.82 Diluted $ 1.13 $ 0.68 $ 0.81 68 Note 20 Accumulated Other Comprehensive Income (Loss) The changes in the balances of each component of Accumulated Other Comprehensive Income (Loss), net of tax, were as follows: (Amounts in Thousands) Foreign Currency Translation Adjustments Derivative Gain (Loss) Post Employment Benefits Net Actuarial Gain (Loss) Accumulated Other Comprehensive Income (Loss) Balance at June 30, 2024 $ (14,260) $ (2,395) $ (1,152) $ (17,807) Other comprehensive income (loss) before reclassifications 16,523 (64) 44 16,503 Reclassification to (earnings) loss — 2,198 169 2,367 Net current-period other comprehensive income (loss) $ 16,523 $ 2,134 $ 213 $ 18,870 Balance at June 30, 2025 $ 2,263 $ (261) $ (939) $ 1,063 Other comprehensive income (loss) before reclassifications (5,737) 2,977 192 (2,568) Reclassification to (earnings) loss — (3,332) 165 (3,167) Net current-period other comprehensive income (loss) (5,737) (355) 357 (5,735) Balance at June 30, 2026 $ (3,474) $ (616) $ (582) $ (4,672) The following reclassifications were made from Accumulated Other Comprehensive Income (Loss) to the Consolidated Statements of Income: Reclassifications from Accumulated Other Comprehensive Income (Loss) Year Ended June 30 Affected Line Item in the (Amounts in Thousands) 2026 2025 Consolidated Statements of Income Derivative Gain (Loss) (1) $ 4,495 $ (2,960) Cost of Sales (1,163) 762 Benefit (Provision) for Income Taxes $ 3,332 $ (2,198) Net of Tax Postemployment Benefits: Amortization of Actuarial Gain (Loss) (2) $ (217) $ (222) Non-operating income 52 53 Benefit (Provision) for Income Taxes $ (165) $ (169) Net of Tax Total Reclassifications for the Period $ 3,167 $ (2,367) Net of Tax Amounts in parentheses indicate reductions to income. (1)See Note 15 - Derivative Instruments for further information on derivative instruments. (2)See Note 10 - Employee Benefit Plans for further information on postemployment benefit plans. Note 21 Leases The Company determines if a contract is or contains a lease at inception. The Company leases certain office, manufacturing, and warehouse facilities and equipment under operating leases, in addition to land on which certain office and manufacturing facilities reside. These operating leases expire from fiscal year 2027 to 2056. Operating lease costs in fiscal years 2026, 2025, and 2024 were $2.9 million, $1.5 million, and $1.9 million, respectively. During fiscal year 2025, the Company executed a lease for a facility to expand our medical CDMO footprint with the lease commencing in June 2025, including obtaining $10.6 million operating right-of-use assets in exchange for operating lease liabilities. During fiscal year 2026, the Company received the $4.6 million tenant allowance associated with the Indiana manufacturing facility lease, which increased the operating lease liability from June 30, 2025. 69 The lease assets and liabilities, which exclude leases with terms of 12 months or less, as of June 30, 2026 and 2025, were as follows: (Amounts in Thousands) 2026 2025 Operating lease right-of-use assets (included in Other Assets) $ 10,933 $ 11,779 Operating lease liability, current (included in Accrued expenses) 2,338 $ 520 Operating lease liability, noncurrent (included in Other long-term liabilities) $ 14,532 $ 11,386 Weighted average remaining lease term in years - operating leases 9.4 9.6 Weighted average discount rate - operating leases 5.3 % 5.9 % Cash payments for operating leases included in the measurement of lease liabilities in fiscal years 2026, 2025, and 2024 were $1.1 million, $0.7 million, and $1.4 million, respectively, and were included in Cash Flows from Operating Activities in the Consolidated Statements of Cash Flows. Future lease payments as of June 30, 2026 are as follows: (Amounts in Thousands) 2027 $ 2,392 2028 2,110 2029 2,059 2030 2,030 2031 2,060 Thereafter 10,826 Total undiscounted lease payments $ 21,477 Less: imputed interest 4,607 Present value of lease liabilities $ 16,870 70 Note 22 Subsequent Event On June 26, 2026, we entered into a definitive agreement to acquire the shares of Helvoet Polymer Technologies B.V. and Helvoet Rubber & Plastics Technologies (India) Pvt. Ltd. (collectively referred to as “Helvoet”) from Hydratec Industries N.V. The acquisition closed on July 1, 2026, after our fiscal year end. Helvoet is a contract development and manufacturing organization based in The Netherlands and India, with a focus on microfluidics, diagnostics, and drug delivery applications. The Company paid a cash purchase price based on an enterprise value of approximately 90.0 million Euro, or approximately $103.0 million. The transaction price is subject to certain post-closing working capital adjustments. The acquisition was funded with a combination of the Company’s cash and existing lines of credit. The initial purchase price allocation and valuation for this acquisition was not completed at the time the financial statements were issued due to the timing of the acquisition closing. As a result, disclosures required for business combinations are not available at this time. For the year ended June 30, 2026, we have incurred $0.5 million in acquisition costs, recognized as Selling and Administrative Expenses on our Consolidated Statements of Income. 71