Kimball Electronics Inc (KE) 2026 Q3 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to Kimball Electronics third-quarter fiscal 2026 earnings conference call. My name is Rob and I'll be the facilitator for today's call. (Operator Instructions)

各位女士、先生們，早安。歡迎參加金寶電子（Kimball Electronics）2026 會計年度第三季財報電話會議。我是 Rob，將擔任今天電話會議的主持人。（接線員指示）

Today's call, May 6, 2026, is being recorded. A replay will be available on the investor relations page of Kimball Electronics website.

今天的電話會議（2026 年 5 月 6 日）將進行錄音。重播將可於金寶電子網站的投資人關係頁面收聽。

At this time, I'd like to turn the call over to Andy Regrut, Vice President, Investor Relations, Strategic Development and Treasurer. Mr. Regrut, you may now begin.

現在，我想把電話會議交給投資人關係、策略發展與財務長（Treasurer）副總裁 Andy Regrut。Regrut 先生，您現在可以開始。

Thank you, and good morning, everyone. Welcome to our third-quarter conference call. With me here today is Ric Phillips, our Chief Executive Officer; and Jana Croom, Chief Financial Officer.

謝謝，各位早安。歡迎參加我們的第三季電話會議。今天與我一同出席的有：我們的執行長 Ric Phillips，以及財務長 Jana Croom。

We issued a press release yesterday afternoon with our results for the third quarter of fiscal 2026 ended March 31, 2026. To accompany today's call, a presentation has been posted to the investor relations page on our company website.

我們已於昨天下午發布新聞稿，公布截至 2026 年 3 月 31 日止之 2026 會計年度第三季業績。為配合今天的電話會議，我們也已在公司網站的投資人關係頁面上傳簡報。

Before we get started, I'd like to remind you that we will be making forward-looking statements that involve risk and uncertainty and are subject to our safe harbor provisions as stated in our press release and SEC filings. And that actual results can differ materially from the forward-looking statements. Our commentary today will be focused on adjusted non-GAAP results. Reconciliations of GAAP to non-GAAP amounts are available in our press release.

在開始之前，我想提醒各位，我們將發表涉及風險與不確定性的前瞻性陳述，並受新聞稿及向美國證券交易委員會（SEC）申報文件中所述之安全港條款約束。實際結果可能與前瞻性陳述存在重大差異。我們今天的評論將聚焦於調整後的非 GAAP 結果。GAAP 與非 GAAP 金額之調節表可於我們的新聞稿中查閱。

This morning, Ric will start the call with a few opening comments. Jana will review the financial results for the quarter and guidance for fiscal 2026, and Ric will complete our prepared remarks before taking your questions. I'll now turn the call over to Ric.

今天上午，Ric 將先以幾點開場評論開始。Jana 將回顧本季財務結果以及 2026 會計年度的財測指引；接著 Ric 將完成我們的事先準備發言，之後再回答各位的提問。現在我把電話交給 Ric。

Thank you, Andy, and good morning, everyone. Results for the third quarter were in line with expectations. Sales increased sequentially compared to Q2, driven by strong growth in our medical vertical market. Margins remained solid and cash from operations was positive for the ninth consecutive quarter.

謝謝你，Andy，各位早安。第三季的結果符合預期。相較第二季，銷售額呈現季增，主要受惠於我們醫療垂直市場的強勁成長。毛利率維持穩健，且營運活動現金流已連續第九季為正。

We expect Q4 to be a good finish to the year, and we are affirming our guidance for fiscal 2026 with adjusted operating margin estimated to be at the high end of the range. As we look forward, the medical CMO continues to be a key part of our strategy, and we are making deliberate investments in our capabilities, operating capacity, and commercial focus.

我們預期第四季將為本年度畫下良好句點，並重申 2026 會計年度指引，調整後營業利益率預估將落在區間高端。展望未來，醫療 CMO 仍是我們策略的關鍵一環，我們正有計畫地投資於能力建置、營運產能與商務聚焦。

When volumes ramp, we expect it to become a meaningful driver of both top-line growth and margin expansion. In addition, we continue to focus on inorganic growth as a possible complement to this strategy. We believe this could be a powerful combination for the future of our company.

當出貨量放量爬升時，我們預期其將成為營收成長與利潤率擴張的重要驅動力。此外，我們也持續將非有機成長視為可補強此策略的可能途徑。我們相信，這將成為推動公司未來發展的強大組合。

Turning to the third quarter. Net sales were $353 million. An increase of 3.4% compared to the prior quarter, with medical up 10%. At face value, this result was a 6% decline compared to Q3 last year, and all three end market verticals were down. It's important to highlight, however, that the third quarter of fiscal 2025 included a non-recurring sale of consigned inventory, totaling $24 million in the medical market.

接著談第三季。淨銷售額為 3.53 億美元。較前一季成長 3.4%，其中醫療成長 10%。表面上看，與去年第三季相比下降 6%，且三個終端市場垂直領域皆下滑。不過需要特別指出的是，2025 會計年度第三季包含一筆非經常性的寄售庫存銷售，金額為 2,400 萬美元，發生在醫療市場。

If we normalize the comparison from that event, total company sales this quarter increased nearly 1% year-over-year with medical up a robust 17%. This would represent our third consecutive quarter of double-digit medical growth and year-to-date growth of 15% in this vertical. Drilling down a little deeper into medical. Sales in the third quarter were $106 million or 30% of the total company, which at nearly one-third of the portfolio is a key milestone in our strategic objective to balance the verticals with a higher concentration of medical business.

若將該事件影響正常化，本季公司整體銷售額年增近 1%，其中醫療強勁年增 17%。這將是我們醫療連續第三季達到雙位數成長，且本年度迄今在此垂直領域的成長為 15%。再更深入看醫療業務。第三季醫療銷售額為 1.06 億美元，占公司總額 30%；在投資組合中接近三分之一，這是我們策略目標的重要里程碑：透過提高醫療業務比重來平衡各垂直領域。

North America accounted for slightly less than half of the sales in the quarter, while the other half was roughly split between Asia and Europe. The growth in Q3 after adjusting for the inventory sale last year, occurred primarily in Asia and North America with increases in respiratory care, imaging systems, drug delivery devices and blood separation products.

本季北美銷售額占比略低於一半，另一半則大致由亞洲與歐洲平分。在扣除去年庫存銷售影響後，第三季的成長主要發生在亞洲與北美，成長動能來自呼吸照護、影像系統、藥物輸送裝置與血液分離產品。

Sales in Europe were up low single digits, driven primarily by patient monitoring systems. Medical continues to be a compelling opportunity to diversify our top-line and leverage core strengths. Our strategy is to support new and existing blue-chip customers in need of manufacturing capacity to keep pace with overall market growth, and our state-of-the-art manufacturing facility in Indianapolis is designed to do just that, with capabilities in precision-injected molded plastics, complete device assembly and cold chain management.

歐洲銷售額呈現低個位數成長，主要由病患監測系統帶動。醫療仍是分散我們營收來源並發揮核心優勢的極具吸引力機會。我們的策略是支援需要製造產能、以跟上市場整體成長的新舊一線客戶（blue-chip customers）；我們位於印第安納波利斯的最先進製造工廠正是為此而設計，具備精密射出成型塑膠、整機組裝與冷鏈管理等能力。

We are uniquely positioned to produce medical disposables, surgical instruments, and selected drug delivery devices such as auto injectors. Our recent investments in this new facility underscore our deep commitment to the medical CMO market.

我們具備獨特優勢，可生產醫療一次性耗材、外科器械，以及特定藥物輸送裝置（例如自動注射器）。我們近期對這座新工廠的投資，凸顯我們對醫療 CMO 市場的深度承諾。

Next is automotive, with sales in the third quarter of $161 million, down 3% compared to Q3 of last year and 46% of the total company. The decline this quarter was primarily in Asia and North America, partially offset by growth in Europe. Similar to Q2, Poland and Romania reported strong sales resulting from the ramp-up of new programs in steering and braking. Combined, these two locations were up 20% in automotive sales in the quarter, and we expect this strength to continue for the balance of 2026.

接下來是汽車業務，第三季銷售額為 1.61 億美元，較去年第三季下降 3%，占公司總額 46%。本季下滑主要發生在亞洲與北美，部分被歐洲成長所抵銷。與第二季類似，波蘭與羅馬尼亞因轉向與煞車新專案放量而呈現強勁銷售。合計而言，這兩個據點本季汽車銷售年增 20%，我們預期此動能將延續至 2026 年其餘期間。

In addition, we are carefully monitoring the demand for electronic steering systems for EVs, particularly in North America, where legislative changes significantly impacted consumer incentives and the small market, which unfortunately has significantly reduced the demand for EV programs we had won over the past few years. As you might imagine, this situation is fluid, particularly as gasoline prices move upward in the US.

此外，我們正密切監控電動車（EV）電子轉向系統的需求，特別是在北美；當地法規變動顯著影響消費者補貼誘因與本就不大的市場，遺憾的是，這已大幅降低我們過去幾年贏得之電動車專案需求。如各位所能想像，這個情況仍在變動中，尤其是在美國汽油價格走升之際。

Finally, sales in industrial totaled $86 million, an 8% decrease compared to Q3 last year and 24% of total company sales. Once again this quarter, our industrial business was heavily concentrated in North America, where the majority of the decline occurred from lower demand for HVAC systems.

最後，工業業務銷售額合計為 8,600 萬美元，較去年第三季下降 8%，占公司總銷售 24%。本季我們的工業業務再次高度集中於北美，而下滑主要來自 HVAC 系統需求走弱。

Off-highway equipment and green energy were also down, partially offset by higher sales in public safety and smart meters, which continue to rebound in Europe, but may be impacted near-term by a protracted war in the Middle East.

非公路設備與綠能也呈現下滑，部分被公共安全與智慧電表較高的銷售所抵銷；智慧電表在歐洲持續復甦，但短期內可能受到中東長期戰事影響。

I'll now turn the call over to Jana for more detail on third-quarter results and our guidance for fiscal 2026. Jana?

接下來我把電話交給 Jana，請她更詳細說明第三季結果以及我們對 2026 會計年度的指引。Jana？

Thank you, and good morning, everyone. As Ric highlighted, net sales in the third quarter were $352.9 million, a 6% decrease year-over-year. Foreign exchange had a 3% favorable impact on consolidated sales in the quarter. On a sequential basis, sales increased 3.4%, driven by growth in the medical vertical.

謝謝，各位早安。如 Ric 所強調，第三季淨銷售額為 3.529 億美元，年減 6%。本季外匯對合併銷售額帶來 3% 的正面影響。以季比來看，銷售額成長 3.4%，主要由醫療垂直領域成長所帶動。

The gross margin rate in the third quarter was 7.9%, a 70-basis point improvement compared to 7.2% in Q3 of fiscal 2025, with the increase resulting from favorable mix offset by the ramp-up of the medical CMO and a somewhat easier comparison as the inventory sales we experienced in Q3 of FY25 had very little margin.

第三季毛利率為 7.9%，較 2025 會計年度第三季的 7.2% 提升 70 個基點；提升主要來自有利的產品組合，但部分被醫療 CMO 放量爬升所抵銷，且比較基期也較為有利，因為我們在 2025 會計年度第三季的庫存銷售幾乎沒有毛利。

We expect gross margin to remain under some pressure in FY27 related to the cost of the facility as expenses associated with the expansion fully ramp up in Q4 this year. As we have previously stated, the path to the CMO revenue is 18 to 36 months for new programs, and we expect this impact to abate over time as business grows and margin improves.

我們預期 FY27 的毛利率仍將承受一定壓力，主要與該設施的成本有關，因為與擴建相關的費用將在今年第四季全面爬坡。如我們先前所述，新專案導入 CMO 營收的時程約為 18 至 36 個月；隨著業務成長與毛利率改善，我們預期此影響將隨時間逐步減弱。

Adjusted selling and administrative expenses in the third quarter were $13 million, a $1.8 million increase year-over-year. When measured as a percentage of sales, the rate was 3.7% this year compared to 3% last year. As we previously indicated, expenses will be higher in FY26 as we make strategic investments in business transformation, IT solutions that drive innovation and efficiency, and business development for the future.

第三季調整後銷售與管理費用為 1,300 萬美元，較去年同期增加 180 萬美元。以銷售額百分比衡量，今年為 3.7%，去年為 3%。如我們先前所指出，FY26 的費用將較高，因為我們將對業務轉型、推動創新與效率的 IT 解決方案，以及面向未來的業務開發進行策略性投資。

Adjusted operating income in Q3 was $14.8 million or 4.2% of net sales, which compares to last year's adjusted results of $15.7 million, which was also 4.2% of net sales. Other income and expense was expense of $3 million compared to $4.6 million of expense last year. Once again, this quarter, interest expense drove the decrease, down nearly 30% year-over-year.

第三季調整後營業利益為 1,480 萬美元，約占淨銷售額的 4.2%，相較去年調整後結果為 1,570 萬美元，同樣占淨銷售額的 4.2%。其他收益與費用為費用 300 萬美元，去年為費用 460 萬美元。本季再度由利息費用帶動下降，較去年同期下滑近 30%。

The effective tax rate in Q3 was 34.9% compared to 46.6% last year. As a reminder, the rate in the third quarter of fiscal 2025 was driven by the limitation of the tax deductibility of our interest expense, which cannot exceed a certain percentage of domestic EBIT. We expect a tax rate of approximately 30% for the full fiscal year.

第三季有效稅率為 34.9%，去年為 46.6%。提醒一下，2025 會計年度第三季的稅率主要受到利息費用稅前扣抵限制所影響，該扣抵不得超過國內 EBIT 的一定比例。我們預期全年有效稅率約為 30%。

Adjusted net income in the third quarter was $8 million or $0.33 per diluted share compared to last year's adjusted results of $6.8 million or $0.27 per diluted share.

第三季調整後淨利為 800 萬美元，或稀釋後每股 0.33 美元；相較去年調整後結果為 680 萬美元，或稀釋後每股 0.27 美元。

Turning now to the balance sheet. Cash and cash equivalents at March 31, 2026, were $82.5 million. Cash generated by operating activities in the quarter was $14.9 million, our ninth consecutive quarter of positive cash flow. Cash conversion days were 90, a one-day improvement compared to last quarter and a nine-day improvement compared to Q3 of fiscal 2025.

接著看資產負債表。截至 2026 年 3 月 31 日，現金及約當現金為 8,250 萬美元。本季營運活動產生的現金為 1,490 萬美元，為我們連續第九季維持正向現金流。現金轉換天數（CCD）為 90 天，較上季改善 1 天，較 2025 會計年度第三季改善 9 天。

For clarity, our CCD calculation in Q3 FY25 excludes the consigned inventory sale. We continue to focus on improving cash conversion days by actively managing the components. Inventory ended the quarter at $273.3 million, an $8.4 million reduction compared to Q2 and down $23.3 million or 8% from a year ago.

為釐清起見，我們在 FY25 第三季的 CCD 計算不包含寄售庫存銷售。我們持續透過積極管理各項組成要素，專注於改善現金轉換天數。本季末存貨為 2.733 億美元，較第二季減少 840 萬美元，並較一年前減少 2,330 萬美元或 8%。

Capital expenditures in Q3 were $14.4 million with much of the spend on leasehold improvements in the new facility in Indianapolis balanced by spend to support new programs in Europe. We expect CapEx for the full year to be in our guidance range of $50 million to $60 million. Borrowings at March 31, 2026, were $163 million, up $8.8 million from the second quarter, but down $15.8 million, or roughly 9% from a year ago.

第三季資本支出為 1,440 萬美元，其中多數用於印第安納波利斯新設施的租賃裝修改善，同時也有支出用於支持歐洲的新專案。我們預期全年資本支出將落在指引區間 5,000 萬至 6,000 萬美元。截至 2026 年 3 月 31 日，借款為 1.63 億美元，較第二季增加 880 萬美元，但較一年前減少 1,580 萬美元，約 9%。

Short-term liquidity available represented as cash and cash equivalents plus the unused portion of our credit facility totaled $358.5 million at the end of the third quarter. In April, we renewed our $300 million revolver. Combined with our strong balance sheet, we have ample dry powder to support the future growth of the business, including opportunities for inorganic tuck-ins that would further our CMO strategy.

第三季末可用短期流動性（以現金及約當現金加上信用額度未動用部分表示）合計為 3.585 億美元。我們於 4 月續約了 3 億美元的循環信用額度（revolver）。結合我們強健的資產負債表，我們擁有充足的資金彈藥以支持未來業務成長，包括可推進我們 CMO 策略的非有機小型併購（tuck-in）機會。

We invested $4 million in Q3 to repurchase 165,000 shares. Since October 2015, under our Board authorized share repurchase program, a total of $113.5 million has been returned to shareholders by purchasing 7 million shares of common stock.

第三季我們投入 400 萬美元回購 165,000 股股票。自 2015 年 10 月以來，在董事會授權的庫藏股回購計畫下，我們透過買回 700 萬股普通股，已向股東返還合計 1.135 億美元。

We have $6.5 million remaining on the repurchase program. As Ric mentioned, we affirmed our revenue range of $1.4 million to $1.46 million and expect the adjusted operating income margin to come in at the high end of our guidance range of 4.2% to 4.5%. This would indicate that Q4 sales will be in the range of $370 million to $380 million.

回購計畫尚餘 650 萬美元額度。如 Ric 所提到的，我們確認營收區間為 14 億至 14.6 億美元，並預期調整後營業利益率將落在指引區間 4.2% 至 4.5% 的高端。這表示第四季銷售額將落在 3.7 億至 3.8 億美元區間。

With adjusted OI margin in the range of 4.4% to 4.6%. I'll now turn the call back over to Ric.

調整後營業利益率則在 4.4% 至 4.6% 的區間。接下來我把電話交回給 Ric。

Thanks, Jana. Before we open the lines for questions, I'd like to share a few thoughts in closing. We're expecting Q4 to be a good finish to the fiscal year with another sequential increase in sales and with the growth in medical outpacing the other two verticals as we monitor the impacts of the war on Iran, including higher freight and raw material costs, higher gas prices and consumer sentiment.

謝謝你，Jana。在我們開放提問之前，我想在結語分享幾點想法。我們預期第四季將為本會計年度畫下良好句點，銷售額將再度季增；同時，在我們持續關注伊朗戰爭的影響之際，醫療業務的成長將超越另外兩個垂直領域，相關影響包括更高的運費與原物料成本、更高的天然氣價格以及消費者信心。

Looking ahead, we continue to evaluate strategic opportunities that could accelerate the expansion of our medical CMO. In particular, we see strong inorganic growth potential with established medical manufacturers outside the US seeking domestic market entry and scaled US production. The ideal profile would bring complementary capabilities such as micro-molding, advanced precision injection, and high automation engineering expertise, while benefiting from cost-efficient operations in lower-cost geographies.

展望未來，我們持續評估可加速擴張醫療 CMO 的策略性機會。特別是，我們看到強勁的非有機成長潛力：美國以外的既有醫療製造商尋求進入美國國內市場並擴大美國在地量產。理想的標的輪廓將帶來互補能力，例如微型成型（micro-molding）、先進高精密射出，以及高度自動化工程專業，同時也能受益於在較低成本地區的成本效率營運。

These efforts are ongoing and align with our objective to broaden our capabilities, deepen customer relationships and position the company as a differentiated medical manufacturing partner. As I noted in my opening comments, we believe this is a powerful combination that will drive profitable growth in the future. I'm very excited for what's ahead for the company.

這些工作仍在進行中，並與我們擴充能力、深化客戶關係、以及將公司定位為具差異化的醫療製造合作夥伴之目標一致。如我在開場所提到的，我們相信這是一個強而有力的組合，將在未來推動獲利性成長。我對公司接下來的發展感到非常振奮。

Thank you for your ongoing support. Operator, we would now like to open the lines for questions.

感謝各位持續的支持。接線員，我們現在想開放提問。

Thank you. (Operator Instructions)

謝謝。(接線員指示)

Mike Crawford, B. Riley Securities.

Mike Crawford，B. Riley Securities。

Thank you. I was hoping you can give us some more, good morning, some more details on your new 300,000-square foot manufacturing facility and how your ramp of new programs in there is going to affect potential revenue growth, and also margins and like when you hit that level where you're covering fixed costs and the margins are starting to layer in better on incremental revenue from there.

謝謝。我想請你們多提供一些資訊，早安，關於你們新的 30 萬平方英尺製造設施，以及其中新專案的爬坡將如何影響潛在營收成長；也想了解對毛利率的影響，例如你們何時能達到足以覆蓋固定成本的水準，並且從那之後，增量營收的毛利率開始更明顯地改善。

Good morning, Mike. Thanks for joining and thanks for the question. Yes, we're continuing to be really excited about Indianapolis and actually just connected with our GM there in the last couple of days. And the work continues to ramp up. Obviously, there's some approvals that we need that we're working on, and the clean rooms are going in there and a lot of exciting things.

早安，Mike。謝謝你加入，也謝謝你的提問。是的，我們對印第安納波利斯的進展仍然非常興奮，事實上過去幾天我才剛和那邊的總經理聯繫。相關工作持續在爬坡。顯然，我們還需要一些核准事項正在推進中，無塵室也正在建置，還有很多令人振奮的事情。

We expect that we'll be actually producing in there by the end of the calendar year as we ramp toward that. It will be a combination of course, we're taking lots of customers through there, as you can imagine right now, existing and new potential customers, but we'll also be moving over all of our current production in Indianapolis to that facility.

我們預期在朝該目標爬坡的過程中，實際上將在今年曆年年底前於該設施開始生產。當然會是多種組合；如你所想像的，我們目前正帶許多客戶參觀，包括既有客戶與新的潛在客戶；同時我們也會把目前在印第安納波利斯的所有現有產能移轉到該設施。

So there'll be a combination of existing programs that are moving over, new programs that are coming, and we're also talking to customers about what we call lift and shift, which is programs that are already underway somewhere else, usually within the customers that we have producing themselves that we want to shift over to us and customers can find advantage from doing that.

因此會同時包含移轉過去的既有專案、導入的新專案；我們也在與客戶討論我們所稱的「lift and shift」，也就是原本已在其他地方進行中的專案（通常是在客戶自有產線生產），我們希望把它轉移到我們這邊，讓客戶能從這樣的轉移中獲得優勢。

So it will be a combination of new programs, as Jana mentioned in her remarks, take time to ramp up between clinical trials and so on. But yeah, we'll be producing in there before the end of the calendar year and look to ramp that up through a combination of new and existing customers.

因此，這將會是新專案的組合，正如 Jana 在她的發言中提到的，在臨床試驗等之間需要時間逐步爬坡。不過，是的，我們會在本曆年結束前在那裡開始生產，並將透過新舊客戶的組合來推動產能爬坡。

So, Mike, to give you a little more color on the margin impact, we expect a 40- to 50-basis point impact to gross margin in fiscal 2027 related to the costs associated with ramping that facility agreement. We still have all the costs associated with the current facility. We have not closed that facility. It's continuing to operate. And so you're going to feel it. We will feel it in FY27 while we're bringing on new production. The expectation is that by FY28, the impact on margin starts to abate as you're bringing in more and more revenue to cover those fixed costs.

所以，Mike，為了讓你更了解毛利率影響，我們預期在 2027 財年，與該設施協議爬坡相關的成本將對毛利率造成 40 到 50 個基點的影響。我們仍然承擔現有設施的所有成本。我們尚未關閉該設施。它仍在持續運作。因此你會感受到它的影響。在我們導入新產能的 FY27 期間，我們會感受到這個影響。預期到 FY28，隨著帶入越來越多的營收來覆蓋那些固定成本，對毛利率的影響將開始緩解。

Okay. Just to continue on that, is that going to be most acute in the September and December and then start to date in March?

好的。延續這點，這個影響會在 9 月和 12 月最為明顯，然後在 3 月開始趨緩嗎？

In terms of calendar, it depends on the timing and speed of the ramp of new business, which is difficult to predict, and so I'm hesitant to give you for sure. But first half, you'll definitely feel it because there won't be much production there covering the expense. It depends on how Q3 and Q4 ramp as we're bringing in new business. And I can give you a better update on that in the coming quarters as volumes are ramping.

就時間表而言，這取決於新業務爬坡的時點與速度，這很難預測，所以我不太願意給你一個確定的說法。但在上半年你肯定會感受到，因為那邊的產量還不多，無法覆蓋費用。至於第三季和第四季會如何，取決於我們導入新業務時的爬坡情況。隨著量能逐季爬升，我可以在接下來幾季給你更好的更新。

Okay, thank you. And then just a final question for me is then -- given that your automotive business is well situated for trends like electronic braking, steering and new technologies being bought out by your customers like next year. But is that something that seems like has maybe turned, unless there's an unexpected program loss to no one's fault. [Absent] that, is that a vertical that you would expect to grow or is that really still overly dependent on global macro economy?

好的，謝謝。那我最後一個問題是——鑑於你們的汽車業務在電子煞車、轉向等趨勢上具備良好布局，而且客戶明年也會採用一些新技術。但這是否意味著（除非出現非任何人過失的意外專案流失，[Absent] 若沒有那種情況），這個垂直領域你們預期會成長？還是仍然過度依賴全球總體經濟？

You just nailed it, Mike. Global macro. We continue to feel like we're well-positioned in both steering and braking. We're really focused on ensuring that we win those next-generation programs. We don't see major changes or losses, as you mentioned, we've experienced in the past at this point. But as I had mentioned in my remarks, the biggest pressure there has been the level of demand for programs that we already have been awarded that where the demand hasn't been where we anticipated it to be.

你說到重點了，Mike。全球總體經濟。我們仍然覺得在轉向與煞車兩個領域都具備良好定位。我們非常專注於確保能贏得下一代專案。就目前而言，我們沒有看到你提到的那種重大變化或流失——過去我們確實曾經遇到過。但如我在發言中提到的，最大的壓力在於：我們已經拿到的那些專案，其需求水準並未如我們原先預期。

So as we look forward and obviously, as Jana said, we'll give more insight here as we get to year-end across the whole business and also, of course, in automotive on what we're seeing, but the global economy is truly the biggest impact and driver of what we see there because we feel good about our positioning, the programs that we've won, we're just waiting to see what the demand for those programs is going to look like in the short-term.

因此展望未來，當然如 Jana 所說，等到年底我們會就整體業務、以及汽車業務的觀察提供更多洞見；但全球經濟確實是我們所看到情況的最大影響因素與驅動力，因為我們對自身的定位與已贏得的專案感到有信心，只是在等待短期內這些專案的需求會呈現什麼樣貌。

Excellent. Thank you so much.

非常好。非常感謝。

Derek Soderberg, Cantor Fitzgerald.

Derek Soderberg，Cantor Fitzgerald。

Yeah. Good morning, everyone, and congrats on returning to organic growth here. So starting with another question on the medical facility, Ric, you mentioned you plan on moving existing programs into that facility. And then when you sort of take into account the medical deals you've signed over the past 12 to 18 months or so, can you quantify how much of the facility's capacity you've booked already, can you quantify that at all?

是的。各位早安，恭喜你們回到有機成長。我先從醫療設施再問一題，Ric，你提到你們計畫把既有專案移入該設施。那麼，若把你們過去 12 到 18 個月簽下的醫療案子一併納入考量，你能否量化目前已預訂了該設施多少產能？能否做任何量化？

No, Derek, I think we're early on that. I mean, we've got, as it's a lease facility, we ensure that we have lots of space for growth and I can tell you I've personally taken customers through there. Really excited about what that looks like. Some of those programs in CMO can be much more significant than the typical medical programs that we've had. But I would say that we're early, given the ramp to estimate capacity there. I will say we've had customers ask us, can you expand? And the answer is yes, but I think we're a little early on those moves.

不行，Derek，我認為我們在這方面還很早期。我的意思是，因為這是租賃設施，我們確保有很大的成長空間；我可以告訴你，我本人已經帶客戶參觀過那裡。對那個樣貌感到非常興奮。其中一些 CMO 的專案規模，可能遠比我們以往典型的醫療專案更大。但我會說，考量到爬坡期，要估算那裡的產能使用率仍然太早。我也會說，已經有客戶問我們：你們能擴充嗎？答案是可以，但我認為現在談這些動作還稍早。

Got it. And then just on the pricing environment within the medical space specifically, we've seen some of your private peers mention intensifying competition in the medical and aerospace segments. Are you guys seeing any aggressive pricing in competitive bids for new medical opportunities, seeing anything like that in the market?

了解。接著就醫療領域的定價環境而言，我們看到你們一些未上市同業提到醫療與航太領域的競爭正在加劇。你們在新醫療機會的競標中，有看到任何更具侵略性的報價、或市場上類似的情況嗎？

So the pricing is always competitive, but especially in the CMO/CDMO space, the pricing is always competitive. What I would say is it's still rational, and there are other areas of the market where we've seen where the pricing is not rational. But in the medical CMO space, we would say aggressive, fair. But still rational. And part of that is driven by just the need for supply chain in the space. The proliferation of growth in the medical space is such that they need more and more suppliers in the supply chain. And so that is keeping everything rational right now.

所以定價一向具有競爭性，尤其在 CMO/CDMO 領域，定價一直都很競爭。但我想說的是，目前仍然是理性的；而在市場的其他一些領域，我們確實看到定價並不理性。不過在醫療 CMO 領域，我們會說是積極、但公平。而且仍然理性。其中一部分原因是由於該領域對供應鏈的需求。醫療領域的成長擴散速度很快，使得他們在供應鏈中需要越來越多的供應商。因此目前整體仍維持理性。

Got it. And then my last question, just -- I was wondering if you could mention or talk about the M&A environment, looks like your balance sheet just continues to improve here, debt coming down. I was wondering if your ability to go out and do a larger inorganic agreement is something that's increasingly on the table or maybe that those plans haven't changed and then just broadly on the M&A space. How are valuations trending, getting more expensive, anything to note on that front?

了解。那我最後一題——我想請你談談併購（M&A）環境。看起來你們的資產負債表持續改善，負債也在下降。我想知道，你們是否越來越有能力去做一筆更大型的非有機交易，這是否更可能被提上檯面？或者你們的計畫其實沒有改變？另外就整體 M&A 市場而言，估值趨勢如何？是否變得更昂貴？有沒有什麼值得注意的地方？

Yes. Thanks, Derek. I mean, yes, very much part of our strategy. I'll tell you our efforts over the last year in terms of laying out criteria within the medical CMO, thinking about potential targets, interacting with our Board is at a high level. So definitely part of our strategy. We think about it, as Jana had mentioned in her comments around tuck-ins, opportunities that could add geographic advantages for us, things that could help us as we look to continue to fill capacity within the new facility in Indianapolis, and opportunities that will advance our capabilities, and expand what we're able to do from a technology standpoint. All of those are on the table. Our team is very active in evaluating. And yes, from a financial standpoint, we're very comfortable with the cash that we've generated and our situation from a debt standpoint that we can act decisively in M&A.

是的。謝謝你，Derek。我的意思是，是的，這非常是我們策略的一部分。我可以告訴你，過去一年我們在醫療 CMO 方面投入很多努力，包括制定篩選標準、思考潛在標的、以及與董事會在高層層級互動。所以這絕對是我們策略的一部分。我們會把它視為——正如 Jana 在談到補強型併購（tuck-ins）時提到的——能為我們帶來地理優勢的機會、能協助我們持續填補印第安納波利斯新設施產能的機會，以及能推進我們能力、從技術角度擴展我們可提供內容的機會。以上這些都在考量範圍內。我們團隊非常積極在評估。而且是的，從財務角度來看，我們對所產生的現金流以及負債狀況都很有信心，因此在 M&A 上我們可以果斷行動。

Perfect. Thank you.

完美。謝謝。

Max Michaels, Lake Street Capital Markets.

Max Michaels，Lake Street Capital Markets。

Hey, guys. Thanks for taking my questions. First one from me, I think I read an article saying that you guys were targeting five new customers annually in the medical side of the business. Maybe give us a few comments on maybe where you stand there in adding new customers this year?

嗨，各位。謝謝回答我的問題。我第一個問題是，我想我讀到一篇文章說你們在醫療業務方面每年目標新增五個新客戶。能否簡單評論一下，今年在新增客戶方面你們目前進展如何？

So you did read that. Our targeted goal is to add five anew customers annually this year. (inaudible) We're on target for goal is what I will say. Now, the question becomes, you bring the customers on. How big is the initial program that you've been awarded, and then how quickly can you ramp that program and do what we call land and expand, which is you bring on a new program. You do it exceptionally well, and then you expand with that customer into bigger programs, higher volumes, and you build a relationship over time. That is very much center plate to the Kimball strategy and not just for medical, but that's our strategy for all three of our verticals.

所以你確實讀了那個。我們今年的目標是每年新增五位新客戶。(聽不清) 我會說我們正朝著目標前進。現在問題就變成，你把客戶帶進來之後，你所獲得的初始專案規模有多大？接著你能多快把該專案擴大，並做我們所說的「落地並擴張」（land and expand），也就是你先導入一個新專案。你把它做得非常出色，然後再與該客戶擴展到更大的專案、更高的量，並隨著時間建立關係。這正是 Kimball 策略的核心，不僅是醫療領域，而是我們三個垂直領域的共同策略。

Okay, and were any of these new applications or are they all things you guys have done before?

好的，那這些都是新的應用嗎？還是都是你們以前做過的事情？

So some are new applications and then some are work that we've done for other customers that we're now going to be doing for the new customers that we're bringing on board. It's both.

有些是新的應用，另外一些則是我們為其他客戶做過的工作，現在會為我們正在導入的新客戶來做。兩者都有。

Great.And then last one for me, I'll stick to medical. I think you said in the prepared remarks, Europe through low single-digits. Is there any way you can share with the growth rate from the Asian market and then kind of how you expect that to trend going forward in the fiscal year 2027, if you can share?

很好。那我最後一題，我會聚焦在醫療。我想你在事先準備的講稿中提到，歐洲是低個位數成長。你能否分享一下亞洲市場的成長率，以及你對 2027 財年的趨勢展望（如果方便分享的話）？

Yeah, let me get there and have that information.

可以，讓我找一下那邊的資訊。

As Jana pulls the specifics, Max, maybe just a general comment. As you, I know, are aware, our Thailand facility does a lot of our medical work overseas and is an export facility. So I think you'll find that the Asia growth will likely be consistent with overall company growth because as again, as an export facility, it's responding to growth opportunities globally.

Jana 在找具體數字的同時，Max，我先做個概括性的說明。如你所知，我們泰國廠承接了我們在海外相當多的醫療業務，並且是一個出口型工廠。所以我想你會發現，亞洲的成長很可能會與公司整體成長一致，因為作為出口基地，它是在回應全球的成長機會。

Okay. Thank you.

好的。謝謝。

Anja Soderstrom, Sidoti.

Anja Soderstrom，Sidoti。

Hi, and thank you for taking my questions and congrats on the performance here in the quarter. I'm just curious, you're talking about the meaningful growth in the CMO business, but how dependent are your new logos to drive that growth?

嗨，謝謝你們回答我的問題，也恭喜本季的表現。我只是好奇，你們談到 CMO 業務的顯著成長，但這個成長在多大程度上依賴新增的新客戶（new logos）來推動？

I couldn't quite hear you. Could you say it one more time?

我沒有聽清楚。你可以再說一次嗎？

Yes, you were talking about driving meaningful growth in the CMO business, but I'm just curious, how dependent are you on adding new logos to be able to drive that growth?

可以。你們提到要推動 CMO 業務的顯著成長，但我想了解的是，你們在多大程度上需要靠新增新客戶（new logos）才能推動那個成長？

Oh, got it. Yeah, no, great question, Anya. I would say that's an important part of our strategy. So what we knew and what we've found since we have announced the Indianapolis facility, is you've got to have that space. You've got to have a modern ready-to-go medical facility in order to attract those new logos. So the conversations that we're having have accelerated. We do have existing customers that are really excited about what we're doing, and we're talking about programs with them. But I would say, if you fast forward to the future, we'll be adding a number of new logos as part of that CMO growth strategy for sure.

喔，了解了。是的，這是個很好的問題，Anya。我會說這是我們策略中很重要的一部分。我們知道、也在宣布印第安納波利斯廠之後發現，你必須要有那個空間。你必須要有一座現代化、可立即投入使用的醫療廠房，才能吸引那些新客戶。因此，我們正在進行的對話已經加速。我們確實也有既有客戶對我們正在做的事情感到非常興奮，我們也在和他們討論一些專案。但我會說，如果你把時間快轉到未來，作為 CMO 成長策略的一部分，我們肯定會新增不少新客戶。

Okay. Thank you. And then you talked about moving the production from the old facility to the new one. How much revenue do you generate from that facility and what's sort of the timeframe of completing that move?

好的。謝謝。另外你提到把生產從舊廠移到新廠。那座廠大概帶來多少營收？完成搬遷的大致時間表是什麼？

So we don't disclose the revenue of that facility specifically, we disclose revenue of North America. So unfortunately, and I know we need to think about that because as we're talking about the CMO more, we need to be able to give you some of that. We're just -- we're not going to give that information today.

我們不會單獨揭露那座廠的營收，我們揭露的是北美的營收。所以很遺憾——我知道我們需要思考這件事，因為當我們更常談到 CMO 時，我們需要能提供你們其中一些資訊。但我們今天不會提供那個資訊。

Okay. Thank you. Understood. And then in terms of M&A, are you more eminently looking at adding capabilities to make you more competitive or adding customers?

好的。謝謝。了解。那在併購（M&A）方面，你們更迫切想要的是增加能力以提升競爭力，還是增加客戶？

I'd say both. Yes, it's a combination of capabilities, customers, geographies. One of the things that I had mentioned on the call today is it's interesting that we have customers that we talk to who are looking for US footprint, and that's one of the things that we think will help us. Really gain utilization in Indianapolis over time, it just gives us a new capability. But yes, all of the above, customers, capabilities, geographies.

我會說兩者都有。是的，會是能力、客戶、地理布局的組合。我今天在電話會議上提到的一點是，很有意思的是，我們有些客戶在交流時表示他們在尋找美國的產能布局（US footprint），而這也是我們認為能幫助我們的地方。隨著時間推進，這將有助於提升印第安納波利斯廠的產能利用率，因為它為我們帶來了一項新的能力。但沒錯，以上皆是：客戶、能力、地理布局。

Okay. Thank you. And then one last one on inventories that came down for the quarter, but with the growth you're expecting, how should we think about that? Was that some inventory you were that had built up that you're building down or --?

好的。謝謝。最後一題關於庫存：本季庫存下降了，但在你們預期的成長之下，我們應該怎麼看待這件事？那是之前累積起來、現在正在去化的庫存，還是--？

I was going to say that's just us working through days inventory. We are getting better and tighter with managing our inventory and our supply chain. So it doesn't necessarily have anything to do with revenue or top line. It's much more just working capital management that's improving.

我會說那只是我們在改善庫存天數。我們在庫存與供應鏈管理上做得更好、更緊密。所以它不一定和營收或營收成長（top line）有關。更多是營運資金管理的改善。

Okay, great. Good to hear.

好的，很好。很高興聽到。

Thank you. And that's been a goal of ours over time. Yeah. I want to go back to Max's question-and-answer it because we asked specifically about medical in Asia. And that growth for Q3 was over 20%. It was offset by some movement that we've had in other areas, but it was over 20%.

謝謝。而且這一直是我們長期以來的目標。是的。我想回到 Max 的問題並補充回答，因為他特別問到亞洲的醫療業務。第三季該項成長超過 20%。雖然被我們在其他領域的一些變動所抵銷，但確實超過 20%。

Thank you. Ladies and gentlemen, this will conclude today's Q&A session and will also conclude today's conference. Before we go, we'd like to remind you that a telephone replay will be available at this call approximately three hours after the end of the conference. (Operator Instructions)

謝謝。各位女士先生，今天的問答環節到此結束，今天的電話會議也將結束。在結束前提醒各位，本次電話會議結束約三小時後，將提供電話重播服務。(接線員指示)

Thank you for joining us today. Have a wonderful day.

感謝各位今天的參與。祝各位有美好的一天。

Thank you.

謝謝。