Southern Indiana Business Report
JASPER — Kimball Electronics is adding a new facility in Indianapolis that is part of a strategic growth plan focused on the medical industry.
Kimball announced the expansion in a press release about its third quarter earnings.
More details on the project were reported by Inside Indiana Business last week after the Jasper-based company shared details of the Indianapolis expansion at a meeting of the City-County Council’s Metropolitan and Economic Development Committee in May. According to IIB, the panel recommended approval of Kimball’s request for personal property tax abatement.
Kimball plans to occupy 307,000 square feet in the 584,820-square-foot Commerce Center Building 1 on South Post Road, according to IIB, and production is expected to begin in spring 2026. The expansion will add 345 jobs over six years. According to IIB, Kimball indicated in its presentation to the City-County Council economic development committee, that it plans to invest $22.4 million in the buildout and $34.1 million on new equipment.
“This is another step of repositioning the Company for a return to growth and expanding our medical CMO strategy,” said Richard D. Phillips, chief executive officer of Kimball Electronics, in the earnings release.
Q3 earnings report
Kimball Electronics reported net sales of $374.6 million and operating income of $11.7 million for the third quarter of fiscal 2025, which ended March 31. Cash generated by operating activities of $30.9 million signified the fifth consecutive quarter of positive cash flow.
“I’m proud of the results for the third quarter and our team’s ability to navigate an environment of uncertainty, while focusing on what is controllable,” said Phillips. “Sales in Q3 were in line with expectations, margins improved sequentially, cash generated from operating activities was positive for the fifth consecutive quarter, and the paydown of debt continued with borrowings now 45% lower than peak levels.”
Phillips added the company continues to look to 2025 with an expectation of sales and operating income “at the high-end of the range.”