KTCC
Key Tronic Corporation2.4400
+0.0200+0.83%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q2 '26
Q&A details declines, ramps, tariffs
Q&A pinpointed revenue declines at roughly $27M from two long-standing customers—one via product maturation, the other an EOL program—while noting offsets from half a dozen others and new ramps. Management sized fresh wins: automotive up to $5M in Mexico, pest control $2M across US/Vietnam, industrial $2-5M in US. Tariff strategies involve quoting from Vietnam, US, or Mexico to dodge duties via USMCA or sourcing shifts. Margins dipped sequentially from transfers, holidays, and mix, yet consignment program ramps slowly amid equipment and ice storm delays toward year-end breakeven. Declines totaled $27M from two customers. Mexico signals turnaround via visits and quotes. Investors eye volume for leverage.
Key Stats
Market Cap
26.50MP/E (TTM)
-Basic EPS (TTM)
-1.08Dividend Yield
0%Recent Filings
10-Q
Q2 FY2026 results
Key Tronic's Q2 FY2026 sales fell 15% y/y to $96.3M from $113.9M, with gross profit shrinking to $0.6M (0.6% margin) from $7.7M (6.8%), hit by China wind-down charges and Mexico severance. Operating loss widened to $(10.3M) from $(1.1M), net loss to $(8.6M) or $(0.79) per diluted share (10,859k shares) from $(4.9M) or $(0.46) (10,762k shares); net exceeded operating due to interest expense. Yet cash from operations hit $14.0M YTD, inventories dropped to $88.4M, total debt $100M (revolver $63M at 7%, $20.9M available). China exit ramps save $1.2M/quarter. Customer concentration eased to 25%. Tariff shifts pose risks.
8-K
Q2 revenue falls; cost cuts launch
Key Tronic reported Q2 FY2026 revenue of $96.3 million, down from $113.9 million last year, hit by customer demand drops and program delays. It launched China manufacturing wind-down—shifting to US/Vietnam by fiscal year-end for $1.2 million quarterly savings—and Mexico workforce cuts for $1.5 million more, triggering $10.5 million charges that tanked gross margin to 0.6% (adjusted 7.9%). Cash from operations hit $6.3 million. Restructuring stings now, but sets up rebound.
8-K
Shuts China plant, cuts costs
Key Tronic committed to ending manufacturing at its China facility on December 19, 2025, refocusing on sourcing while shifting production to Vietnam. No material revenue hit expected; plan saves $1.2M quarterly post-Q4 2026 completion, after $1.1M severance, $0.2M compensation, and $4.8M-$5.8M non-cash charges. Mexico restructuring adds $2.5M-$3.5M severance for $2.1M quarterly savings. Charges may exceed estimates.
10-Q
Q1 FY2026 results
Key Tronic's Q1 FY2026 sales fell 25% y/y to $98.8M from $131.6M, hit by demand cuts from two big customers and new program delays, yet gross margin held at 8.4% versus 10.1% last year despite $1.6M inventory/receivable write-offs from a customer bankruptcy. Operating loss swung to $(0.6M) from $4.4M income, with net loss $(2.3M) or $(0.21)/diluted share on 10.8M shares—EPS reconciles precisely. Cash from operations stayed solid at $7.6M, free cash flow $4.4M (derived), while total debt eased to $103.1M including $64.5M revolver (7.1%, $20.9M available) and $25.8M term loan (11.3%). New programs ramp. Customer bankruptcies loom large.
8-K
Q1 revenue drops, margins up
Key Tronic reported Q1 FY2026 revenue of $98.8 million, down from $131.6 million year-over-year due to customer demand cuts and program delays, yet gross margins rose to 8.4% from 6.2% last quarter via workforce reductions. Cash from operations hit $7.6 million; debt fell $12.0 million year-over-year. New US and Vietnam capacity opened. No Q2 guidance amid tariff uncertainty.
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