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Key Tronic Corporation Announces Results for the Fourth Quarter and Year End of Fiscal 2026

KTCC
  • Key Tronic Corporation reported fourth-quarter fiscal 2026 revenue of $102.0 million, a 14% sequential increase driven by strong demand from legacy & new programs.
  • Vietnam-based production revenue more than doubled sequentially due to growth in medical device & consumer products programs.
  • Full fiscal year 2026 total revenue was $386.7 million, down from $467.9 million in fiscal 2025 due to reduced demand from legacy & end-of-life programs.
  • Supply chain credit constraints delayed approximately $10 million in shipments during the quarter, though the company continues to win new business.
  • Gross margin improved to 7.8% in the fourth quarter from 6.2% in the prior year period, reflecting cost-cutting initiatives despite supply chain challenges.
  • Operating margin was (3.6)% for the quarter, adversely impacted by an $8.4 million write-off of long-term receivables from distressed customers.
  • The company recorded a $28.4 million non-cash charge to establish a valuation allowance against deferred tax assets due to cumulative US taxable income losses.
  • Adjusted gross margin for the fourth quarter was 8.3%, up from 6.2% in the same period last year.
  • Key Tronic completed the wind-down of manufacturing operations in China, shifting production to US & Vietnam facilities to save approximately $4.0 million in fiscal 2027.
  • The company secured over $60 million in new program awards in the data center, construction, & industrial power management markets during the quarter.
  • GAAP net loss for the fourth quarter was $(34.3) million or $(3.16) per share, compared to a net loss of $(3.9) million or $(0.36) per share in the prior year period.
  • Adjusted net loss for the fourth quarter was $(2.9) million or $(0.26) per diluted share, an improvement from $(3.8) million or $(0.35) per share in the prior year.
  • The company does not expect to issue revenue or earnings guidance for the first quarter of fiscal 2027 due to uncertainty in new program ramp timing.
  • Management anticipates continued revenue growth & a return to profitability in fiscal 2027 supported by a growing backlog & stronger competitive position.
  • Financial results for the quarter & full year are preliminary & subject to change as independent audit procedures have not been completed.