Earnings Releases·Nov 3, 2026, 4:00 PM ET

Key Tronic Corporation — First Quarter Fiscal 2027 Earnings Summary

Revenue declined 0.1% year-over-year to $98.7 million, while gross margin collapsed to 2.5% from 8.4% and net loss widened to $(7.5) million from $(2.3) million, driven by $6 million in zero-margin inventory sales and $4.7 million in manufacturing cost variances.
The company suspended Q2 FY2027 revenue and earnings guidance due to macroeconomic uncertainty and capital constraints, though management projects a return to profitability and margin growth in the second half of fiscal 2027.
Backlog surged 76% to $245.9 million and $60 million in new program wins were secured, yet $18 million in shipments were delayed by supply chain financing constraints, and total debt rose to $108.8 million.
Strategic initiatives include a partnership with TP-Link for US assembly and a US workforce streamlining expected to save $8 million annually, while the company explores new capital sources to address liquidity pressures.