Key Tronic Corporation — First Quarter Fiscal 2027 Earnings Summary

Key Tronic Corporation reported a net loss of $7.5 million for the first quarter of fiscal 2027, with revenue remaining flat at $98.7 million due to supply chain financing constraints that delayed approximately $18 million in shipments. The company's gross margin declined to 2.5% from 8.4% in the prior year period, driven by production delays, increased material costs, and inventory valuation adjustments. Despite these operational challenges, the order backlog grew 76% to $245.9 million, reflecting strong customer demand and new program wins totaling over $60 million in potential annual revenue. Management anticipates a return to profitability in the second half of fiscal 2027 as revenue rebounds and workforce streamlining initiatives reduce labor costs.