Overview

* Key Tronic fiscal Q1 2026 revenue fell to $98.8 mln, impacted by reduced demand and delays

* Net loss for fiscal Q1 2026 was $2.3 mln, compared to net income of $1.1 mln last year

* Gross margin increased sequentially to 8.4% due to operational efficiencies

Outlook

* Key Tronic ( KTCC ) will not issue revenue or earnings guidance for Q2 FY2026 due to tariff uncertainties

* Company expects half of manufacturing in US and Vietnam by end of FY2026

* Key Tronic ( KTCC ) anticipates return to profitability by end of FY2026

Result Drivers

* DEMAND REDUCTION - Revenue impacted by reduced demand from a longstanding customer and delays in new program launches due to global economic uncertainties

* CONSIGNED MATERIALS PROGRAM - Company ramping a consigned materials program, expected to result in lower revenue but higher gross margins

* OPERATIONAL EFFICIENCIES - Sequential increase in gross margin attributed to operational efficiencies from workforce reductions

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales $98.75

mln

Q1 EPS -$0.21

Q1 Net -$2.3

Income mln

Q1 Gross 8.40%

Margin

Q1 Basic -$0.21

EPS

Q1 -$3.36

Pretax mln

Profit

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)