Key Tronic posts Q1 net loss impacted by reduced demand and delays

Key Tronic

04/11/2025 21:13

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 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 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/Miss
Actual
Consensus Estimate
Q1 Sales
$98.75 mln
Q1 EPS
-$0.21
Q1 Net Income
-$2.3 mln
Q1 Gross Margin
8.40%
Q1 Basic EPS
-$0.21
Q1 Pretax Profit
-$3.36 mln


Press Release: ID:nGNX8tb93W

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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.)