Key Tronic (KTCC) investor relations material

Executive summary

• Q4 FY26 revenue was $102 million, up 14% sequentially but down from $110.5 million year-over-year.

• Full-year FY26 revenue was $386.7 million, down from $467.9 million in FY25 due to reduced demand and global economic uncertainty.

• Completed operational transformation: exited China, expanded U.S. and Vietnam capacity, and right-sized Mexico.

• Secured over $60 million in new program awards in Q4 FY26, with a strong pipeline for FY27.

Financial highlights

• Q4 FY26 gross margin was 7.8%, up from 6.2% year-over-year; adjusted gross margin was 8.3%.

• Q4 FY26 operating margin was -3.6%, impacted by an $8.4 million receivables write-off and $5.3 million insurance recovery.

• Q4 FY26 net loss was $34.3 million ($3.16/share), including a $28.4 million non-cash tax valuation allowance.

• FY26 net loss was $47.8 million ($4.41/share); adjusted net loss was $3.7 million ($0.34/share), improved from $5 million ($0.47/share) in FY25.

• Cash and cash equivalents at FY26 year-end were $0.6 million, down from $1.4 million prior year.

Outlook and guidance

• Anticipates revenue and margin growth in FY27, with a return to profitability expected.

• No formal guidance for Q1 FY27 due to macroeconomic uncertainty and timing of new product ramps.

• Margin improvement expected as cost savings and operational efficiencies take effect.