Key Tronic (KTCC) Q4 2026 earnings summary

Executive summary

• Q4 FY26 revenue was $102M, up 14% sequentially but down from $110.5M YoY, driven by strong demand from both legacy and new programs, especially in Vietnam and the U.S.

• Full-year FY26 revenue was $386.7M, down from $467.9M in FY25, reflecting earlier demand softness and end-of-life programs.

• Significant operational transformation included exiting China manufacturing, expanding U.S. and Vietnam capacity, and right-sizing Mexico operations.

• Over $60M in new program awards were secured in Q4 FY26, with a strong pipeline and increased customer engagement.

Financial highlights

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

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

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

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

• Inventory down $1.5M YoY; capital expenditures were $2.7M in Q4 and $6.4M for FY26.

Outlook and guidance

• Expecting revenue and margin growth in FY27, with improved operating efficiency and cost structure.

• Not providing specific Q1 FY27 guidance due to macroeconomic uncertainty and timing of new product ramps.

• Anticipate $4M in annualized savings from China exit in FY27.