Key Tronic posts Q1 net loss impacted by reduced demand and delays
Key Tronic reported a net loss of $2.3 million for Q1 2026, down from a net income of $1.1 million last year, with revenues falling to $98.8 million due to reduced demand and delays. The gross margin improved to 8.4% due to operational efficiencies. The company will not provide guidance for Q2 FY2026 amid tariff uncertainties and expects to shift half of its manufacturing to the US and Vietnam by the end of FY2026, aiming for profitability by that time.
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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/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: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (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.)
