Revenue: As of FY2026 Q2, the actual value is USD 96.32 M.

EPS: As of FY2026 Q2, the actual value is USD -0.79.

EBIT: As of FY2026 Q2, the actual value is USD -10.26 M.

Second Quarter Fiscal Year 2026 (Ended December 27, 2025)

Key Tronic Corporation reported total revenue of $96.3 million, a decrease from $113.9 million in the same period of fiscal year 2025 . The GAAP gross margin was 0.6%, down from 6.8% in the prior year period, while the adjusted gross margin was 7.9%, up from 6.8% in the same period of fiscal year 2025 . The operating margin stood at -10.7%, compared to -1.0% in the second quarter of fiscal year 2025 . Key Tronic Corporation’s GAAP net loss was - $8.6 million, or - $0.79 per share, versus a net loss of - $4.9 million, or - $0.46 per share, in the prior year period . Adjusted net income was $0.0 million, or $0.00 per share, an improvement from an adjusted net loss of - $4.1 million, or - $0.38 per share, in the same period of fiscal year 2025 . The operating loss was - $10,258 thousand, compared to an operating loss of - $1,121 thousand in the second quarter of fiscal year 2025 . Total operating expenses increased to $10,818 thousand from $8,827 thousand in the same period of fiscal year 2025 . Strategic initiatives, including the wind-down of China manufacturing operations and Mexico workforce reductions, resulted in charges of approximately $10.5 million for severance, inventory write-offs, and other related expenses . Total cash flow provided by operations was approximately $6.3 million, an increase from $1.5 million in the same period of fiscal year 2025 . The company reduced its debt year-over-year by approximately $13.4 million .

First Six Months Fiscal Year 2026 (Ended December 27, 2025)

Total revenue for the first six months of fiscal year 2026 was $195.1 million, a decrease from $245.4 million in the same period of fiscal year 2025 . The GAAP net loss for the first six months was - $10.8 million, or - $1.00 per share, compared to - $3.8 million, or - $0.35 per share, for the same period of fiscal year 2025 . The adjusted net loss for the first six months was - $1.1 million, or - $0.10 per share, compared to an adjusted net loss of - $1.3 million, or - $0.12 per share, for the same period of fiscal year 2025 .

Operational Developments

Key Tronic Corporation is winding down its China manufacturing operations, expecting approximately $1.2 million in quarterly savings upon completion by the end of the current fiscal year . Further workforce reductions in Mexico are anticipated to generate an additional approximate $1.5 million in quarterly savings, gradually, beginning in the third quarter . The company secured new program wins in automotive technology, pest control, and industrial equipment . Production capacity is being built out in the US and Vietnam, with an expectation that approximately half of manufacturing will occur in these facilities by the end of fiscal year 2026 .

Business Outlook

Key Tronic Corporation will not be issuing revenue or earnings guidance for the third quarter of fiscal year 2026 due to macroeconomic uncertainty and the timing of new program ramps . The company anticipates revenue to gradually rebound, operating efficiencies to improve, and a return to profitability by the end of fiscal year 2026 .