Quarterly ResultMay 5, 2026, 04:06 PM
Key Tronic Q3 Revenue $89.6M, down 20%; Margins Improve
AI Summary
Key Tronic Corporation reported Q3 2026 revenue of $89.6 million, a decrease from $112.0 million in the prior year, primarily due to lower demand from a legacy customer, an end-of-life program transition, and impacts from Winter Storm Fern. Despite the revenue decline, the company successfully strengthened its gross margin to 8.0% and operating margin to (0.3)%, reflecting effective cost-cutting strategies. Key Tronic is winding down China operations, shifting production to the US and Vietnam, and expects revenue to rebound and return to profitability in Q4 2026 due to increased demand and new program launches.
Key Highlights
- Q3 2026 revenue was $89.6 million, down from $112.0 million YoY.
- Q3 2026 net loss was $(2.6) million, or $(0.24) per share.
- Gross margin improved to 8.0% in Q3 2026 from 7.7% YoY.
- Operating margin improved to (0.3)% in Q3 2026 from (0.4)% YoY.
- Adjusted gross margin improved to 8.5% in Q3 2026 from 8.4% YoY.
- Year-to-date cash flow from operations was $10.0 million.
- Debt reduced by approximately $14.3 million year-over-year.
- China manufacturing wind-down expected to save $1.2 million per quarter.