Q2 2026 Key Tronic Corp Earnings Call Transcript

Feb 3, 2026 / 10:00 PM GMT
Release Date Price: $2.91 (+0.69%)

Key Points

Positve
  • Key Tronic Corp (KTCC) reported a significant reduction in inventory by $12.3 million, reflecting improved inventory management.
  • The company successfully reduced its debt by approximately $13.4 million year over year, showcasing effective cash flow management.
  • Key Tronic Corp (KTCC) has initiated strategic cost-saving measures, including the wind down of its China-based facility, expected to save $1.2 million per quarter.
  • The company has seen an increase in quoting volume and potential new business opportunities, particularly in its Mexico facilities.
  • Key Tronic Corp (KTCC) is investing in new production equipment and automation, which is expected to enhance operational efficiency and support future growth.
Negative
  • Total revenue for the second quarter of fiscal 2026 decreased to $96.3 million from $113.9 million in the same period of fiscal 2025.
  • The company reported a net loss of $8.6 million for the second quarter of fiscal 2026, compared to a net loss of $4.9 million in the same period of fiscal 2025.
  • Gross margin significantly declined to 0.6% in the second quarter of fiscal 2026, impacted by charges related to strategic initiatives.
  • Key Tronic Corp (KTCC) faced reduced demand from a long-standing customer and the transition of an end-of-life program, adversely affecting revenue.
  • The company is not providing forward-looking guidance for the third quarter of fiscal 2026 due to continued macroeconomic uncertainties.


Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

KTCC.OQ - Key Tronic Corp
Q2 2026 Key Tronic Corp Earnings Call
Feb 03, 2026 / 10:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and welcome to the Keytronic FY 2026 Q2 investor call. Today's conference is being recorded. After the presentation, we will begin the question-and-answer period. At this time, I'd like to turn the call over to Tony Voorhees.

Please go ahead.

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Unidentified_2 [2]
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Good afternoon everyone. I am Tony Voorhees, Chief Financial Officer of Keytronic.

I'd like to thank everyone for joining us today for our investor conference call.

Joining me here at our Spokane, Washington headquarters is Brett Larson, our President and Chief
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