Earnings ·
Key Tronic reports Q1 fiscal 2027 net loss of $7.5M, or $0.69 per share
KTCCKey Tronic Corp
Key Tronic reported a net loss of $7.5 million, or $0.69 per diluted share, for the first quarter ended September 26, 2026, compared to a $2.3 million loss in the prior year period. Revenue was essentially flat at $98.7 million, down slightly from $98.8 million, as supply chain financing constraints delayed approximately $18 million in shipments. Gross margin contracted sharply to 2.5% from 8.4%, driven by production delays and increased material costs that resulted in excess labor and operating inefficiencies. The company also recognized $6 million of inventory sales with no margin contribution and $4.7 million of manufacturing cost variances. Despite the loss, backlog grew 76% to $245.9 million, reflecting strong customer demand. Key Tronic operates as an electronic manufacturing services provider.