KTCC

EX-99.1

2 q12027exhibit991.htm

EX-99.1

Document

Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACTS:Tony VoorheesMichael Newman

Chief Financial OfficerInvestor Relations

Key Tronic CorporationStreetConnect

(509)-927-5345(206) 729-3625

KEY TRONIC CORPORATION ANNOUNCES RESULTS

FOR THE FIRST QUARTER OF FISCAL 2027

Growing Customer Demand and Backlog;

Continued Program Wins; Continued Growth in Vietnam Production

Spokane Valley, WA— November 3, 2026 — Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended September 26, 2026.

For the first quarter of fiscal year 2027, Key Tronic reported total revenue of $98.7 million, compared to $98.8 million in the same period of fiscal year 2026. Revenue for the first quarter of fiscal year 2027 continued to be constrained by tightening credit availability and liquidity pressures across the global supply chain. These supply chain financing constraints delayed approximately $18 million of the Company's shipments during the quarter, mostly involving programs manufactured in Mexico and the US. Revenue from Key Tronic’s Vietnam-based production continued to grow, driven by medical device and consumer products programs.

The Company is actively working with its customers and suppliers, and exploring new sources of capital, to support growth and to ease supply chain financing constraints in future periods. At the same time, customer demand has continued to grow strongly, particularly for US-based production. Key Tronic’s backlog was $245.9 million in the first quarter of fiscal year 2027, up 76% from the same period in fiscal year 2026. Order backlog consists of purchase orders received for products expected to be shipped approximately within the next twelve months, although shipment dates are subject to change due to design modifications, customer forecast changes, or other customer requirements. The amount of backlog is not necessarily indicative of future sales but can be indicative of trends in expected future sales revenue.

Gross margin was 2.5% in the first quarter of fiscal year 2027, compared to 8.4% in the same period of fiscal year 2026. Adjusted gross margin was 4.2% for the first quarter of fiscal year 2027, compared to 9.6% in the same period of fiscal year 2026 (see “Non-GAAP Financial Measures,” below for additional information about adjusted gross margin).

The sharp decline in gross margin in the first quarter of fiscal year 2027 reflects production delays caused by supply chain financing challenges and increased material costs, resulting in excess labor costs and operating inefficiencies at the Company’s Mexico and US facilities. Gross profit in the first quarter of fiscal 2027 was further reduced by approximately $6 million of inventory sales with no margin contribution and $4.7 million of manufacturing cost variances that were recognized in cost of goods sold rather than reflected in inventory due to U.S. GAAP inventory valuation requirements.

Operating margin was (4.2)% in the first quarter of fiscal year 2027, compared to (0.6)% in the same period of fiscal year 2026. The decline in operating margin for the first quarter of fiscal 2027 reflects the drop in gross margin as well as approximately $0.5 million in write-offs of bad debt. These adverse impacts were partially offset by a $3.2 million insurance recovery related to a roof replacement at the Company's Mississippi facility.

The Company is also in the process of streamlining its US-based workforce, which is expected to reduce labor costs by approximately $8 million annually when completed. With revenue expected to rebound, Key Tronic anticipates margin growth in coming quarters.

The Company’s net loss was $(7.5) million or $(0.69) per share for the first quarter of fiscal year 2027, compared to net loss of $(2.3) million or $(0.21) per share for the same period of fiscal year 2026. The adjusted net loss was $(7.9) million or $(0.72) per diluted share for the first quarter of fiscal year 2027, compared to adjusted net loss of $(1.1) million or $(0.10) per diluted share for the same period of fiscal year 2026. See “Non-GAAP Financial Measures,” below for additional information about adjusted net loss and adjusted net loss per share.

“Customer demand remains strong, as our growing backlog demonstrates, but near-term liquidity challenges across the global supply chain have significantly constrained revenue in recent quarters,” said Brett Larsen, President and CEO. “Despite these challenges, we believe our operational discipline, strengthened manufacturing footprint, and long-standing customer relationships position us better than many competitors, enabling us to keep winning business and ramping up new programs.”

“In the first quarter of fiscal 2027, we won new programs in utilities power management, sustainable waste management, data centers, construction, and defense technology, representing more than $60

EX-99.1

2 q42026exhibit991.htm

EX-99.1

Document

Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACTS:Tony VoorheesMichael Newman

Chief Financial OfficerInvestor Relations

Key Tronic CorporationStreetConnect

(509)-927-5345(206) 729-3625

KEY TRONIC CORPORATION ANNOUNCES RESULTS

FOR THE FOURTH QUARTER AND YEAR END OF FISCAL 2026

Strong Sequential Quarterly Revenue Growth; Completed Restructuring of Global Manufacturing Footprint;

Improving Operating Efficiencies Drive Continued Program Wins

Spokane Valley, WA— August 27, 2026 — Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended June 27, 2026.

For the fourth quarter of fiscal year 2026, Key Tronic reported total revenue of $102.0 million, compared to $89.6 million in the prior quarter and $110.5 million in the same period of fiscal year 2025. The 14% sequential increase in revenue in the fourth quarter of fiscal year 2026 was driven by strong demand from both legacy and new programs. In particular, revenue from Key Tronic’s Vietnam-based production more than doubled sequentially, driven by medical device and consumer products programs.

While customer demand rebounded significantly in the fourth quarter of fiscal year 2026, Key Tronic's production was constrained by tightening credit availability and liquidity pressures across the global supply chain. These capital constraints have affected the entire EMS industry as suppliers, customers, and manufacturers navigate ongoing macroeconomic uncertainty. Supply chain financing constraints delayed approximately $10 million of the Company's shipments during the quarter. The Company is actively working with its customers and suppliers, while also evaluating additional sources of capital, to support growth and alleviate these temporary constraints in future periods. We believe our operational discipline, strengthened manufacturing footprint, and long-standing customer relationships have positioned us better than many of our competitors. As a result, we continue to win new business and gain market share in several target markets in new program awards in the fourth quarter of fiscal 2026.

For the full fiscal year 2026, total revenue was $386.7 million, compared to $467.9 million in the fiscal year 2025, largely reflecting reduced demand from certain legacy and end-of-life programs, as well as a variety of uncertainties in the global economy throughout the year. The Company has experienced an increase in new program wins and new sales funnel activity leading to expected revenue growth in coming quarters of fiscal 2027.

Gross margin was 7.8% in the fourth quarter of fiscal year 2026, up from 6.2% in the same period of fiscal year 2025. The Company’s gross margin improvements in the fourth quarter of fiscal year 2026, despite the adverse supply chain challenges, demonstrated the operating efficiencies gained from its cost-cutting initiatives over the past two years. Operating margin was (3.6)% in the fourth quarter of fiscal year 2026, down from (2.1)% in the same period of fiscal year 2025. The operating margin for the fourth quarter of fiscal 2026 was adversely affected by an $8.4 million write-off of long-term receivables and related legal costs incurred in pursuing recovery from longstanding customers experiencing financial distress and no longer generating program revenues. These adverse impacts were partially offset by a $5.3 million insurance recovery related to a roof replacement at the Company's Mississippi facility.

Adjusted gross margin was 8.3% for the fourth quarter of fiscal year 2026 up from 6.2% in the same period of fiscal year 2025 (see “Non-GAAP Financial Measures,” below for additional information about adjusted gross margin). These margin gains highlight the Company’s resilience and commitment to improving its operating efficiency. With revenue expected to continue to increase, Key Tronic anticipates continued margin growth in coming quarters.

Throughout fiscal year 2026, the Company continued to prepare for anticipated long-term growth by executing its near-shoring and tariff mitigation strategies to reduce costs while maintaining the diversity and flexibility of its key locations and capabilities. Key Tronic believes that these cost reductions have enabled the Company to become more competitive on recent quoting opportunities. During the fourth quarter, Key Tronic completed the wind-down of its manufacturing operations in China, shifting more production to the Company’s expanding facilities in the US and Vietnam. The wind-down of manufacturing in China is anticipated to save approximately $4.0 million in fiscal 2027.

The Company’s net loss was $(34.3) million or $(3.16) per share for the fourth quarter of fiscal year 2026, compared to net loss of $(3.9) million or $(0.36) per share for the same period of fiscal year 2025. For the full fiscal year 2026, the net loss was $(47.8) million or $(4.41) per s

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