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Key Tronic advances global manufacturing restructuring and cost savings

Story Highlights
  • Key Tronic will exit China manufacturing, shifting work to Vietnam and other plants.
  • China and Mexico restructurings bring near-term charges but aim for sizable quarterly savings.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Key Tronic advances global manufacturing restructuring and cost savings

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An announcement from Key Tronic ( (KTCC) ) is now available.

On December 19, 2025, Key Tronic Corporation approved a plan to cease manufacturing at its China-based facility and convert its operations there to sourcing and procurement support for its other global locations, shifting most of the affected production to existing capacity in Vietnam and other plants. The restructuring, expected to be completed by the fourth fiscal quarter of 2026, is aimed at better aligning resources with strategic priorities, filling recently added Vietnam capacity, and reducing exposure to geopolitical risks, with anticipated savings of about $1.2 million per quarter after completion, offset by roughly $1.3 million in cash severance and compensation costs and an estimated $4.8 million to $5.8 million in non-cash write-offs. Separately, the company’s ongoing restructuring of its Juarez, Mexico facility toward higher-volume manufacturing is projected to generate approximately $2.1 million in quarterly savings after it incurs an additional $2.5 million to $3.5 million in severance charges during its second fiscal quarter, signaling a broader effort to streamline operations and enhance cost efficiency across its manufacturing footprint.

The most recent analyst rating on (KTCC) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Key Tronic stock, see the KTCC Stock Forecast page.

Spark’s Take on KTCC Stock

According to Spark, TipRanks’ AI Analyst, KTCC is a Neutral.

Key Tronic’s overall stock score is driven by significant financial challenges, bearish technical indicators, and unattractive valuation metrics. The company’s strategic initiatives and operational improvements are overshadowed by declining revenue, profitability issues, and market uncertainties.

To see Spark’s full report on KTCC stock, click here.

More about Key Tronic

Key Tronic Corporation is an electronics manufacturing services provider that operates a global network of facilities, producing and supplying electronic products for a range of customers. The company’s operations span multiple countries, including China, Vietnam and Mexico, with a focus on optimizing its manufacturing footprint and supply chain to support its worldwide customer base.

Average Trading Volume: 27,902

Technical Sentiment Signal: Sell

Current Market Cap: $28.34M

For detailed information about KTCC stock, go to TipRanks’ Stock Analysis page.

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