Key Tronic ( (KTCC) ) has released its Q4 earnings. Here is a breakdown of the information Key Tronic presented to its investors.
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Key Tronic Corporation is a prominent provider of electronic manufacturing services, specializing in value-added design and manufacturing solutions across various global facilities, including the United States, Mexico, China, and Vietnam. The company serves leading original equipment manufacturers with comprehensive engineering, materials management, and worldwide distribution services.
In its latest earnings report for the fourth quarter and full fiscal year 2025, Key Tronic Corporation faced a challenging period marked by a decline in revenue due to reduced demand from longstanding customers and delays in new program launches. The company reported a total revenue of $110.5 million for the fourth quarter, down from $126.6 million in the same period of the previous year. For the full fiscal year 2025, revenue totaled $467.9 million, a decrease from $566.9 million in fiscal year 2024.
Key financial metrics revealed a net loss of $3.9 million for the fourth quarter and $8.3 million for the full fiscal year 2025, primarily attributed to lower revenue and increased severance expenses. Despite these setbacks, the company managed to improve its cash flow from operations, reporting $8.8 million for the fourth quarter and $18.9 million for the full year, which facilitated debt reduction. The gross margin for the year improved to 7.8%, up from 7.0% in fiscal year 2024, due to operational efficiencies gained from workforce reductions.
Looking ahead, Key Tronic is optimistic about its long-term growth prospects. The company is expanding its manufacturing footprint with new facilities in the US and Vietnam to support near-shoring and tariff mitigation strategies. Additionally, Key Tronic has secured new contracts in various sectors, including a significant manufacturing services contract with a large data processing OEM, which is expected to contribute substantially to future revenue.
While the company refrains from issuing specific guidance for the first quarter of fiscal year 2026 due to ongoing uncertainties, its strategic initiatives and operational streamlining position Key Tronic well for potential growth and profitability in the coming years.