Key Tronic Corporation Reports Q2 2026 Earnings with Strategic Restructuring
- Financial Overview: Key Tronic reported total revenue of $96.3 million for Q2 2026, down from $113.9 million in the same period last year, primarily due to reduced demand from key customers and end-of-life programs, resulting in a net loss of $8.6 million, reflecting financial pressure amid macroeconomic uncertainties.
- Restructuring and Savings: The company is winding down operations at its China facility, expected to be completed by Q4 2026, which will save approximately $1.2 million per quarter, while ongoing workforce reductions in Mexico aim to achieve an additional $1.5 million in quarterly savings, demonstrating proactive cost control measures.
- New Business Opportunities: Key Tronic has secured new programs in automotive technology, pest control, and industrial equipment, with a consigned materials manufacturing services contract in Mississippi projected to exceed $25 million in annual revenue, providing a potential revenue boost despite current challenges.
- Future Outlook and Uncertainty: Management did not provide financial guidance for Q3 2026, citing uncertainties in the timing of new product launches, indicating that revenue growth in the coming months will rely on new programs in the U.S., Mexico, and Vietnam, reflecting a cautious approach to navigating market volatility.
Trade with 70% Backtested Accuracy
Analyst Views on KTCC
About KTCC
About the author

- Financial Overview: Key Tronic's Q2 non-GAAP EPS stands at $0.00, indicating challenges in profitability, although revenue reached $96.3 million, suggesting stable sales performance.
- Revenue Analysis: The $96.3 million revenue aligns with market expectations, reflecting the company's resilience in the current economic environment, despite not achieving profitability, indicating some level of market demand.
- Financial Health: While profitability remains elusive, Key Tronic is striving to maintain operations, which may necessitate measures to enhance profitability and bolster investor confidence in the future.
- Market Reaction: The market's response to the earnings report is neutral, with investors focusing on the company's strategic direction and potential for improving profitability.
- Financial Overview: Key Tronic reported total revenue of $96.3 million for Q2 2026, down from $113.9 million in the same period last year, primarily due to reduced demand from key customers and end-of-life programs, resulting in a net loss of $8.6 million, reflecting financial pressure amid macroeconomic uncertainties.
- Restructuring and Savings: The company is winding down operations at its China facility, expected to be completed by Q4 2026, which will save approximately $1.2 million per quarter, while ongoing workforce reductions in Mexico aim to achieve an additional $1.5 million in quarterly savings, demonstrating proactive cost control measures.
- New Business Opportunities: Key Tronic has secured new programs in automotive technology, pest control, and industrial equipment, with a consigned materials manufacturing services contract in Mississippi projected to exceed $25 million in annual revenue, providing a potential revenue boost despite current challenges.
- Future Outlook and Uncertainty: Management did not provide financial guidance for Q3 2026, citing uncertainties in the timing of new product launches, indicating that revenue growth in the coming months will rely on new programs in the U.S., Mexico, and Vietnam, reflecting a cautious approach to navigating market volatility.

- Earnings Report Schedule: Key Tronic Corporation plans to release its Q2 FY2026 financial results after market close on February 3, 2026, which is expected to provide investors with the latest performance data to assess the company's operational status.
- Conference Call Timing: The company will host a conference call at 2:00 PM Pacific (5:00 PM Eastern) on February 3, 2026, aimed at enhancing communication with investors and increasing transparency and trust.
- Live Broadcast Channels: The conference call will be available via live stream on the company's website under the 'Investor Relations' section, and investors can also participate by calling 800-330-6710 or +1-213-279-1505, ensuring broad access to timely information.
- Replay Availability: A replay of the earnings call will be accessible on the company's 'Investor Relations' page after the meeting, allowing investors who could not attend live to review the information at their convenience, further enhancing information accessibility.
- Earnings Report Schedule: Key Tronic Corporation plans to release its financial results for the second quarter of fiscal 2026 after market close on February 3, 2026, which is expected to provide investors with the latest financial data and business performance insights.
- Conference Call Details: The company will host a conference call at 2:00 PM Pacific (5:00 PM Eastern) on February 3, 2026, to discuss its financial results, enhancing communication with investors.
- Online Broadcast Access: Investors can listen to the conference call by visiting the 'Investor Relations' section on www.keytronic.com, ensuring transparency and accessibility of information.
- Company Background: Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services, with customers including some of the world's leading original equipment manufacturers, highlighting its significant position in the industry.

- Earnings Report Schedule: Key Tronic Corporation plans to release its Q2 FY2026 results after market close on February 3, 2026, which is expected to provide investors with the latest financial performance data to analyze the company's operational status.
- Conference Call Timing: The company will host a conference call at 2:00 PM Pacific (5:00 PM Eastern) on February 3, 2026, aimed at enhancing communication with investors and providing transparency regarding its financial results.
- Live Broadcast Channels: Investors can listen to the live conference via the “Investor Relations” section on www.keytronic.com or by calling 800-330-6710 or +1-213-279-1505, ensuring broad access to timely information for stakeholders.
- Company Background: Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services, with clients including some of the world's leading original equipment manufacturers, highlighting its significant position and influence in the industry.
Research Reports Overview: The Zacks Research Daily highlights new reports on 16 major stocks, including Apple, Tesla, and Micron Technology, along with two micro-cap stocks, emphasizing unique insights into smaller companies.
Apple's Performance: Apple has seen a 17.6% stock increase over the past year, driven by strong Services revenue growth and expectations for double-digit iPhone sales growth, despite facing tariff impacts and regulatory challenges.
Tesla's Challenges: Tesla's stock has risen 22.5% over the past year, but faces potential declines in Q4 deliveries due to the expiration of EV tax credits and increasing competition, while its Energy Generation unit shows promise.
Micron Technology's Growth: Micron's shares have surged 188.2% year-to-date, benefiting from the AI-driven memory market and strong financials, although concerns about NAND demand recovery and trade tensions persist.







