Key Tronic posts weak fiscal first quarter as backlog expands
Key Tronic reported results for the quarter ended September 26, 2026, with revenue of $98.7 million versus $98.8 million a year earlier. Supply-chain financing problems postponed approximately $18 million of shipments, while backlog reached $245.9 million, up 76% from the prior-year period. The company expects sales to improve and profitability to resume during the latter six months of fiscal 2027, but it will not provide second-quarter revenue or earnings guidance.
Why it matters
The quarter shows a sharp disconnect between Key Tronic's order pipeline and near-term cash conversion, with delayed shipments and financing constraints weighing on revenue and margins. Management expects its workforce actions to lower annual labor costs by approximately $8 million when completed, but the company is also seeking additional capital to support operations.
Key facts
- 1Key Tronic's fiscal first-quarter revenue was $98.7 million, compared with $98.8 million in the same quarter of fiscal 2026. emsnow.com
- 2Backlog stood at $245.9 million, representing a 76% increase from the comparable fiscal 2026 period. emsnow.com
- 3Approximately $18 million of shipments were delayed during the quarter, mainly from programs produced in Mexico and the United States. emsnow.com
- 4Gross margin declined to 2.5% from 8.4% in the year-earlier quarter. emsnow.com
- 5The company reported a net loss of $(7.5) million, or $(0.69) per share, versus $(2.3) million, or $(0.21) per share, a year earlier. emsnow.com
- 6Key Tronic expects annual labor-cost reductions of approximately $8 million once its U.S. workforce streamlining is complete. emsnow.com
Open questions
- Material 1's summary describes $245.9M as quarterly revenue, while material 4 identifies the same figure as backlog; the detailed company release supports the backlog classification.
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.