earnings
confidence high
sentiment negative
materiality 0.70
Key Tronic reports Q2 FY2026 revenue $96.3M, down 15% YoY; China wind-down and Mexico cuts
KEY TRONIC CORP
2026-Q2 EPS reported
-$1.00
revenue$195,069,000
- Revenue $96.3M vs $113.9M YoY, down ~15%; impacted by reduced demand from a longtime customer and program delays.
- Initiating wind-down of China manufacturing (expected FY-end) and further Mexico workforce reductions; $10.5M in severance/write-off charges.
- Adjusted gross margin 7.9% vs 6.8% YoY; reported gross margin 0.6% and operating margin (10.7)%, due to restructuring costs.
- Operating cash flow $6.3M vs $1.5M YoY; debt reduced $13.4M year-over-year.
- Expected quarterly savings of $1.2M from China wind-down and $1.5M from Mexico reductions, beginning in Q3.