secwatch.observer — SEC 8-K summary
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Issuer:     KEY TRONIC CORP (KTCC)
CIK:        0000719733
Form:       8-K
Filed at:   2026-02-03T23:59:59+00:00
Accession:  0000719733-26-000003
Event type: earnings
Sentiment:  negative
Materiality: 0.70
Item codes: 2.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Key Tronic reports Q2 FY2026 revenue $96.3M, down 15% YoY; China wind-down and Mexico cuts
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- 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.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/719733/000071973326000003/0000719733-26-000003-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/719733/000071973326000003/ktcc-20260203.htm
  HTML page:      https://secwatch.observer/filing/0000719733-26-000003

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