Key Tronic (NASDAQ:KTCC) Posts Earnings Results

Key Tronic (NASDAQ:KTCC) announced its earnings results on Tuesday. The technology company reported ($0.79) earnings per share for the quarter, FiscalAI reports. The business had revenue of $96.32 million for the quarter. Key Tronic had a negative return on equity of 4.97% and a negative net margin of 3.68%.

Here are the key takeaways from Key Tronic’s conference call:

• The company reported a Q2 revenue decline to $96.3 million (from $113.9M a year ago) and widened its net loss to $8.6 million (−$0.79/share), with gross margin collapsing to 0.6% and operating margin to −10.7% due mainly to reduced demand from a longstanding customer and an end‑of‑life program.
• Management is executing a nearshoring and tariff‑mitigation strategy—winding down most China manufacturing, shifting capacity to Vietnam and the U.S., and right‑sizing Mexico—with expected run‑rate savings of about $1.2M (China) and $1.5M (Mexico) per quarter once fully implemented.
• The new consigned‑materials manufacturing model in Corinth and recent program wins (automotive, pest control, industrial) are ramping, with the consignment opportunity alone having the potential to exceed $25 million annually and materially lift future margins.
• Liquidity and working‑capital metrics improved—inventory down ~12% YoY, DSOs improved to 77 days, operating cash flow rose to $6.3 million in the quarter, and debt was reduced by about $13.4 million—while FY26 CapEx is guided to a modest $8–10 million focused on automation and capacity.

Key Tronic Price Performance

NASDAQ:KTCC opened at $2.79 on Thursday. Key Tronic has a 52 week low of $2.21 and a 52 week high of $3.96. The stock’s fifty day moving average is $2.67 and its two-hundred day moving average is $2.95. The company has a market capitalization of $30.30 million, a P/E ratio of -1.96 and a beta of 1.15. The company has a quick ratio of 1.32, a current ratio of 2.39 and a debt-to-equity ratio of 0.85.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reissued a “sell (d-)” rating on shares of Key Tronic in a research report on Thursday, January 22nd. One investment analyst has rated the stock with a Sell rating, According to MarketBeat, the company has an average rating of “Sell”.

Hedge Funds Weigh In On Key Tronic

Hedge funds and other institutional investors have recently bought and sold shares of the company. Goldman Sachs Group Inc. increased its stake in Key Tronic by 65.9% in the first quarter. Goldman Sachs Group Inc. now owns 23,480 shares of the technology company’s stock valued at $61,000 after purchasing an additional 9,327 shares during the period. Bensler LLC acquired a new stake in shares of Key Tronic in the 3rd quarter valued at approximately $109,000. Finally, Moors & Cabot Inc. boosted its position in shares of Key Tronic by 26.9% during the 2nd quarter. Moors & Cabot Inc. now owns 127,550 shares of the technology company’s stock worth $365,000 after purchasing an additional 27,000 shares in the last quarter. 40.69% of the stock is currently owned by hedge funds and other institutional investors.

Key Tronic Company Profile

Key Tronic Corporation (NASDAQ: KTCC) is a global electronics manufacturer headquartered in Spokane, Washington. The company specializes in the design, development and production of human-machine interfaces and input devices, with a core legacy in keyboard technology. Over more than five decades, Key Tronic has expanded its capabilities beyond keyboards to encompass a broad range of electronic assemblies for OEMs across computing, industrial, medical and consumer markets.

Key Tronic’s product portfolio includes membrane and mechanical keyboards, touch panels, silicone keypads and custom input solutions tailored to customer specifications.