Earnings call transcript: Key Tronic posts stronger sales in Q4 2026, shares fall after hours

Key Tronic Corp. reported a 14% increase in revenue for Q4 FY2026, reaching $102 million, while also posting a wider net loss of $34.3 million. The company's adjusted gross margin improved to 8.3% from 6.2% a year earlier, reflecting cost cuts and better operating efficiency. However, about $10 million of shipments were delayed due to supply chain financing constraints, and GAAP results were negatively impacted by an $8.4 million write-off tied to distressed customers and a $28.4 million non-cash tax valuation allowance.

Despite the earnings decline, Key Tronic's sales funnel has improved, and the company's manufacturing footprint is becoming more balanced after exiting China and expanding in Vietnam and the U.S.

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