Key Tronic preliminary Q1 net loss widens on supply chain constraints, operating inefficiencies
KTCC•Key Tronic reported preliminary Q1 revenue of $98.68 million and a net loss of $7.50 million, as supply chain constraints and operating inefficiencies weighed on results. The company expects revenue growth and a return to profitability in the second half of fiscal 2027.
1. Quarterly results
Key Tronic reported preliminary Q1 revenue of $98.68 million, flat year over year, and a net loss of $7.50 million. Gross margin was 2.5%; production delays and higher material costs contributed to a decline in gross profit, while $18 million in shipments were delayed by supply chain financing pressures.
2. Outlook and costs
The company will not issue revenue or earnings guidance for Q2 fiscal 2027. It expects revenue growth and a return to profitability in the second half of fiscal 2027, and expects US workforce streamlining to reduce annual labor costs by $8 million.
