Key Tronic Corporation · NASDAQ:KTCC
Key Tronic — Q1 2026 Earnings Presentation
18 slides from Key Tronic's earnings presentation, Nov 4, 2025
Slide 1: First Quarter of Fiscal 2026 Earnings Call
First Quarter of Fiscal 2026 Earnings Call November 4, 2025
Slide 2: Management On Call Today
Management On Call Today Brett Larsen Tony Voorhees President and CEO CFO 2
Slide 3: Notices and Disclaimers
Notices and Disclaimers Forward-Looking Statements Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements include, but are not limited to those including such words as aims, a
Slide 4: Revenue Highlights
Revenue Highlights FY2026 FY2025 First Quarter $98.8M $131.6M • Longstanding customer reduced demand • Uncertainty in global economy o Contributed to delays in new programs • Started ramping consigned materials program 4
Slide 5: Margins
Margins Q4- Q1- Q1-FY2026 FY2025 FY2025 Gross Margin 8.4% 6.2% 10.1% Operating Margin (0.6%) (2.1%) 3.4% • Sequential quarterly increase in gross margin was primarily related to operational efficiencies • Year-over-year decreases in gross margin largely reflects reduced revenue • Inventory and recei
Slide 6: Earnings – GAAP
Earnings – GAAP Q1-FY2026 Q1-FY2025 Net Income (Loss) ($2.3M) $1.1M Net Income (Loss) ($0.21) $0.10 Per Share – Diluted 6
Slide 7: Earnings – Non-GAAP
Earnings – Non-GAAP Q1-FY2026 Q1-FY2025 Adjusted Net Income ($1.1M) $2.8M (Loss) Adjusted Net Income (Loss) Per Share – ($0.10) $0.26 Diluted 7
Slide 8: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights Q1- % Q1-FY2026 FY2025 Change Inventory $97.6M $95.8M 2% Total Liabilities $209.8M $231.6M -9% Current Ratio 2.4 2.6 -7% DSOs 81 92 -12% Operating Cash $7.6M $9.9M -23% Flows Total Debt $100.8M $112.7M -11% 8 Capital Expenditures $3.2M $0.4M 700%
Slide 9: Outlook
Outlook • New programs gradually ramping • Efficiency improvements paying off • Expect growth in US and Vietnam • Strong pipeline of new business • Over longer term, believe we are increasingly well positioned to win new programs and profitably expand business • Not issuing revenue or earnings guida
Slide 10: Q1-2026 Highlights
Q1-2026 Highlights • Customer uncertainty surrounding global tariffs and macroeconomic outlook continued to delay new program ramps • To provide customers with options to manage these uncertainties and remain cost competitive: o Build out new production capacity in US and Vietnam o Right-sized Mexic
Slide 11: Market Challenges
Market Challenges • Demand shifts for long standing customers • Continued market uncertainty impacted new product launches across all facilities • Working with suppliers/customers on manufacturing products from different locations to mitigate the impact of tariffs • Changes to manufacturing footprin
Slide 12: Expanding US and Vietnam Production
Expanding US and Vietnam Production • US facilities: o Opened clean-tech, cutting-edge manufacturing and R&D operations in Arkansas o Provides customers with outstanding flexibility, engineering support, and ease of communications • Vietnam facilities: o Doubled capacity and added medical device cap
Slide 13: Streamlined Mexico Production
Streamlined Mexico Production • Mexico facility offers unique solution for tariff mitigation under USMCA • Sustained trend of continued wage increases in Mexico • Streamlined operations, increased efficiencies and invested in automation • Improved cost structure in Mexico anticipated to lead to new
Slide 14: Expanding Customer Base in Q1-FY2026
Expanding Customer Base in Q1-FY2026 • Medical technology • Industrial equipment • Underway with manufacturing services contract for data processing OEM 14
Slide 15: One-Stop-Shop
One-Stop-Shop • Combination of flexible global footprint and expansive design capabilities capturing new business o Many program wins predicated on our deep and broad design services o Believe our knowledge of specific design challenges makes business extremely sticky • Continue to invest in vertica
Slide 16: Looking Forward
Looking Forward • Global market uncertainties creating major near-term challenges but driving favorable long-term trends • Continuing to rebalance manufacturing across facilities in US and Vietnam • Strong pipeline of potential new business • Seeing significant improvements in operating efficiencies
Slide 17: Q&A
keutronic Q&A
Slide 18: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations