Key Tronic Corporation · NASDAQ:KTCC
Key Tronic — Q3 FY2026 Earnings Presentation
17 slides from Key Tronic's earnings presentation, May 5, 2026
Slide 1: Third Quarter of Fiscal 2026 Earnings Call
Third Quarter of Fiscal 2026 Earnings Call May 5, 2026
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, an
Slide 4: Revenue Highlights
Revenue Highlights FY2026 FY2025 Third Quarter $89.6M $112.0M Year-to-date $284.6M $357.4M • Decreases due to reduced demand from legacy customer and end-of-life program • Adverse impacts from Winter Storm Fern, customer related design delays, and delays in receiving allocated components • Expect re
Slide 5: Margins
Margins Adjuste d Q3- Q3- Q3- FY2026 FY2026 FY2025 Gross Margin 8.0% 8.5% 7.7% Operating (0.3%) -- (0.4%) Margin • Margin improvements were made on considerably less revenue, demonstrating continued operating efficiencies gained • Expect margins to strengthen on higher revenue, driven by improved op
Slide 6: Earnings – GAAP
Earnings – GAAP Q3-FY2026 Q3-FY2025 Net Loss ($2.6M) ($0.6M) Net Loss Per Share ($0.24) ($0.06) – Diluted YTD-FY2026 YTD-FY2025 Net Loss ($13.5M) ($4.4M) Net Loss Per Share ($1.24) ($0.41) – Diluted 6
Slide 7: Earnings – Non-GAAP
Earnings – Non-GAAP Q3-FY2026 Q3-FY2025 Adjusted Net Income ($2.8M) $0.1M (Loss) Adjusted Net Income (Loss) Per Share – ($0.26) $0.01 Diluted YTD-FY2026 YTD-FY2025 Adjusted Net Loss ($3.9M) ($1.2M) Adjusted Net Loss Per ($0.36) ($0.11) Share – Diluted 7
Slide 8: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights % Q3-FY2026 Q3-FY2025 Change Inventory $85.8M $99.3M -14% Current Ratio 2.1 2.7 -22% DSOs 85 92 -8% YTD Operating Cash $10.0M $10.1M 0% Flows Total Debt $99.3M $113.6M -13% Capital Expenditures $3.7M $3.0M 23% (YTD) 8
Slide 9: Outlook
Outlook • Continue to face global economic uncertainties and volatile trade policies, but believe customers adjusting to new normal • Expect gradually increasing demand from several longstanding customers and new programs ramping • Expect growth in US and Vietnam • Improved operating efficiency maki
Slide 10: Q3-2026 Highlights
Q3-2026 Highlights • Encouraged by improved operating efficiencies, and by gradual rebound in demand and continued growth of new programs in Q4 • Providing customers with options to better manage macroeconomic uncertainties and enhance potential for profitable long-term growth o Winding down manufac
Slide 11: Major Cost-Cutting in China and Mexico
Major Cost-Cutting in China and Mexico • China operations: o Continuing geopolitical tensions, tariff uncertainties and increasing costs o Winding down China facilities and transferring several programs to Vietnam o Continue to operate in China with small team focused on sourcing • Mexico operations
Slide 12: Expanding US and Vietnam Production
Expanding US and Vietnam Production • US facilities: o New clean-tech, cutting-edge manufacturing and R&D operations in Arkansas o Provides customers with outstanding flexibility, engineering support, and ease of communications o Expect substantial growth in Arkansas in FY 2027 • Vietnam facilities:
Slide 13: Expanding Customer Base in Q3-FY2026
Expanding Customer Base in Q3-FY2026 • Automotive technology • Industrial tooling • Pest control • Industrial power management • Traction in steady growth sectors o Utilities and data centers 13
Slide 14: Key Competitive Advantages
Key Competitive Advantages • Enhanced cost/tariff efficiency and flexibility of global footprint • Extensive design and program management expertise • Continued investment in vertical integration and manufacturing process knowledge
Slide 15: Looking Forward
Looking Forward • Global market uncertainties creating major near-term challenges but driving favorable long-term trends • Expecting gradual revenue growth in coming quarters from new programs launching in U.S., Mexico and Vietnam • Improvements in operating efficiencies make us more competitive =>
Slide 16: Q&A
keutronic Q&A
Slide 17: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations