Slide 1: Second Quarter of Fiscal 2026 Earnings Call
Second Quarter of Fiscal 2026 Earnings Call February 3, 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 presentation and accompanying 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 in
Slide 4: Revenue Highlights
Revenue Highlights FY2026 FY2025 Second Quarter $96.3M $113.9M Year-to-date $195.1M $245.4M • Longstanding customer reduced demand and transition of end-of-life program • Partially offset by new program wins and increased demand from other longstanding customers • Continued uncertainty in global eco
Slide 5: Margins
Margins Adjusted Q2-FY2026 Q2-FY2026 Q2-FY2025 Gross Margin 0.6% 7.9% 6.8% Operating Margin (10.7%) -- (1.0%) • Advanced near-shoring and tariff mitigation strategies to reduce costs: o Wind-down of manufacturing operations in China => anticipate saving ~$1.2M per quarter o Further reduced workforce
Slide 6: Earnings – GAAP
Earnings – GAAP Q2-FY2026 Q2-FY2025 Net Income (Loss) ($8.6M) ($4.9M) Net Income (Loss) Per ($0.79) ($0.46) Share – Diluted YTD-FY2026 YTD-FY2025 Net Income (Loss) ($10.8M) ($3.8M) Net Income (Loss) Per ($1.00) ($0.35) Share – Diluted 6
Slide 7: Earnings – Non-GAAP
Earnings – Non-GAAP Q2-FY2026 Q2-FY2025 Adjusted Net Income (Loss) $0.0M ($4.1M) Adjusted Net Income (Loss) $0.00 ($0.38) Per Share – Diluted YTD-FY2026 YTD-FY2025 Adjusted Net Income (Loss) ($1.1M) ($1.3M) Adjusted Net Income (Loss) ($0.10) ($0.12) Per Share – Diluted 7
Slide 8: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights Q2-FY2026 Q2-FY2025 % Change Inventory $88.4M $100.7M 12% Current Ratio 2.0 2.8 -29% DSOs 77 99 -22% Operating Cash Flows $6.3M $1.5M 320% Total Debt $97.7M $111.1M -12% Capital Expenditures $3.3M $0.4M 725% 8
Slide 9: Outlook
Outlook • Continue to face global economic uncertainties and volatile trade policies • New programs gradually ramping • Efficiency improvements taking hold • Expect growth in US and Vietnam • Strong pipeline of new business • Over longer term, believe we are increasingly well positioned to win new p
Slide 10: Q2-2026 Highlights
Q2-2026 Highlights • Providing customers with options to better manage macroeconomic uncertainties and enhance potential for profitable long-term growth • Significant investments in US and Vietnam locations: o Increasing number of customer program starts in Arkansas, o Started new production line in
Slide 11: Market Challenges
Market Challenges • Demand from longstanding customer has declined in recent periods, but we believe recently won programs more than offset • Continued market uncertainty and tariffs impacted timing and launch of new programs, but those programs continue to proceed • Working with suppliers/customers
Slide 12: 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 13: 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 double-digit growth in Arkansas during 2H-FY2026 • Vietnam faci
Slide 14: Expanding Customer Base in Q2-FY2026
Expanding Customer Base in Q2-FY2026 • Automotive technology • Pest control • Industrial equipment • Ramping 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 • Expecting revenue growth in coming quarters from new programs launching in U.S., Mexico and Vietnam • Strong pipeline of potential new business • Anticipating significant improv
Slide 17: Q&A
keutronic Q&A
Slide 18: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations