Financial Data and Key Metrics Changes - For Q3 FY2025, total revenue was $112 million, down from $142.4 million in the same period of FY2024, reflecting a significant decline due to global economic disruptions and tariff fluctuations [5] - Gross margins improved to 7.7% from 5.7% year-over-year, while operating margins remained negative at -0.4% [5] - The net loss for Q3 FY2025 was $600,000 or $0.06 per share, compared to a net loss of $2.2 million or $0.20 per share in Q3 FY2024 [6] - For the first nine months of FY2025, total revenue was $357.4 million, down from $440.4 million in the same period of FY2024 [5] Business Line Data and Key Metrics Changes - The company reported a reduction in inventory by approximately $16 million or 14% year-over-year, aligning inventory levels with current revenue [9] - Total liabilities decreased by $34.3 million or 14% from a year ago, indicating improved financial health [10] Market Data and Key Metrics Changes - The company faced significant uncertainties due to tariffs on China and potential tariffs on Mexico and Vietnam, impacting costs and margin performance [6][12] - The operational adjustments and cost-cutting measures are expected to enhance productivity and streamline the supply chain, contributing to stronger financial performance in the future [6] Company Strategy and Development Direction - The company is expanding production capacity in Arkansas and Vietnam, investing over $28 million in the US facility, which is expected to create over 400 jobs [15][16] - The strategic focus includes adapting to tariff implications by diversifying manufacturing locations and enhancing design capabilities to capture new business opportunities [14][19] - The company anticipates that the new facilities will come online during FY2026, allowing it to benefit from customer demand for rebalancing contract manufacturing [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the global tariff wars are creating significant challenges, but they remain optimistic about the potential for growth and profitability improvements [12][21] - The company has decided not to provide revenue or earnings guidance for Q4 FY2025 due to the unpredictable economic and political climate [12] - Despite the uncertainties, management expects to see growth in US and Vietnam production and a strong pipeline of potential new business [12][21] Other Important Information - The company has made significant progress in managing working capital, with operating cash flows increasing to $10.1 million for the first nine months of FY2025, up from $6.1 million in the same period of FY2024 [11] - The company is focused on vertical integration and enhancing manufacturing process knowledge to differentiate itself from competitors [20] Q&A Session Summary Question: Can you walk us through the five new business wins and their anticipated dollar amounts? - The first win is a $12 million telecommunications program in Mexico, with production expected to ramp up in Q2 FY2026 [26] - The second is a $6 million pest control device program in Vietnam [27] - The third is a $7 million energy program in Arkansas, currently in the design stage [28] - The fourth is a consumer product worth $2 to $5 million, also in Arkansas [29] - The fifth is a design contract starting at $1 million, potentially growing to $5 to $15 million [30] Question: What impact is the macro environment having on the $60 million program? - The program is expected to generate income in Q1 FY2026, with a ramp-up period of 12 to 18 months [34][35] Question: Can you clarify the unusual items flagged in the report? - The severance in Mexico is included in cost of goods sold, while the balance of $700,000 is split between operating expenses and cost of goods sold [41][42] Question: How do you see gross margins improving as revenue grows? - With incremental revenue, the expectation is to exceed 10% gross margin as fixed costs are covered [44] Question: What is the current state of customer demand? - There has been a significant reduction in demand from existing customers, but new program wins are helping to offset this decline [47][50] Question: How is the company managing working capital? - The company manages over 90% of its customers' bill of materials and aims for inventory turns of four [53]

Core Viewpoint - Key Tronic Corporation reported a decline in revenue for the third quarter of fiscal year 2025, primarily due to global economic disruptions and tariff fluctuations, but remains optimistic about long-term growth and profitability [2][3][7]. Financial Performance - Total revenue for Q3 FY2025 was $112.0 million, down from $142.4 million in Q3 FY2024, with a year-to-date revenue of $357.4 million compared to $440.4 million in the same period last year [2][5]. - Gross margin improved to 7.7% in Q3 FY2025 from 5.7% in Q3 FY2024, while operating margin remained at (0.4)% for both periods [4]. - The net loss for Q3 FY2025 was $(0.6) million or $(0.06) per share, an improvement from a net loss of $(2.2) million or $(0.21) per share in Q3 FY2024 [5][6]. Strategic Initiatives - The company is expanding production capacity in Arkansas and Vietnam to mitigate tariff impacts and enhance operational flexibility [7]. - Cost reduction initiatives have been implemented, including headcount reductions, which have lowered the break-even revenue requirements [3][4]. Cash Flow and Operations - Key Tronic generated positive cash flow from operations of $10.1 million in the first nine months of FY2025, compared to $6.1 million in the same period of FY2024 [3]. - The company continues to win new programs across various sectors, including telecommunications and medical technology, positioning itself for future growth [7][8]. Business Outlook - Due to ongoing uncertainties regarding tariffs and economic conditions, Key Tronic will not provide revenue or earnings guidance for Q4 FY2025 [9].

[Q3 FY2025 Financial Performance and Corporate Strategy](index=1&type=section&id=Key%20Tronic%20Corporation%20Announces%20Results%20for%20the%20Third%20Quarter%20of%20Fiscal%20Year%202025) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Key Tronic's Q3 FY2025 revenue declined to $112.0 million, but net loss narrowed to $(0.6) million, gross margin improved, and operating cash flow remained positive Q3 & YTD FY2025 Key Financial Results | Metric | Q3 FY2025 ($ millions) | Q3 FY2024 ($ millions) | YTD FY2025 ($ millions) | YTD FY2024 ($ millions) | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $112.0M | $142.4M | $357.4M | $440.4M | | **Net Loss** | $(0.6)M | $(2.2)M | $(4.4)M | $(0.8)M | | **Net Loss per Share** | $(0.06) | $(0.21) | $(0.41) | $(0.07) | Q3 FY2025 vs Q3 FY2024 Margin Comparison | Margin | Q3 FY2025 (%) | Q3 FY2024 (%) | | :--- | :--- | :--- | | **Gross Margin** | 7.7% | 5.7% | | **Operating Margin** | (0.4)% | (0.4)% | - The year-over-year improvement in **gross margin** was driven by cost-cutting and headcount reductions in both international and domestic operations[5](index=5&type=chunk) - The company generated positive cash flow from operations, totaling **$10.1 million** for the first nine months of fiscal 2025, an increase from **$6.1 million** in the same period of fiscal 2024[4](index=4&type=chunk) [Operational and Strategic Developments](index=1&type=section&id=Operational%20and%20Strategic%20Developments) Key Tronic's operations were impacted by tariff disruptions, prompting cost reductions and new manufacturing expansions in Arkansas and Vietnam, expected by H1 FY2026, alongside securing new programs - Revenue was adversely impacted by worldwide economic disruptions and uncertainty from escalating and fluctuating global tariffs, leading to delays and reduced customer demand[3](index=3&type=chunk)[8](index=8&type=chunk) - The company is building new production capacity in Arkansas and Vietnam, expected to be operational in the **first half of fiscal 2026**, to help customers mitigate tariff impacts on goods from China[8](index=8&type=chunk)[9](index=9&type=chunk) - Strategic initiatives include streamlining operations and reducing headcount to lower the cost structure and enhance competitiveness[5](index=5&type=chunk)[9](index=9&type=chunk) - Key Tronic has won new programs in telecommunications, pest control, energy storage, medical technology, and temperature-controlled shipping solutions[9](index=9&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) Key Tronic will not provide Q4 FY2025 financial guidance due to significant economic and political uncertainty, particularly concerning potential tariffs - The company will not provide financial guidance for Q4 FY2025 due to uncertainty related to potential tariffs[10](index=10&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) [Consolidated Statements of Operations](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) In Q3 FY2025, net sales decreased to $112.0 million, resulting in an operating loss of $0.5 million and a net loss of $0.6 million, with similar trends for the nine-month period Consolidated Statements of Operations (In thousands) | | Three Months Ended (in thousands) | Nine Months Ended (in thousands) | | :--- | :--- | :--- | | | **Mar 29, 2025** | **Mar 30, 2024** | **Mar 29, 2025** | **Mar 30, 2024** | | **Net sales** | **$111,974** | **$142,427** | **$357,385** | **$440,386** | | Gross profit | $8,607 | $8,081 | $29,616 | $30,706 | | Operating income (loss) | $(459) | $(575) | $2,864 | $6,641 | | **Net Loss** | **$(604)** | **$(2,221)** | **$(4,394)** | **$(802)** | | Net loss per share — Diluted | $(0.06) | $(0.21) | $(0.41) | $(0.07) | [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 29, 2025, Key Tronic's total assets decreased to $328.6 million, total liabilities to $209.0 million, and shareholders' equity slightly reduced to $119.6 million Consolidated Balance Sheet Highlights (In thousands) | | March 29, 2025 (in thousands) | June 29, 2024 (in thousands) | | :--- | :--- | :--- | | **Total current assets** | $252,816 | $288,399 | | **Total assets** | **$328,557** | **$355,343** | | **Total current liabilities** | $92,788 | $104,176 | | Long-term debt, net | $108,516 | $116,383 | | **Total liabilities** | **$208,962** | **$231,353** | | **Total shareholders' equity** | **$119,595** | **$123,990** | [Reconciliation of GAAP to Non-GAAP Measures](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20non-GAAP%20measures) Key Tronic provides non-GAAP financial measures for transparency, with Q3 FY2025 GAAP net loss of $(0.6) million adjusted to a non-GAAP net loss of $(0.6) million, or $(0.05) per share - The company uses non-GAAP financial measures, such as adjusted net loss and adjusted net loss per share, to supplement its GAAP financial statements and provide greater transparency on core operations[14](index=14&type=chunk) GAAP to Non-GAAP Reconciliation (In thousands) | | Three Months Ended (in thousands) | Nine Months Ended (in thousands) | | :--- | :--- | :--- | | | **Mar 29, 2025** | **Mar 30, 2024** | **Mar 29, 2025** | **Mar 30, 2024** | | **GAAP net loss** | **$(604)** | **$(2,221)** | **$(4,394)** | **$(802)** | | Stock-based compensation | $26 | $52 | $109 | $163 | | Write-off of unamortized loan fees | — | — | $1,012 | — | | **Adjusted net loss (Non-GAAP)** | **$(583)** | **$(2,179)** | **$(3,497)** | **$(1,016)** | | **Adjusted net loss per share (Non-GAAP)** | **$(0.05)** | **$(0.20)** | **$(0.32)** | **$(0.09)** |

Core Points - Key Tronic Corporation is expanding its clean-tech manufacturing operations in Springdale, Arkansas, with an investment exceeding $28 million and the creation of over 400 jobs in the next five years [1][2][5] - The new facility will increase Key Tronic's total U.S. production capacity by approximately 40% [3] - The expansion is part of a larger business park investment of over $100 million in the Springdale community [4] Company Overview - Key Tronic, founded in 1969, is a leading contract manufacturer providing design and manufacturing services from facilities in the U.S., Mexico, China, and Vietnam [6][7] - The company has been operating in Arkansas since 1985 and has a long history of manufacturing electronics in the state [7] Economic Impact - The expansion is expected to enhance the local economy by providing significant job opportunities and reinforcing Springdale's reputation as a destination for industry and innovation [5] - Local officials, including the Governor and the Mayor of Springdale, have expressed strong support for the expansion, highlighting the region's skilled workforce and business-friendly environment [2][5]

[Part I: Financial Information](index=4&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited condensed consolidated financial statements for Key Tronic Corporation for the quarter ended December 28, 2024 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 28, 2024 | Jun 29, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $261,136 | $288,399 | | **Total Assets** | **$327,829** | **$355,343** | | **Total Current Liabilities** | $93,770 | $104,176 | | Long-term debt, net | $106,020 | $116,383 | | **Total Liabilities** | **$208,342** | **$231,353** | | **Total Shareholders' Equity** | **$119,487** | **$123,990** | Condensed Consolidated Statement of Operations Highlights (in thousands, except per share) | Metric | Three Months Ended Dec 28, 2024 | Three Months Ended Dec 30, 2023 | Six Months Ended Dec 28, 2024 | Six Months Ended Dec 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $113,853 | $147,847 | $245,411 | $297,959 | | **Gross Profit** | $7,706 | $11,763 | $21,009 | $22,625 | | **Operating Income (Loss)** | $(1,121) | $3,948 | $3,323 | $7,216 | | **Net Income (Loss)** | **$(4,914)** | **$1,084** | **$(3,790)** | **$1,419** | | **Diluted EPS** | **$(0.46)** | **$0.10** | **$(0.35)** | **$0.13** | Condensed Consolidated Statement of Cash Flow Highlights (Six Months Ended, in thousands) | Cash Flow Activity | Dec 28, 2024 | Dec 30, 2023 | | :--- | :--- | :--- | | **Cash provided by operating activities** | $11,537 | $9,080 | | **Cash used in investing activities** | $(821) | $(360) | | **Cash used in financing activities** | $(11,224) | $(9,370) | | **Net decrease in cash** | $(508) | $(650) | | **Cash and cash equivalents, end of period** | $4,244 | $2,953 | - On December 3, 2024, the company entered into a **new asset-based senior secured revolving credit facility of up to $115 million and a $28 million term loan**, both maturing in December 2029. These were used to pay off the prior credit facility[43](index=43&type=chunk)[45](index=45&type=chunk)[48](index=48&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 FY25 financial performance, highlighting revenue decline, debt refinancing, and operational restructuring - **Net sales for Q2 FY25 were $113.9 million, a 23.0% decrease** from $147.8 million in the prior-year period. The decline was attributed to component shortages, lower holiday production, and reduced customer demand, which collectively lowered revenue by about $15 million[104](index=104&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) - The company completed a **new asset-based revolving credit facility and term loan that extends debt maturity to December 3, 2029, and is expected to lower cash interest expense**[103](index=103&type=chunk) - The company is **restructuring its Juarez facility to focus on higher volume manufacturing** in response to rising Mexican wages and to improve competitiveness. This involves significant headcount reductions[110](index=110&type=chunk) - **Order backlog was approximately $162.5 million** on December 28, 2024, **down from $264.1 million** a year earlier, due to softening demand for Mexico-based programs. However, the company expects the backlog to increase due to recent program wins[143](index=143&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Net sales decreased 23.0% to $113.9 million for Q2 FY25, resulting in a $4.9 million net loss, due to shortages and demand Comparison of Three Months Ended (in thousands) | Metric | Dec 28, 2024 | Dec 30, 2023 | $ Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $113,853 | $147,847 | $(33,994) | | **Gross Profit** | $7,706 | $11,763 | $(4,057) | | **Operating Income (Loss)** | $(1,121) | $3,948 | $(5,069) | | **Net (Loss) Income** | $(4,914) | $1,084 | $(5,998) | - **The decrease in Q2 gross margin to 6.8% from 8.0% YoY** was primarily due to lower net sales without a corresponding decrease in fixed manufacturing costs[121](index=121&type=chunk) - **Interest expense for Q2 FY25 increased to $3.9 million from $3.0 million YoY**, largely due to a **$1.0 million write-off** of unamortized loan fees related to the debt refinancing[126](index=126&type=chunk) [Capital Resources and Liquidity](index=27&type=section&id=Capital%20Resources%20and%20Liquidity) The company generated $11.5 million in operating cash flow, refinanced debt, and maintains sufficient liquidity - **Net cash provided by operating activities was $11.5 million** for the six months ended December 28, 2024, primarily driven by **decreases in inventory ($4.4M), accounts receivable ($19.4M), and contract assets ($2.4M)**, offset by a **decrease in accounts payable ($15.8M)**[144](index=144&type=chunk)[145](index=145&type=chunk) - The company entered into a **new $115 million asset-based senior secured revolving credit facility and a $28 million term loan** on December 3, 2024, both maturing on December 3, 2029[151](index=151&type=chunk) - **Management expects capital expenditures to be approximately $8-$10 million** for the fiscal year, funded by internal funds, the credit facility, and equipment term loans[149](index=149&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from fluctuating interest rates on secured debt and foreign currency exchange rates, partially hedged - The company is **subject to interest rate risk on its debt, including a $75.6 million outstanding balance** on its asset-based senior secured revolving credit facility, which has a variable rate tied to SOFR[215](index=215&type=chunk) - **The company faces foreign currency exchange risk from its operations in Mexico, China, and Vietnam. To mitigate this, it uses Mexican Peso forward contracts, with $29.0 million outstanding** as of December 28, 2024[75](index=75&type=chunk)[217](index=217&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective due to material weaknesses, with remediation efforts underway - **The CEO and CFO concluded that the company's disclosure controls and procedures were not effective as of December 28, 2024, due to previously identified material weaknesses in internal control over financial reporting**[220](index=220&type=chunk) - **Remediation efforts are underway to address the material weaknesses. Steps include training on accounting for material price variances, enhancing closing process documentation, and hiring technical accounting finance staff**[222](index=222&type=chunk)[227](index=227&type=chunk) - **Despite the material weaknesses, management believes the financial statements in this report are fairly presented in all material respects in accordance with GAAP**[221](index=221&type=chunk) [Part II: Other Information](index=38&type=section&id=Part%20II.%20OTHER%20INFORMATION) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business, operational, technology, capital, and control risks, including customer dependence, cyber incidents, and debt [Risks Related to Business and Strategy](index=29&type=section&id=RISKS%20RELATED%20TO%20OUR%20BUSINESS%20AND%20STRATEGY) Business risks include international operational instability, volatile customer demand, customer concentration, and limited suppliers - **Operations in Mexico, China, and Vietnam expose the company to risks including political instability, regulatory changes, trade barriers, and tariffs**[156](index=156&type=chunk)[159](index=159&type=chunk) - **The company's customer base is concentrated, and it does not typically have long-term volume purchase contracts**, making it vulnerable to the loss or reduction of orders from principal customers[164](index=164&type=chunk)[165](index=165&type=chunk) - **Dependence on a limited number of suppliers for critical components creates a risk of operational interruption** from component shortages or price increases, which could damage customer relationships[168](index=168&type=chunk)[169](index=169&type=chunk) [Technology Risks](index=33&type=section&id=TECHNOLOGY%20RISKS) The company faces significant technology risks, primarily from cybersecurity threats and IT system disruptions, including a Q4 FY2024 cyber incident - **The company is subject to cyberattacks and experienced a material incident in Q4 FY2024 involving unauthorized access and data exfiltration, which had a material impact on financial condition and results**[187](index=187&type=chunk)[188](index=188&type=chunk) - **The company relies heavily on its IT infrastructure for critical functions** like financial reporting and inventory management, which are susceptible to outages that could disrupt operations[189](index=189&type=chunk) [Risks Related to Capital and Financing](index=34&type=section&id=RISKS%20RELATED%20TO%20CAPITAL%20AND%20FINANCING) Capital and financing risks include restrictive debt covenants, potential for default, interest rate exposure, and credit risk - **The company's credit agreements contain restrictive covenants. It has a history of breaching covenants** under its prior facility and may not meet covenants in its new facility, which could result in default[191](index=191&type=chunk)[192](index=192&type=chunk) - **The company is exposed to interest rate risk** under its revolving line of credit and term loans, as it has not historically hedged this exposure[195](index=195&type=chunk) [Risks Related to Controls, Procedures, and Internal Investigation](index=35&type=section&id=RISKS%20RELATED%20TO%20OUR%20CONTROLS%20AND%20PROCEDURES%20AND%20THE%20INTERNAL%20INVESTIGATION) Risks include ineffective internal controls due to material weaknesses, potential for inaccurate reporting, and ongoing SEC cooperation - **The company identified material weaknesses in internal controls over financial reporting as of June 29, 2024**, leading to the conclusion that controls were not effective[199](index=199&type=chunk) - **Failure to remediate the material weaknesses in a timely manner increases the risk** of being unable to file periodic reports on time and could lead to stock delisting or regulatory action[200](index=200&type=chunk) - **The company continues to cooperate with the SEC regarding matters from a past internal investigation**, which could lead to significant legal expenses, penalties, or other remedies[203](index=203&type=chunk)[205](index=205&type=chunk) [Other Information](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings not expected to be material, and no Rule 10b5-1 trading plans were adopted or terminated - **The company is involved in various legal proceedings in the ordinary course of business, which it does not expect to have a material adverse effect** on its financial condition or results of operations[225](index=225&type=chunk) - **During the fiscal quarter ended December 28, 2024, no directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements**[227](index=227&type=chunk)

Core Viewpoint - Key Tronic Corporation's second-quarter fiscal 2025 results indicate a challenging operating environment, with significant revenue declines and losses, but management is implementing strategic measures to improve profitability and position the company for future growth [16]. Financial Performance Overview - Key Tronic reported a loss of 46 cents per share in Q2 fiscal 2025, compared to earnings of 10 cents per share in the same period last year [2]. - Total revenues for the quarter were $113.9 million, down 22.9% from $147.8 million in the prior-year quarter [2]. Factors Influencing Results - The revenue decline was attributed to component shortages, reduced production during the holiday season, and declining demand from certain customers, collectively lowering revenues by approximately $15 million from initial expectations [3][12]. - Inventory levels decreased by $23 million or 19% year over year, reflecting efforts to optimize inventory amid improved component availability [4]. Key Business Metrics - Gross margin fell to 6.8% from 8% year over year, while operating margin was -1% compared to 2.7% in Q2 fiscal 2024, primarily due to lower revenue levels and fixed cost absorption [4]. - Total operating expenses increased to $8.8 million from $7.8 million in the prior-year quarter, driven by higher research and development costs [5]. Cash & Debt Position - As of December 28, 2024, cash and cash equivalents were $4.2 million, down from $4.8 million as of June 29, 2024, reflecting lower operational cash flow amid declining revenues [7]. - Long-term debt decreased to $106 million from $116.4 million following the refinancing under a new $115-million asset-based financing agreement, which provides increased financial flexibility [8]. Strategic Initiatives & Outlook - Management is focusing on streamlining operations, reducing headcount, and aligning inventory levels with current demand, with optimism about improving profitability as these initiatives take effect [9]. - Key Tronic plans to expand production capacity in Arkansas and Vietnam to address growing customer demand and mitigate tariff risks, with significant capacity increases expected by mid-2025 [10][11]. - New contracts secured in aerospace systems and energy resiliency technologies are anticipated to generate annual revenues exceeding $60 million once fully ramped by late 2025 [13]. Other Developments - The company has opted not to issue revenue or earnings guidance for Q3 fiscal 2025 due to uncertainties related to newly announced tariffs and potential shifts in customer demand [14]. - The refinancing of long-term debt is expected to lower interest expenses and support growth initiatives [15].

Core Points - Key Tronic Corporation plans to expand production capacity in Arkansas and Vietnam to meet growing customer demand and mitigate the impact of tariffs on goods manufactured in China and Mexico [1][3] - The company has signed a new lease in Arkansas to increase its manufacturing footprint by June 2025 and plans to double its manufacturing capacity in Vietnam by September 2025 with significant capital investment [2][3] - The expansion reflects a trend towards nearshoring production away from China, providing customers with flexibility and high-quality, low-cost manufacturing options [3] Company Overview - Key Tronic is a leading design engineering and contract manufacturer, offering services from facilities in the United States, Mexico, China, and Vietnam [4] - The company provides full engineering services, materials management, assembly services, in-house testing, and worldwide distribution to some of the world's leading original equipment manufacturers [4]

New Program Wins; Cost Reduction Initiatives; Expansion Plans in US and VietnamSPOKANE VALLEY, Wash., Feb. 04, 2025 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended December 28, 2024. These results are in line with the updated guidance provided on January 24, 2025. For the second quarter of fiscal year 2025, Key Tronic reported total revenue of $113.9 million, compared to $147.8 million in the ...

Program expected to have a materially significant impact on revenue and profitSPOKANE VALLEY, Wash., Jan. 24, 2025 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq KTCC), a world class provider of manufacturing and design engineering services, today announced that it expects to begin manufacturing in the second half of 2025 for a market revolutionizing, innovative energy resilience technology provider. Key Tronic has been awarded the manufacturing of an industry leading, innovative energy resiliency prod ...

SPOKANE VALLEY, Wash., Jan. 24, 2025 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), announced today that it plans to report its results for the second quarter of fiscal 2025 after market close on February 4, 2025. Key Tronic will host a conference call to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern) on February 4, 2025. A broadcast of the conference call will be available at www.keytronic.com under “Investor Relations” or by calling 888-394-8218 or +1-313-209-4906 (Access C ...