Key Tronic (NasdaqGM:KTCC) Q1 2026 Earnings Call November 04, 2025 05:00 PM ET Speaker5Good day, and welcome to the Key Tronic first quarter fiscal year 2026 investor call. Today's conference is being recorded. After the presentation, we will begin the question and answer period. At this time, I would like to turn the call over to Tony Voorhees. Please go ahead.Speaker0Good afternoon, everyone. I am Tony Voorhees, Chief Financial Officer of Key Tronic. I would like to thank everyone for joining us today for ...

Core Insights - The United States is set to double tariffs on imported steel and aluminium to 50% in June 2025, impacting the global packaging industry significantly [1] Rising Metal Costs - The increase in tariffs is expected to drive up consumer prices, as seen in previous tariff implementations where prices for canned goods rose noticeably [2] - A midsized US can producer reported a nearly 33% increase in aluminium sheet costs since the new duties took effect, leading to anticipated price hikes for customers in early 2026 [3] Supply Chain Adjustments - Packaging firms are exploring alternatives to imported metals, such as flexible pouches made from recycled materials, particularly for sauces and pet food [4] - Some companies are shifting towards nearshore production, with North American suppliers investing in local steel rolling mills to reduce reliance on overseas inputs [5] Mergers and Acquisitions - The uncertain tariff landscape has accelerated mergers and acquisitions in the packaging sector, with larger companies acquiring smaller firms to enhance supply chains and sustainable product offerings [6] - Private equity investors are focusing on companies with strong automation and sustainability practices, driven by new regulations like Extended Producer Responsibility (EPR) in the UK [7]