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Key Tronic Corporation (Nasdaq: KTCC) is a premier electronic manufacturing service (EMS) provider, delivering high-quality manufacturing solutions to original equipment manufacturers (OEMs) in the United States and worldwide. Established as a value-added contract manufacturer, Keytronic specializes in PCB assembly, precision plastic molding, sheet metal fabrication, and complete product assembly. The company's extensive range of services includes integrated electronic and mechanical engineering, component selection, sourcing and procurement, logistics, new product testing, and full-scale production.
Key Tronic operates cutting-edge manufacturing facilities in the United States, Mexico, China, and Vietnam, which enable it to offer competitive pricing and exceptional customer service. The company's size allows it to focus on low to medium volume accounts with high flexibility requirements while providing the cost benefits typically associated with larger contract manufacturers.
Recent achievements include the successful ramp-up of new programs, such as those involving security products, medical devices, and military aerospace. For Q1 of fiscal year 2024, Keytronic reported a revenue of $147.7 million, aligned with expectations, but earnings of $0.02 per share, slightly below predictions due to unanticipated severance costs. The company anticipates increased demand for many Mexico-based programs towards the latter half of FY 2024 and expects significant new program wins to continue driving growth.
Key Tronic's financial outlook for Q2 FY 2024 includes projected revenue of $135 million to $145 million and earnings of $0.05 to $0.10 per diluted share. The company is also proactively managing its inventory levels and reducing operational expenses, aiming for streamlined production efficiency and improved gross margins.
On a leadership front, CEO Craig Gates will retire in June 2024, with Brett R. Larsen named as his successor. The company has also seen changes in its Board of Directors, including the introduction of new board members and the appointment of Ronald F. Klawitter as Chairman. These strategic shifts aim to ensure continued strong governance and sustained growth.
Key Tronic (KTCC) announced the expansion of its clean-tech manufacturing operations in Arkansas, with plans to establish a flagship manufacturing and R&D facility in Springdale. The company will invest over $28 million in the new facility and expects to create more than 400 new jobs over the next five years.
The company will relocate its existing Arkansas operations to a new 300,000-square-foot facility at 601 W Apple Blossom Avenue in Springdale later in 2025. This move is expected to increase KTCC's total U.S. production capacity by approximately 40 percent. The facility, developed by Crossland Realty Group in late 2023, will have tenant improvements completed by Crossland Construction in Q3 2025.
Key Tronic (KTCC) has announced plans to significantly expand its production capacity in Arkansas and Vietnam to meet growing customer demand and mitigate risks from recent tariffs on Chinese and Mexican goods. The company will:
- Increase its Arkansas manufacturing footprint through a new lease, with completion expected by June 2025
- Double manufacturing capacity in its existing Vietnam facility by September 2025 through capital equipment investment
The expansion strategy aims to capitalize on the trend of nearshoring production away from China while offering customers both US-based flexibility and engineering support, alongside Vietnam's high-quality, low-cost manufacturing capabilities.
Key Tronic (KTCC) reported Q2 FY2025 results with total revenue of $113.9 million, down from $147.8 million in Q2 FY2024. The company faced challenges including component shortages, lower holiday production, and reduced customer demand, resulting in a $15 million revenue shortfall from initial guidance.
Gross margins declined to 6.8% from 8.0%, and operating margins fell to -1.0% from 2.7% year-over-year. The company reported a net loss of $(4.9) million or $(0.46) per share, compared to net income of $1.1 million or $0.10 per share in Q2 FY2024.
Key Tronic announced plans to expand production capacity in Arkansas and Vietnam to address tariff concerns on Chinese and Mexican manufacturing. The company secured new programs, including an energy resiliency technology program potentially worth $60 million annually. Due to economic and political uncertainties, no guidance was provided for Q3 FY2025.
Key Tronic (Nasdaq: KTCC) has secured a significant manufacturing contract with an energy resilience technology provider. The company will begin manufacturing an innovative energy resiliency product in the second half of 2025, with production taking place at facilities in Juarez, Mexico and Arkansas. The program is expected to generate annual revenue exceeding $60 million once fully ramped.
The partnership aims to accelerate new product introduction and enhance product availability to meet anticipated high demand. Key Tronic's President and CEO Brett Larsen highlighted that this strategic relationship represents an expansion of their customer base and is expected to contribute to profitable long-term growth. The product is designed to improve asset management and public safety through increased operational vigilance.
Key Tronic (Nasdaq: KTCC) has announced its schedule for reporting second quarter fiscal 2025 financial results. The company will release its earnings report after market close on February 4, 2025. Following the release, Key Tronic will host a conference call at 2:00 PM Pacific (5:00 PM Eastern) to discuss the financial results.
Investors can access the conference call through the company's website at www.keytronic.com under the Investor Relations section or by calling 888-394-8218 or +1-313-209-4906 (Access Code: 2254355). A replay of the call will be available on the company's website.
Key Tronic (KTCC) has announced preliminary results for Q2 FY2025, expecting revenue of approximately $114 million and a net loss of $0.40-$0.48 per share, both below previous guidance. The underperformance is attributed to unexpected component shortages, lower holiday season production, and reduced customer demand, resulting in a $15 million revenue shortfall.
The company anticipates reporting $1.0 million in write-offs related to debt refinancing. However, KTCC expects recovery in Q3 FY2025, projecting revenue between $115-130 million and earnings of $0.00-$0.15 per diluted share. The company is implementing efficiency measures, including headcount reductions, while securing new aerospace and energy resiliency programs.
Key Tronic (Nasdaq: KTCC) has secured new financing arrangements with Bank of Montreal and Callodine Commercial Finance, extending through December 2029. The combined financing provides up to $143 million in availability, subject to borrowing base and other limitations. This new agreement replaces the existing asset-based credit line with Bank of America, which was due to expire in December 2025.
The company expects to write off approximately $0.9 million in unamortized capitalized loan fees. According to CFO Tony Voorhees, the new financing is expected to enhance working capital access, lower interest expenses, and provide greater financial flexibility to support long-term growth plans.
Key Tronic (KTCC) reported Q1 FY2025 results with revenue of $131.6 million, down from $150.1 million in Q1 FY2024. Despite revenue decline due to program delays, the company showed improved profitability with gross margins of 10.1% and operating margins of 3.4%. Net income reached $1.1 million ($0.10 per share), up from $0.3 million. Mexico facilities production increased 10% sequentially, benefiting from headcount reductions and favorable peso exchange rates. The company won new programs in manufacturing equipment, vehicle lighting, and pest control. For Q2 FY2025, Key Tronic expects revenue between $130-140 million with earnings of $0.05-0.15 per share.
Key Tronic (Nasdaq: KTCC) has announced it will release its first quarter fiscal 2025 financial results after market close on November 5, 2024. The company will host a conference call to discuss these results at 2:00 PM Pacific (5:00 PM Eastern) on the same day. Investors can access the conference call through the company's website under the Investor Relations section or by calling the provided phone numbers with access code 7268667. A replay of the call will be available on the company's website.
Key Tronic (KTCC) reported Q4 fiscal 2024 results, with revenue of $125.7 million, down from $162.6 million in Q4 2023. Full-year 2024 revenue was $559.4 million, compared to $588.1 million in 2023. Despite a cybersecurity incident causing $15 million in unfulfilled orders and $2.3 million in additional expenses, the company improved its gross margin to 9.0% in Q4. Net income for Q4 was $0.0 million or $0.00 per share, compared to $1.1 million or $0.10 per share in Q4 2023. For fiscal 2025's first quarter, Key Tronic expects revenue between $140-150 million and earnings of $0.10-$0.20 per diluted share.
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