Key Tronic Corporation Announces Preliminary Results for the Second Quarter of Fiscal Year 2025
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 (KTCC) ha annunciato i risultati preliminari per il secondo trimestre dell'anno fiscale 2025, prevedendo un fatturato di circa 114 milioni di dollari e una perdita netta di 0,40-0,48 dollari per azione, entrambi al di sotto delle precedenti previsioni. L'underperformance è attribuita a mancanze inaspettate di componenti, a una produzione ridotta durante la stagione delle festività e a una domanda dei clienti inferiore, con un deficit di fatturato di 15 milioni di dollari.
L'azienda prevede di riportare 1,0 milioni di dollari in cancellazioni legate al rifinanziamento del debito. Tuttavia, KTCC prevede un recupero nel terzo trimestre dell'anno fiscale 2025, stimando un fatturato tra 115-130 milioni di dollari e un utile di 0,00-0,15 dollari per azione diluita. L'azienda sta implementando misure di efficienza, comprese riduzioni del personale, mentre assicura nuovi programmi di resilienza nel settore aerospaziale e dell'energia.
Key Tronic (KTCC) ha anunciado resultados preliminares para el segundo trimestre del año fiscal 2025, esperando ingresos de aproximadamente 114 millones de dólares y una pérdida neta de 0,40-0,48 dólares por acción, ambos por debajo de las previsiones anteriores. El bajo rendimiento se atribuye a escasez inesperada de componentes, menor producción durante la temporada de vacaciones y una reducción de la demanda de los clientes, resultando en un déficit de ingresos de 15 millones de dólares.
La compañía anticipa reportar 1,0 millones de dólares en cancelaciones relacionadas con el refinanciamiento de deudas. Sin embargo, KTCC espera una recuperación en el tercer trimestre del año fiscal 2025, proyectando ingresos entre 115-130 millones de dólares y ganancias de 0,00-0,15 dólares por acción diluida. La empresa está implementando medidas de eficiencia, incluyendo reducciones de personal, al tiempo que asegura nuevos programas de resiliencia en aeroespacial y energía.
Key Tronic (KTCC)는 2025 회계연도 2분기 예비 결과를 발표하며 약 1억 1,400만 달러의 매출과 주당 0.40-0.48 달러의 순손실을 예상하고 있으며, 두 가지 모두 이전 가이던스보다 낮습니다. 실적 부진의 원인은 예기치 못한 부품 부족, 연휴 시즌의 생산 감소, 고객 수요 감소로, 1,500만 달러의 매출 부족을 초래했습니다.
회사는 부채 재융자와 관련하여 100만 달러의 상각을 보고할 것으로 예상하고 있습니다. 그러나 KTCC는 2025 회계연도 3분기에 회복될 것으로 기대하며, 1억 1,500만-1억 3,000만 달러 사이의 매출과 주당 0.00-0.15 달러의 수익을 예상하고 있습니다. 회사는 직원 수 감소를 포함한 효율성 조치를 구현하고 있으며, 새로운 항공우주 및 에너지 회복력 프로그램을 확보하고 있습니다.
Key Tronic (KTCC) a annoncé des résultats préliminaires pour le deuxième trimestre de l'exercice fiscal 2025, s'attendant à un chiffre d'affaires d'environ 114 millions de dollars et une perte nette de 0,40-0,48 dollars par action, tous deux en dessous des prévisions précédentes. La sous-performance est attribuée à des pénuries de composants inattendues, une production réduite pendant la saison des fêtes et une diminution de la demande des clients, entraînant un manque à gagner de 15 millions de dollars.
L'entreprise s'attend à déclarer 1,0 million de dollars de provisions liées au refinancement de la dette. Cependant, KTCC prévoit une reprise au troisième trimestre de l'exercice fiscal 2025, projetant un chiffre d'affaires compris entre 115-130 millions de dollars et des bénéfices de 0,00-0,15 dollars par action diluée. L'entreprise met en œuvre des mesures d'efficacité, y compris des réductions de personnel, tout en sécurisant de nouveaux programmes de résilience dans l'aérospatiale et dans le secteur de l'énergie.
Key Tronic (KTCC) hat erste Ergebnisse für das zweite Quartal des Geschäftsjahres 2025 bekannt gegeben und erwartet einen Umsatz von etwa 114 Millionen Dollar sowie einen Nettoverlust von 0,40-0,48 Dollar pro Aktie, beides unterhalb der vorherigen Prognosen. Die Underperformance wird auf unerwartete Komponentenmangel, geringere Produktionszahlen in der Ferienzeit und eine reduzierte Kundennachfrage zurückgeführt, was zu einem Umsatzdefizit von 15 Millionen Dollar führte.
Das Unternehmen rechnet mit 1,0 Millionen Dollar an Abschreibungen im Zusammenhang mit der Schuldenrefinanzierung. KTCC erwartet jedoch eine Erholung im dritten Quartal des Geschäftsjahres 2025 und prognostiziert einen Umsatz von 115-130 Millionen Dollar sowie Gewinne von 0,00-0,15 Dollar pro verwässerter Aktie. Das Unternehmen setzt Effizienzmaßnahmen um, darunter Stellenabbau, während es neue Programme zur Resilienz in der Luft- und Raumfahrt sowie im Energiesektor sichert.
- New program wins in aerospace systems and energy resiliency technology
- Expected Q3 FY2025 recovery with projected revenue of $115-130 million
- Inventory reduction aligned with current revenue levels
- Implementation of operational efficiency measures
- Q2 FY2025 revenue shortfall of $15 million
- Expected Q2 net loss of $0.40-$0.48 per share
- $1.0 million write-off from debt refinancing
- Reduced customer demand
- Component shortage issues
- Lower than expected holiday season production
Insights
Key Tronic's Q2 FY2025 preliminary results paint a concerning picture, with multiple red flags that warrant investor attention. The projected loss of
The confluence of component shortages and reduced customer demand is particularly troubling, as it indicates both supply chain vulnerabilities and potentially weakening market position. The need for additional headcount reductions, following similar measures in Q3 FY2024, suggests that previous cost-cutting initiatives may not have achieved their intended results.
Management's optimistic Q3 guidance (
The bright spot lies in new contract wins in aerospace and energy sectors, which could provide revenue diversification. However, the immediate focus should be on operational execution, particularly inventory management and production efficiency. The company's ability to streamline operations while maintaining quality standards will be important for achieving the projected Q3 recovery.
SPOKANE VALLEY, Wash., Jan. 24, 2025 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its preliminary results for the second quarter of fiscal year 2025 ending December 28, 2024.
For the second quarter of fiscal year 2025, Key Tronic anticipates reporting revenue of approximately
Key Tronic expects revenue and earnings to recover in the third quarter of fiscal year 2025 as strategic initiatives undertaken in previous quarters come to fruition. The Company is actively streamlining its international and domestic operations, with further headcount reductions to enhance efficiency, building on similar actions announced in the third quarter of fiscal year 2024. At the same time, Key Tronic continues to win new programs involving aerospace systems and energy resiliency technology products, which was announced in a separate press release on January 24, 2025, and has reduced inventories to be more in line with current revenue levels.
For the third quarter of 2025, the Company expects to report revenue in the range of
The revenue and earnings estimates for the second and third quarters of fiscal 2025, and the finalization of financial results for the second quarter of 2025, are subject to completion of the Company’s quarterly close and review procedures which are still ongoing. The Company plans to report its complete results and host its earnings conference call for the second quarter of fiscal 2025 on February 4, 2025. Details for the conference call have been announced in a separate press release.
About Key Tronic
Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico, China and Vietnam. The Company provides its customers full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world’s leading original equipment manufacturers. For more information about Key Tronic visit: www.keytronic.com.
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, anticipates, believes, continues, estimates, expects, hopes, intends, plans, predicts, projects, targets, will, or would, similar verbs, or nouns corresponding to such verbs, which may be forward looking. Forward-looking statements also include other passages that are relevant to expected future events, performances, and actions or that can only be fully evaluated by events that will occur in the future. Forward-looking statements in this release include, without limitation, the Company’s statements regarding its expectations with respect to financial conditions and results, including revenue and earnings, cost savings from headcount reduction and the Mexican Peso exchange rate, demand for certain products and the effectiveness of some of its programs, business from customers and programs, and impacts from operational streamlining and efficiencies, including reductions in inventories. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to: the future of the global economic environment and its impact on our customers and suppliers; the availability of components from the supply chain; the availability of a healthy workforce; the accuracy of suppliers’ and customers’ forecasts; development and success of customers’ programs and products; timing and effectiveness of ramping of new programs; success of new-product introductions; the risk of legal proceedings or governmental investigations relating to the previously reported financial statement restatements and related material weaknesses, the May 2024 cybersecurity incident and the subject of the internal investigation by the Company’s Audit Committee and related or other unrelated matters; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; impact of new governmental legislation and regulation, including tax reform, tariffs and related activities, such trade negotiations and other risks; and other factors, risks, and uncertainties detailed from time to time in the Company’s SEC filings.
| CONTACTS: | Anthony G. Voorhees | Michael Newman |
| Chief Financial Officer | Investor Relations | |
| Key Tronic Corporation | StreetConnect | |
| (509) 927-5345 | (206) 729-3625 |
FAQ
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