Key Tronic Corporation Awarded Major New Contract with Energy Resilience Technology Provider
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) ha ottenuto un contratto di produzione significativo con un fornitore di tecnologie per la resilienza energetica. L'azienda inizierà a produrre un innovativo prodotto per la resilienza energetica nella seconda metà del 2025, con la produzione che avverrà negli impianti di Juarez, Messico, e Arkansas. Si prevede che il programma genererà entrate annuali superiori a 60 milioni di dollari una volta raggiunta la massima capacità produttiva.
La partnership mira ad accelerare l'introduzione di nuovi prodotti e migliorare la disponibilità degli stessi per soddisfare l'alto volume di domanda previsto. Il presidente e CEO di Key Tronic, Brett Larsen, ha sottolineato che questa relazione strategica rappresenta un'espansione della loro base clienti e si prevede che contribuirà a una crescita redditizia a lungo termine. Il prodotto è progettato per migliorare la gestione delle risorse e la sicurezza pubblica attraverso una maggiore vigilanza operativa.
Key Tronic (Nasdaq: KTCC) ha conseguido un contrato de fabricación importante con un proveedor de tecnología para la resiliencia energética. La empresa comenzará a fabricar un producto innovador de resiliencia energética en la segunda mitad de 2025, con la producción llevándose a cabo en instalaciones en Juárez, México y Arkansas. Se espera que el programa genere ingresos anuales que superen los 60 millones de dólares una vez que haya alcanzado su máxima capacidad.
La asociación tiene como objetivo acelerar la introducción de nuevos productos y mejorar la disponibilidad de los mismos para satisfacer la gran demanda anticipada. El presidente y CEO de Key Tronic, Brett Larsen, destacó que esta relación estratégica representa una expansión de su base de clientes y se espera que contribuya al crecimiento rentable a largo plazo. El producto está diseñado para mejorar la gestión de activos y la seguridad pública mediante una mayor vigilancia operativa.
Key Tronic (Nasdaq: KTCC)는 에너지 회복 기술 제공업체와 중요한 제조 계약을 체결했습니다. 이 회사는 2025년 하반기에 혁신적인 에너지 회복 제품을 제조하기 시작할 것이며, 제조는 멕시코 후아레즈와 아칸소에 있는 시설에서 진행됩니다. 이 프로그램은 생산이 본격화되면 연간 수익 6천만 달러를 초과할 것으로 예상됩니다.
이 파트너십은 새로운 제품 도입을 가속화하고 예상되는 높은 수요를 충족시키기 위해 제품 가용성을 향상시키는 것을 목표로 하고 있습니다. Key Tronic의 회장 겸 CEO인 Brett Larsen은 이 전략적 관계가 고객 기반의 확장을 나타내며 장기적으로 수익성 있는 성장에 기여할 것으로 예상된다고 강조했습니다. 이 제품은 운영적 경계를 강화하여 자산 관리와 공공 안전을 개선하도록 설계되었습니다.
Key Tronic (Nasdaq: KTCC) a obtenu un contrat de fabrication important avec un fournisseur de technologies de résilience énergétique. L'entreprise commencera à fabriquer un produit innovant de résilience énergétique dans la seconde moitié de 2025, avec une production qui aura lieu dans des installations à Juárez, au Mexique, et en Arkansas. On s'attend à ce que le programme génère des revenus annuels dépassant 60 millions de dollars une fois la production à pleine capacité.
Le partenariat vise à accélérer l'introduction de nouveaux produits et à améliorer la disponibilité des produits pour répondre à une forte demande anticipée. Le président et CEO de Key Tronic, Brett Larsen, a souligné que cette relation stratégique représente une expansion de leur base de clients et devrait contribuer à une croissance rentable à long terme. Le produit est conçu pour améliorer la gestion des actifs et la sécurité publique grâce à une vigilance opérationnelle accrue.
Key Tronic (Nasdaq: KTCC) hat einen bedeutenden Fertigungsauftrag mit einem Anbieter von Technologien zur energetischen Resilienz gesichert. Das Unternehmen wird in der zweiten Hälfte des Jahres 2025 mit der Fertigung eines innovativen Produkts zur energetischen Resilienz beginnen, und zwar in den Einrichtungen in Juárez, Mexiko, und Arkansas. Es wird erwartet, dass das Programm jährliche Einnahmen von über 60 Millionen US-Dollar generiert, sobald die Produktion vollständig hochgefahren ist.
Die Partnerschaft zielt darauf ab, die Einführung neuer Produkte zu beschleunigen und die Verfügbarkeit von Produkten zu erhöhen, um die voraussichtlich hohe Nachfrage zu decken. Brett Larsen, Präsident und CEO von Key Tronic, hob hervor, dass diese strategische Beziehung eine Erweiterung ihrer Kundenbasis darstellt und voraussichtlich zu einem profitablen langfristigen Wachstum beiträgt. Das Produkt soll die Verwaltung von Vermögenswerten und die öffentliche Sicherheit durch erhöhte operative Wachsamkeit verbessern.
- Expected annual revenue exceeding $60 million from new contract
- Manufacturing expansion into energy resilience sector
- Strategic diversification of customer base
- Production across multiple facilities (Mexico and Arkansas)
- Anticipated contribution to profitable long-term growth
- Production ramp-up not starting until late 2025
- Revenue impact dependent on successful product launch and market adoption
Insights
This contract represents a transformative opportunity for Key Tronic, with the potential
The timing of the ramp-up in late 2025 provides adequate preparation time for production line configuration and workforce training. The strategic value extends beyond mere revenue - this positions KTCC in the rapidly growing energy resilience sector, which is seeing increased demand driven by grid stability concerns and renewable energy integration challenges.
Several key factors make this particularly noteworthy:
- The contract's size relative to KTCC's current market cap suggests significant potential for value creation
- Multi-facility production approach indicates substantial volume expectations
- The customer's emphasis on accelerating product introduction suggests potential first-mover advantages in their market segment
- Reference to "public safety" and "increased vigilance" hints at critical infrastructure applications, potentially leading to stable, long-term demand
Manufacturing execution will be critical, particularly managing the simultaneous ramp-up across two facilities. The emphasis on design expertise alongside manufacturing suggests higher-value engagement beyond pure contract manufacturing, potentially supporting better margins.
The energy resilience technology sector is experiencing unprecedented growth, driven by multiple catalysts including grid modernization initiatives, renewable energy integration challenges and increasing frequency of extreme weather events. This contract positions KTCC to capture value in this expanding market.
The description of a "market revolutionizing" product, combined with references to asset management and public safety, suggests sophisticated grid monitoring or control technology. This timing aligns with several market trends:
- Increasing investment in grid modernization and resilience
- Growing demand for advanced energy management solutions
- Rising focus on critical infrastructure protection
- Regulatory push for grid reliability and security
The customer's reference to "overwhelming demand" indicates strong market validation and suggests potential for contract expansion beyond the initial
Program expected to have a materially significant impact on revenue and profit
SPOKANE 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 product. Initial production will ramp in late 2025 at the Key Tronic manufacturing campuses in Juarez, Mexico and Arkansas. Once fully ramped, Key Tronic believes the yearly revenue could exceed
“We are looking forward to the design and manufacturing expertise of Key Tronic to help accelerate introduction of new products, as well as enhance our ability to increase product availability to fulfill the anticipated overwhelming demand,” said the CEO of Key Tronic’s new customer.
“We are very excited to be working with a recognized, emerging leader in the energy resiliency industry,” said Brett Larsen, President and CEO of Key Tronic. “The product has the potential to assist in better asset management and public safety by ensuring increased vigilance across all operations. Our new customer is a highly respected company and we are thrilled to be involved with a product that can assist in the greater good. This important new strategic relationship represents an expansion of our customer base and we expect it will contribute to profitable long term growth.”
About Key Tronic
Key Tronic is a leading design engineering and contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico, China and Vietnam. Key Tronic 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, including Key Tronic’s opportunities and its partnership, the potential success of Key Tronic and the customer, and related revenues. Forward-looking statements include all passages containing verbs such as aims, anticipates, believes, estimates, expects, hopes, intends, plans, predicts, projects or targets or nouns corresponding to such verbs. Forward-looking statements also include other passages that are primarily relevant to expected future events or revenue or that can only be fully evaluated by events that will occur in the future. 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 success and timing of ramping; availability and timing and receipt of critical parts or components; demand from customers and sales channels; the future of the global economic environment and its impact on our customers and suppliers; the availability of a healthy workforce; the accuracy of suppliers’ and customers’ forecasts; development and success of customers’ programs and products; 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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