olivLaw · US equity research
Key Tronic Corporation KTCC
Printed Circuit Boards · SIC 3672 · Vertical: Printed Circuit Boards (SIC 3672)
Key Tronic is a contract electronics manufacturer with facilities in the United States, Mexico and Vietnam, having shifted from keyboards to contract manufacturing for a wide range of products. In fiscal 2026 net sales fell to 386.7 million USD on reduced legacy and end-of-life programs, but the order backlog rose to 204.1 million USD and management expects revenue growth in coming quarters.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Key Tronic Corporation (KTCC) stock was 1.46 USD (−29.13% on the day), with market capitalisation 16.2 m USD, beta 0.52, 52-week range 1.46–4.26 USD. Latest reported quarter (Q4 2026): revenue of 102.0 m USD (−7.7% YoY), net income of -34.3 m USD, diluted EPS -3.16 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 14.6
- oversold (≤ 30)
- Bollinger (20, 2)
- 1.79 – 2.39
- below the lower band · %B -0.56 · band width 28.4%
- SMA 50 / 200
- 2.31 / 3.06
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.13 / -0.11
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −33.0% | −1.1% | −31.9 pp | — |
| 3 months | −64.1% | −0.5% | −63.7 pp | — |
| 6 months | −54.5% | +4.4% | −58.9 pp | — |
| Year to date | −47.7% | +12.3% | −60.0 pp | — |
| 1 year | −57.2% | +13.5% | −70.7 pp | +4.6% |
| 3 years | −63.1% | +76.4% | −139.5 pp | +124.2% |
| 5 years | −77.0% | +63.7% | −140.7 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q4 2026 · 27 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 131.6 m | 113.9 m | 112.0 m | 110.5 m | 98.8 m | 96.3 m | 89.6 m | 102.0 m |
| Cost of revenue | 118.3 m | 106.1 m | 103.4 m | 103.7 m | 90.5 m | 95.8 m | 82.4 m | 94.1 m |
| Gross profit | 13.3 m | 7.7 m | 8.6 m | 6.8 m | 8.3 m | 560.0 k | 7.2 m | 7.9 m |
| Research & development | 2.3 m | 2.3 m | 2.3 m | 2.2 m | 2.1 m | 1.8 m | 1.8 m | 2.3 m |
| SG&A | 6.6 m | 6.5 m | 6.8 m | 6.9 m | 6.8 m | 9.0 m | 6.2 m | 14.6 m |
| Operating income | 4.4 m | -1.1 m | -459.0 k | -2.3 m | -584.0 k | -10.3 m | -238.0 k | -3.6 m |
| Depreciation & amortisation | 3.0 m | 2.5 m ≈ | 2.4 m ≈ | 1.7 m | 2.5 m | 2.5 m ≈ | 2.1 m ≈ | 3.1 m |
| Interest expense | 3.3 m | 3.9 m | 2.6 m | 2.8 m | 2.8 m | 2.4 m | 2.4 m | 2.5 m |
| Pre-tax income | 1.2 m | -5.0 m | -3.0 m | -5.1 m | -3.4 m | -12.6 m | -2.6 m | -6.2 m |
| Income tax | 57.0 k | -111.0 k | -2.4 m | -1.2 m | -1.1 m | -4.1 m | -9.0 k | 28.2 m |
| Net income | 1.1 m | -4.9 m | -604.0 k | -3.9 m | -2.3 m | -8.6 m | -2.6 m | -34.3 m |
| Diluted EPS | 0.10 | -0.46 | -0.06 | -0.36 ≈ | -0.21 | -0.79 | -0.24 | -3.16 ≈ |
| Operating cash flow | 9.9 m | 1.6 m ≈ | -1.4 m ≈ | 8.8 m | 7.6 m | 6.4 m ≈ | -4.0 m ≈ | -5.5 m |
| Capex | 377.0 k | 444.0 k ≈ | 2.2 m ≈ | 1.1 m | 3.2 m | 3.3 m ≈ | -2.8 m ≈ | 2.7 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 464.0 m | 449.5 m | 518.7 m | 544.2 m | 605.3 m | 566.9 m | 467.9 m | 386.7 m |
| Revenue YoY | +4.0% | −3.1% | +15.4% | +4.9% | +11.2% | −6.3% | −17.5% | −17.4% |
| Net income | -8.0 m | 4.8 m | 4.3 m | 3.4 m | 5.2 m | -2.8 m | -8.3 m | -47.8 m |
| Net income YoY | unavailable | unavailable | −8.8% | −22.2% | +52.7% | −154.0% | unavailable | unavailable |
| Diluted EPS | -0.74 | 0.44 | 0.39 | 0.31 | 0.47 | -0.26 | -0.77 | -4.41 |
| Diluted EPS YoY | unavailable | unavailable | −11.4% | −20.5% | +51.6% | −155.3% | unavailable | unavailable |
| net % | -1.7% | 1.1% | 0.8% | 0.6% | 0.9% | -0.5% | -1.8% | -12.4% |
| Free cash flow | -7.5 m | -39.6 m | -25.7 m | -11.7 m | -21.1 m | 9.8 m | 14.8 m | -1.9 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 27 Jun 2026
- Cash
- 584.0 k USD
- Financial debt
- 106.2 m USD
- Net debt
- 105.6 m USD
- Equity
- 69.2 m USD
- Total assets
- 299.8 m USD
- Debt / equity
- 1.54x
- Current ratio
- 2.10x
- ROE
- -51.3%
- ROA
- -15.5%
- FCF margin
- -0.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 518.7 m | 544.2 m | 605.3 m | 566.9 m | 467.9 m | 386.7 m | SEC (XBRL)· 24 Sept 2026verified |
| Cost of revenue | 476.7 m | 501.0 m | 557.8 m | 527.1 m | 431.4 m | 362.7 m | SEC (XBRL)· 24 Sept 2026verified |
| Gross profit | 42.0 m | 43.2 m | 47.5 m | 39.9 m | 36.4 m | 23.9 m | SEC (XBRL)· 24 Sept 2026verified |
| Research & development | 9.8 m | 9.8 m | 9.7 m | 8.3 m | 9.2 m | 8.0 m | SEC (XBRL)· 24 Sept 2026verified |
| SG&A | 22.7 m | 24.6 m | 25.7 m | 25.2 m | 26.7 m | 36.5 m | SEC (XBRL)· 24 Sept 2026verified |
| Operating income | 9.5 m | 8.8 m | 16.3 m | 6.8 m | 562.0 k | -14.7 m | SEC (XBRL)· 24 Sept 2026verified |
| Depreciation & amortisation | 6.9 m | 7.6 m | 9.5 m | 11.0 m | 9.6 m | 10.2 m | SEC (XBRL)· 24 Sept 2026verified |
| EBITDA | 16.4 m ≈ | 16.4 m ≈ | 25.9 m ≈ | 17.8 m ≈ | 10.2 m ≈ | -4.5 m ≈ | SEC (XBRL)· 24 Sept 2026derived |
| Interest expense | 3.6 m | 5.1 m | 10.0 m | 11.9 m | 12.5 m | 10.1 m | SEC (XBRL)· 24 Sept 2026verified |
| Pre-tax income | 5.9 m | 3.7 m | 6.3 m | -5.2 m | -12.0 m | -24.8 m | SEC (XBRL)· 24 Sept 2026verified |
| Income tax | 1.6 m | 314.0 k | 1.1 m | -2.4 m | -3.6 m | 23.0 m | SEC (XBRL)· 24 Sept 2026verified |
| Net income | 4.3 m | 3.4 m | 5.2 m | -2.8 m | -8.3 m | -47.8 m | SEC (XBRL)· 24 Sept 2026verified |
| Diluted EPS | 0.39 | 0.31 | 0.47 | -0.26 | -0.77 | -4.41 | SEC (XBRL)· 24 Sept 2026verified |
| Weighted average diluted shares | 11.0 m | 11.1 m | 10.9 m | 10.8 m | 10.8 m | 10.8 m | SEC (XBRL)· 24 Sept 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 3.5 m | 1.7 m | 3.6 m | 4.8 m | 1.4 m | 584.0 k | SEC (XBRL)· 24 Sept 2026verified |
| Inventories | 137.3 m | 155.7 m | 137.9 m | 105.1 m | 97.3 m | 95.8 m | SEC (XBRL)· 24 Sept 2026verified |
| Current assets | 299.3 m | 340.0 m | 349.5 m | 288.4 m | 234.2 m | 223.8 m | SEC (XBRL)· 24 Sept 2026verified |
| Property, plant & equipment, net | 35.7 m | 26.0 m | 28.9 m | 28.8 m | 27.7 m | 28.9 m | SEC (XBRL)· 24 Sept 2026verified |
| Intangibles (excl. goodwill) | 0 | — | — | — | — | — | SEC (XBRL)· 16 Sept 2021verified |
| Total assets | 361.8 m | 406.9 m | 418.3 m | 355.3 m | 315.9 m | 299.8 m | SEC (XBRL)· 24 Sept 2026verified |
| Accounts payable | 92.8 m | 121.4 m | 115.9 m | 79.4 m | 63.7 m | 76.0 m | SEC (XBRL)· 24 Sept 2026verified |
| Short-term debt | 2.1 m | 2.2 m | 3.1 m | 3.1 m | 6.2 m | 7.2 m | SEC (XBRL)· 24 Sept 2026verified |
| Long-term debt | 100.4 m | 100.3 m | 121.5 m | 116.4 m | 98.9 m | 99.1 m | SEC (XBRL)· 24 Sept 2026verified |
| Current liabilities | 126.7 m | 163.7 m | 152.0 m | 104.2 m | 92.0 m | 106.5 m | SEC (XBRL)· 24 Sept 2026verified |
| Total liabilities | 238.1 m | 282.0 m | 287.7 m | 231.4 m | 198.7 m | 230.6 m | SEC (XBRL)· 24 Sept 2026verified |
| Equity | 123.7 m † | 124.9 m † | 130.6 m † | 124.0 m † | 117.1 m † | 69.2 m † | SEC (XBRL)· 24 Sept 2026verified |
| Shares outstanding at year end | 10.8 m | — | — | — | — | — | SEC (XBRL)· 07 Jul 2021verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -15.1 m | -4.9 m | -11.3 m | 13.8 m | 18.9 m | 4.4 m | SEC (XBRL)· 24 Sept 2026verified |
| Capex | 10.6 m | 6.8 m | 9.8 m | 4.0 m | 4.1 m | 6.4 m | SEC (XBRL)· 24 Sept 2026verified |
| Free cash flow | -25.7 m ≈ | -11.7 m ≈ | -21.1 m ≈ | 9.8 m ≈ | 14.8 m ≈ | -1.9 m ≈ | SEC (XBRL)· 24 Sept 2026derived |
| Investing cash flow | -10.6 m | -8.1 m | -4.5 m | -2.1 m | -4.2 m | -4.0 m | SEC (XBRL)· 24 Sept 2026verified |
| Financing cash flow | 28.6 m | 11.2 m | 17.7 m | -10.5 m | -18.1 m | -1.2 m | SEC (XBRL)· 24 Sept 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 25 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 16.2 m USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet77
- Growth0
- Valuation57
- Quality3
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 1.63 – 23.29 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)1.63 – 21.26 (Mid 6.71)WACC 5.6% · starting FCFF 6.5 m USD · terminal value share of EV 86%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -19.7%
- Peers: EV/Sales13.48 – 23.29 (Mid 17.25)6 companies used · median multiple 0.8x · quartiles 0.7x – 0.9xBHE, CLS, FLEX, JBL, KE, SANM
- Peers: EV/EBITDAunavailable · the base of the ratio is not positive
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 25/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 6.2% | 0 (on a fixed band) | 12% |
| EBIT margin · Quality | -3.8% | 9 (vs peers) | 10% |
| FCF margin · Quality | -0.5% | 0 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | -13.9% | 0 (on a fixed band) | 19% |
| Revenue growth (YoY) · Growth | -17.4% | 0 (vs peers) | 10% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.1x | 77 (on a fixed band) | 7% |
| EV/Sales · Valuation | 0.3x | 100 (vs peers) | 19% |
| FCF yield · Valuation | -11.9% | 0 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial77/100 · 1/2 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality3/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/1 factors with a value
- Valuation57/100 · 2/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
KEY TRONIC CORP (KTCC). Latest full fiscal year: 2026; data up to 2026-06-27.
Figures computed from the financial statements: revenue 386.7 m USD in 2026; YoY growth -17.4%; net margin -12.4%; ROE -51.3%.
The estimated value range is 7.56–22.27 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 11.98 USD, the price of 1.46 USD leaves a potential of 720.7% (value / price − 1) and a margin of safety of 87.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 25/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 2.1x
- EV/Sales: 0.3x
- The price is below the estimated value range
What contradicts it
- Gross margin: 6.2%
- EBIT margin: -3.8%
- FCF margin: -0.5%
- Revenue CAGR 3Y: -13.9%
- Revenue growth (YoY): -17.4%
- FCF yield: -11.9%
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, Shareholder yield (distributions).
Versus the vertical median
Printed Circuit Boards (SIC 3672) · same industry (4-digit SIC) · compared with 11 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| CLSCelestica Inc. | 29.8 bn | 22.4 | 30.2% | 6.8% | +28.5% | −31% / +777% |
| FLEXFlex Ltd. | 28.5 bn | 27.9 | 19.1% | 3.4% | +8.1% | +31% / +303% |
| JBLJabil Inc | 26.6 bn | 26.5 | 66.7% | 2.9% | +20.6% | +23% / +124% |
| TTMITtm Technologies, Inc. | 7.7 bn | 29.3 | 14.3% | 7.0% | +19.0% | +5% / +389% |
| SANMSanmina Corporation | 7.7 bn | 25.7 | 11.8% | 2.4% | +7.4% | −8% / +187% |
| PLXSPlexus Corp. | 5.5 bn | 30.5 | 12.6% | 4.6% | +1.8% | +45% / +103% |
| BHEBenchmark Electronics, Inc. | 2.3 bn | 42.2 | 5.0% | 1.9% | +0.1% | +45% / +162% |
| CTSCts Corporation | 1.8 bn | 24.4 | 13.0% | 12.9% | +5.2% | +46% / +60% |
| KEKimball Electronics, Inc. | 619.8 m | 22.9 | 4.8% | 2.0% | −3.7% | −11% / +5% |
| NNDMNano Dimension Ltd. | 278.3 m | — | -28.7% | -135.2% | +77.3% | −25% / −43% |
| ELTKEltek Ltd. | 42.0 m | 52.1 | 1.9% | 1.6% | +11.3% | −27% / −49% |
| KTCCKey Tronic Corp | 16.2 m | — | -51.3% | -12.4% | −17.4% | −57% / −63% |
1- and 3-year price returns: for KTCC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 24 Sept 2026; since then the company filed 8-K (03 Nov 2026 · results).
In brief
Key Tronic is a contract electronics manufacturer with facilities in the United States, Mexico and Vietnam, having shifted from keyboards to contract manufacturing for a wide range of products. In fiscal 2026 net sales fell to 386.7 million USD on reduced legacy and end-of-life programs, but the order backlog rose to 204.1 million USD and management expects revenue growth in coming quarters.
SWOT
Strengths
- Strong vertical integration, from engineering design to final assembly, and manufacturing capacity across several countries.
- The order backlog grew materially over the prior year, suggesting a base of future revenue.
- Vietnam capacity and the Arkansas center give flexibility to customers seeking production outside China.
Weaknesses
- The customer base is highly concentrated, and losing one major customer could significantly affect results.
- Margins are thin, and the company reported a substantial net loss in fiscal 2026, partly due to a non-cash tax charge.
- Write-offs of receivables and inventory followed customers in financial distress.
Opportunities
- Reshoring toward North America and Southeast Asia could bring new contracts for existing capacity.
- New programs in medical devices and data centers could extend revenue in the coming years.
- Recovering receivables and restoring delivery capacity could improve cash flow.
Threats
- Trade tariffs and changes to regional agreements could raise component and product costs.
- Supply chain credit restrictions could delay production and shipments.
- Larger competitors may offer lower prices on high-volume work, which could erode market share.
Risks
- Customer concentrationhigh
A small number of customers generate most sales, and a reduction in orders from any of them could seriously affect results 1.
- Liquidity and financinghigh
Credit restrictions delayed shipments, and the company is evaluating additional sources of capital, which could limit growth if problems persist 2.
- Tariff policymedium
Tariffs on products from China and Mexico can raise costs or reduce demand, and the USMCA arrangement could be amended or cancelled 1.
- Financially distressed customersmedium
Customer bankruptcies led to write-offs of receivables and inventory, and recovery of those amounts could be uncertain 1.
- Taxes and deferred tax assetsmedium
A valuation allowance against deferred tax assets weighed heavily on the net loss and could affect a return to profit if taxable income does not materialize 1.
Investment thesis
What would need to be true (bull case)
- The order backlog and recent program wins could support revenue growth, as management suggests for coming quarters 2.
- Restructuring lowered costs and lifted gross margin in the fourth quarter, and US and Vietnam capacity could attract customers relocating production 2.
- If the reshoring trend persists, the company could benefit from its vertical integration and presence in several countries 1.
What would break the thesis
- Sales fell in fiscal 2026 and gross margin stayed below prior levels, which could pressure results if the recovery is delayed 1.
- Customer concentration and financing constraints could postpone shipments and revenue from new programs 12.
- The market is highly competitive, and larger rivals could offer better prices, reducing the company's share 1.
What to watch
- Revenue trajectory and the return to profitability management has guided toQ1 2027
- Pace of new program ramps in Arkansas and Vietnam2027
- Release of working capital and resolution of credit constraintsnext 10-K
- Effects of tariffs and the refund process for IEEPA tariffs2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 24 Sept 2026; since then the company filed 8-K (03 Nov 2026 · results).
The business
Key Tronic Corporation, organized in 1969 as a Washington corporation, began as a maker of computer keyboards but moved into contract manufacturing for a wide range of products. The company offers integrated engineering design, precision plastic molding, sheet metal fabrication, printed circuit board assembly and full product assembly, plus worldwide logistics 1. Its main operations are in the United States, Mexico and Vietnam, with procurement support from China, where manufacturing was wound down in fiscal 2026 1.
Customers are original equipment manufacturers, and the company typically does not enter long-term volume purchase contracts. The five largest customers accounted for 39% of net sales in fiscal 2026, down from 48% a year earlier, showing a high concentration of the customer base 1. The company aims to diversify through new programs in medical devices, industrial equipment, automotive and data centers 1.
Recent strategy focuses on relocating production and reducing dependence on China: Vietnam capacity was doubled in fiscal 2026, and a new technology and research center was opened in Arkansas 1. Management believes these investments support demand amid tariffs and supply chain diversification 1.
Segments
Industrial and consumer
The industrial sector represented 58% of revenue in fiscal 2026, up from 52% a year earlier, while consumer fell from 38% to 24% 1. The shift reflects the loss of end-of-life programs as well as gains from new industrial contracts.
Market context
The contract electronics manufacturing industry is intensely competitive, and Key Tronic holds less than 1% of the potential global market 1. The trend of contract manufacturing returning to North America, driven by tariffs and logistics problems, could favor companies with facilities in Mexico and the United States. Tightening credit and liquidity across the supply chain affected the whole sector in the fourth quarter of fiscal 2026 2.
Industry revenue depends on customer programs with short life cycles, and demand can drop abruptly. Inflation and US trade policy remain important external factors for the company's costs and margins 1.
Trends
- Reshoring of manufacturing to North Americatailwind
Tariffs and US-China political tensions could keep moving contract work to Mexico, Vietnam and the United States, where Key Tronic has facilities 1.
- Trade tariffs and uncertaintyheadwind
Tariffs on components imported from China and Mexico can raise costs, and the USMCA arrangement is not assured over the long term 1.
- Credit constraints in the supply chainheadwind
Financing constraints delayed about 10 million USD of shipments in the fourth quarter, which could weigh on revenue if they persist 2.
- New program winstailwind
A rising number of active quotes and new awards in data center and industrial power management could support revenue growth in fiscal 2027 2.
Competitive position
The market is shaped by many competitors that are larger and have greater financial resources and comparable international capabilities. Competition can take the form of lower prices on high-volume programs, and customers may choose in-house manufacturing 1. Key Tronic defends its position through its international footprint, responsiveness, vertical integration and cost.
The company's ability to hold share depends on keeping costs competitive and investing in capacity. A risk is that competitors copy non-proprietary processes after development work, reducing its cost advantage 1.
- Jabil Inc.JBL
Global electronics manufacturing services provider and direct competitor for contract production work.
- Flex Ltd.FLEX
International contract electronics manufacturer active in similar production regions.
- Sanmina CorporationSANM
EMS provider with operations in several countries, competing for OEM programs.
- Benchmark ElectronicsBHE
Contract manufacturer active in industrial and medical sectors, competing in similar segments.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Key Tronic Corporation Q4 2026 Earnings Call SummaryYahoo Finance — News · 28 Aug 2026 · EN
The latest news item in our archive is from 28 Aug 2026; the newest SEC filing is from 03 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report03 Nov 2026Shareholder vote · Financial statements and exhibits
- Current report03 Nov 2026Results of operations · Financial statements and exhibits
- Proxy statement24 Sept 2026
- Annual report24 Sept 2026
- Current report27 Aug 2026Results of operations · Financial statements and exhibits
- Current report26 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report08 May 2026
- Current report05 May 2026Results of operations · Financial statements and exhibits
- Quarterly report09 Feb 2026
- Current report03 Feb 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-06-27 · SEC / Key Tronic Corporation · 24 Sept 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Key Tronic Corporation · 27 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.