KTCC earnings analysis
What we found in KTCC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Key Tronic Corporation reported a 20% year-over-year decline in revenue in Q3 FY 2026, falling to $89.6 million compared to $112 million in the same quarter of the previous year, and a net loss of $2.6 million. Despite the revenue drop, the company noted improvements in gross margin to 8.0% from 7.7% year-over-year, reflecting operational efficiencies.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decreased Significantly
- Revenue dropped to $89.6 million, down 20% from $112 million in Q3 FY 2025.
- Gross Margin Improvement
- Gross margin improved to 8.0%, up from 7.7% in Q3 FY 2025, reflecting operational efficiencies despite lower sales.
- Increased Cash Flow from Operations
- Operating cash flow was $10.0 million for the nine months ended March 28, 2026, maintaining similar levels to last year's $10.1 million.
- Higher Order Backlog
- Order backlog increased to approximately $159.5 million, compared to $138.1 million year-over-year.
- Cost Control Initiatives
- Continued cost-cutting initiatives contributed to reduced operating losses despite lower revenue.
- Improved Effective Tax Rate
- Effective income tax rate improved to 0.3% in Q3 FY 2026 from 80.1% in the same period last year.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Dependence on Key Customers
- Sales concentration risk remains high with top customers comprising 21.6% of sales, a drop from 33.5% year-over-year.
- Declining Demand from Legacy Customers
- Significant revenue decline attributed to decreased demand from a long-standing customer and transitioning end-of-life programs.
- Geopolitical and Economic Risks
- Ongoing geopolitical tensions and inflation pressures could adversely affect customer demand and operational costs.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.26
- Gross margin
- 8.0%
- Operating margin
- -0.3%
What they said about what is next.
Outlook deferred to earnings press release / call.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 13, 2025
- Key Tronic reported quarterly revenue of $111,974,000 (down from $142,427,000 a year earlier) and a GAAP net loss of $604,000 (EPS $(0.06)) for the three months ended March 29, 2025. Gross margin expanded to 7.7% vs…
- 10-Q · February 7, 2025
- Key Tronic reported a revenue decline to $113.853M for the quarter ended December 28, 2024 and a net loss of $4.914M (diluted EPS $(0.46)), driven by lower sales and margin compression. Management secured new financing…
- 10-K · October 15, 2024
- Key Tronic positions itself as a vertically integrated, multinational contract manufacturer with engineering and tooling capabilities across the United States, Mexico, China and Vietnam, and emphasizes growing new…
- 10-Q · November 9, 2023
- Key Tronic reported quarterly revenue of $147,763,000, up from $137,263,000 a year earlier, while diluted EPS fell to $0.03 from $0.11. Gross profit was $10,862,000 (gross margin ~7.35%) and operating income was…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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