Key Tronic Corporation · NASDAQ:KTCC
Key Tronic — Q1 FY2027 Earnings Presentation
18 slides from Key Tronic's earnings presentation, Nov 3, 2026
Slide 1: First Quarter of Fiscal 2027 Earnings Call
First Quarter of Fiscal 2027 Earnings Call November 3, 2026
Slide 2: Management On Call Today
Management On Call Today Brett Larsen Tony Voorhees President and CEO CFO 2
Slide 3: Notices and Disclaimers
Notices and Disclaimers 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, an
Slide 4: Q1-2027 Performance Summary
Q1-2027 Performance Summary • Financial performance clearly below expectations. o Revenue remained constrained, margins were pressured, and reported another quarterly loss. • Customer demand remains strong and backlog has grown significantly. • Taking decisive actions to improve cost structure and a
Slide 5: Revenue Highlights
Revenue Highlights FY2027 FY2026 First Quarter $98.7M $98.8M • Revenue constrained by tightening credit availability and liquidity pressures across global supply chain. • Delayed ~$18 million of shipments, mostly programs in Mexico and US. • Backlog was $245.9 million, up 76% from year ago. • Vietna
Slide 6: Margins
Margins Q1- Q1-FY2027 FY2026 Gross Margin 2.5% 8.4% Operating Margin (4.2%) (0.6%) • Production delays caused by supply chain financing challenges, resulting in excess labor costs and operating inefficiencies in Mexico and US. • Further reduced by ~$6 million of inventory sales with no margin contri
Slide 7: Earnings – GAAP
Earnings – GAAP Q1-FY2027 Q1-FY2026 Net Income (Loss) ($7.5M) ($2.3M) Net Income (Loss) ($0.69) ($0.21) Per Share – Diluted 7
Slide 8: Earnings – Non-GAAP
Earnings – Non-GAAP Q1-FY2027 Q1-FY2026 Adjusted Net Income ($7.9M) ($1.1M) (Loss) Adjusted Net Income (Loss) Per Share – ($0.72) ($0.10) Diluted 8
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights Q1- % Q1-FY2027 FY2026 Change Inventory $104.0M $97.6M +6.6% Current Ratio 1.9 2.4 -21% DSOs 75 81 -7% Capital Expenditures $1.6M $3.2M -50% 9
Slide 10: Outlook
Outlook • Demand remains strong: o Activity with longstanding customers improving and new programs ramping, o Backlog reached $245.9 million, up 76% year over year. • Continuing to win new business and expanded US and Vietnam capacity generating increased customer interest. • Manufacturing footprint
Slide 11: Q1-2027 Highlights
Q1-2027 Highlights • Continue to see robust customer demand. • Near-term liquidity challenges across global supply chain have markedly constrained revenue in recent quarters. • Believe operational discipline, strengthened manufacturing footprint, and long-standing customer relationships have positio
Slide 12: Streamlining in US and Mexico
Streamlining in US and Mexico • Long-term strategy to improve competitiveness and better align our manufacturing footprint with evolving customer needs => currently streamlining our US-based workforce. • Previous transformation of Mexico operations => reduced headcount, streamlined production proces
Slide 13: Expanding US and Vietnam Demand
Expanding US and Vietnam Demand • Encouraged by progress in US and Vietnam. • Investments are response to evolving customer requirements => positioned to capitalize on long-term industry trends toward supply chain diversification, tariff mitigation, and operational resilience. • Providing US custome
Slide 14: Expanding Customer Base in Q1-FY2027
Expanding Customer Base in Q1-FY2027 • Utilities power management • Sustainable waste management • Data centers • Construction • Defense technology • TP-Link Systems announcement 14
Slide 15: Key Competitive Advantages
Key Competitive Advantages • Enhanced flexibility, competitiveness, and resilience of global manufacturing network • Engineering and design services remain one of most powerful differentiators • Broad range of vertically integrated manufacturing capabilities and decades of process expertise
Slide 16: Looking Forward
Looking Forward • Continue to face near-term liquidity challenges. • Growing backlog, program wins and pipeline of new business opportunities underscores fundamentally strong competitive position. • Continue to expect revenue growth and return to profitability in second half of fiscal 2027. • Believ
Slide 17: Q&A
keutronic Q&A
Slide 18: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations