Key Tronic Corporation (KTCC) reported a fourth-quarter revenue of $110.5 million, down from $126.6 million the previous year, for fiscal 2025. The company faced a net loss of $3.9 million or 36 cents per share, compared to a net loss of $2 million or 18 cents per share in the same quarter last year. Full-year revenues were $467.9 million, a 17% decline from $566.9 million in fiscal 2024.
The gross margin for Q4 was 6.2%, down from 7.2% a year earlier, while operating margin fell to 0.1%. The company improved operational cash flow to $8.8 million for the quarter and $18.9 million for the fiscal year, up from $13.8 million the prior year. Key Tronic has plans to expand its manufacturing presence in the U.S. and Vietnam, targeting long-term gross margin recovery.
Management cited tariff-related disruptions and reduced demand from major clients as key challenges. Although they did not provide specific guidance for the first quarter of fiscal 2026, they expressed confidence in potential gross margin improvements as production volumes increase.
