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what it is
Key Tronic builds other companies' electronics and plastic parts in factories across the U.S., Mexico, China, and Vietnam.
how it gets paid
Last year Key Tronic made $468M in revenue. printed circuit board assembly was the main engine at $164M, or 35% of sales.
why growth slowed
Revenue fell 17.5% last year. Gross margin was 4.5%, because when your gross margin is that low, even a revenue spike can still end in a loss.
what just happened
With ~$468M in annual revenue, a typical quarter is on the order of ~$100–120M—not hundreds of millions every print unless you are reading a different line item or period in the 10-Q. The company still posted heavy per-share losses in the window this page used.
At a glance
C balance sheet — red flag territory — real financial stress
30/100 earnings predictability — expect surprises
1.3% return on capital — nothing to write home about
-$0.77 fy2025 eps est
~$468M annual revenue (verify fiscal year in the 10-K)
xvary composite: 26/100 — weak
What they do
Key Tronic builds other companies' electronics and plastic parts in factories across the U.S., Mexico, China, and Vietnam.
If your customer wants one supplier to design, mold, stamp, paint, and assemble a product, Key Tronic can handle it in one chain. It has 3,539 employees across 4 countries, which cuts handoffs for customers that hate juggling vendors. The edge is convenience, not pricing power—when gross margin is mid‑single digits, operating leverage is thin and losses can still show up below the line.
How they make money
$468M
annual revenue · their business grew -17.5% last year
printed circuit board assembly
$164M
full product assembly
$117M
precision plastic molding
$94M
sheet metal fabrication and painting
$70M
design, tooling, and prototypes
$23M
The products that matter
builds electronics for other brands
Electronic Manufacturing Services
$468M annual revenue · entire business
This is the whole company: $468M in annual revenue, down 17.5% from last year. If utilization falls, margins have nowhere to hide.
100% of revenue
Key numbers
$116M
long-term debt
Long-term debt → money owed for years → so what: at 79% of capital, the balance sheet is doing more lifting than the equity.
1.3%
return on capital
Return on capital → profit earned on each invested dollar → so what: Key Tronic is getting just 1.3 cents back for every $1 tied up in the business.
thin
operating margin
With ~4.5% gross margin in this snapshot, operating results are structurally tight—treat any positive operating print as fragile and reconcile to the same period’s net loss in the filing.
$468M
annual sales
Annual sales → total money coming in → so what: the company is huge relative to its $30M market cap, but those sales are not turning into profit.
Financial health
C
strength
- balance sheet grade C — very weak — significant financial distress
- risk rank 5 — safer than 5% of stocks
- price stability 40 / 100
- long-term debt $116M (79% of capital)
C — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for KTCC right now.
source: institutional data · return history unavailable
What just happened
missed estimates
A recent quarter printed on the order of ~$117M (q) in revenue (roughly one-fourth of ~$468M FY)—not ~$195M unless you are mixing a different period or consolidated line from the 10-Q. The company still lost about $1.00 a share in that same window—versus the score-strip -$0.77 FY EPS estimate (quarter actual vs forward-year consensus).
vs. prior year revenue growth is often n/m here after customer and factory churn; gross margin stayed thin at 4.5%, so volume does not automatically fix the bottom line.
~$117M
revenue (q)
-$1.00
eps (q)
4.5%
gross margin
the number that mattered
Gross margin was 4.5%, because when your gross margin is that low, even a revenue spike can still end in a loss.
source: company earnings report, 2026
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What could go wrong
the #1 risk is customer concentration during a factory footprint reset.
med
A lost customer hurts the whole company
Management explicitly tied the latest revenue decline to reduced demand from a long-standing customer and an end-of-life program transition. With one core business producing $468M of annual revenue, there is no second engine to offset the gap.
Impact: this dynamic already contributed to a 17.5% annual revenue decline and helped turn $96.3M of quarterly sales into an $8.6M net loss.
med
Exiting China can fix one problem and create three more
Ending all manufacturing in China is a strategic reset, not a line item. You are depending on transfer timing, labor ramp, supplier continuity, and customer retention to all work while the balance sheet is already weak.
Impact: if the move to the U.S. and Vietnam runs late or costs more than expected, losses can persist longer and debt matters even more.
med
Thin margins and $116M of debt are a bad mix
A 4.5% gross margin and 2.5% operating margin do not leave much room for manufacturing mistakes. Layer in $116M of long-term debt, or 79% of capital, and every quarter of weak utilization gets amplified.
Impact: sustained losses erode financial flexibility in a company the market values at only about $30M.
This is a $30M equity story sitting under $116M of long-term debt, with 17.5% lower annual revenue and an active manufacturing relocation. You do not need many things to go wrong here. One is enough.
source: institutional data · regulatory filings · risk analysis
Pay attention to
customer risk
Does the lost demand keep bleeding through
Management already blamed reduced demand from a long-standing customer for the weak quarter. If that customer does not stabilize, the revenue base can stay under pressure.
footprint shift
China exit versus U.S. and Vietnam ramp
The company plans to end China manufacturing and have about 50% of output in the U.S. and Vietnam by the end of FY2026. You want milestones, not just intent.
next report
Q3 FY2026 earnings
Watch whether quarterly revenue can hold above the latest $96.3M mark and whether the $(8.6)M net loss narrows. That is the first reality check on the turnaround.
contract conversion
Does the $60M energy-tech deal show up in revenue
A contract announcement matters only when it reaches the income statement. If this award starts filling capacity, it can help offset the customer hole.
Analyst rankings
earnings predictability
30 / 100
In human-speak, analysts do not view these earnings as stable. Expect revisions, volatility, and the occasional ugly surprise.
balance sheet strength
C
That grade says the company still has financing risk. You are not getting a distressed multiple with distressed-proof finances.
source: institutional data
Institutional activity
institutional ownership data for KTCC is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$3
current price
n/a
target midpoint · n/a from current
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