Key Tronic ( (KTCC) ) has released its Q1 earnings. Here is a breakdown of the information Key Tronic presented to its investors.
Key Tronic Corporation is a leading provider of electronic manufacturing services, offering design and manufacturing solutions from its facilities across the United States, Mexico, China, and Vietnam, catering to prominent original equipment manufacturers worldwide.
In its first quarter of fiscal year 2025, Key Tronic Corporation reported revenue of $131.6 million, a decrease from the previous year’s $150.1 million for the same period. The company attributed this decline to design and qualification delays in three customer programs, which have since been mostly resolved.
Despite the revenue drop, Key Tronic saw significant improvements in production efficiency, driven by headcount reductions and a favorable exchange rate of the Mexican Peso. The company reported increased gross and operating margins of 10.1% and 3.4%, respectively, and net income rose to $1.1 million, or $0.10 per share, compared to $0.3 million or $0.03 per share the previous year.
Strategically, Key Tronic has focused on trimming non-profitable programs and enhancing its working capital, leading to reduced inventory levels. The company also secured new business in areas such as manufacturing equipment and commercial pest control, positioning itself for growth in future periods.
Looking ahead, Key Tronic forecasts second-quarter revenue between $130 million and $140 million, with earnings per share ranging from $0.05 to $0.15. Management remains optimistic about continued operational efficiencies and profitability improvements through strategic initiatives.
