Key Tronic (KT1) AI Stock Analysis

Key Tronic

(Frankfurt:KT1)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Large new program awardsMore than $60M of new awards expands Key Tronic’s future program base and provides identifiable opportunities for revenue recovery. The data-center, construction, and power-management wins also diversify demand across applications and could improve factory utilization as ramps progress through fiscal 2027.

Negative Factors

Severe profitability deteriorationThe sharp revenue contraction and sizable net loss show that Key Tronic’s current earnings base is not covering its operating cost structure. Thin gross margins leave limited protection against demand weakness, so sustained recovery depends on successful program ramps and continued execution improvement.

Key Tronic (KT1) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 23.13M
Dividend Yield: ―
Average Volume (3M): 500
Price to Earnings (P/E): -0.5
Beta (1Y): 0.36
Revenue Growth: -22.96%
EPS Growth: -434.45%
Country: Germany
Employees: 3,298
Sector: Technology
Sector Strength: 61
Industry: Computer Hardware

Key Tronic Business Overview & Revenue Model

Company Description

Key Tronic Corporation (KTCC) operates as a contract manufacturer, offering comprehensive services to original equipment manufacturers (OEMs) both within the United States and globally. The company provides an integrated suite of offerings, which inc...

Key Tronic Earnings Call Summary

Earnings Call Date:Aug 26, 2026(Q4-2026)|% Change Since:-39.47%|Next Earnings Date:Aug 09, 2021

Earnings Call SentimentNeutral

Balanced tone: the company demonstrated operational progress (sequential revenue growth, margin improvements, large new program wins, Vietnam and U.S. capacity expansion, and reduced adjusted losses) and articulated a path to recover in FY2027. However, significant GAAP losses, a large deferred tax valuation allowance, an $8.4M receivables write-off, FY revenue decline (~17%), and supply-chain financing constraints materially weighed on results and cash flow flexibility. Management highlights momentum in bookings and cost savings but acknowledges ongoing liquidity and macro uncertainties.

Positive Updates

Sequential Revenue Recovery

Q4 revenue of $102.0M, up 14% sequentially from $89.6M last quarter, driven by strong demand from legacy and new programs and notable ramp in Vietnam production (Vietnam revenue more than doubled sequentially).

Negative Updates

Large GAAP Net Losses and Tax Valuation Allowance

Q4 net loss of $34.3M ($3.16/share) vs. prior-year Q4 loss of $3.9M; full-year net loss of $47.8M ($4.41/share) vs. $8.3M prior year. A $28.4M non-cash valuation allowance against deferred tax assets was recorded in Q4 due to cumulative U.S. taxable losses.

Company Guidance

Management said they expect revenue growth in coming quarters and a return to profitability in fiscal 2027 but, given timing uncertainty around new product ramps, are not providing first‑quarter FY2027 guidance; they pointed to Q4 FY2026 improvements—$102.0M revenue (up 14% sequential from $89.6M; versus $110.5M a year ago), gross margin 7.8% (adjusted 8.3%, up from 6.2% YOY), operating margin -3.6%, and a Q4 net loss of $34.3M ($3.16/share)—and full‑year FY2026 results of $386.7M revenue (vs $467.9M FY2025) and a $47.8M net loss ($4.41/share); they highlighted over $60M of Q4 new program awards (a $40–45M/yr data‑center win in Mexico contributing in Q2 FY2027, a $5–10M construction program migrating to Arkansas with a few million in the first six months, and a $15M power‑management program ramping by Q3/early Q4 FY2027), Vietnam production more than doubled sequentially, U.S. and Vietnam accounted for roughly half of Q4 manufacturing activity, ~$10M of shipments were delayed by supply‑chain financing constraints, inventory was down $1.5M (2%), current ratio was 2.1:1 (vs 2.6:1), DSOs improved to 75 days (from 86), capex was $2.7M in Q4 and ~$6.4M for the year, the China wind‑down is expected to save about $4M in FY2027, and management is pursuing customer capital‑sharing and additional financing options to alleviate liquidity constraints.

Key Tronic Risk Analysis

Key Tronic disclosed 34 risk factors in its most recent earnings report. Key Tronic reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

1 New Risk

1.37 37 37 As of the end of the period covered by this report, our management carried out an evaluation, under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b). As of the end of the period covered by this report, our management carried out an evaluation, under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b). Based on their evaluation as of March Q1, 2025

Key Tronic Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:KT1 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TACT	59Neutral	$56.58M	-164.07	-1.25%	―	10.52%	95.37%
SCKT	42Neutral	$2.75M	-0.18	-229.43%	―	-17.40%	-403.07%
EBON	39Underperform	$11.87M	-0.95	-5.14%	―	-6.25%	32.66%
ZSPC	39Underperform	$3.52M	-0.00	97.69%	―	-34.31%	1.15%

* Technology Sector Average

Performance Comparison

DE:KT1 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:KT1	Key Tronic	1.84	-1.10	-37.41%
SCKT	Socket Mobile	0.33	-0.67	-66.73%
TACT	Transact Technologies	5.48	0.91	19.91%
EBON	Ebang International Holdings, Inc.	1.89	-2.40	-55.94%
ZSPC	zSpace, Inc.	0.10	-22.81	-99.59%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Key Tronic AI Stock Analysis