KTCC Stock Falls 29.5% as Q1 Loss Widens on Margin & Liquidity Woes

Key Tronic (KTCC) reported Q1 fiscal 2027 results with flat revenues of $98.7M but significantly widened net losses to $7.5M. Gross margins contracted sharply to 2.5% from 8.4% year-over-year due to supply-chain financing constraints that delayed ~$18M in shipments. However, backlog surged 76% to $245.9M with new program wins across multiple sectors. The company withheld guidance citing uncertainty but expects revenue growth and profitability recovery in H2 2027, supported by cost-reduction initiatives and improved manufacturing utilization.