KTCC Stock Falls 35% as Q4 Loss Widens Y/Y Despite Revenue Rebound

Key Tronic Corporation (KTCC) shares fell 35.4% following Q4 fiscal 2026 results, which showed a GAAP net loss of $34.3 million despite improved gross margins. The company faced headwinds from supply chain credit constraints that delayed ~$10 million in shipments, along with a $28.4 million tax valuation allowance and $8.4 million in write-offs. However, management expects revenue growth and profitability recovery in fiscal 2027, supported by new program awards exceeding $60 million and restructuring initiatives including China exit and Vietnam expansion.