SPOKANE VALLEY, WA – Key Tronic Corporation reported fourth-quarter and full-year results showing softer demand and tariff-related delays weighing on top line and earnings. Fourth quarter revenue was $110.5 million, down 12.7% from $126.6 million a year ago; full-year revenue came in at $467.9 million versus $566.9 million last year.

The company posted a fourth-quarter net loss of $3.9 million and a full-year net loss of $8.3 million, citing reduced orders from longstanding customers and slower ramps on new programs amid global tariff volatility.

To align costs, Key Tronic reduced its workforce by roughly 300 positions in the fourth quarter and about 800 over the full year. Management highlighted progress on footprint strategy, noting a new US facility and added capacity in Vietnam to support near-shoring and tariff mitigation. 

Strategically, the company announced a new manufacturing services award with a large data-processing OEM, expected to ramp through 2026 and potentially exceed $20 million annually at steady state. Given ongoing uncertainty around tariff timing and program ramps, Key Tronic did not provide first quarter 2026 guidance, but expects its new facilities to be fully operational in the first half of next year.

• Next