Key Tronic Expands US and Vietnam Output
Key Tronic(NASDAQ:KTCC) reported its fiscal fourth quarter and full-year 2025 results on August 27, 2025, highlighting a 12.7% year-over-year revenue decline in the fourth quarter and a 17.5% drop for the full year, driven by reduced customer demand and tariff-driven uncertainties. The company increased gross margin to 7.8% for the year despite an $8.3 million net loss, while implementing aggressive cost reductions, completing an approximately 800-employee headcount reduction, and announcing strategic expansion in Arkansas and Vietnam. Insights below address strategic facility investments, margin trajectory, and a transformative manufacturing contract, each with specific investor implications.
The company allocated over $28 million to its new flagship Arkansas manufacturing and R&D facility, targeting the creation of over 400 new jobs over the next five years, and is simultaneously scaling its Vietnam operation to double capacity with an added medical device production line. These capital projects are supported by up to $9 million in new financing for planned expansions in Arkansas and Vietnam, and form part of a deliberate shift away from China-related supply risk while catering to customer demand for tariff mitigation and North America manufacturing.
-- Brett Larsen, President and Chief Executive Officer
Source Fool.com
