Key Tronic FY26 10-K: $47.8M Loss, $28.4M Tax Valuation Allowance, Backlog Up 28%
KTCC is trading near its 52-week low of $2.215 (5.2% above the low).
Summary
Key Tronic's FY2026 10-K shows a $47.8M net loss driven by a $28.4M tax valuation allowance, but a 28% jump in backlog to $204.1M hints at a possible revenue recovery in FY2027.
Key Events · Earnings and Guidance · KTCC
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FY26 Net Loss of $47.8M
Full-year net loss of $47.8M ($4.41/share) vs. $8.3M loss in FY2025, driven by a $28.4M non-cash valuation allowance against U.S. deferred tax assets and $10.3M in distressed customer receivable write-offs.
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Revenue Down 17.4% to $386.7M
Net sales fell $81.2M year-over-year, with approximately $80M from reduced demand and $48M from end-of-life programs, partially offset by $38M in new program ramps.
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Backlog Jumps 28% to $204.1M
Order backlog as of June 27, 2026 was $204.1M, up from $159.1M a year earlier, and Q4 alone secured over $60M in new program awards across medical, industrial, and data center segments.
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Liquidity Tight: $16.5M Borrowing Capacity
Total debt of $108.3M against $69.2M in shareholders' equity; only $16.5M of gross borrowing capacity remained on the asset-based credit facility as of June 27, 2026, with a $13M availability block.
Analysis · KTCC · Manufacturing
Key Tronic's annual report confirms a brutal fiscal 2026: revenue fell 17.4% to $386.7M and the company lost $47.8M, driven largely by a $28.4M non-cash valuation allowance against U.S. deferred tax assets. The allowance reflects management's conclusion that it is no longer 'more likely than not' the company will generate enough U.S. taxable income to use those tax benefits — a direct acknowledgment of sustained operating losses. Offsetting the gloom, order backlog jumped 28% to $204.1M, and the company secured over $60M in new program awards in Q4 alone, suggesting a potential revenue inflection in FY2027. The balance sheet remains strained: $108.3M in total debt against $69.2M in shareholders' equity, with only $16.5M of borrowing capacity left on the credit facility. A covenant breach at the Mexico subsidiary (Banorte) was waived, but it underscores the tight liquidity position.
How filings like this one have moved
In the 30 days to Oct 2, 2026, 29.9% of the 1661 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, KTCC was trading at $2.33 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $24.3M. The 52-week trading range was $2.22 to $4.42. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.