Tue, May 13, 7:44 PM (39 days ago)
**Key Tronic Corporation (KTCC) Q3 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $111.974 million, down 21.4% YoY due to global economic disruptions and tariff fluctuations. - **Gross Profit Margin:** 7.7%, up from 5.7% YoY, driven by cost reductions and strategic headcount reductions. - **Net Loss:** $0.604 million, improved from $2.221 million YoY. - **EPS:** $(0.06), improved from $(0.21) YoY. - **Cash Flow:** $10.118 million from operations, up from $6.081 million YoY. **Profit Margins and Cash Flow:** - **Operating Income:** $(0.459) million, flat YoY. - **Interest Expense:** $2.581 million, down from $2.800 million YoY. - **Tax Provision:** $(2.436) million, up from $(1.154) million YoY. **Quarterly Performance and Trends:** - **Revenue Recognition:** Primarily 'over-time' based on input cost-to-cost method. - **Backlog:** $138.1 million, down from $275.8 million YoY. - **Capital Expenditures:** Expected to be $8-$10 million for the fiscal year. **Uncertainties and Future Operations:** - **Economic Uncertainties:** Global economic disruptions, tariff fluctuations, and geopolitical tensions. - **Operational Risks:** Supply chain disruptions, component shortages, and labor constraints. - **Financial Risks:** Compliance with debt covenants, interest rate fluctuations, and foreign currency exchange risks. **Management Discussion:** - **Strategic Initiatives:** Restructuring Juarez facility, expanding production capacity in Arkansas and Vietnam. - **Liquidity:** $79.5 million in borrowings under the asset-based revolving credit facility, with $20.4 million available. - **Future Outlook:** Opportunities for growth due to contract manufacturing returning to North America and increased demand for rebalancing contract manufacturing. **Key Metrics:** - **Current Ratio:** 2.7 - **Debt-to-Equity Ratio:** 0.9 - **Effective Tax Rate:** 80.1% for Q3, 36.2% for the nine months ended March 29, 2025. **Ticker:** KTCC