Key Tronic Reports Q2 FY26 Revenue of $96.3mln, Down 15.4% YoY, and Reduces Workforce in Mexico

Key Tronic reported Q2 FY26 revenue of $96.3 million, down from $113.9 million in Q2 FY25, due to reduced demand from a longstanding customer and delays in new program launches. The company initiated a wind-down of its China manufacturing facility and reduced its workforce in Mexico, resulting in charges of $10.5 million. Gross margin was 0.6% and operating margin was (10.7)% in Q2 FY26.