KEY TRONIC CORP

Key Tronic Corporation

Overview

• Founded in 1969 in Washington as a keyboard manufacturer.
• Transitioned to contract manufacturing, providing outsourced electronics, mechanical, and related services across a broader range of products.
• Core capabilities include integrated electronics and mechanical design engineering, precision plastic molding, sheet metal fabrication and stamping, tooling, high-volume production, and global assembly and logistics.
• Strategy emphasizes vertical integration, a flexible global production footprint (United States, Mexico, Vietnam), centralized management, and competitive pricing through scale and international reach.
• Recently expanded production capacity in Arkansas and Vietnam and reduced manufacturing in China to align with customer demand and trade dynamics.

Services and capabilities

• Integrated electronic and mechanical engineering
• Printed circuit board assembly (SMT and through-hole) and complete product assembly
• Tool making for injection molding and sheet metal fabrication
• Precision plastic molding, sheet metal fabrication and finishing
• Surface finishing (painting, powder coating), liquid injection molding
• Prototype design and full product assembly
• Component selection, sourcing, and procurement
• Worldwide logistics and production testing/validation

Customer concentration

• The five largest customers accounted for 39% of combined net sales in fiscal 2026 and 48% in fiscal 2025.
• One named customer (Customer A) represented 14% of net sales in 2026 and 25% in 2025.
• The company is reliant on a concentrated customer base; loss or delay of a major customer could materially affect results.

Geographic footprint and facilities (as of filing date)

Total facilities: 1,816,150 sq ft

• United States (Total: 954,540 sq ft)

  • Corinth, Mississippi – 350,000 sq ft (Leased) – Manufacturing and warehouse
  • El Paso, Texas – 80,000 sq ft (Leased) – Shipping and warehouse
  • Springdale, Arkansas – 290,540 sq ft (Leased) – Manufacturing and warehouse
  • Oakdale, Minnesota – 103,000 sq ft (Leased) – Manufacturing and warehouse
  • Spokane Valley, Washington – 95,000 sq ft (Leased) – Manufacturing; plus 36,000 sq ft (Leased) – Sales, research, administration, and manufacturing

• Mexico (Total: 706,000 sq ft)

  • Juarez – multiple locations (Owned and Leased) totaling 706,000 sq ft
    • 174,000 sq ft (Owned) – Manufacturing and warehouse
    • 115,000 sq ft (Owned) – Manufacturing and warehouse
    • 103,000 sq ft (Owned) – Manufacturing and warehouse
    • 72,000 sq ft (Leased) – Manufacturing and warehouse
    • 66,000 sq ft (Owned) – Manufacturing and warehouse
    • 60,000 sq ft (Owned) – Manufacturing and warehouse
    • 116,000 sq ft (Leased) – Manufacturing and warehouse

• China (Total: 22,610 sq ft)

  • Shanghai – 22,610 sq ft (Leased) – Procurement

• Vietnam (Total: 133,000 sq ft)

  • Da Nang – 133,000 sq ft (Leased) – Manufacturing and warehouse

Certifications and regulatory readiness

• ISO 9001:2015 at multiple facilities
• CTPAT compliance for international trade
• Site-specific certifications:
  • Spokane Valley, WA: IATF 16949, ISO 13485:2016, ISO 14001:2015, ISO 45001
  • Juarez, Mexico: IATF 16949, ISO 13485:2016, ISO 14001:2015, ISO 45001, ANSI/ESD S20.20
  • Da Nang, Vietnam: IATF 16949, ISO 13485:2016
  • Oakdale, Minnesota: ISO 13485:2016, AS9100D, ANSI/ESD S20.20
  • Springdale, Arkansas: AS9100D, ANSI/ESD S20.20
• ITAR registrations for Oakdale, WA and Spokane, WA sites

Backlog and capacity

• Backlog approximately $204.1 million as of June 27, 2026 (versus approximately $159.1 million as of June 28, 2025).
• Backlog represents purchase orders expected to ship within roughly the next 12 months; shipments may shift due to design changes or customer requirements.
• Management states backlog is subject to cancellations or rescheduling and is not a precise predictor of future sales.

Workforce

• Full-time employees: 3,298 as of June 27, 2026
• Full-time employees: 3,539 as of June 28, 2025
• Headcount reductions occurred in Juarez during restructuring and with the wind-down of China manufacturing operations. The company uses a mix of full-time and skilled temporary labor to adjust capacity to demand.

Strategic and operational points

• Emphasizes rapid response to customer outsourcing needs through vertically integrated capabilities and a global footprint.
• Exposed to currency, tariff, and macroeconomic risks; adjusted manufacturing footprint in response to tariffs, supply chain considerations, and demand shifts.
• Pursuing new programs and efforts to broaden the customer mix to reduce concentration risk.