Key Tronic Corp Files 8-K on Exit Costs

TL;DR

KTCC filing 8-K on exit costs & Reg FD - watch for restructuring news.

AI Summary

Key Tronic Corporation filed an 8-K on December 22, 2025, reporting on cost associated with exit or disposal activities and Regulation FD disclosure as of December 19, 2025. The filing details events related to the company's operations and disclosures to the public.

Why It Matters

This filing indicates potential restructuring or divestiture activities by Key Tronic Corp, which could impact its future operational structure and financial performance.

Risk Assessment

Risk Level: medium — Filings related to exit or disposal activities can signal significant business changes that may carry financial and operational risks.

Key Players & Entities

• Key Tronic Corporation (company) — Registrant
• Washington (jurisdiction) — State of incorporation
• 91-0849125 (identifier) — IRS Employer Identification No.
• 4424 North Sullivan Road (address) — Principal executive offices
• Spokane Valley, Washington 99216 (address) — Principal executive offices
• 509-928-8000 (phone_number) — Registrant's telephone number
• December 19, 2025 (date) — Date of earliest event reported
• December 22, 2025 (date) — Date of report

FAQ

Key Financial Figures

• $1.2 million — it is anticipated to save approximately $1.2 million per quarter following completion. In
• $1.1 million — ompany expects to pay out approximately $1.1 million in severance-related expenses and appro
• $0.2 million — ance-related expenses and approximately $0.2 million related to previously accrued compensat
• $4.8 million — and other assets totaling approximately $4.8 million to $5.8 million. In accordance with p
• $5.8 million — totaling approximately $4.8 million to $5.8 million. In accordance with paragraph (d) of
• $2.5 — Company expects to incur approximately $2.5 to $3.5 million in additional charges d
• $3.5 million — expects to incur approximately $2.5 to $3.5 million in additional charges during its second
• $2.1 million — is is expected to provide approximately $2.1 million in quarterly savings moving forward.

Filing Documents

• ktcc-20251219.htm (8-K) — 33KB
• 0000719733-25-000112.txt ( ) — 147KB
• ktcc-20251219.xsd (EX-101.SCH) — 2KB
• ktcc-20251219_lab.xml (EX-101.LAB) — 21KB
• ktcc-20251219_pre.xml (EX-101.PRE) — 12KB
• ktcc-20251219_htm.xml (XML) — 3KB

05 COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES

ITEM 2.05 COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES On December 19, 2025, Key Tronic Corporation ("the Company") committed to a plan to modify its China-based operations. The Company will end its manufacturing operations in its China-based facility and instead intends to refocus operations in China on sourcing and procurement activities intended to support its remaining global locations (the "Plan"). The Company will continue to manufacture certain of its existing and future demand at one of its other manufacturing facilities, and does not expect to experience any material adverse revenue impacts as a result. The additional capacity created in the Company's Vietnam-based facility in the last year is expected to sufficiently support the majority of the relocated demand. The Plan is designed to better align the Company's organizational structure and resources with its strategic initiatives, including filling its capacity recently created in Vietnam, and is also expected to reduce the Company's risk related to future geopolitical tensions. The Plan is expected to be completed by the Company's fourth fiscal quarter of 2026, and it is anticipated to save approximately $1.2 million per quarter following completion. In connection with this Plan, the Company expects to pay out approximately $1.1 million in severance-related expenses and approximately $0.2 million related to previously accrued compensation. The Company also expects to incur non-cash expenses with respect to the Plan related to the transfer, disposal, and write-off of certain existing inventory, fixed assets, deferred taxes, and other assets totaling approximately $4.8 million to $5.8 million. In accordance with paragraph (d) of Item 2.05, the Company will provide further details by amendment to this Current Report on Form 8-K at such time it is able to estimate any other material costs the Company expects to incur.

01 REGULATION FD DISCLOSURE

ITEM 7.01 REGULATION FD DISCLOSURE As previously disclosed, the Company has been restructuring its facility in Juarez, Mexico to focus on higher volume manufacturing. In connection with this restructuring and related headcount reductions, the Company has incurred severance charges in prior periods. The Company expects to incur approximately $2.5 to $3.5 million in additional charges during its second fiscal quarter related to severance at its Mexico based facility. This is expected to provide approximately $2.1 million in quarterly savings moving forward. This Current Report on Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to the Company's expected operating modifications, the expected timing of completion of the Plan, and the estimated charges and financial impact associated with implementing the Plan. These forward-looking statements are based on the Company's current expectations and inherently involve significant risks and uncertainties. The Company's actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of those risks and uncertainties, which include, without limitation, risks related to the Company's operating expense reductions and the Company's ability to accurately estimate the charges associated with such reductions in implementing the Plan. Other factors that could cause actual results to differ from these forward-looking statements are discussed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. In addition, the charges associated with the Plan may be greater than anticipated. The Plan may have an adverse impact on the Company's busin

01 FINANCIAL STATEMENTS AND EXHIBITS

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (d) Exhibits Exhibit Number Description 104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document 2

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. KEY TRONIC CORPORATION (Registrant) Date: December 22, 2025 By: /s/ Anthony G. Voorhees Anthony G. Voorhees, Executive Vice President of Administration, CFO and Treasurer 3

View Full Filing

View this 8-K filing on SEC EDGAR