STRT

This article first appeared on GuruFocus. Revenue: Record annual revenue of $579.4 million, up 2.5% from $565.1 million in fiscal 2025. Fourth-quarter sales were $151.8 million, essentially flat year-over-year. Gross Margin: Full-year gross margin expanded 150 basis points to 16.5%, with gross profit of $95.4 million. Fourth-quarter gross margin was 15.6%. Net Income: Fourth-quarter net income attributable to Strattec was $3.9 million, or $0.95 per diluted share. Full-year earnings per share grew 9% to $5. Adjusted Net Income: Fourth-quarter adjusted net income was $8.4 million, with adjusted diluted EPS of $2.06, unchanged from the prior year. Adjusted EBITDA: Full-year adjusted EBITDA increased 15% to $50.5 million, with margin improving 100 basis points to 8.7%. Fourth-quarter adjusted EBITDA was $12.5 million. Cash Flow: Generated $46.3 million in operating cash flow for the full year and $9.7 million in the fourth quarter. Cash Position: Ended the year with $108.2 million in cash and no debt. Share Repurchases: Returned $7.4 million to shareholders in the fourth quarter through repurchase of approximately 110,000 shares, about 2% of outstanding shares. SAE Expenses: Fourth-quarter SAE expenses were $17.5 million, or 11.5% of sales. Full-year SAE expenses were $68.8 million, or 11.9% of sales. Pricing: Captured $11 million in pricing during fiscal 2026, with pricing contributing 2% to full-year sales growth. Restructuring Savings: Realized approximately $6 million in savings from restructuring actions during the year, with cumulative savings of $9.5 million since fiscal 2025. Warning! GuruFocus has detected 5 Warning Signs with KSS. Is STRT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 26, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record annual revenue of $579.4 million, up 2.5% year-over-year, with full-year gross margin expanding 150 basis points to 16.5%. Strong cash generation with $46.3 million in operating cash flow and a robust balance sheet of $108.2 million cash and no debt. Transformation initiatives delivered $9.5 million in savings since fiscal 2025, including $6 million in fiscal 2026, with continued opportunities for improvement. Pricing actions contributed 2% to revenue growth, helping offset external headwinds like tariffs and EV program cancellations. New $40 million share repurchase authorization and $7.4 million returned to shareholders in Q4, reflecting disciplined capital allocation. Expects softer industry production in fiscal 2027, with North American production down ~2% and a ~6% decline at its three largest customers. Foreign exchange headwinds, particularly the Mexican peso at $16.90 vs. $18.00 average last year, could pressure gross margins by ~100 basis points. Fourth-quarter gross margin declined to 15.6% from 16.7% in the prior year, impacted by unfavorable FX and lower tooling gains. Higher SAE expenses due to business transformation costs and investments, with full-year SAE at 11.9% of sales vs. 10.9% in fiscal 2025. Ongoing cost of quality issues from supplier base, leading to expedited freight and other costs, though not related to product quality. Q: What is the outlook for fiscal 2027, particularly regarding production levels and the timing of any declines?A: Matthew Pauli (CFO) stated that North American automotive production is projected to decline by approximately 2% in fiscal 2027, with production at the company's three largest customers (Ford, Stellantis, and GM) expected to decline by nearly 6%. He noted that the decline is expected to be fairly consistent throughout the fiscal year, with typical second-quarter seasonality from holiday shutdowns. Q: How will the strong Mexican peso impact gross margins in fiscal 2027, and what is the path to the 18% to 20% gross margin target?A: Matthew Pauli (CFO) explained that foreign exchange is a significant headwind, noting that if the peso had been at its five-year average of $19.50 to the US dollar, gross margin would have been about 100 basis points better in fiscal 2026. The peso is currently at $16.90 versus last year's average of $18.00. A 5% change in the dollar relative to the peso could affect annual manufacturing costs by approximately $4 million. While margins will face pressure from volume and FX, the company expects to offset a good portion through pricing and continuous improvement actions, maintaining the longer-term target of 18% to 20% gross margins assuming the peso returns to its five-year average. Q: What are the remaining major program initiatives for cost savings, or has the heavy lifting already been completed?A: Jennifer Slater (CEO) indicated that significant opportunities remain, particularly in automation, as only 9% of assembly stations are currently automated. She also highlighted continued opportunities in supply chain stabilization and ongoing cost structure rightsizing. Matt Pauli (CFO) added that the company has been measured in its actions to ensure customer delivery, but still sees a clear path to improving margins toward the 18% to 20% target. Q: What is the company's strategy for adding new automaker customers and increasing content per vehicle?A: Jennifer Slater (CEO) stated that the company has reorganized its product portfolio around three pillarsPermission, Motion, and Holdto better align with customer needs and increase content proliferation. The commercial team has brought in new talent with existing relationships to develop new customer relationships, starting with automotive and potentially extending to off-road, agriculture, and commercial truck markets. She reminded that due to the long-cycle nature of the business, new programs typically take 5-plus years to convert into revenue. Q: What is the financial impact of the automated manufacturing and assembly stations, and what are the plans for adding more?A: Jennifer Slater (CEO) stated that the simple automation projects typically have a payback period of less than one year. The company is currently focused on simple automation to replace individual stations, while more transformational fully automated lines are considered for new customer programs. Matthew Pauli (CFO) noted that total CapEx was only about $7 million for the fiscal year, which included the automation investments, and the company is exploring other avenues for automation. Q: What is happening with the potential sale of the Milwaukee facility?A: Matthew Pauli (CFO) clarified that the company has decided to continue manufacturing at its current Milwaukee facility. However, since the facility is still too large for operational needs, the company will likely pursue a sale and leaseback arrangement for the portion of the building required for continued operations. Q: Should we model gross margin down year-over-year given the FX and volume headwinds, and where does that leave the 18% to 20% target?A: Matthew Pauli (CFO) acknowledged that there will be pressure on margins from lower volume and FX headwinds. However, he emphasized that the business is fundamentally stronger heading into fiscal 2027 than in prior years. The company expects to offset a good portion of the headwinds through pricing actions and continuous improvement initiatives, though it may not offset all of them. The 18% to 20% gross margin target remains intact, contingent on the peso returning to its five-year average. Q: Is the automation work capital-light, or has spending been deferred to the next fiscal year?A: Matthew Pauli (CFO) stated that CapEx for fiscal 2027 is estimated at approximately $12 million, which is less than 2% of sales. Jennifer Slater (CEO) added that the business is generally CapEx-light, even for the simple automation projects currently being implemented. Q: How much of the Detroit 3 content comes up for resourcing over the next 3-4 years, and have you retained content on platforms that have already been re-bid?A: Jennifer Slater (CEO) stated that the company is focused on following automotive production over the next two years. The team is working to understand the impact of platform renewals and expirations, but the company will not have a high level of confidence to provide longer-term guidance beyond fiscal 2027 and 2028 until the end of the current fiscal year. Q: Have the canceled EV programs been fully flushed out, and how do tariff refunds flow down to the company?A: Matthew Pauli (CFO) confirmed that the canceled EV programs were a $10 million headwind from fiscal 2025 to 2026 and have been fully flushed out. Regarding tariffs, the company filed for certain tariff recoveries from IEEPA claims, but most customer agreements require the company to reimburse customers for tariffs they previously compensated, making the impact essentially neutral for Strattec. Q: What is the company's stance on reinstating the dividend, and what are the M&A targets in terms of size and scale?A: Matthew Pauli (CFO) stated that the company is not currently contemplating a dividend, with capital allocation priorities focused on investing in the business, exploring M&A for scale and diversification, and opportunistically buying back shares under the new $40 million authorization. Jennifer Slater (CEO) added that M&A targets would ideally stay within the current industry to diversify the customer base, build scale faster than organically possible, and fit within the defined product pillars of Permission, Motion, and Hold. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Strattec Security Corporation? Here are five stocks we like better. Record fiscal 2026 performance: Revenue rose 2.5% to $579.4 million, while gross margin expanded 150 basis points to 16.5% and adjusted EBITDA increased 15% to $50.5 million. Restructuring, pricing actions and operational improvements helped offset automotive production volatility, EV program cancellations and foreign-exchange pressure. Strong balance sheet and capital allocation: Strattec generated $46.3 million in full-year operating cash flow, ended the year with $108.2 million in cash and no debt, and authorized a new $40 million share-repurchase program. Management is prioritizing buybacks, automation, customer-program investments and selective acquisitions rather than reinstating a dividend. Challenging fiscal 2027 outlook: North American vehicle production is expected to decline about 2%, while production at Ford, Stellantis and GM could fall nearly 6%. Foreign exchange remains a significant risk, though management expects canceled EV programs to no longer be a major incremental headwind and continues targeting 18%–20% gross margins over the next several years. Strattec Security (NASDAQ:STRT) reported record fiscal 2026 revenue and higher profitability as restructuring, pricing and operational improvements helped offset automotive production volatility, foreign exchange pressure and canceled electric-vehicle programs. President and Chief Executive Officer Jennifer Slater said fiscal 2026 revenue reached $579.4 million, while gross margin expanded 150 basis points to 16.5%. The company generated $46.3 million in operating cash flow and ended the year with $108.2 million in cash and no debt. → What Rising Delivery Forecasts Say About Rivian's Stock Prospects “Fiscal 2026 was a year of progress as we continued to reshape Strattec into a more resilient, higher-performing business,” Slater said on the company’s earnings call. Fourth-quarter net sales were $151.8 million, essentially unchanged from the prior-year period and above management’s earlier expectations. Senior Vice President and Chief Financial Officer Matthew Pauli said the company had initially expected quarterly sales to decline 3% to 4%, based on third-party estimates for original equipment manufacturer production. Actual OEM production declined 1.4% during the quarter. → NVIDIA Reveals $21 Billion SpaceX Stake: Signal of Confidence or Circular Financing? Compared with the year-earlier quarter, canceled OEM EV programs reduced sales by $3.2 million. That impact was partly offset by $1.4 million in pricing benefits and certain customer inventory builds, Pauli said. Fourth-quarter gross profit declined to $23.6 million from $25.4 million a year earlier, with gross margin at 15.6%. Pauli attributed the year-over-year comparison to unfavorable foreign exchange rates and lower tooling gains. On a constant-currency basis, gross margin improved due to lower tariff costs, pricing actions and restructuring savings, partly offset by higher costs associated with supplier-related quality and delivery issues. → Berkshire Boosts Its Bet: This AI Hyperscaler Is Now a Top-3 Holding Net income attributable to Strattec was $3.9 million, or $0.95 per diluted share, compared with $8.3 million, or $2.01 per diluted share, in the prior-year quarter. The quarter included business transformation and executive-transition costs, as well as $2.9 million of discrete income-tax adjustments related to changes in tax regulations. On an adjusted basis, fourth-quarter net income was $8.4 million, or $2.06 per diluted share, unchanged from the previous year. Adjusted EBITDA was $12.5 million, compared with $13 million a year earlier. For the full year, sales increased 2.5% from $565.1 million in fiscal 2025. Pricing contributed 2% to the increase, while volume growth was less than 1%, in line with the broader North American automotive market. Full-year gross profit rose to $95.4 million from $84.6 million, while adjusted EBITDA increased 15% to $50.5 million. Adjusted EBITDA margin improved 100 basis points to 8.7%, and fiscal 2026 earnings per share increased 9% to $5, according to Pauli. Strattec realized about $6 million in savings from restructuring actions during fiscal 2026 and $9.5 million in cumulative savings since fiscal 2025. Slater said the company consolidated test-lab operations in Auburn Hills, Michigan, added 16 automated assembly stations and freed up 91,000 square feet of production space at its Milwaukee facility. The company also reduced manufacturing headcount by an additional 7%. Management said automation remains a significant opportunity, with automated assembly stations representing 9% of the company’s total assembly stations. Slater said the company is pursuing simple automation projects with payback periods typically under one year, while also considering more comprehensive automation for future customer programs. Strattec generated $9.7 million in fourth-quarter operating cash flow and repurchased approximately 110,000 shares for $7.4 million during the period. The repurchase represented about 2% of shares outstanding, Pauli said. The board authorized a new $40 million share-repurchase program. Management said it plans to use the authorization to offset equity dilution and repurchase shares opportunistically, while preserving capital for organic investments and potential acquisitions. The company is not currently considering reinstating a dividend, Pauli said. Instead, its capital allocation priorities include investment in new customer programs, automation, process modernization, opportunistic buybacks and acquisitions that can add scale or diversify its customer, product and program base. Slater said Strattec is focused on opportunities that fit within its three product pillars: Permission, which includes secure vehicle-entry technologies; Motion, covering powered access systems; and Hold, consisting of latching products. The company has also invested in commercial talent and pipeline-management tools to engage customers earlier in vehicle development cycles. Management said it expects to continue manufacturing in Milwaukee but may pursue a sale-leaseback transaction for the portion of the facility it needs, as the site remains larger than required for current operations. Management expects automotive conditions to remain challenging in fiscal 2027. Based on current third-party forecasts, Strattec expects North American production to decline about 2%, while production at its three largest customers—Ford, Stellantis and General Motors—is projected to decline nearly 6%. Pauli said the production decline is expected to be relatively consistent throughout the fiscal year, aside from typical second-quarter holiday shutdown seasonality. He said canceled EV programs represented an approximately $10 million headwind from fiscal 2025 to fiscal 2026 and that the effect has been “flushed out” for fiscal 2027. Foreign exchange remains a major headwind. Pauli said that if the Mexican peso had traded at its five-year average of 19.50 per U.S. dollar, Strattec’s fiscal 2026 gross margin would have been about 100 basis points higher. A 5% change in the U.S. dollar relative to the peso could affect annual manufacturing costs by roughly $4 million before hedging. The company continues to target gross margins of 18% to 20% over the next several years, assuming the peso returns to its five-year average. For fiscal 2027, Strattec expects an effective tax rate of approximately 24% to 25%, normalized operating cash flow of about $10 million per quarter, subject to working-capital changes, and about $12 million in capital expenditures. Strattec Security Corporation is a Wisconsin‐based designer and manufacturer of mechanical and electronic locking systems for the global automotive market. Established more than five decades ago, the company supplies original equipment manufacturers (OEMs) and the aftermarket with a broad portfolio of lock and key solutions tailored to passenger cars, light trucks and commercial vehicles. The company's product range includes mechanical locking systems such as door lock cylinders, ignition lock modules, key blanks and door handles, as well as electromechanical and keyless‐entry systems. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Strattec Security Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record annual revenue of $579.4 million by offsetting external pressures through disciplined pricing, cost actions, and operational improvements. Shifted the commercial strategy from a reactive RFQ-based model to a proactive, future-looking sales pipeline to engage customers earlier in the development cycle. Reorganized the product portfolio into three strategic pillars—Permission, Motion, and Hold—to better align innovation and engineering with evolving vehicle access needs. Realized $6 million in restructuring savings during the fiscal year, contributing to a 150-basis-point expansion in full-year gross margin to 16.5%. Implemented new technology tools for financial consolidation and pipeline management to create a more scalable and accountable operating platform. Maintained a debt-free balance sheet with $108.2 million in cash, providing the flexibility to navigate automotive cycles and pursue strategic M&A. Optimized the manufacturing footprint by consolidating test labs and freeing up 26% of production space at the Milwaukee facility. Anticipates a challenging environment with North American production projected to decline 2%, while the company's top three customers are expected to decline approximately 6%. Targets long-term gross margins of 18% to 20%, assuming the Mexican peso returns to its five-year average of 19.50 to the U.S. dollar. Expects a normalized operating cash flow run rate of approximately $10 million per quarter, subject to typical working capital variability. Projects fiscal 2027 capital expenditures of approximately $12 million, focusing on automation and process modernization. Assumes ongoing productivity and cost actions will help offset the typical 30% decremental impact to gross profit on lower sales volumes. Foreign exchange remains a significant headwind; a 5% change in the U.S. dollar relative to the peso impacts annual manufacturing costs by approximately $4 million. Canceled EV programs resulted in a $10 million revenue headwind from fiscal 2025 to 2026, though management believes these impacts are now fully flushed out. Higher SAE expenses in the near term reflect targeted investments in transformation capabilities and the use of outside advisers for strategic initiatives. The company intends to pursue a sale-leaseback of its Milwaukee facility to monetize excess space while maintaining core operations. Management expects the 6% decline among its top three customers to be fairly consistent throughout the fiscal year, aside from typical second-quarter holiday seasonality. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. M&A focus is on diversifying the customer base, gaining scale to compete with larger rivals, and acquiring technologies that fit the three core product pillars. Management is working with third parties to develop a framework to be ready for industry consolidation opportunities. Recent quality costs were driven by supply base issues and expedited freight rather than product defects, leading to a focus on re-evaluating and exiting underperforming suppliers. Current automation stands at 9% of assembly stations, with simple automation projects typically yielding a payback period of less than one year. The company is not currently contemplating a dividend, prioritizing organic growth, M&A, and opportunistic share repurchases under a new $40 million authorization.

Fourth quarter fiscal 2026 sales of $151.8 million was better than expected and relatively unchanged from prior year; achieved sales of $579.4 million for fiscal year 2026 Reported fourth quarter gross margin of 15.6%; full year gross margin expanded to 16.5%, up from 15.0% in fiscal 2025 Generated fourth quarter net income attributable to Strattec of $3.9 million, or $0.95 per diluted share; adjusted diluted earnings per share were $2.06, unchanged from the prior-year period Fourth quarter Adjusted EBITDA was $12.5 million, or 8.3% of net sales, compared with $13.0 million, or 8.5% of sales in the prior-year period; fiscal 2026 Adjusted EBITDA1 was $50.5 million, a 15.3% increase over the prior year $108.2 million in cash and no debt; returned $7.4 million to shareholders through share repurchases in the fourth quarter and authorized a new $40 million share buyback program MILWAUKEE, August 25, 2026--(BUSINESS WIRE)--Strattec (Nasdaq: STRT), a global provider of highly engineered access solutions for the automotive and mobility industries, today reported financial results for its fourth quarter and fiscal year 2026, which ended June 28, 2026. Jennifer Slater, President and CEO of Strattec, said, "Fiscal 2026 was a year of progress and discipline as we continued to reshape Strattec into a more resilient, higher-performing business. While our fourth quarter and full-year results were impacted by foreign exchange pressure and the effect of tariffs, we nonetheless delivered year-over-year growth in sales and gross margin expansion through disciplined pricing, cost actions and operational improvements." She added, "We recognize that the near-term environment remains uncertain and we have much work to do to secure future OEM vehicle platforms. We are managing costs and capital prudently, while our strong cash position gives us the flexibility to continue investing in our product technologies, production automation and customer relationships. These investments will better position us to benefit when industry conditions improve. The strength of our balance sheet also allows us to consider opportunities that could enhance scale and diversify our customers, products and programs over time." FY 2026 Fourth Quarter Financial Summary Net sales were $151.8 million, relatively unchanged from $152.0 million in the prior-year period, and reflected better than expected OEM vehicle production volumes relative to industry forecasts. A majority of the volume decline, including $3.2 million related to customer cancelled EV programs, was offset by pricing actions. Gross profit was $23.6 million, compared with $25.4 million in the prior year while gross margin contracted 110 basis points to 15.6%. Restructuring savings of $0.8 million, a $0.9 million reduction in tariff charges and pricing were more than offset by $1.9 million of higher costs related to unfavorable foreign currency exchange rates and the prior year benefit of $1.3 million of incremental tooling gains. Selling, administrative and engineering ("SAE") expenses increased 3%, or $0.6 million, to $17.5 million, or 11.5% of sales, compared with $16.9 million, or 11.1% of sales, in the prior-year period. Higher SAE expenses included $1.4 million in business transformation and executive transition costs. These costs were partially offset by a $0.7 million reduction in engineering and professional fees and $0.2 million of restructuring savings. Interest income grew $0.1 million on higher cash balances, while interest expenses declined $0.2 million on lower borrowings. Other income increased $1.4 million primarily as a result of changes in foreign currency exchange rates. Net income attributable to Strattec was $3.9 million, or $0.95 per diluted share, compared with $8.3 million, or $2.01 per diluted share, in the prior-year period. On an adjusted basis, fourth quarter fiscal 2026 net income attributable to Strattec was $8.4 million and adjusted diluted earnings per share1 was $2.06 unchanged from the prior year. Adjusted EBITDA1 for the quarter was $12.5 million compared with $13.0 million in the prior-year period. Adjusted EBITDA margin of 8.3%, compared with 8.5% in the fiscal 2025 fourth quarter. Solid Balance Sheet Cash from operations in the fourth quarter of fiscal 2026 was $9.7 million, compared with $30.2 million in the prior-year period which benefited from a significant reduction in working capital. At June 28, 2026, Strattec had $108.2 million in cash and cash equivalents, up from $107.0 million at the end of the third quarter of fiscal 2026 and $84.6 million at the end of the prior fiscal year. During the quarter, the Company paid down the remaining $1.0 million in outstanding borrowings on the JV credit facility. The Company also repurchased 110,269 shares for $7.4 million for an average price of $67.10. There is $40 million remaining under the current share repurchase authorization. Fourth Quarter and Fiscal Year 2026 Webcast and Conference Call Strattec will host a conference call and webcast tomorrow, Wednesday, August 26, 2026, at 8:00 am Central Time/9:00 am Eastern Time to review the financial and operating results for the period ended June 28, 2026, and provide an update on its transformation progress. A question-and-answer session will follow. You can access the call by phoning +1 (201) 689-8470 or find the webcast and accompanying slide presentation at investors.strattec.com. A telephonic replay will be available from approximately 11:00 am CT on the day of the call through Wednesday, September 9, 2026. To listen to the archived call, dial +1 (412) 317-6671 and enter replay PIN 13761060. The webcast replay will be available on the Investor Relations section of the Company’s website at investors.strattec.com, where a transcript will be posted once available. About Strattec Strattec is a global automotive access company that designs and delivers safe, secure, and highly engineered access solutions for the automotive and mobility industries. Built on generations of access and security engineering expertise, Strattec partners closely with OEMs to create differentiated, system‑level access experiences for end consumers. Strattec’s portfolio spans the access journey from Permission, enabling secure vehicle entry through advanced mechanical and electronic systems; to Motion, delivering effortless, reliable powered access that enhances everyday usability; and through to Hold, providing precision‑engineered latching solutions that give drivers confidence through proven strength, safety, and durability trusted by OEMs worldwide. As access becomes increasingly intelligent, connected, and central to vehicle experience, Strattec’s strategy is to expand its market share, further diversify its customers and geographic reach while becoming the most trusted access partner to drive long‑term growth across global automotive and mobility markets. For more information, visit www.strattec.com. Safe Harbor Statement Certain statements contained in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as "anticipate," "believe," "could," "expect," "intend," "may," "planned," "potential," "should," "will," and "would." Such forward-looking statements are inherently subject to many uncertainties in the Company’s operations and business environment. These uncertainties include general economic conditions, in particular, relating to the automotive industry, consumer demand for the Company’s and its customers’ products, competitive and technological developments, customer purchasing actions, changes in warranty provisions and customer product recall policies, work stoppages at the Company or at the location of its key customers as a result of labor disputes, foreign currency fluctuations, uncertainties stemming from U.S. trade policies, tariffs and reactions to the same from foreign countries, matters adversely impacting the timing and availability of component parts and raw materials needed for the production of the Company’s products and the products of its customers and fluctuations in costs of operation. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Such uncertainties and other operational matters are discussed further in the Company’s quarterly and annual filings with the Securities and Exchange Commission. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances occurring after the date of this release. Use of Non-Gaap Financial Metrics and Additional Financial Information In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Strattec provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from similarly titled non-GAAP financial measures used by other companies. Strattec’s management uses these measures to make strategic decisions, establish budget plans and forecasts, identify trends affecting Strattec’s business, and evaluate performance. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, will help investors evaluate Strattec’s core operating and financial performance and business trends consistent with how management evaluates such performance and trends. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. View source version on businesswire.com: https://www.businesswire.com/news/home/20260825826321/en/ Contacts Investor Contact: Deborah K. Pawlowski, IRCAlliance Advisors IRPhone: 716-843-3908Email: [email protected]

Strattec Security (STRT) came out with quarterly earnings of $2.06 per share, beating the Zacks Consensus Estimate of $1.36 per share. This compares to earnings of $2.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +51.47%. A quarter ago, it was expected that this maker of automotive locks and keys would post earnings of $1.14 per share when it actually produced earnings of $0.9, delivering a surprise of -21.05%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Strattec Security, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $151.83 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.45%. This compares to year-ago revenues of $152.01 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Strattec Security shares have added about 2% since the beginning of the year versus the S&P 500's gain of 11.8%. While Strattec Security has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Strattec Security was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.31 on $150.21 million in revenues for the coming quarter and $4.85 on $568.87 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. BRP Inc. (DOO), another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on September 3. This company is expected to post quarterly loss of $0.46 per share in its upcoming report, which represents a year-over-year change of -168.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. BRP Inc.'s revenues are expected to be $1.45 billion, up 6.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Strattec Security Corporation (STRT) : Free Stock Analysis Report BRP Inc. (DOO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Strattec Security Corporation STRT reported third-quarter fiscal 2026 adjusted earnings of 90 cents per share, missing the Zacks Consensus Estimate of $1.14 by 21.1%. Adjusted earnings declined 40% from $1.50 a year ago. Net sales were $137.6 million, down 4.5% year over year, and came in below the consensus estimate of $141 million by about 2.4%. Results reflected lower North American OEM production on key platforms and the impact of EV program cancellations. STRT stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Strattec Security Corporation price-consensus-eps-surprise-chart | Strattec Security Corporation Quote The quarter’s revenue mix underscored STRT’s close ties to large automotive programs. General Motors accounted for 28% of third-quarter sales, followed by Ford at 21% and Stellantis at 16%. Tier 1 customers contributed 15%, commercial and other customers represented 11% and Hyundai/Kia made up 9%. Product concentration also remained clear. Door handles represented 26% of sales and power access products contributed 24%. Keys and locksets were 20% of the mix, with latches at 13%, user interface controls at 8%, aftermarket at 7% and other products at 2%. The mix highlights STRT’s positioning in access and security content per vehicle, but also means near-term results can swing with platform volumes. Cost headwinds were evident even as the company executed on internal actions. Gross profit was $22.7 million compared with $23.1 million in the prior-year quarter, reflecting lower volume. However, gross margin improved 50 basis points year over year to 16.5%, thanks to restructuring savings and recoveries from customer program cancellations. Restructuring savings totaled $1.7 million and recoveries tied to customer program cancellations added $0.6 million. Those benefits were partly offset by $2.5 million of higher costs from unfavorable foreign exchange movements, a $0.5 million increase in labor and benefit costs, and $0.3 million of incremental tariff costs. Operating discipline was pressured by higher overhead spending. Selling, administrative and engineering expenses increased $1.6 million year over year to $17.6 million, representing 12.8% of sales versus 11.1% in the prior-year period. The increase reflected a mix of strategic and recurring cost items. STRT cited $1.4 million of business transformation and executive transition costs, a $1.3 million rise in salaries and employee benefits, and a $0.4 million increase in professional fees. These were partially offset by $0.2 million of restructuring savings and a $0.7 million recovery of costs related to canceled EV programs. Operating income declined to $5 million from $7.1 million a year ago, with operating margin at 3.7% compared with 4.9% in the prior-year quarter. Interest income increased to $0.9 million from $0.5 million, while other expenses totaled $0.7 million versus near breakeven a year ago. Net income attributable to STRT was $3.2 million compared with $5.4 million in the prior-year period. Adjusted EBITDA was $10.1 million, or 7.3% of net sales, compared with $12.9 million, or 8.9%, a year ago. Liquidity remained a key support. Cash and cash equivalents were $107 million as of March 29, 2026, up from $99 million at the end of the second quarter of fiscal 2026 and $84.6 million at the end of fiscal 2025. Total debt was reduced to $1 million from $8 million at fiscal-year end, leaving debt-to-total capitalization at 0.3%. Cash generation was positive but moderated by working capital. Net cash provided by operating activities was $11.4 million in the quarter versus $20.7 million a year ago. Capital expenditures were $2.6 million, leading to free cash flow of $8.8 million compared with $19.5 million in the prior-year quarter. The company reiterated capital priorities centered on funding organic growth programs, investing in automation and process modernization, and preserving flexibility through cyclical automotive conditions. Management expects near-term sales to track North American auto production volumes, but expects fourth-quarter fiscal 2026 revenues to be down 3% to 4% year over year, reflecting continued EV cancellations and lower production on key programs. The company reiterated its longer-term objective of reaching gross margins of 18% to 20% over the next few years. STRT also expects operating costs to run at 10% to 11% of revenues, excluding unusual items, while it continues investing in its transformation program. Gentex Corporation GNTX reported first-quarter 2026 results on April 24. The company’s adjusted earnings of 48 cents per share beat the Zacks Consensus Estimate of 44 cents. The figure increased 11.6% from 43 cents a year ago. Gentex’s net sales were $675 million, which topped the consensus mark of $647 million. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.Gentex raised its full-year 2026 revenue outlook to $2.65-$2.75 billion from the previous estimate of $2.6-$2.7 billion, while maintaining its gross margin guidance at 34-35%. Magna International Inc. MGA reported first-quarter 2026 results on May 1. The company’s adjusted earnings of $1.38 per share increased 76.9% year over year and beat the Zacks Consensus Estimate of $1.01. Magna’s net sales rose 3.1% year over year to $10.38 billion and topped the Zacks Consensus Estimate of $10.08 billion by 3.03%.For 2026, Magna revised its total sales outlook. It now projects total sales of $41.5-$43.1 billion, down from the previous guidance of $41.9-$43.5 billion. The company projects an adjusted EBIT margin of 6-6.6%, the same as the prior guidance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Magna International Inc. (MGA) : Free Stock Analysis Report Strattec Security Corporation (STRT) : Free Stock Analysis Report Gentex Corporation (GNTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Strattec Security Corporation? Here are five stocks we like better. Strattec Security posted lower Q3 fiscal 2026 sales, down 4.5% year over year, due to softer automotive production and canceled EV programs, though pricing and tariff recoveries helped partially offset the decline. Despite weaker revenue, the company improved gross margin to 16.5% and generated strong cash flow, with $11.4 million in operating cash flow and $107 million in cash on hand. Management said restructuring actions and Mexico operational changes are driving further savings. Looking ahead, Strattec expects fourth-quarter revenue to fall 3% to 4% year over year, but remains focused on its transformation plan and longer-term margin targets of 18% to 20% gross margin. Strattec Security (NASDAQ:STRT) reported lower third-quarter fiscal 2026 sales but improved gross margin and strong cash generation, as management said restructuring actions and operational changes continued to support profitability despite a softer automotive production environment. President and Chief Executive Officer Jennifer Slater said the company “delivered another solid quarter” and continued to make progress on its transformation plan. She said previously completed restructuring actions generated $1.9 million in savings during the quarter, which she described as a peak level as the company begins to lap benefits from earlier actions. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Strattec generated $11.4 million in operating cash flow in the quarter and ended the period with $107 million in cash on hand. Slater said that liquidity gives the company flexibility to continue investing in the business, support customers and navigate a dynamic industry backdrop. “While sales were down from prior year, the decline was in line with expectations, and we continued to improve profitability, generate strong cash flow, and maintain a very strong balance sheet,” Slater said. → Light Speed Returns: Corning Cashes In on NVIDIA Growth Senior Vice President and Chief Financial Officer Matthew Pauli said third-quarter sales declined 4.5% year over year, as lower volume and electric vehicle program cancellations were only partially offset by pricing benefits and tariff recoveries. Pauli said the annual impact of customer cancellations on reduced EV platforms is approximately $9 million, with about two-thirds already reflected in year-to-date fiscal 2026 results. He said the largest customer declines in the quarter were with Ford and Hyundai Kia, both down a little more than 10% year over year. Sales to Tier 1 customers and Stellantis increased as those customers raised production. → Years in the Making, AMD’s Upside Movement Has Just Begun By product category, Pauli said door handles and keys and locksets were steady, while power access and latches were down from the prior year. In response to an analyst question, Slater said the decline in power access was tied to customer build timing at Hyundai-Kia and Ford and was not expected to have a long-term impact. Gross profit was $22.7 million, compared with $23.1 million in the prior-year quarter. Gross margin improved 50 basis points to 16.5%, which Pauli said reflected the value of the company’s transformation actions. The quarter included approximately $1.7 million of restructuring savings and recoveries related to canceled customer programs. Those benefits were partly offset by higher labor and benefit costs, incremental tariff costs and foreign exchange pressure. Pauli said incremental tariff costs have been running at an annual rate of approximately $5 million to $7 million, about half of which were IEEPA tariffs. He said the company has recovered a majority of tariff costs on a delayed basis through price increases or pass-throughs to original equipment manufacturers and will pursue past IEEPA tariff recoveries from the government, which would then be passed back to customers. During the quarter, Strattec also made additional changes within its Mexico operations that are expected to provide $800,000 in incremental annualized savings beginning in the fourth quarter. Slater said the company is balancing cost optimization with the need to avoid disruptions to delivery or quality for customers. Net income attributable to Strattec was $3.2 million, or $0.78 per diluted share, compared with $5.4 million, or $1.32 per diluted share, in the prior-year quarter. Adjusted net income was $3.7 million, or $0.90 per diluted share. Pauli said the year-over-year earnings decline was primarily driven by unfavorable foreign exchange impacts in cost of goods sold and other income and expense. The company recorded a $900,000 currency loss in the current quarter, compared with a $235,000 foreign currency gain in the prior-year period. Pauli said most of the current-quarter loss reflected unrealized losses on peso forward contracts, driven by a sudden and short-lived strengthening of the U.S. dollar at quarter-end. The currency loss reduced earnings per share by $0.16, Pauli said, adding that it could reverse at the end of the fourth quarter depending on peso trading levels and mark-to-market accounting requirements. Adjusted EBITDA was $10.1 million, down from $12.5 million in the prior-year period, with foreign exchange cited as the primary reason for the decline. On a year-to-date basis, adjusted EBITDA was $37.9 million, up 23% from the prior-year period, while earnings per share rose 46%. Slater said Strattec’s priority remains disciplined execution of its transformation plan, including daily operational execution, stronger processes, talent upgrades and improved systems. She said the company is working to build a more predictable and higher-performing business. Management also outlined growth priorities, including capturing more content with existing customers, participating earlier in advanced development on new platforms and developing relationships with a more diverse set of customers that have U.S. production sites and are seeking local sourcing. Slater said the company’s product strategy is anchored around engineering-led access systems organized into three categories: permission, motion and hold. She said the company is defining technical product roadmaps aligned with customer requirements and current and future technologies. “We are very early in our execution on these growth initiatives,” Slater said, adding that Strattec has the balance sheet and financial flexibility to support the broader transformation. Looking ahead, Pauli said Strattec expects a moderate market environment, including the effects of canceled EV programs and lower production on certain key platforms. The company expects fourth-quarter revenue to decline 3% to 4% year over year, reflecting similar dynamics to the third quarter. Over the next few years, Strattec is targeting gross margin of 18% to 20%, assuming the peso at its five-year average of MXN 19.50. Pauli said the company is currently operating in the 16% range. The company is also targeting selling, administrative and engineering expenses of approximately 10% to 11% of revenue over the next several years, excluding unusual items. In the question-and-answer session, Sidoti & Company analyst John Franzreb asked what was needed to move gross margin from the current level toward the target range. Slater cited continued cost optimization, additional pricing opportunities and, over the longer term, volume. Pauli said the company’s trailing 12-month gross margin was just above 16.5%, compared with 15% in the prior fiscal year, and said management has line of sight to reach the 18% to 20% target. Slater said the company’s actions are intended to build “a stronger company with improved resilience, better earnings power, and a clearer path to long-term value creation.” Strattec Security Corporation is a Wisconsin‐based designer and manufacturer of mechanical and electronic locking systems for the global automotive market. Established more than five decades ago, the company supplies original equipment manufacturers (OEMs) and the aftermarket with a broad portfolio of lock and key solutions tailored to passenger cars, light trucks and commercial vehicles. The company's product range includes mechanical locking systems such as door lock cylinders, ignition lock modules, key blanks and door handles, as well as electromechanical and keyless‐entry systems. The article "Strattec Security Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Strattec Security (STRT) came out with quarterly earnings of $0.9 per share, missing the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $1.5 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -21.05%. A quarter ago, it was expected that this maker of automotive locks and keys would post earnings of $0.93 per share when it actually produced earnings of $1.71, delivering a surprise of +83.87%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Strattec Security, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $137.63 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 2.18%. This compares to year-ago revenues of $144.08 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Strattec Security shares have lost about 0.4% since the beginning of the year versus the S&P 500's gain of 7.6%. While Strattec Security has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Strattec Security was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.18 on $146.05 million in revenues for the coming quarter and $6.25 on $576.68 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Dauch (DCH), is yet to report results for the quarter ended March 2026. The results are expected to be released on May 8. This maker of auto parts is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of -144.4%. The consensus EPS estimate for the quarter has been revised 5.4% lower over the last 30 days to the current level. Dauch's revenues are expected to be $2.22 billion, up 57.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Strattec Security Corporation (STRT) : Free Stock Analysis Report Dauch Corporation (DCH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research