For Third Quarter Fiscal 2026, Strattec Continued to Advance Transformation Efforts to Strengthen Business Performance

Published: 2026-05-07 16:16:07 ET STRT

Strong balance sheet provides financial flexibility with $107 million of cash; $11.4 million of cash generated from operations in the third quarter Sales declined 4.5%, consistent with expectations, on lower North American OEM automotive production volumes of key platforms Gross margin improved 50 basis points year-over-year to 16.5%, despite the sales decline and 170 basis point foreign currency exchange rate headwind Net income attributable to Strattec was $3.2 million, or $0.78 per diluted share; Adjusted EBITDA1 was $10.1 million, or 7.3% of net sales

Published on 05/07/2026 at 04:16 pm EDT

Strattec (Nasdaq: STRT), a global provider of highly engineered access solutions for the automotive and mobility industries, today reported financial results for its third quarter of fiscal year 2026, which ended March 29, 2026.

Jennifer Slater, President and CEO of Strattec, said, “We are continuing to progress on our strategy to transform Strattec into a more predictable, higher performing business even as we continually face the challenges of the automotive industry including weak end market demand, platform changes, tariffs and the long-cycle nature of the sector. Our near-term objectives remain focused on improving our cost structure and driving a stronger more predictable business while positioning ourselves to win new opportunities on future platforms for model years 2029 and beyond and developing deeper relationships with both current and prospective customers.”

She concluded, “Our team is leaning into the challenges and recognizes there is still more work to be done. We are encouraged with our potential and are supported with a very solid balance sheet and strong cash generation.”

FY 2026 Third Quarter Financial Summary

Net sales were $137.6 million, down $6.5 million, or 4.5% from the prior-year period. Lower sales were the result of $7.7 million in lower volume including $3.4 million lower sales related to customer EV program cancellations. The volume declines were partially offset by $1.3 million in pricing including $0.6 million in tariff recoveries.

Gross profit was $22.7 million, compared with $23.1 million in the prior year, on lower volume. Gross margin expanded 50 basis points to 16.5% primarily as a result of $1.7 million in restructuring savings and $0.6 million of recoveries from customer program cancellations. Partially offsetting these benefits were $2.5 million higher costs related to unfavorable changes in foreign exchange rates, a $0.5 million increase in labor and benefit costs, and $0.3 million of incremental tariff costs.

Selling, administrative and engineering (“SAE”) expenses increased $1.6 million to $17.6 million, or 12.8% of sales, compared with $16.0 million, or 11.1% of sales, in the prior-year period. Elevated SAE expenses included $1.4 million in business transformation and executive transition costs, $1.3 million increase in salaries and employee benefits and $0.4 million increase in professional fees. These costs were partially offset by $0.7 million in recoveries related to customer cancelled EV programs and restructuring savings of $0.2 million.

Interest income grew $0.4 million on higher cash balances, while interest expenses declined $0.2 million on lower borrowings. Other expense increased $0.7 million primarily as a result of unfavorable foreign currency movements at the end of the reported period and related fair value adjustments to foreign currency forward contracts.

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 period. On an adjusted basis, third quarter fiscal 2026 net income attributable to Strattec was $3.7 million and adjusted diluted earnings per share1 was $0.90, compared with $1.50 in the prior year. Lower adjusted dilutive earnings per share was primarily the result of changes in foreign currency exchange rates, which unfavorably impacted year-over-year comparisons of both cost of goods sold and other income and expense.

Adjusted EBITDA1 for the quarter was $10.1 million compared with $12.9 million in the prior-year period. Adjusted EBITDA margin of 7.3%, compared with 8.9% in the fiscal 2025 third quarter.

Strong Balance Sheet

Cash from operations in the third quarter of fiscal 2026 was $11.4 million, compared with $20.7 million in the prior-year period. Despite lower net income, cash from operations benefited from the collection of $5.0 million of VAT balances and $1.5 million in recovery of pre-production costs.

At March 29, 2026, Strattec had $107 million in cash and cash equivalents, up from $99.0 million at the end of the second quarter of fiscal 2026 and $84.6 million at the end of the prior fiscal year. Subsequent to end of the quarter, the Company replaced its existing joint venture credit facility with a new revolving credit facility which extended the maturity date.

Third Quarter Fiscal Year 2026 Webcast and Conference Call

Strattec will host a conference call and webcast tomorrow, Friday, May 8, 2026, at 8:00 am Central Time/9:00 am Eastern Time to review the financial and operating results for the period ended March 29, 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 12:00 p.m. ET on the day of the call through Thursday, May 21, 2026. To listen to the archived call, dial +1 (412) 317-6671 and enter replay PIN 13759857. The webcast replay will be available on the Investor Relations section of the Company’s website investors.strattec.com, where a transcript will be posted once available.

Refer to use of “Non-GAAP Financial Metrics and Additional Financial Information” as well as accompanying reconciliations to GAAP

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.

Strattec Security Corporation

Consolidated Statements of Income (Unaudited)

(in thousands, except per share amounts)

137,632

144,082

427,565

413,053

114,971

120,977

355,848

353,876

22,661

23,105

71,717

59,177

16.5

16.0

16.8

14.3

17,615

16,020

51,362

44,895

5,046

7,085

20,355

14,282

3.7

4.9

4.8

3.5

879

529

2,641

1,286

(70

)

(243

)

(322

)

(795

)

(748

)

(16

)

668

(369

)

5,107

7,355

23,342

14,404

1,282

1,644

5,337

3,547

3,825

5,711

18,005

10,857

585

315

1,289

439

3,240

5,396

16,716

10,418

0.79

1.34

4.10

2.59

0.78

1.32

4.04

2.56

4,085

4,039

4,073

4,026

4,141

4,085

4,133

4,067

Strattec Security Corporation

Consolidated Balance Sheets (Unaudited)

(in thousands, except share amounts)

106,957

84,579

102,164

102,061

73,401

64,701

5,304

8,657

9,935

19,389

6,396

10,676

Total current assets

304,157

290,063

71,400

77,410

19,694

19,531

4,296

4,450

399,547

391,454

64,742

65,824

18,074

22,956

7,905

11,933

8,603

8,900

1,000

—

15,522

9,737

Total current liabilities

115,846

119,350

—

8,000

12,774

13,325

3,774

4,348

132,394

145,023

106,425

103,784

286,013

269,297

(15,209

)

(16,113

)

(136,795

)

(135,452

)

240,511

221,592

26,642

24,839

267,153

246,431

399,547

391,454

Strattec Security Corporation

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

3,825

5,711

18,005

10,857

3,772

3,746

11,450

10,952

(603

)

141

531

(1,052

)

811

760

2,605

1,839

3,182

(705

)

2,810

231

(439

)

261

105

1,077

(11,266

)

(17,616

)

1,628

(10,237

)

(1,467

)

5,920

(8,700

)

6,058

5,333

(1,850

)

11,982

5,994

5,428

20,720

(934

)

16,730

2,865

3,632

(2,832

)

(948

)

11,441

20,720

36,650

41,501

(1,752

)

(1,170

)

(5,913

)

(4,160

)

—

259

—

(1,752

)

(1,170

)

(5,654

)

(4,160

)

—

3,000

(1,500

)

—

(7,000

)

(3,000

)

—

(98

)

—

(79

)

—

(1,353

)

—

(1,563

)

(8,404

)

(196

)

(85

)

(214

)

(689

)

7,930

19,481

22,378

36,696

99,027

42,625

84,579

25,410

106,957

62,106

106,957

62,106

764

596

1,921

9,135

172

218

731

)

1,176

)

726

Strattec Security Corporation

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share amounts)

139,052

129,919

144,082

152,013

565,066

152,399

137,534

137,632

427,565

3,703

1,319

5,396

8,267

18,685

8,529

4,947

3,240

16,716

315

(205

)

234

696

585

1,289

1,498

405

1,644

2,170

5,717

2,356

1,699

1,282

5,337

(129

)

482

(1,189

)

(820

)

275

(1,691

)

748

(668

)

(349

)

(408

)

(529

)

(753

)

(2,039

)

(877

)

(885

)

(879

)

(2,641

)

295

257

243

212

1,007

156

322

5,063

2,134

7,085

8,502

22,784

10,447

4,862

5,046

20,355

3,662

3,544

3,746

3,812

14,764

3,785

3,893

3,772

11,450

188

891

760

887

2,726

669

1,125

811

2,605

265

809

(676

)

398

1,305

424

1,729

(1,323

)

(1,323

)

941

921

214

(17

)

2,058

136

423

647

215

259

479

1,027

514

994

960

2,468

4,865

5,836

5,788

4,485

20,974

5,104

7,405

5,067

17,576

9,928

7,970

12,873

12,987

43,758

15,551

12,267

10,113

37,931

7.1

6.1

8.9

8.5

7.7

10.2

8.9

7.3

8.9

3,703

1,319

5,396

8,267

18,685

8,529

4,947

3,240

16,716

265

809

(676

)

398

570

1,165

572

2,307

(1,323

)

(1,323

)

1,224

1,225

214

115

2,778

136

423

647

215

259

479

1,027

514

994

960

2,468

(160

)

160

(196

)

190

)

(15

)

(292

)

(384

)

(376

)

107

(945

)

(383

)

(335

)

(139

)

(857

)

1,006

1,321

746

185

3,258

641

2,102

484

3,227

4,709

2,640

6,142

8,452

21,943

9,170

7,049

3,724

19,943

4,005

4,035

4,039

4,030

4,054

4,080

4,085

4,073

4,046

4,070

4,085

4,105

4,076

4,127

4,131

4,141

4,133

0.92

0.32

1.32

2.01

4.58

2.07

1.20

0.78

4.04

1.16

0.65

1.50

2.06

5.38

2.22

1.71

0.90

4.83

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