Strattec Q1 FY2027 earnings fall to $4.8 million
Actions in Mexico are expected to generate $1.3 million in annualized savings as Strattec continues operational cost initiatives.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Strattec Security Corporation (STRT) reported fiscal 2027 first-quarter results for the quarter ended September 27, 2026. Net sales were $147.2 million, down 3% from $152.4 million, and net income attributable to Strattec was $4.8 million, or $1.19 per diluted share, compared with $8.5 million, or $2.07. Adjusted diluted EPS was $1.85 versus $2.22; adjusted EBITDA was $13.5 million, or 9.2% of net sales, versus $15.6 million, or 10.2%.
Cash provided by operating activities was $10.8 million, compared with $11.3 million a year earlier. At September 27, 2026, cash and cash equivalents were $111.8 million and the company had no debt. Strattec repurchased 67,904 shares for $5.0 million, leaving $35.0 million available under its share repurchase authorization.
Lower customer production volumes reduced sales by $6.2 million, partly offset by $1.0 million in pricing. Gross margin was 16.5%, compared with 17.3%; the company cited lower volume, premium freight, annual labor cost increases and a 90-basis-point negative impact from $1.4 million in unfavorable foreign currency exchange.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- None.
Negative
- Moderate pointNet income attributable to Strattec fell to $4.8 million from $8.5 million in the prior-year period.
- Moderate pointAdjusted EBITDA was $13.5 million, compared with $15.6 million in the prior-year period.
Insights
Analyzing...
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
adjusted diluted EPS financial
gross margin financial
Earnings Snapshot
FAQ
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AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
(Exact Name of Registrant as Specified in Charter)
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(State or Other Jurisdiction of Incorporation) |
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(Commission File Number) |
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(I.R.S. Employer Identification No.) |
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(Address of Principal Executive Offices, and Zip Code)
Registrant’s Telephone Number, Including Area Code
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
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Trading Symbol |
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Name of each exchange on which registered |
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The |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 |
Results of Operations and Financial Condition. |
On October 29, 2026, Strattec Security Corporation (the “Company”) issued a press release (the “Press Release”) announcing results for the fiscal first quarter ended September 27, 2026. A copy of the Press Release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 2.02 and Exhibit 99.1 is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section. Furthermore, the information in this Item 2.02 and Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended (the “Securities Act”), except as may be expressly set forth by specific reference in such filing.
Item 7.01 |
Regulation FD Disclosure. |
As described in “Item 2.02 Results of Operations and Financial Condition” above, on October 29, 2026, the Company issued a Press Release announcing earnings results for the fiscal first quarter ended September 27, 2026. The Press Release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 7.01 and Exhibit 99.1 is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section. Furthermore, the information in this Item 7.01 and Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act, except as may be expressly set forth by specific reference in such filing.
Item 9.01 |
Financial Statements and Exhibits. |
(d) Exhibits.
Exhibit Number |
Description |
99.1 |
Press Release of Strattec Security Corporation, issued October 29, 2026 |
104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURE
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.
STRATTEC SECURITY CORPORATION
By: /s/ Matthew P. Pauli
Matthew P. Pauli, Senior Vice President and
Chief Financial Officer
Date: October 29, 2026
Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations
in First Quarter Fiscal 2027
October 29, 2026
Page 2 of 11
executive transition costs, adjusted SAE1 was $15.0 million, or 10.2% of sales, in line with the Company’s target of SAE being 10% to 11% of sales.
Interest income increased $0.1 million to $1.0 million on higher cash balances, while interest expense declined $0.1 million as the Company had no outstanding bank borrowings. Other expense, net was $0.2 million, compared with $0.3 million in the prior-year period.
The effective tax rate was 26.2%, compared with 21.6% in the prior-year period. The higher effective tax rate primarily reflects discrete tax items. Net income attributable to non-controlling interest was
$0.5 million, compared with less than $0.1 million in the prior-year period.
Net income attributable to Strattec was $4.8 million, or $1.19 per diluted share, compared with $8.5 million, or $2.07 per diluted share, in the prior-year period. On an adjusted basis, first quarter fiscal 2027 net income attributable to Strattec was $7.5 million, or $1.85 per diluted share, compared with $9.2 million, or $2.22 per diluted share, in the prior-year period. Adjusted EBITDA for the quarter was $13.5 million, or 9.2% of net sales, compared with $15.6 million, or 10.2% of net sales, in the prior-year period.
Business Development Efforts
The Company maintains an active acquisition funnel of strategic opportunities designed to diversify its customers and geographies, increase the scale of its operations and enhance its product offerings within Permission, Motion and Hold. During the first quarter of fiscal 2027, the Company incurred $2.4 million of business development expenses, primarily related to advancing and evaluating these inorganic growth opportunities. Additional acquisition-related expenses may be incurred in subsequent periods, with the amount and timing dependent on the progress of acquisition activities.
Financial Flexibility with Strong Balance Sheet
Cash provided by operating activities was $10.8 million in the first quarter of fiscal 2027, compared with $11.3 million in the prior-year period. During the quarter, the Company repurchased 67,904 shares of common stock for $5.0 million, leaving $35.0 million remaining available under the Company’s share repurchase authorization.
At September 27, 2026, the Company had $111.8 million in cash and cash equivalents and no debt, compared with $108.2 million in cash and cash equivalents at the end of fiscal 2026 and $90.5 million at the end of the first quarter of fiscal 2026.
First Quarter Fiscal 2027 Webcast and Conference Call
Strattec will host a conference call and webcast tomorrow, Friday, October 30, 2026, at 8:00 am Central Time/9:00 am Eastern Time, to review the financial and operating results for the period ended September 27, 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 12:00 pm CT on the day of the call through Friday, November 13, 2026. To listen to the archived call, dial +1 (412) 317-6671 and enter replay PIN 13762673. 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
1 Refer to “Use of Non-GAAP Financial Metrics and Additional Financial Information” as well as accompanying reconciliations to GAAP
Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations
in First Quarter Fiscal 2027
October 29, 2026
Page 3 of 11
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, the Company’s ability to identify, evaluate, negotiate and complete acquisitions or other strategic transactions on acceptable terms or at all, the costs incurred in pursuing such transactions, and the Company’s ability to integrate any acquired business and realize any potential benefits should a transaction occur. 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.
Investor Contact:
Deborah K. Pawlowski, IRC |
Alliance Advisors IR |
Phone: 716-843-3908 |
Email: dpawlowski@allianceadvisors.com |
FINANCIAL TABLES FOLLOW
Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations
in First Quarter Fiscal 2027
October 29, 2026
Page 4 of 11
Strattec Security Corporation |
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Condensed Consolidated Statements of Income (unaudited) |
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(in thousands, except per share amounts) |
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Three Months Ended |
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September 27, |
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September 28, |
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Net sales |
$ |
147,197 |
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$ |
152,399 |
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Cost of goods sold |
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122,882 |
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126,064 |
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Gross profit |
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24,315 |
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26,335 |
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Gross margin |
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16.5 |
% |
|
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17.3 |
% |
Selling, administrative and engineering expenses |
|
17,892 |
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|
|
15,888 |
|
Income from operations |
|
6,423 |
|
|
|
10,447 |
|
Operating margin |
|
4.4 |
% |
|
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6.9 |
% |
Interest income |
|
989 |
|
|
|
877 |
|
Interest expense |
|
(37 |
) |
|
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(156 |
) |
Other expense, net |
|
(183 |
) |
|
|
(275 |
) |
Income before provision for income taxes and |
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7,192 |
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|
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10,893 |
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Income tax expense |
|
1,881 |
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|
|
2,356 |
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Net income |
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5,311 |
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8,537 |
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Net income attributable to non-controlling interest |
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478 |
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8 |
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Net income attributable to Strattec |
$ |
4,833 |
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$ |
8,529 |
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Earnings per share attributable to Strattec |
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Basic |
$ |
1.22 |
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$ |
2.10 |
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Diluted |
$ |
1.19 |
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$ |
2.07 |
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Weighted average shares outstanding: |
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Basic |
|
3,970 |
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4,054 |
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Diluted |
|
4,053 |
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|
4,127 |
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Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations
in First Quarter Fiscal 2027
October 29, 2026
Page 5 of 11
Strattec Security Corporation |
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Condensed Consolidated Balance Sheets (unaudited) |
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(in thousands, except share amounts) |
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September 27, |
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June 28, |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
$ |
111,766 |
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$ |
108,243 |
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Receivables, net |
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95,117 |
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99,109 |
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Inventories, net |
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64,903 |
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64,310 |
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Pre-production costs |
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5,072 |
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6,489 |
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Value-added tax recoverable |
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9,827 |
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10,069 |
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Other current assets |
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6,251 |
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8,053 |
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Total current assets |
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292,936 |
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296,273 |
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Noncurrent Assets: |
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|
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Property, plant and equipment, net |
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67,321 |
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|
|
69,845 |
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Deferred income taxes |
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16,143 |
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|
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16,080 |
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Other long-term assets |
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5,143 |
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|
|
5,281 |
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Total Assets |
$ |
381,543 |
|
|
$ |
387,479 |
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|
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|
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|
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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|
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Current Liabilities: |
|
|
|
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|
||
Accounts payable |
$ |
55,113 |
|
|
$ |
54,973 |
|
Accrued payroll and benefits |
|
15,001 |
|
|
|
20,773 |
|
Value-added tax payable |
|
7,667 |
|
|
|
7,429 |
|
Warranty reserve |
|
5,677 |
|
|
|
6,673 |
|
Other current liabilities |
|
13,467 |
|
|
|
12,383 |
|
Total current liabilities |
|
96,925 |
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|
|
102,231 |
|
Noncurrent Liabilities: |
|
|
|
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|
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Post-employment benefits |
|
12,800 |
|
|
|
13,350 |
|
Other noncurrent liabilities |
|
6,760 |
|
|
|
6,401 |
|
Total Liabilities |
|
116,485 |
|
|
|
121,982 |
|
Shareholders’ Equity: |
|
|
|
|
|
||
Common stock, authorized 18,000,000 shares, $.01 par value, 7,738,324 issued shares at September 27, 2026 and 7,704,994 issued shares at June 28, 2026 |
|
77 |
|
|
|
77 |
|
Capital in excess of par value |
|
107,766 |
|
|
|
107,138 |
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Retained earnings |
|
294,728 |
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|
|
289,895 |
|
Accumulated other comprehensive loss |
|
(14,352 |
) |
|
|
(14,143 |
) |
Less: treasury stock, at cost (3,807,746 shares at September 27, 2026 and 3,727,322 shares at June 28, 2026) |
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(150,363 |
) |
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|
(144,321 |
) |
Total Strattec shareholders’ equity |
|
237,856 |
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|
|
238,646 |
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Non-controlling interest |
|
27,202 |
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|
|
26,851 |
|
Total Shareholders' Equity |
|
265,058 |
|
|
|
265,497 |
|
Total Liabilities and Shareholders' Equity |
$ |
381,543 |
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|
$ |
387,479 |
|
Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations
in First Quarter Fiscal 2027
October 29, 2026
Page 6 of 11
s
Strattec Security Corporation |
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Condensed Consolidated Statement of Cash Flows (unaudited) |
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(in thousands) |
|
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Three Months Ended |
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September 27, |
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September 28, |
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OPERATING ACTIVITIES: |
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Net income |
$ |
5,311 |
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$ |
8,537 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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|
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|
||
Depreciation |
|
3,492 |
|
|
|
3,785 |
|
Foreign currency transaction (gain) loss |
|
(194 |
) |
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|
671 |
|
Unrealized loss (gain) on peso forward contracts |
|
1,425 |
|
|
|
(293 |
) |
Stock-based compensation expense |
|
618 |
|
|
|
669 |
|
Other, net |
|
272 |
|
|
|
316 |
|
Change in operating assets and liabilities |
|
|
|
|
|
||
Receivables |
|
3,934 |
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|
|
(574 |
) |
Inventories |
|
(593 |
) |
|
|
3,109 |
|
Prepaids and other assets |
|
2,239 |
|
|
|
3,804 |
|
Accounts payable |
|
170 |
|
|
|
(4,817 |
) |
Accrued liabilities |
|
(5,909 |
) |
|
|
(3,880 |
) |
Net cash provided by operating activities |
|
10,765 |
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|
11,327 |
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INVESTING ACTIVITIES: |
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||
Purchase of property, plant and equipment |
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(1,185 |
) |
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|
(1,529 |
) |
Net cash used in investing activities |
|
(1,185 |
) |
|
|
(1,529 |
) |
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|
|
|
|
|
||
FINANCING ACTIVITIES: |
|
|
|
|
|
||
Repayment of borrowings under credit facilities |
|
— |
|
|
|
(3,000 |
) |
Payment for taxes withheld from stock-based awards |
|
(1,039 |
) |
|
|
(919 |
) |
Repurchases of common stock under share repurchase program |
|
(4,973 |
) |
|
|
— |
|
Employee stock purchases |
|
15 |
|
|
|
16 |
|
Net cash used in financing activities |
|
(5,997 |
) |
|
|
(3,903 |
) |
Foreign currency impact on cash |
|
(60 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
||
NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
3,523 |
|
|
|
5,894 |
|
|
|
|
|
|
|
||
CASH AND CASH EQUIVALENTS |
|
|
|
|
|
||
Beginning of period |
|
108,243 |
|
|
|
84,579 |
|
End of period |
$ |
111,766 |
|
|
$ |
90,473 |
|
|
|
|
|
|
|
||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
|
|
|
||
Cash paid during the period for: |
|
|
|
|
|
||
Income taxes |
$ |
466 |
|
|
$ |
582 |
|
Interest |
$ |
— |
|
|
$ |
123 |
|
Non-cash investing activities: |
|
|
|
|
|
||
Change in capital expenditures in accounts payable |
$ |
20 |
|
|
$ |
13 |
|
Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations
in First Quarter Fiscal 2027
October 29, 2026
Page 7 of 11
Strattec Security Corporation |
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Reconciliation of GAAP to Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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||||||||||
(in thousands, except per share amounts) |
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|
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|
|
|
|
|
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||||||||||
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Fiscal 2026 |
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Fiscal 2027 |
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Q1 |
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Q2 |
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Q3 |
|
Q4 |
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Total |
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|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Total |
|
||||||||||
NET SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
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|
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Net Sales (GAAP) |
$ |
152,399 |
|
$ |
137,534 |
|
$ |
137,632 |
|
$ |
151,827 |
|
$ |
579,392 |
|
|
$ |
147,197 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
147,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ADJUSTED GROSS PROFIT: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Profit (GAAP) |
$ |
26,335 |
|
$ |
22,722 |
|
$ |
22,661 |
|
$ |
23,647 |
|
$ |
95,365 |
|
|
$ |
24,315 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
24,315 |
|
Gross Margin as a % of Net Sales |
|
17.3 |
% |
|
16.5 |
% |
|
16.5 |
% |
|
15.6 |
% |
|
16.5 |
% |
|
|
16.5 |
% |
|
|
|
|
|
|
|
16.5 |
% |
|||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and similar charges |
|
- |
|
|
91 |
|
|
11 |
|
|
(10 |
) |
|
92 |
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Business transformation costs |
|
- |
|
|
- |
|
|
138 |
|
|
265 |
|
|
403 |
|
|
|
103 |
|
|
- |
|
|
- |
|
|
- |
|
|
103 |
|
Cancelled program settlements |
|
- |
|
|
- |
|
|
(573 |
) |
|
- |
|
|
(573 |
) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
91 |
|
|
(424 |
) |
|
255 |
|
|
(78 |
) |
|
|
103 |
|
|
- |
|
|
- |
|
|
- |
|
|
103 |
|
Adjusted Gross Profit (Non-GAAP) |
$ |
26,335 |
|
$ |
22,813 |
|
$ |
22,237 |
|
$ |
23,902 |
|
$ |
95,287 |
|
|
$ |
24,418 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
24,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Gross Margin as a % of Net Sales |
|
17.3 |
% |
|
16.6 |
% |
|
16.2 |
% |
|
15.7 |
% |
|
16.4 |
% |
|
|
16.6 |
% |
|
|
|
|
|
|
|
16.6 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ADJUSTED SELLING, ADMINISTRATIVE AND ENGINEERING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, administrative and engineering expenses (GAAP) |
$ |
15,888 |
|
$ |
17,860 |
|
$ |
17,615 |
|
$ |
17,479 |
|
$ |
68,842 |
|
|
$ |
17,892 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
17,892 |
|
Selling, administrative and engineering expenses as a % of Net Sales |
|
10.4 |
% |
|
13.0 |
% |
|
12.8 |
% |
|
11.5 |
% |
|
11.9 |
% |
|
|
12.2 |
% |
|
|
|
|
|
|
|
12.2 |
% |
|||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and similar charges |
|
- |
|
|
(1,570 |
) |
|
(430 |
) |
|
44 |
|
|
(1,956 |
) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Executive transition costs |
|
(136 |
) |
|
(88 |
) |
|
(423 |
) |
|
(240 |
) |
|
(887 |
) |
|
|
(128 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(128 |
) |
Business transformation costs |
|
(514 |
) |
|
(994 |
) |
|
(822 |
) |
|
(796 |
) |
|
(3,126 |
) |
|
|
(360 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(360 |
) |
Business development costs |
|
- |
|
|
- |
|
|
- |
|
|
(763 |
) |
|
(763 |
) |
|
|
(2,368 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(2,368 |
) |
Cancelled program settlements |
|
- |
|
|
- |
|
|
750 |
|
|
- |
|
|
750 |
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
(650 |
) |
|
(2,652 |
) |
|
(925 |
) |
|
(1,755 |
) |
|
(5,982 |
) |
|
|
(2,856 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(2,856 |
) |
Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations
in First Quarter Fiscal 2027
October 29, 2026
Page 8 of 11
Adjusted Selling, administrative and engineering expenses (Non-GAAP) |
$ |
15,238 |
|
$ |
15,208 |
|
$ |
16,690 |
|
$ |
15,724 |
|
$ |
62,860 |
|
|
$ |
15,036 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
15,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Selling, administrative and engineering expenses as a % of Net Sales |
|
10.0 |
% |
|
11.1 |
% |
|
12.1 |
% |
|
10.4 |
% |
|
10.8 |
% |
|
|
10.2 |
% |
|
|
|
|
|
|
|
10.2 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ADJUSTED OPERATING INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from operations (GAAP) |
$ |
10,447 |
|
$ |
4,862 |
|
$ |
5,046 |
|
$ |
6,168 |
|
$ |
26,523 |
|
|
$ |
6,423 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
6,423 |
|
Operating Income as a % of Net Sales |
|
6.9 |
% |
|
3.5 |
% |
|
3.7 |
% |
|
4.1 |
% |
|
4.6 |
% |
|
|
4.4 |
% |
|
|
|
|
|
|
|
4.4 |
% |
|||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and similar charges |
|
- |
|
|
1,661 |
|
|
441 |
|
|
(54 |
) |
|
2,048 |
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Executive transition costs |
|
136 |
|
|
88 |
|
|
423 |
|
|
240 |
|
|
887 |
|
|
|
128 |
|
|
- |
|
|
- |
|
|
- |
|
|
128 |
|
Business transformation costs |
|
514 |
|
|
994 |
|
|
960 |
|
|
1,061 |
|
|
3,529 |
|
|
|
463 |
|
|
- |
|
|
- |
|
|
- |
|
|
463 |
|
Business development costs |
|
- |
|
|
- |
|
|
- |
|
|
763 |
|
|
763 |
|
|
|
2,368 |
|
|
- |
|
|
- |
|
|
- |
|
|
2,368 |
|
Cancelled program settlements |
|
- |
|
|
- |
|
|
(1,323 |
) |
|
- |
|
|
(1,323 |
) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
650 |
|
|
2,743 |
|
|
501 |
|
|
2,010 |
|
|
5,904 |
|
|
|
2,959 |
|
|
- |
|
|
- |
|
|
- |
|
|
2,959 |
|
Adjusted Operating Income (Non-GAAP) |
$ |
11,097 |
|
$ |
7,605 |
|
$ |
5,547 |
|
$ |
8,178 |
|
$ |
32,427 |
|
|
$ |
9,382 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
9,382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Operating Income as a % of Net Sales |
|
7.3 |
% |
|
5.5 |
% |
|
4.0 |
% |
|
5.4 |
% |
|
5.6 |
% |
|
|
6.4 |
% |
|
|
|
|
|
|
|
6.4 |
% |
|||
Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations
in First Quarter Fiscal 2027
October 29, 2026
Page 9 of 11
Strattec Security Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Fiscal 2026 |
|
|
Fiscal 2027 |
|
||||||||||||||||||||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Total |
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Total |
|
||||||||||
ADJUSTED EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to Strattec (GAAP) |
|
$ |
8,529 |
|
$ |
4,947 |
|
$ |
3,240 |
|
$ |
3,882 |
|
$ |
20,598 |
|
|
$ |
4,833 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
4,833 |
|
Net income (loss) attributable to non-controlling interest |
|
|
8 |
|
|
696 |
|
|
585 |
|
|
(264 |
) |
|
1,025 |
|
|
|
478 |
|
|
- |
|
|
- |
|
|
- |
|
|
478 |
|
Income tax expense |
|
|
2,356 |
|
|
1,699 |
|
|
1,282 |
|
|
6,002 |
|
|
11,339 |
|
|
|
1,881 |
|
|
- |
|
|
- |
|
|
- |
|
|
1,881 |
|
Other (income) expense, net |
|
|
275 |
|
|
(1,691 |
) |
|
748 |
|
|
(2,630 |
) |
|
(3,298 |
) |
|
|
183 |
|
|
- |
|
|
- |
|
|
- |
|
|
183 |
|
Interest income |
|
|
(877 |
) |
|
(885 |
) |
|
(879 |
) |
|
(859 |
) |
|
(3,500 |
) |
|
|
(989 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(989 |
) |
Interest expense |
|
|
156 |
|
|
96 |
|
|
70 |
|
|
37 |
|
|
359 |
|
|
|
37 |
|
|
- |
|
|
- |
|
|
- |
|
|
37 |
|
Income from operations |
|
|
10,447 |
|
|
4,862 |
|
|
5,046 |
|
|
6,168 |
|
|
26,523 |
|
|
|
6,423 |
|
|
- |
|
|
- |
|
|
- |
|
|
6,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation |
|
$ |
3,785 |
|
$ |
3,893 |
|
$ |
3,772 |
|
$ |
3,635 |
|
$ |
15,085 |
|
|
$ |
3,492 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
3,492 |
|
Non-cash stock-based compensation |
|
|
669 |
|
|
1,125 |
|
|
811 |
|
|
700 |
|
|
3,305 |
|
|
|
618 |
|
|
- |
|
|
- |
|
|
- |
|
|
618 |
|
Restructuring and similar charges |
|
|
- |
|
|
1,305 |
|
|
424 |
|
|
(30 |
) |
|
1,699 |
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Executive transition costs |
|
|
136 |
|
|
88 |
|
|
423 |
|
|
240 |
|
|
887 |
|
|
|
128 |
|
|
- |
|
|
- |
|
|
- |
|
|
128 |
|
Business transformation costs |
|
|
514 |
|
|
994 |
|
|
960 |
|
|
1,061 |
|
|
3,529 |
|
|
|
463 |
|
|
- |
|
|
- |
|
|
- |
|
|
463 |
|
Business development costs |
|
|
- |
|
|
- |
|
|
- |
|
|
763 |
|
|
763 |
|
|
|
2,368 |
|
|
- |
|
|
- |
|
|
- |
|
|
2,368 |
|
Cancelled program settlements |
|
|
- |
|
|
- |
|
|
(1,323 |
) |
|
- |
|
|
(1,323 |
) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
5,104 |
|
|
7,405 |
|
|
5,067 |
|
|
6,369 |
|
|
23,945 |
|
|
|
7,069 |
|
|
- |
|
|
- |
|
|
- |
|
|
7,069 |
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
15,551 |
|
$ |
12,267 |
|
$ |
10,113 |
|
$ |
12,537 |
|
$ |
50,468 |
|
|
$ |
13,492 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
13,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA as a % of Net Sales |
|
|
10.2 |
% |
|
8.9 |
% |
|
7.3 |
% |
|
8.3 |
% |
|
8.7 |
% |
|
|
9.2 |
% |
|
|
|
|
|
|
|
9.2 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ADJUSTED NET INCOME AND EARNINGS/(LOSS) PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations
in First Quarter Fiscal 2027
October 29, 2026
Page 10 of 11
Net income attributable to Strattec (GAAP) |
|
$ |
8,529 |
|
$ |
4,947 |
|
$ |
3,240 |
|
$ |
3,882 |
|
$ |
20,598 |
|
|
$ |
4,833 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
4,833 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and similar charges |
|
|
570 |
|
|
1,165 |
|
|
572 |
|
|
49 |
|
|
2,356 |
|
|
|
107 |
|
|
- |
|
|
- |
|
|
- |
|
|
107 |
|
Executive transition costs |
|
|
136 |
|
|
88 |
|
|
423 |
|
|
240 |
|
|
887 |
|
|
|
128 |
|
|
- |
|
|
- |
|
|
- |
|
|
128 |
|
Business transformation costs |
|
|
514 |
|
|
994 |
|
|
960 |
|
|
1,061 |
|
|
3,529 |
|
|
|
463 |
|
|
- |
|
|
- |
|
|
- |
|
|
463 |
|
Business development costs |
|
|
- |
|
|
- |
|
|
- |
|
|
763 |
|
|
763 |
|
|
|
2,368 |
|
|
- |
|
|
- |
|
|
- |
|
|
2,368 |
|
Cancelled program settlements |
|
|
- |
|
|
- |
|
|
(1,323 |
) |
|
- |
|
|
(1,323 |
) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Non-controlling interest impact |
|
|
(196 |
) |
|
190 |
|
|
(9 |
) |
|
28 |
|
|
13 |
|
|
|
(6 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(6 |
) |
Tax effect on above adjustments and other discrete tax items |
|
|
(383 |
) |
|
(335 |
) |
|
(139 |
) |
|
2,388 |
|
|
1,531 |
|
|
|
(392 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(392 |
) |
|
|
|
641 |
|
|
2,102 |
|
|
484 |
|
|
4,529 |
|
|
7,756 |
|
|
|
2,668 |
|
|
- |
|
|
- |
|
|
- |
|
|
2,668 |
|
Adjusted Net Income attributable to Strattec (Non-GAAP) |
|
$ |
9,170 |
|
$ |
7,049 |
|
$ |
3,724 |
|
$ |
8,411 |
|
$ |
28,354 |
|
|
$ |
7,501 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
7,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted Average Basic Shares Outstanding |
|
|
4,054 |
|
|
4,080 |
|
|
4,085 |
|
|
4,035 |
|
|
4,064 |
|
|
|
3,970 |
|
|
- |
|
|
- |
|
|
- |
|
|
3,970 |
|
Weighted Average Diluted Shares Outstanding |
|
|
4,127 |
|
|
4,131 |
|
|
4,141 |
|
|
4,091 |
|
|
4,122 |
|
|
|
4,053 |
|
|
- |
|
|
- |
|
|
- |
|
|
4,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share (GAAP) |
|
$ |
2.07 |
|
$ |
1.20 |
|
$ |
0.78 |
|
$ |
0.95 |
|
$ |
5.00 |
|
|
$ |
1.19 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
1.19 |
|
Adjusted diluted earnings per share (Non-GAAP) |
|
$ |
2.22 |
|
$ |
1.71 |
|
$ |
0.90 |
|
$ |
2.06 |
|
$ |
6.88 |
|
|
$ |
1.85 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
1.85 |
|