Strattec (STRT) piles up cash as late‑year profit slumps
Rhea-AI Filing Summary
STRATTEC SECURITY CORP (STRT) reported fiscal 2026 and fourth‑quarter results, highlighting modest sales growth, margin expansion for the full year, and strong liquidity. Fiscal 2026 net sales were $579.4 million, up from $565.1 million, while gross margin improved to 16.5% from 15.0%, and operating margin rose to 4.6% from 4.0%. Net income attributable to STRATTEC increased to $20.6 million from $18.7 million, with diluted EPS of $5.00 versus $4.58. Adjusted EBITDA reached $50.5 million, a 15.3% increase over the prior year, and full‑year adjusted diluted EPS was $6.88.
In the fourth quarter, net sales were $151.8 million, essentially flat year over year, while gross margin declined to 15.6% from 16.7%. Net income attributable to STRATTEC was $3.9 million (diluted EPS $0.95) versus $8.3 million (diluted EPS $2.01) a year ago, but adjusted diluted EPS held at $2.06. Management cited foreign exchange, tariffs, and customer‑cancelled EV programs as headwinds, partly offset by pricing and cost actions.
Liquidity strengthened with $108.2 million in cash and no debt at June 28, 2026. STRATTEC generated $46.3 million in operating cash flow for the year, repurchased 110,269 shares for $7.4 million in the fourth quarter, and authorized a new $40 million share repurchase program.
Positive
- Gross margin expansion: Full‑year gross margin improved to 16.5% from 15.0%, and operating margin increased to 4.6% from 4.0%, reflecting pricing, cost actions and operational improvements.
- Profit and EBITDA growth: Fiscal 2026 net income attributable to STRATTEC rose to $20.6 million from $18.7 million, and Adjusted EBITDA increased 15.3% to $50.5 million.
- Strong balance sheet: Cash and cash equivalents were $108.2 million at June 28, 2026, up from $84.6 million, with no borrowings outstanding under credit facilities.
- Capital return: The company repurchased 110,269 shares for $7.4 million in the fourth quarter and has $40 million remaining under its share repurchase authorization.
Negative
- Weaker Q4 profitability: Fourth‑quarter net income attributable to STRATTEC fell to $3.9 million from $8.3 million, with diluted EPS down to $0.95 from $2.01, and gross margin declined to 15.6% from 16.7%.
- Lower operating cash flow: Fiscal 2026 cash from operations was $46.3 million, down from $71.7 million in the prior year, which benefited from a larger working‑capital reduction.
- Demand and FX/tariff headwinds: Management cited foreign exchange pressure, tariffs and $3.2 million of volume impact from customer‑cancelled EV programs, and noted an uncertain near‑term environment for securing future OEM platforms.
Filing Explained
The earnings release attached to this August 25 Form 8-K is furnished under Items 2.02 and 7.01, not deemed filed for Exchange Act Section 18 liability or incorporated by reference into Securities Act filings unless specifically referenced.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Non-GAAP financial measures financial
operating cash flow financial
business transformation costs financial
Offering Details
FAQ
How did STRT perform financially in fiscal year 2026?
What were STRT's fourth quarter 2026 results?
How did STRT's Adjusted EBITDA and adjusted EPS change in 2026?
What is STRT's cash and debt position at June 28, 2026?
How much stock did STRT repurchase and what authorization remains?
What were STRT's operating cash flows in fiscal 2026?
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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(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 August 25, 2026, Strattec Security Corporation (the “Company”) issued a press release (the “Press Release”) announcing results for the fiscal fourth quarter ended June 28, 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 August 25, 2026, the Company issued a Press Release announcing earnings results for the fiscal fourth quarter ended June 28, 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 August 25, 2026 |
104 |
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: August 25, 2026
Strattec Transformation Delivers Margin Improvement and Strong Cash Generation in Fiscal 2026
August 25, 2026
Page 2 of 10
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 Transformation Delivers Margin Improvement and Strong Cash Generation in Fiscal 2026
August 25, 2026
Page 3 of 10
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
Strattec Transformation Delivers Margin Improvement and Strong Cash Generation in Fiscal 2026
August 25, 2026
Page 4 of 10
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.
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Investor Contact: |
Deborah K. Pawlowski, IRC |
Strattec Transformation Delivers Margin Improvement and Strong Cash Generation in Fiscal 2026
August 25, 2026
Page 5 of 10
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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Twelve Months Ended |
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June 28, |
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June 29, |
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June 28, |
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June 29, |
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Net sales |
$ |
151,827 |
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$ |
152,013 |
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$ |
579,392 |
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$ |
565,066 |
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Cost of goods sold |
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128,179 |
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126,613 |
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484,027 |
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480,489 |
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Gross profit |
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23,648 |
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25,400 |
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95,365 |
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84,577 |
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Gross margin |
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15.6 |
% |
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16.7 |
% |
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16.5 |
% |
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15.0 |
% |
Selling, administrative and engineering expenses |
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17,480 |
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16,898 |
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68,842 |
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61,793 |
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Income from operations |
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6,168 |
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8,502 |
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26,523 |
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22,784 |
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Operating margin |
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4.1 |
% |
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5.6 |
% |
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4.6 |
% |
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4.0 |
% |
Interest income |
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859 |
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753 |
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3,500 |
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2,039 |
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Interest expense |
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(37 |
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(212 |
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(359 |
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(1,007 |
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Other income, net |
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2,630 |
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1,189 |
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3,298 |
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820 |
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Income before provision for income taxes and |
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9,620 |
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10,232 |
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32,962 |
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24,636 |
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Income tax expense |
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6,002 |
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2,170 |
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11,339 |
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5,717 |
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Net income |
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3,618 |
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8,062 |
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21,623 |
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18,919 |
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Net income (loss) attributable to non-controlling interest |
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(264 |
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(205 |
) |
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1,025 |
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234 |
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Net income attributable to Strattec |
$ |
3,882 |
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$ |
8,267 |
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$ |
20,598 |
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$ |
18,685 |
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Earnings per share attributable to Strattec |
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Basic |
$ |
0.96 |
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$ |
2.05 |
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$ |
5.07 |
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$ |
4.64 |
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Diluted |
$ |
0.95 |
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$ |
2.01 |
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$ |
5.00 |
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$ |
4.58 |
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Weighted average shares outstanding: |
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Basic |
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4,035 |
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4,039 |
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4,064 |
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4,030 |
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Diluted |
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4,091 |
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4,105 |
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4,122 |
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4,076 |
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Strattec Transformation Delivers Margin Improvement and Strong Cash Generation in Fiscal 2026
August 25, 2026
Page 6 of 10
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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June 28, |
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June 29, |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
$ |
108,243 |
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$ |
84,579 |
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Receivables, net |
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99,109 |
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102,061 |
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Inventories, net |
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64,310 |
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64,701 |
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Pre-production costs |
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6,489 |
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8,657 |
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Value-added tax recoverable |
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10,069 |
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19,389 |
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Other current assets |
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8,053 |
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10,676 |
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Total current assets |
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296,273 |
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290,063 |
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Noncurrent Assets: |
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Property, plant and equipment, net |
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69,845 |
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77,410 |
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Deferred income taxes |
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16,080 |
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19,531 |
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Other long-term assets |
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5,281 |
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4,450 |
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Total Assets |
$ |
387,479 |
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$ |
391,454 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable |
$ |
54,973 |
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$ |
65,824 |
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Accrued payroll and benefits |
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20,773 |
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22,956 |
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Value-added tax payable |
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7,429 |
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11,933 |
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Warranty reserve |
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6,673 |
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8,900 |
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Other current liabilities |
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12,383 |
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9,737 |
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Total current liabilities |
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102,231 |
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119,350 |
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Noncurrent Liabilities: |
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Borrowings under credit facilities |
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— |
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8,000 |
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Post-employment benefits |
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13,350 |
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13,325 |
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Other noncurrent liabilities |
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6,401 |
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4,348 |
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Total Liabilities |
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121,982 |
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145,023 |
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Shareholders’ Equity: |
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Common stock, authorized 18,000,000 shares, $.01 par value, 7,704,994 issued shares at June 28, 2026 and 7,635,883 issued shares at June 29, 2025 |
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77 |
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76 |
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Capital in excess of par value |
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107,138 |
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103,784 |
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Retained earnings |
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289,895 |
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269,297 |
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Accumulated other comprehensive loss |
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(14,143 |
) |
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(16,113 |
) |
Less: treasury stock, at cost (3,727,322 shares at June 28, 2026 and 3,596,549 shares at June 29, 2025) |
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(144,321 |
) |
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(135,452 |
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Total Strattec shareholders’ equity |
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238,646 |
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221,592 |
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Non-controlling interest |
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26,851 |
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24,839 |
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Total Shareholders' Equity |
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265,497 |
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246,431 |
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Total Liabilities and Shareholders' Equity |
$ |
387,479 |
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$ |
391,454 |
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Strattec Transformation Delivers Margin Improvement and Strong Cash Generation in Fiscal 2026
August 25, 2026
Page 7 of 10
STRATTEC SECURITY CORPORATION |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
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(in thousands) |
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Three Months Ended |
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Twelve Months Ended |
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June 28, |
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June 29, |
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June 28, |
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June 29, |
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OPERATING ACTIVITIES: |
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Net income |
$ |
3,618 |
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$ |
8,062 |
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$ |
21,623 |
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$ |
18,919 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation |
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3,635 |
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3,812 |
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15,085 |
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14,764 |
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Foreign currency transaction loss (gain) |
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1,029 |
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1,643 |
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1,560 |
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|
591 |
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Deferred income taxes |
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3,563 |
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(1,890 |
) |
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3,563 |
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(1,890 |
) |
Stock-based compensation expense |
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700 |
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|
886 |
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|
3,305 |
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|
|
2,725 |
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Unrealized (gain) loss on peso forward contracts |
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(2,461 |
) |
|
|
(2,545 |
) |
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|
349 |
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|
|
(2,314 |
) |
Other, net |
|
240 |
|
|
|
271 |
|
|
|
345 |
|
|
|
1,348 |
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Change in operating assets and liabilities |
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|
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|
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|
||||
Receivables |
|
1,364 |
|
|
|
7,152 |
|
|
|
2,992 |
|
|
|
(3,085 |
) |
Inventories |
|
9,091 |
|
|
|
10,890 |
|
|
|
391 |
|
|
|
16,948 |
|
Prepaids and other assets |
|
(2,516 |
) |
|
|
6,033 |
|
|
|
9,466 |
|
|
|
12,027 |
|
Accounts payable |
|
(9,497 |
) |
|
|
(6,056 |
) |
|
|
(10,431 |
) |
|
|
10,674 |
|
Accrued liabilities |
|
888 |
|
|
|
1,918 |
|
|
|
(1,944 |
) |
|
|
970 |
|
Net cash provided by operating activities |
|
9,654 |
|
|
|
30,176 |
|
|
|
46,304 |
|
|
|
71,677 |
|
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
||||
Purchase of property, plant and equipment |
|
(1,415 |
) |
|
|
(2,996 |
) |
|
|
(7,328 |
) |
|
|
(7,156 |
) |
Proceeds from sale of property, plant and equipment |
|
1,671 |
|
|
|
— |
|
|
|
1,930 |
|
|
|
— |
|
Net cash (used in) provided by investing activities |
|
256 |
|
|
|
(2,996 |
) |
|
|
(5,398 |
) |
|
|
(7,156 |
) |
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
||||
Borrowings under credit facilities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,000 |
|
Repayment of borrowings under credit facilities |
|
(1,000 |
) |
|
|
(5,000 |
) |
|
|
(8,000 |
) |
|
|
(8,000 |
) |
Payment for debt issuance costs |
|
(34 |
) |
|
|
— |
|
|
|
(132 |
) |
|
|
— |
|
Repurchases of common stock under share repurchase program |
|
(7,400 |
) |
|
|
— |
|
|
|
(7,400 |
) |
|
|
— |
|
Payment for taxes withheld from stock-based awards |
|
(89 |
) |
|
|
— |
|
|
|
(1,442 |
) |
|
|
— |
|
Share issuances |
|
17 |
|
|
|
17 |
|
|
|
64 |
|
|
|
61 |
|
Net cash used in financing activities |
|
(8,506 |
) |
|
|
(4,983 |
) |
|
|
(16,910 |
) |
|
|
(4,939 |
) |
Foreign currency impact on cash |
|
(118 |
) |
|
|
276 |
|
|
|
(332 |
) |
|
|
(413 |
) |
NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
1,286 |
|
|
|
22,473 |
|
|
|
23,664 |
|
|
|
59,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
CASH AND CASH EQUIVALENTS |
|
|
|
|
|
|
|
|
|
|
|
||||
Beginning of period |
|
106,957 |
|
|
|
62,106 |
|
|
|
84,579 |
|
|
|
25,410 |
|
End of period |
$ |
108,243 |
|
|
$ |
84,579 |
|
|
$ |
108,243 |
|
|
$ |
84,579 |
|
Strattec Transformation Delivers Margin Improvement and Strong Cash Generation in Fiscal 2026
August 25, 2026
Page 8 of 10
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
|
|
|
||||
Cash paid during the period for: |
|
|
|
|
|
|
|
|
|
|
|
||||
Income taxes |
$ |
2,825 |
|
|
$ |
5,039 |
|
|
$ |
4,746 |
|
|
$ |
14,174 |
|
Interest |
$ |
— |
|
|
$ |
276 |
|
|
$ |
218 |
|
|
$ |
1,007 |
|
Non-cash investing activities: |
|
|
|
|
|
|
|
|
|
|
|
||||
Change in capital expenditures in accounts payable |
$ |
(72 |
) |
|
$ |
(1,148 |
) |
|
|
(79 |
) |
|
$ |
(422 |
) |
Strattec Transformation Delivers Margin Improvement and Strong Cash Generation in Fiscal 2026
August 25, 2026
Page 9 of 10
STRATTEC SECURITY CORPORATION |
|
|||||||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
|
|||||||||||||||||||||||||||||||
(in thousands, except per share amounts) |
|
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Fiscal 2025 |
|
|
Fiscal 2026 |
|
||||||||||||||||||||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Total |
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Total |
|
||||||||||
NET SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Sales (GAAP) |
|
$ |
139,052 |
|
$ |
129,919 |
|
$ |
144,082 |
|
$ |
152,013 |
|
$ |
565,066 |
|
|
$ |
152,399 |
|
$ |
137,534 |
|
$ |
137,632 |
|
$ |
151,827 |
|
$ |
579,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ADJUSTED EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to Strattec (GAAP) |
|
$ |
3,703 |
|
$ |
1,319 |
|
$ |
5,396 |
|
$ |
8,267 |
|
$ |
18,685 |
|
|
$ |
8,529 |
|
$ |
4,947 |
|
$ |
3,240 |
|
$ |
3,882 |
|
$ |
20,598 |
|
Net income (loss) attributable to non-controlling interest |
|
|
45 |
|
|
79 |
|
|
315 |
|
|
(205 |
) |
|
234 |
|
|
|
8 |
|
|
696 |
|
|
585 |
|
|
(264 |
) |
|
1,025 |
|
Income tax expense |
|
|
1,498 |
|
|
405 |
|
|
1,644 |
|
|
2,170 |
|
|
5,717 |
|
|
|
2,356 |
|
|
1,699 |
|
|
1,282 |
|
|
6,002 |
|
|
11,339 |
|
Other (income) expense, net |
|
|
(129 |
) |
|
482 |
|
|
16 |
|
|
(1,189 |
) |
|
(820 |
) |
|
|
275 |
|
|
(1,691 |
) |
|
748 |
|
|
(2,630 |
) |
|
(3,298 |
) |
Interest income |
|
|
(349 |
) |
|
(408 |
) |
|
(529 |
) |
|
(753 |
) |
|
(2,039 |
) |
|
|
(877 |
) |
|
(885 |
) |
|
(879 |
) |
|
(859 |
) |
|
(3,500 |
) |
Interest expense |
|
|
295 |
|
|
257 |
|
|
243 |
|
|
212 |
|
|
1,007 |
|
|
|
156 |
|
|
96 |
|
|
70 |
|
|
37 |
|
|
359 |
|
Income from operations |
|
|
5,063 |
|
|
2,134 |
|
|
7,085 |
|
|
8,502 |
|
|
22,784 |
|
|
|
10,447 |
|
|
4,862 |
|
|
5,046 |
|
|
6,168 |
|
|
26,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation |
|
|
3,662 |
|
|
3,544 |
|
|
3,746 |
|
|
3,812 |
|
$ |
14,764 |
|
|
|
3,785 |
|
|
3,893 |
|
|
3,772 |
|
|
3,635 |
|
$ |
15,085 |
|
Non-cash stock-based compensation |
|
|
188 |
|
|
891 |
|
|
760 |
|
|
887 |
|
|
2,726 |
|
|
|
669 |
|
|
1,125 |
|
|
811 |
|
|
700 |
|
|
3,305 |
|
Restructuring and similar charges |
|
|
- |
|
|
265 |
|
|
809 |
|
|
(676 |
) |
|
398 |
|
|
|
- |
|
|
1,305 |
|
|
424 |
|
|
(30 |
) |
|
1,699 |
|
Cancelled program settlements |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
(1,323 |
) |
|
- |
|
|
(1,323 |
) |
Executive transition costs |
|
|
941 |
|
|
921 |
|
|
214 |
|
|
(17 |
) |
|
2,058 |
|
|
|
136 |
|
|
88 |
|
|
423 |
|
|
240 |
|
|
887 |
|
Business transformation costs |
|
|
74 |
|
|
215 |
|
|
259 |
|
|
479 |
|
|
1,027 |
|
|
|
514 |
|
|
994 |
|
|
960 |
|
|
1,824 |
|
|
4,292 |
|
|
|
|
4,865 |
|
|
5,836 |
|
|
5,788 |
|
|
4,485 |
|
|
20,974 |
|
|
|
5,104 |
|
|
7,405 |
|
|
5,067 |
|
|
6,369 |
|
|
23,945 |
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
9,928 |
|
$ |
7,970 |
|
$ |
12,873 |
|
$ |
12,987 |
|
$ |
43,758 |
|
|
$ |
15,551 |
|
$ |
12,267 |
|
$ |
10,113 |
|
$ |
12,537 |
|
$ |
50,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA as a % of Net Sales |
|
|
7.1 |
% |
|
6.1 |
% |
|
8.9 |
% |
|
8.5 |
% |
|
7.7 |
% |
|
|
10.2 |
% |
|
8.9 |
% |
|
7.3 |
% |
|
8.3 |
% |
|
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ADJUSTED NET INCOME AND EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to Strattec (GAAP) |
|
$ |
3,703 |
|
$ |
1,319 |
|
$ |
5,396 |
|
$ |
8,267 |
|
$ |
18,685 |
|
|
$ |
8,529 |
|
$ |
4,947 |
|
$ |
3,240 |
|
$ |
3,882 |
|
$ |
20,598 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and similar charges |
|
|
- |
|
|
265 |
|
|
809 |
|
|
(676 |
) |
|
398 |
|
|
|
570 |
|
|
1,165 |
|
|
572 |
|
|
49 |
|
|
2,356 |
|
Cancelled program settlements |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
(1,323 |
) |
|
- |
|
|
(1,323 |
) |
Strattec Transformation Delivers Margin Improvement and Strong Cash Generation in Fiscal 2026
August 25, 2026
Page 10 of 10
Executive transition costs |
|
|
1,224 |
|
|
1,225 |
|
|
214 |
|
|
115 |
|
|
2,778 |
|
|
|
136 |
|
|
88 |
|
|
423 |
|
|
240 |
|
|
887 |
|
Business transformation costs |
|
|
74 |
|
|
215 |
|
|
259 |
|
|
479 |
|
|
1,027 |
|
|
|
514 |
|
|
994 |
|
|
960 |
|
|
1,824 |
|
|
4,292 |
|
Non-controlling interest impact |
|
|
- |
|
|
- |
|
|
(160 |
) |
|
160 |
|
|
- |
|
|
|
(196 |
) |
|
190 |
|
|
(9 |
) |
|
28 |
|
|
13 |
|
Tax effect on above adjustments and other discrete tax items |
|
|
(292 |
) |
|
(384 |
) |
|
(376 |
) |
|
107 |
|
|
(945 |
) |
|
|
(383 |
) |
|
(335 |
) |
|
(139 |
) |
|
2,388 |
|
|
1,531 |
|
|
|
|
1,006 |
|
|
1,321 |
|
|
746 |
|
|
185 |
|
|
3,258 |
|
|
|
641 |
|
|
2,102 |
|
|
484 |
|
|
4,529 |
|
|
7,756 |
|
Adjusted Net Income attributable to Strattec (Non-GAAP) |
|
$ |
4,709 |
|
$ |
2,640 |
|
$ |
6,142 |
|
$ |
8,452 |
|
$ |
21,943 |
|
|
$ |
9,170 |
|
$ |
7,049 |
|
$ |
3,724 |
|
$ |
8,411 |
|
$ |
28,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted Average Basic Shares Outstanding |
|
|
4,005 |
|
|
4,035 |
|
|
4,039 |
|
|
4,039 |
|
|
4,030 |
|
|
|
4,054 |
|
|
4,080 |
|
|
4,085 |
|
|
4,035 |
|
|
4,064 |
|
Weighted Average Diluted Shares Outstanding |
|
|
4,046 |
|
|
4,070 |
|
|
4,085 |
|
|
4,105 |
|
|
4,076 |
|
|
|
4,127 |
|
|
4,131 |
|
|
4,141 |
|
|
4,091 |
|
|
4,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share (GAAP) |
|
$ |
0.92 |
|
$ |
0.32 |
|
$ |
1.32 |
|
$ |
2.01 |
|
$ |
4.58 |
|
|
$ |
2.07 |
|
$ |
1.20 |
|
$ |
0.78 |
|
$ |
0.95 |
|
$ |
5.00 |
|
Adjusted dilutive earnings per share (Non-GAAP) |
|
$ |
1.16 |
|
$ |
0.65 |
|
$ |
1.50 |
|
$ |
2.06 |
|
$ |
5.38 |
|
|
$ |
2.22 |
|
$ |
1.71 |
|
$ |
0.90 |
|
$ |
2.06 |
|
$ |
6.88 |
|