Earnings surge at Strattec (NASDAQ: STRT) with stronger Q2 margins and cash
Rhea-AI Filing Summary
Strattec Security Corporation reported a strong fiscal 2026 second quarter, with net sales of $137.5 million, up 6% from a year earlier, driven by pricing, favorable mix, new program launches and tariff recoveries.
Gross margin improved to 16.5% from 13.2%, helped by pricing actions, higher volumes and $1.7 million of restructuring savings, despite higher labor, tariffs and adverse foreign exchange. Net income attributable to Strattec rose to $4.9 million, or $1.20 per diluted share, compared with $1.3 million, or $0.32, in the prior-year quarter. Adjusted EBITDA was $12.3 million, representing an 8.9% margin versus 6.1% a year ago.
The company generated $13.9 million of cash from operations in the quarter and ended December 28, 2025 with $99.0 million in cash and cash equivalents and $2.5 million of debt. Ongoing restructuring and a voluntary early retirement program are expected to produce $3.4 million in annualized savings.
Positive
- Quarterly diluted EPS rose to $1.20 from $0.32, with adjusted EBITDA margin improving to 8.9% from 6.1%, indicating significantly stronger profitability.
- Operating cash flow reached $13.9 million and cash balances grew to $99.0 million against $2.5 million of debt, reinforcing balance sheet strength.
- Restructuring actions and a voluntary early retirement program are collectively expected to deliver $3.4 million in annualized savings, supporting future earnings.
Negative
- None.
Insights
Strattec delivered a materially stronger quarter with higher margins, earnings and cash generation.
Strattec grew quarterly net sales to $137.5 million, up 6%, while gross margin expanded from 13.2% to 16.5%. Pricing, richer sales mix and higher production volumes outweighed tariff, wage and foreign exchange pressures, indicating better underlying profitability rather than pure cost cutting.
Net income attributable to Strattec climbed to $4.9 million with diluted EPS of $1.20, versus $0.32 a year ago. Adjusted EBITDA increased to $12.3 million and margin rose to 8.9% from 6.1%, showing improved operating leverage. Management also highlighted expected annual savings of $3.4 million from restructuring and the voluntary retirement program.
Operating cash flow of $13.9 million in the quarter and ending cash of $99.0 million against $2.5 million of debt underscore a solid balance sheet. Management cautioned about a softer U.S. production outlook and FX headwinds in the second half of fiscal 2026, so the durability of these margin gains will be clearer in upcoming quarters.
8-K Event Classification
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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(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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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 February 5, 2026, Strattec Security Corporation (the “Company”) issued a press release (the “Press Release”) announcing results for the fiscal second quarter ended December 28, 2025. 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 February 5, 2026, the Company issued a Press Release announcing earnings results for the fiscal second quarter ended December 28, 2025. 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 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 February 5, 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: February 5, 2026
News ReleaseStrattec Generated $14 million in Cash from Operations in Second Quarter Fiscal 2026
February 5, 2026
Page 2 of 10
FY 2026 Second Quarter Financial Summary
(compared with prior-year period, except where otherwise noted)
Net sales were $137.5 million, an increase of $7.6 million, or 6%. Sales growth was driven by $3.1 million of pricing, $3.0 million associated with favorable sales mix and higher content value, $2.4 million in net new program launches and $1.4 million in tariff recovery more than offsetting $2.3 million in reduced market demand.
Gross profit increased $5.6 million to $22.7 million, while gross margin expanded 330 basis points. The improvement was primarily the result of pricing actions and the contribution from higher production volumes, complemented by $1.7 million in restructuring savings. This more than offset $0.9 million of incremental tariff costs, $1.2 million of higher labor costs in Mexico related to annual merit increases, and $1.6 million related to unfavorable foreign exchange rates.
Selling, administrative and engineering (“SAE”) expenses increased $2.8 million to $17.9 million, or 13.0% of sales, compared with $15.0 million, or 11.6% of sales, in the prior-year period. Elevated SAE expenses included a $1.7 million charge related to the voluntary retirement program and an increase in business transformation costs of $0.8 million. The $0.7 million investment in additional talent was mostly offset by the $1.1 million reduction in executive transition costs.
Interest income grew $0.5 million on higher cash balances, while interest expenses declined $0.2 million on lower borrowings. Other income increased $2.2 million as a result of changes in foreign currency exchange rates.
Net income attributable to Strattec was $4.9 million, or $1.20 per diluted share, compared with
$1.3 million, or $0.32 per diluted share, in the prior-year period. On an adjusted basis, second quarter fiscal 2026 net income attributable to Strattec1 was $7.1 million, and adjusted diluted earnings per share1 was $1.71. Adjusted EBITDA1 for the quarter was $12.3 million compared with $8.0 million in the prior-year period. Adjusted EBITDA margin of 8.9%, compared with 6.1% in the fiscal 2025 second quarter.
Financial Flexibility with Strong Balance Sheet
Cash from operations in the second quarter of fiscal 2026 was $13.9 million, an increase of $4.4 million, or 47%, as a result of higher cash earnings.
At December 28, 2025, the Company had $99.0 million in cash and cash equivalents, up from
$90.5 million at the end of the first quarter fiscal 2026 and $84.6 at the end of the fourth quarter of fiscal 2025. Inventories increased $10.3 million in the quarter to improve service levels and reduce expedites.
Second Quarter Fiscal Year 2026 Webcast and Conference Call
The Company will host a conference call and webcast tomorrow, Friday, February 6, 2026, at 9:00 am Eastern Time to review the financial and operating results for the period ended December 28, 2025, and provide an update on its transformation progress. A question-and-answer session will follow.
You can access the call by phoning (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 Friday,
February 20, 2026. To listen to the archived call, dial +1 (412) 317-6671 and enter replay PIN
1 Refer to “Use of Non-GAAP Financial Metrics and Additional Financial Information” as well as accompanying reconciliations to GAAP
-2-
Strattec Generated $14 million in Cash from Operations in Second Quarter Fiscal 2026
February 5, 2026
Page 3 of 10
13757872. 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.
About Strattec
Strattec is a leading global provider of advanced automotive access, security & authorization solutions for leading vehicle manufacturers, primarily in the U.S. With a history spanning over 110 years, Strattec has consistently been at the forefront of innovation in vehicle security, transitioning from mechanical to integrated electro-mechanical systems. Its highly-engineered products include power access solutions, latches, vehicle start systems, keys, fobs & accessories, locks & locksets, door handles and other access products. Power access solutions provide the motion control for power liftgates, sliding power doors and power tailgates. For more information on Strattec and its solutions, 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.
Contact:
Deborah K. Pawlowski, IRC |
Alliance Advisors IR |
Phone: 716-843-3908 |
Email: dpawlowski@allianceadvisors.com |
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Strattec Generated $14 million in Cash from Operations in Second Quarter Fiscal 2026
February 5, 2026
Page 4 of 10
FINANCIAL TABLES FOLLOW
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Strattec Generated $14 million in Cash from Operations in Second Quarter Fiscal 2026
February 5, 2026
Page 5 of 10
Strattec Security Corporation
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
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Three Months Ended |
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Six Months Ended |
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December 28, |
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December 29, |
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December 28, |
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December 29, |
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Net sales |
$ |
137,534 |
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$ |
129,919 |
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$ |
289,933 |
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$ |
268,971 |
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Cost of goods sold |
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114,812 |
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112,768 |
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240,876 |
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|
232,899 |
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Gross profit |
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22,722 |
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17,151 |
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49,057 |
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36,072 |
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Gross margin |
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16.5 |
% |
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13.2 |
% |
|
|
16.9 |
% |
|
|
13.4 |
% |
Selling, administrative and engineering expenses |
|
17,860 |
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|
|
15,017 |
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|
|
33,748 |
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|
|
28,875 |
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Income from operations |
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4,862 |
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|
|
2,134 |
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|
|
15,309 |
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|
|
7,197 |
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Operating margin |
|
3.5 |
% |
|
|
1.6 |
% |
|
|
5.3 |
% |
|
|
2.7 |
% |
Interest income |
|
885 |
|
|
|
408 |
|
|
|
1,762 |
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|
|
757 |
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Interest expense |
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(96 |
) |
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(257 |
) |
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(252 |
) |
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(552 |
) |
Other (expense) income, net |
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1,691 |
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(482 |
) |
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1,416 |
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(353 |
) |
Income before provision for income taxes and |
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7,342 |
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1,803 |
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18,235 |
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|
|
7,049 |
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Income tax expense |
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1,699 |
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|
|
405 |
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|
|
4,055 |
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|
|
1,903 |
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Net income |
|
5,643 |
|
|
|
1,398 |
|
|
|
14,180 |
|
|
|
5,146 |
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Net income attributable to non-controlling interest |
|
696 |
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|
|
79 |
|
|
|
704 |
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|
|
124 |
|
Net income attributable to Strattec |
$ |
4,947 |
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|
$ |
1,319 |
|
|
$ |
13,476 |
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|
$ |
5,022 |
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Earnings per share attributable to Strattec |
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Basic |
$ |
1.21 |
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$ |
0.33 |
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$ |
3.31 |
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|
$ |
1.25 |
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Diluted |
$ |
1.20 |
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$ |
0.32 |
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|
$ |
3.26 |
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$ |
1.24 |
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|
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|
||||
Weighted average shares outstanding: |
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|
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||||
Basic |
|
4,080 |
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|
|
4,035 |
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|
|
4,067 |
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|
|
4,020 |
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Diluted |
|
4,131 |
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|
|
4,070 |
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|
|
4,129 |
|
|
|
4,058 |
|
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Strattec Generated $14 million in Cash from Operations in Second Quarter Fiscal 2026
February 5, 2026
Page 6 of 10
Strattec Security Corporation
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share amounts)
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December 28, |
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June 29, |
|
||
ASSETS |
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|
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|
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Current Assets: |
|
|
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|
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Cash and cash equivalents |
$ |
99,027 |
|
|
$ |
84,579 |
|
Receivables, net |
|
89,217 |
|
|
|
102,061 |
|
Inventories, net |
|
71,934 |
|
|
|
64,701 |
|
Pre-production costs |
|
6,857 |
|
|
|
8,657 |
|
Value-added tax recoverable |
|
19,858 |
|
|
|
19,389 |
|
Other current assets |
|
6,374 |
|
|
|
10,676 |
|
Total current assets |
|
293,267 |
|
|
|
290,063 |
|
Noncurrent Assets: |
|
|
|
|
|
||
Property, plant and equipment, net |
|
74,636 |
|
|
|
77,410 |
|
Deferred income taxes |
|
19,758 |
|
|
|
19,531 |
|
Other long-term assets |
|
4,584 |
|
|
|
4,450 |
|
Total Assets |
$ |
392,245 |
|
|
$ |
391,454 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
||
Current Liabilities: |
|
|
|
|
|
||
Accounts payable |
$ |
59,568 |
|
|
$ |
65,824 |
|
Accrued payroll and benefits |
|
15,709 |
|
|
|
22,956 |
|
Value-added tax payable |
|
12,732 |
|
|
|
11,933 |
|
Warranty reserve |
|
8,567 |
|
|
|
8,900 |
|
Current portion of borrowings under credit facilities |
|
2,500 |
|
|
|
— |
|
Other current liabilities |
|
13,374 |
|
|
|
9,737 |
|
Total current liabilities |
|
112,450 |
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|
|
119,350 |
|
Noncurrent Liabilities: |
|
|
|
|
|
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Noncurrent portion of borrowings under credit facilities |
|
— |
|
|
|
8,000 |
|
Post-employment benefits |
|
12,806 |
|
|
|
13,325 |
|
Other noncurrent liabilities |
|
3,975 |
|
|
|
4,348 |
|
Total Liabilities |
|
129,231 |
|
|
|
145,023 |
|
Shareholders’ Equity: |
|
|
|
|
|
||
Common stock, authorized 18,000,000 shares, $.01 par value, 7,699,083 issued shares at December 28, 2025 and 7,635,883 issued shares at June 29, 2025 |
|
77 |
|
|
|
76 |
|
Capital in excess of par value |
|
105,601 |
|
|
|
103,784 |
|
Retained earnings |
|
282,773 |
|
|
|
269,297 |
|
Accumulated other comprehensive loss |
|
(14,935 |
) |
|
|
(16,113 |
) |
Less: treasury stock, at cost (3,615,268 shares at December 28, 2025 and 3,596,549 shares at June 29, 2025) |
|
(136,718 |
) |
|
|
(135,452 |
) |
Total Strattec shareholders’ equity |
|
236,798 |
|
|
|
221,592 |
|
Non-controlling interest |
|
26,216 |
|
|
|
24,839 |
|
Total Shareholders' Equity |
|
263,014 |
|
|
|
246,431 |
|
Total Liabilities and Shareholders' Equity |
$ |
392,245 |
|
|
$ |
391,454 |
|
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Strattec Generated $14 million in Cash from Operations in Second Quarter Fiscal 2026
February 5, 2026
Page 7 of 10
Strattec Security Corporation
Consolidated Statements of Cash Flows (Unaudited) (In thousands)
|
Three Months Ended |
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Six Months Ended |
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December 28, |
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|
December 29, |
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|
December 28, |
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|
December 29, |
|
||||
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
$ |
5,643 |
|
|
$ |
1,398 |
|
|
$ |
14,180 |
|
|
$ |
5,146 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation |
|
3,893 |
|
|
|
3,544 |
|
|
|
7,678 |
|
|
|
7,206 |
|
Foreign currency transaction loss (gain) |
|
463 |
|
|
|
(188 |
) |
|
|
1,134 |
|
|
|
(1,193 |
) |
Stock-based compensation expense |
|
1,125 |
|
|
|
891 |
|
|
|
1,794 |
|
|
|
1,079 |
|
Unrealized (gain) loss on peso forward contracts |
|
(79 |
) |
|
|
284 |
|
|
|
(372 |
) |
|
|
936 |
|
Other, net |
|
227 |
|
|
|
269 |
|
|
|
543 |
|
|
|
816 |
|
Change in operating assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
||||
Receivables |
|
13,468 |
|
|
|
10,568 |
|
|
|
12,894 |
|
|
|
7,379 |
|
Inventories |
|
(10,342 |
) |
|
|
2,283 |
|
|
|
(7,233 |
) |
|
|
138 |
|
Prepaids and other assets |
|
2,845 |
|
|
|
1,963 |
|
|
|
6,649 |
|
|
|
7,844 |
|
Accounts payable |
|
(1,545 |
) |
|
|
(9,026 |
) |
|
|
(6,362 |
) |
|
|
(3,990 |
) |
Accrued liabilities |
|
(1,817 |
) |
|
|
(2,542 |
) |
|
|
(5,697 |
) |
|
|
(4,580 |
) |
Net cash provided by operating activities |
|
13,881 |
|
|
|
9,444 |
|
|
|
25,208 |
|
|
|
20,781 |
|
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
||||
Purchase of property, plant and equipment |
|
(2,631 |
) |
|
|
(917 |
) |
|
|
(4,160 |
) |
|
|
(2,990 |
) |
Proceeds from sale of property, plant and equipment |
|
259 |
|
|
|
— |
|
|
|
259 |
|
|
|
— |
|
Net cash used in investing activities |
|
(2,372 |
) |
|
|
(917 |
) |
|
|
(3,901 |
) |
|
|
(2,990 |
) |
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
||||
Borrowings under credit facilities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,000 |
|
Repayment of borrowings under credit facilities |
|
(2,500 |
) |
|
|
— |
|
|
|
(5,500 |
) |
|
|
(3,000 |
) |
Payment for debt issuance costs |
|
(98 |
) |
|
|
— |
|
|
|
(98 |
) |
|
|
— |
|
Payment for taxes withheld from stock-based awards |
|
(355 |
) |
|
|
— |
|
|
|
(1,274 |
) |
|
|
— |
|
Share issuances |
|
16 |
|
|
|
15 |
|
|
|
32 |
|
|
|
28 |
|
Net cash (used in) provided by financing activities |
|
(2,937 |
) |
|
|
15 |
|
|
|
(6,840 |
) |
|
|
28 |
|
Foreign currency impact on cash |
|
(18 |
) |
|
|
(320 |
) |
|
|
(19 |
) |
|
|
(604 |
) |
NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
8,554 |
|
|
|
8,222 |
|
|
|
14,448 |
|
|
|
17,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
CASH AND CASH EQUIVALENTS |
|
|
|
|
|
|
|
|
|
|
|
||||
Beginning of period |
|
90,473 |
|
|
|
34,403 |
|
|
|
84,579 |
|
|
|
25,410 |
|
End of period |
$ |
99,027 |
|
|
$ |
42,625 |
|
|
$ |
99,027 |
|
|
$ |
42,625 |
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
|
|
|
||||
Cash paid during the period for: |
|
|
|
|
|
|
|
|
|
|
|
||||
Income taxes |
$ |
575 |
|
|
$ |
4,458 |
|
|
$ |
1,157 |
|
|
$ |
8,539 |
|
Interest |
$ |
61 |
|
|
$ |
279 |
|
|
$ |
184 |
|
|
$ |
559 |
|
Non-cash investing activities: |
|
|
|
|
|
|
|
|
|
|
|
||||
Change in capital expenditures in accounts payable |
$ |
(13 |
) |
|
$ |
56 |
|
|
|
— |
|
|
$ |
(450 |
) |
Strattec Security Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share amounts)
-7-
Strattec Generated $14 million in Cash from Operations in Second Quarter Fiscal 2026
February 5, 2026
Page 8 of 10
|
|
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 |
|
|
|
|
|
$ |
289,933 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ADJUSTED EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to Strattec (GAAP) |
|
$ |
3,703 |
|
$ |
1,319 |
|
$ |
5,396 |
|
$ |
8,267 |
|
$ |
18,685 |
|
|
$ |
8,529 |
|
$ |
4,947 |
|
|
|
|
|
$ |
13,476 |
|
||
Net income (loss) attributable to non-controlling interest |
|
|
45 |
|
|
79 |
|
|
315 |
|
|
(205 |
) |
|
234 |
|
|
|
8 |
|
|
696 |
|
|
|
|
|
|
704 |
|
||
Income tax expense |
|
|
1,498 |
|
|
405 |
|
|
1,644 |
|
|
2,170 |
|
|
5,717 |
|
|
|
2,356 |
|
|
1,699 |
|
|
|
|
|
|
4,055 |
|
||
Other (income) expense, net |
|
|
(129 |
) |
|
482 |
|
|
16 |
|
|
(1,189 |
) |
|
(820 |
) |
|
|
275 |
|
|
(1,691 |
) |
|
|
|
|
|
(1,416 |
) |
||
Interest income |
|
|
(349 |
) |
|
(408 |
) |
|
(529 |
) |
|
(753 |
) |
|
(2,039 |
) |
|
|
(877 |
) |
|
(885 |
) |
|
|
|
|
|
(1,762 |
) |
||
Interest expense |
|
|
295 |
|
|
257 |
|
|
243 |
|
|
212 |
|
|
1,007 |
|
|
|
156 |
|
|
96 |
|
|
|
|
|
|
252 |
|
||
Income from operations |
|
|
5,063 |
|
|
2,134 |
|
|
7,085 |
|
|
8,502 |
|
|
22,784 |
|
|
|
10,447 |
|
|
4,862 |
|
|
- |
|
|
- |
|
|
15,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation |
|
|
3,662 |
|
|
3,544 |
|
|
3,746 |
|
|
3,812 |
|
$ |
14,764 |
|
|
|
3,785 |
|
|
3,893 |
|
|
|
|
|
$ |
7,678 |
|
||
Non-cash stock-based compensation |
|
|
188 |
|
|
891 |
|
|
760 |
|
|
887 |
|
|
2,726 |
|
|
|
669 |
|
|
1,125 |
|
|
|
|
|
|
1,794 |
|
||
Restructuring and similar charges |
|
|
- |
|
|
265 |
|
|
809 |
|
|
(676 |
) |
|
398 |
|
|
|
- |
|
|
1,305 |
|
|
|
|
|
|
1,305 |
|
||
Executive transition costs |
|
|
941 |
|
|
921 |
|
|
214 |
|
|
(17 |
) |
|
2,058 |
|
|
|
136 |
|
|
88 |
|
|
|
|
|
|
224 |
|
||
Business transformation costs |
|
|
74 |
|
|
215 |
|
|
259 |
|
|
479 |
|
|
1,027 |
|
|
|
514 |
|
|
994 |
|
|
|
|
|
|
1,508 |
|
||
|
|
|
4,865 |
|
|
5,836 |
|
|
5,788 |
|
|
4,485 |
|
|
20,974 |
|
|
|
5,104 |
|
|
7,405 |
|
|
- |
|
|
- |
|
|
12,509 |
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
9,928 |
|
$ |
7,970 |
|
$ |
12,873 |
|
$ |
12,987 |
|
$ |
43,758 |
|
|
$ |
15,551 |
|
$ |
12,267 |
|
$ |
- |
|
$ |
- |
|
$ |
27,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA as a % of Net Sales |
|
|
7.1 |
% |
|
6.1 |
% |
|
8.9 |
% |
|
8.5 |
% |
|
7.7 |
% |
|
|
10.2 |
% |
|
8.9 |
% |
|
|
|
|
|
9.6 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ADJUSTED NET INCOME AND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
-8-
Strattec Generated $14 million in Cash from Operations in Second Quarter Fiscal 2026
February 5, 2026
Page 9 of 10
Net income attributable to Strattec (GAAP) |
|
$ |
3,703 |
|
$ |
1,319 |
|
$ |
5,396 |
|
$ |
8,267 |
|
$ |
18,685 |
|
|
$ |
8,529 |
|
$ |
4,947 |
|
|
|
|
|
$ |
13,476 |
|
||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and similar charges |
|
|
- |
|
|
265 |
|
|
809 |
|
|
(676 |
) |
|
398 |
|
|
|
570 |
|
|
1,165 |
|
|
|
|
|
|
1,735 |
|
||
Executive transition costs |
|
|
1,224 |
|
|
1,225 |
|
|
214 |
|
|
115 |
|
|
2,778 |
|
|
|
136 |
|
|
88 |
|
|
|
|
|
|
224 |
|
||
Business transformation costs |
|
|
74 |
|
|
215 |
|
|
259 |
|
|
479 |
|
|
1,027 |
|
|
|
514 |
|
|
994 |
|
|
|
|
|
|
1,508 |
|
||
Non-controlling interest impact on above adjustments |
|
|
- |
|
|
- |
|
|
(160 |
) |
|
160 |
|
|
- |
|
|
|
(196 |
) |
|
190 |
|
|
|
|
|
|
(6 |
) |
||
Tax effect on above adjustments |
|
|
(292 |
) |
|
(384 |
) |
|
(376 |
) |
|
107 |
|
|
(945 |
) |
|
|
(383 |
) |
|
(335 |
) |
|
|
|
|
|
(718 |
) |
||
|
|
|
1,006 |
|
|
1,321 |
|
|
746 |
|
|
185 |
|
|
3,258 |
|
|
|
641 |
|
|
2,102 |
|
|
- |
|
|
- |
|
|
2,743 |
|
Adjusted Net Income attributable to Strattec (Non-GAAP) |
|
$ |
4,709 |
|
$ |
2,640 |
|
$ |
6,142 |
|
$ |
8,452 |
|
$ |
21,943 |
|
|
$ |
9,170 |
|
$ |
7,049 |
|
$ |
- |
|
$ |
- |
|
$ |
16,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted Average Basic Shares Outstanding |
|
|
4,005 |
|
|
4,035 |
|
|
4,039 |
|
|
4,039 |
|
|
4,030 |
|
|
|
4,054 |
|
|
4,080 |
|
|
|
|
|
|
4,067 |
|
||
Weighted Average Diluted Shares Outstanding |
|
|
4,046 |
|
|
4,070 |
|
|
4,085 |
|
|
4,105 |
|
|
4,076 |
|
|
|
4,127 |
|
|
4,131 |
|
|
|
|
|
|
4,128 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share (GAAP) |
|
$ |
0.92 |
|
$ |
0.32 |
|
$ |
1.32 |
|
$ |
2.01 |
|
$ |
4.58 |
|
|
$ |
2.07 |
|
$ |
1.20 |
|
|
|
|
|
$ |
3.26 |
|
||
Adjusted dilutive earnings per share (Non-GAAP) |
|
$ |
1.16 |
|
$ |
0.65 |
|
$ |
1.50 |
|
$ |
2.06 |
|
$ |
5.38 |
|
|
$ |
2.22 |
|
$ |
1.71 |
|
|
|
|
|
$ |
3.93 |
|
||
-9-
FAQ
How did Strattec (STRT) perform in its fiscal 2026 second quarter?
What happened to Strattec’s margins in the fiscal 2026 second quarter?
What was Strattec’s adjusted EBITDA in Q2 fiscal 2026?
How strong is Strattec’s balance sheet as of December 28, 2025?
What restructuring actions is Strattec taking in fiscal 2026?
What outlook did Strattec give for the second half of fiscal 2026?
