US Market News
4月前
Strattec Generated $14 Million in Cash from Operations in Second Quarter Fiscal 2026February 5, 2026 4:30 PM
Business Wire
Sales for the quarter grew 6% to $137.5 million driven by pricing, new program launches, customer inventory builds and select platform successes
Gross margin for the quarter was 16.5%, compared with 13.2% in the prior year period
Net income attributable to Strattec for the second quarter fiscal 2026 was $4.9 million, or $1.20 per diluted share; compared with $0.32 per diluted share in the prior year period
Adjusted EBITDA1 was $12.3 million, or 8.9% of sales, compared with $8.0 million in the prior year second quarter.
Strong balance sheet provides financial flexibility; $99.0 million in cash and $2.5 million in debt
Furthered fiscal 2026 restructuring actions which collectively are expected to result in annualized savings of $3.4 million
Strattec Security Corporation (Nasdaq: STRT) (“Company” or “Strattec”), a leading provider of smart vehicle access, security and authorization solutions for the global automotive industry, reported financial results for its second quarter of fiscal year 2026, which ended December 28, 2025.
Jennifer Slater, President and CEO of Strattec, said, “We delivered a solid second quarter despite market and supply chain headwinds and unfavorable foreign exchange trends. A focus on pricing and cost reductions protected our gross margin. That focus continued during the quarter as we offered a voluntary early retirement program and implemented additional restructuring actions in our operations in Mexico. We expect $3.4 million in annual savings from these actions. We continue to generate strong cash flow even as we are investing to improve our business.”
“The second half of fiscal 2026 is expected to have a softer U.S. automotive production market and continued FX headwinds. We remain centered on transforming Strattec into a better business with stronger earnings power and a predictable path for growth. We will continue to find ways to improve productivity while investing in creating the products that will provide vehicle access solutions for the future,” Ms. Slater concluded.
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 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.
_____________
1
Refer to “Use of Non-GAAP Financial Metrics and Additional Financial Information” as well as accompanying reconciliations to GAAP
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.
FINANCIAL TABLES FOLLOW
Strattec Security Corporation
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
Six Months Ended
December 28,
2025
December 29,
2024
December 28,
2025
December 29,
2024
Net sales
$
137,534
$
129,919
$
289,933
$
268,971
Cost of goods sold
114,812
112,768
240,876
232,899
Gross profit
22,722
17,151
49,057
36,072
Gross margin
16.5
%
13.2
%
16.9
%
13.4
%
Selling, administrative and engineering expenses
17,860
15,017
33,748
28,875
Income from operations
4,862
2,134
15,309
7,197
Operating margin
3.5
%
1.6
%
5.3
%
2.7
%
Interest income
885
408
1,762
757
Interest expense
(96
)
(257
)
(252
)
(552
)
Other (expense) income, net
1,691
(482
)
1,416
(353
)
Income before provision for income taxes and
non-controlling interest
7,342
1,803
18,235
7,049
Income tax expense
1,699
405
4,055
1,903
Net income
5,643
1,398
14,180
5,146
Net income attributable to non-controlling interest
696
79
704
124
Net income attributable to Strattec
$
4,947
$
1,319
$
13,476
$
5,022
Earnings per share attributable to Strattec
Basic
$
1.21
$
0.33
$
3.31
$
1.25
Diluted
$
1.20
$
0.32
$
3.26
$
1.24
Weighted average shares outstanding:
Basic
4,080
4,035
4,067
4,020
Diluted
4,131
4,070
4,129
4,058
Strattec Security Corporation
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share amounts)
December 28,
2025
June 29,
2025
ASSETS
Current Assets:
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
119,350
Noncurrent Liabilities:
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
Strattec Security Corporation
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Three Months Ended
Six Months Ended
December 28,
2025
December 29,
2024
December 28,
2025
December 29,
2024
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)
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
EARNINGS/(LOSS) PER SHARE:
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20260205914494/en/
Deborah K. Pawlowski, IRC
Alliance Advisors IR
Phone: 716-843-3908
Email: dpawlowski@allianceadvisors.com
Original: Strattec Generated $14 Million in Cash from Operations in Second Quarter Fiscal 2026
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