10-Q · May 8, 2026
Strattec Security Corporation reported disappointing Q3 2026 results, with revenue of $137.6 million and EPS of $0.78, both missing consensus estimates. The company experienced a 4.5% year-over-year sales decline due to…
Earnings analysis · 10-K
STRT earnings analysis
Filed August 28, 2026 · Our reading of the company's report
The latest report
Strattec delivered a stronger fiscal 2026, with revenue up 3%, gross margin expanding 150 basis points to 16.5%, diluted EPS reaching $5.00, and cash increasing to $108.2 million after repaying all bank debt. The…
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Strattec delivered a stronger fiscal 2026, with revenue up 3%, gross margin expanding 150 basis points to 16.5%, diluted EPS reaching $5.00, and cash increasing to $108.2 million after repaying all bank debt. The transformation is improving cost structure and supporting a differentiated, incumbent-oriented access-products strategy, while the new $40.0 million repurchase authorization provides additional capital-return flexibility. However, fiscal 2027 faces expected declines in North American and primary-customer production, heightened USMCA and tariff uncertainty, and increased Mexican tax exposure; absent formal revenue or EPS guidance, the overall outlook remains neutral.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $5.0
- Segment
- One reportable segment: consolidated automotive access products and solutions; fiscal 2026 revenue was $579.4 million. Product-group sales included door handles and exterior trim of $147.3 million, power access solutions of $141.1 million, and keys and locksets of $118.7 million.
What stood out
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Customized access portfolio supports customer stickiness
Strattec describes a strategy centered on Permission, Motion and Hold access products, expanding market share and customer/geographic reach organically and inorganically. Its products serve over 90 customer vehicles, and platform designs typically last five to seven years, supporting incumbent-supplier positioning once a product is designed in.
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Three-year revenue and margin expansion
Fiscal 2026 net sales increased 3% to $579.4 million from $565.1 million in fiscal 2025 and $537.8 million in fiscal 2024. Gross margin improved to 16.5% from 15.0% in 2025 and approximately 12.2% in 2024, while operating margin reached 4.6% from 4.0% and approximately 3.3%, respectively.
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EPS growth despite FX headwinds
Net income attributable to Strattec rose to $20.6 million in fiscal 2026 from $18.7 million in 2025 and $16.3 million in 2024; diluted EPS increased to $5.00 from $4.58 and $4.07. The improvement occurred despite a $6.5 million foreign-exchange headwind in conversion costs.
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Transformation is producing operating savings
The transformation reduced total headcount by approximately 7% during fiscal 2026 and generated $5.4 million of savings from previously completed restructuring actions. The company is also pursuing automation, freight optimization, supply-chain resiliency and process-technology investments.
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Debt-free balance sheet funds investment
The balance sheet strengthened materially: cash and cash equivalents increased to $108.2 million from $84.6 million, while all outstanding bank debt was repaid. Cash flow from operations was $46.3 million, and the company expects fiscal 2027 capital expenditures of approximately $12.0 million.
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Share repurchases replace dividends
Strattec repurchased 110,269 shares for $7.4 million, representing over 2% of outstanding common stock, and authorized a new $40.0 million repurchase program. No cash dividend has been paid during the last three years and none is expected in the foreseeable future.
What to watch
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USMCA and tariff exposure increased
The July 2026 USMCA joint review increased trade uncertainty: although the agreement remains in effect, the United States did not agree to extend it in its current form. Strattec manufactures the vast majority of its products in Mexico, so changes to rules of origin, regional value content or tariff treatment could raise costs and disrupt cross-border operations.
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Customer production outlook is weakening
The MD&A cites third-party forecasts for a 2% to 3% decline in North American light-vehicle production in fiscal 2027 and expects the Company's primary customers to decline 5% to 6%. Those customers represented 64% of fiscal 2026 sales: General Motors 27%, Ford 21% and Stellantis 16%.
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Mexican tax dispute raises cash-tax risk
Tax uncertainty materially increased: total unrecognized tax benefits, including interest and penalties, rose to $4.7 million from $1.9 million, including a $1.8 million increase related to transfer-pricing matters in Mexican maquiladora operations. The fiscal 2026 effective tax rate also increased to 34.4% from 23.2%.
Management's outlook
The 10-K provides no company-issued revenue or EPS guidance and no change versus prior outlook. It cites third-party forecasts for a 2% to 3% decline in North American light-vehicle production in fiscal 2027 and a 5% to 6% decline for the Company's primary customers, and anticipates approximately $12.0 million of fiscal 2027 capital expenditures.
Earlier filings 4
10-Q · February 6, 2026
Strattec reported quarterly net sales of $137,534,000 and diluted EPS of $1.20 for the three months ended December 28, 2025. Revenue was up year-over-year (+$7,615,000 vs. $129,919,000) and gross margin expanded to…
10-Q · October 31, 2025
Strattec reported revenue of $152,399,000 for the three months ended September 28, 2025, up $13,347,000 (9.6%) versus prior year, with gross margin expanding to 17.3% and diluted EPS rising to $2.07 from $0.92 a year…
10-K · August 25, 2025
Strattec (STRT) closed fiscal 2025 with a strong Q4: revenue of $152,013,000 and diluted EPS of $2.06, both materially ahead of consensus. The company emphasizes a differentiated engineering-led position in automotive…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.