STRT earnings analysis
What we found in STRT's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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%.
- 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%.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $5.0
- Gross margin
- 16.5%
- Operating margin
- 4.6%
- 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 they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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