Strattec Security Corp

NASDAQ:STRT

Record year: Fiscal 2026 revenue reached a record $579.4 million, up 2.5%, while full-year gross margin expanded 150 basis points to 16.5%.

Quarter results: Fourth-quarter sales of $151.8 million were essentially flat year over year and better than the expected 3% to 4% decline, helped by stronger-than-expected OEM production.

Profitability: Full-year earnings per share rose 9% to $5, and adjusted EBITDA increased 15% to $50.5 million, despite weaker second-half production and canceled EV programs.

Fiscal 2027: Management expects a challenging market, with North American production down approximately 2% and production at its three largest customers down nearly 6%.

Margin headwinds: Foreign exchange, especially the Mexican peso, is expected to pressure margins, although pricing, productivity and further cost actions should offset a meaningful portion of the impact.

Transformation: The company realized approximately $6 million of restructuring savings in fiscal 2026, increased automation, reduced its Milwaukee footprint and is building an earlier-stage sales and innovation pipeline.

Capital allocation: Strattec ended the year with $108.2 million of cash and no debt, authorized a new $40 million share repurchase program and is evaluating acquisitions; management is not currently considering reinstating a dividend.