Strattec Security Corp
NASDAQ:STRT
Strattec Security Corp
STRATTEC Security Corp. engages in the design, development, manufacture, and marketing of automotive access control products. The company is headquartered in Milwaukee, Wisconsin. The company offers access control products including mechanical locks and keys, electronically enhanced locks and keys, passive entry passive start systems (PEPS), steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power tailgate systems, power lift gate systems, power deck lid systems, door handles and related products for primarily North American automotive customers. The firm supplies its products under the VAST brand name. The Company’s products are shipped to customer locations in the United States, Canada, Mexico, Europe, South America, Korea, China and India, and It provide full service and aftermarket support for each VAST Automotive Group partners’ products. The firm provides its customers with engineered access control products, including locksets, fobs, push button ignition systems and other products.
STRATTEC Security Corp. engages in the design, development, manufacture, and marketing of automotive access control products. The company is headquartered in Milwaukee, Wisconsin. The company offers access control products including mechanical locks and keys, electronically enhanced locks and keys, passive entry passive start systems (PEPS), steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power tailgate systems, power lift gate systems, power deck lid systems, door handles and related products for primarily North American automotive customers. The firm supplies its products under the VAST brand name. The Company’s products are shipped to customer locations in the United States, Canada, Mexico, Europe, South America, Korea, China and India, and It provide full service and aftermarket support for each VAST Automotive Group partners’ products. The firm provides its customers with engineered access control products, including locksets, fobs, push button ignition systems and other products.
Revenue Growth: Strattec reported nearly 10% revenue growth for the first quarter of fiscal 2026.
Margin Expansion: Gross margin improved by 370 basis points to 17.3%, and EBITDA margin grew 310 basis points to 10.2%, driven by higher sales, pricing, and cost reductions.
Strong Cash Position: The company generated $11 million in operating cash flow and ended the quarter with over $90 million in cash on hand.
Transformation Progress: Ongoing operational improvements and automation efforts are contributing to profitability, with more cost-saving measures in Mexico to materialize in Q3.
Industry Headwinds: Management flagged near-term automotive production challenges from an aluminum supplier fire and semiconductor shortages, creating uncertainty for the next quarter.
Facility Optimization: Strattec is pursuing a sale leaseback of its Milwaukee facility and consolidating its test lab to Michigan for efficiency and customer proximity.
M&A Exploration: The company is in early discussions about potential acquisitions as part of its longer-term growth strategy.
