Slides
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Nasdaq: STRT Jennifer Slater President and CEO Matthew Pauli Senior Vice President and CFO November 3, 2026 Gabelli Auto Symposium
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2 Safe Harbor Statement Certain statements contained in this presentation contain “forward - looking statements” within the meaning of the Private Securit ies 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 an d business environment. These uncertainties include general economic conditions, in particular, relating to the automotive industry, consumer demand for the Company’s an d i ts customers’ products, competitive and technological developments, customer purchasing actions, changes in warranty provisions and customer product recall policies, wo rk 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. tra de policies, tariffs and reactions to the same from foreign countries, matters adversely impacting the timing and availability of component parts and raw materials needed f or the production of the Company’s products and the products of its customers and fluctuations in costs of operation, the Company’s ability to identify, evaluate, negoti ate and complete acquisitions or other strategic transactions on acceptable terms or at all, the costs incurred in pursuing such transactions, and the Company’s ability to in teg rate any acquired business and realize any potential benefits should a transaction occur. Shareholders, potential investors and other readers are urged to consider thes e f actors carefully in evaluating the forward - looking statements and are cautioned not to place undue reliance on such forward - looking statements. Such uncertainties and othe r operational matters are discussed further in the Company’s quarterly and annual filings with the Securities and Exchange Commission. The forward - looking statements made h erein are only made as of the date of this presentation and the Company undertakes no obligation to publicly update such forward - looking statements to reflect subsequent e vents or circumstances occurring after the date of this presentation. 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 pro vid es Adjusted Non - GAAP information as additional information for its operating results. References to Adjusted Non - GAAP information are to non - GAAP financial measures. These m easures 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, an d e valuate performance. Management believes that providing these non - GAAP financial measures to investors, as a supplement to GAAP financial measures, will help investors e valuate Strattec’s core operating and financial performance and business trends consistent with how management evaluates such performance and trends. Investors a re 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. The Company has provided reconciliations of comparable GAAP to non - GAAP measures in the supplemental slides of this presentation . Nasdaq: STRT WE ENGINEER THE ACCESS EXPERIENCE Safe Harbor Statement
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3 Market data as of market close October 28, 2026 Shares Outstanding as of September 27, 2026 Ownership as of most recent filings. SOURCES: FactSet and Company filings Nasdaq: STRT WE ENGINEER THE ACCESS EXPERIENCE Leader in Powered Vehicle Access, Security and Authorization Solutions Nasdaq: STRT Founded: 1908 Public: 1995 Market Capitalization: $253M Recent Closing Price: $63.98 52 - week High/Low: $93.00 / $57.01 Delivering Innovative, Comprehensive, Highly Engineered Solutions Avg. Trading Vol (3 mos ): 83,900 Shares Outstanding: 3.9M Institutional Ownership: 93% Insider Ownership: 3.8% 1 JV product 1
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4 27% 21% 16% 15% 13% 8% GM Ford Stellantis Tier 1 Com'l & Other Hyundai/Kia TTM Q1 FY27Revenue: $574.2M 25% 24% 21% 12% 9% 7% 2% Door Handles Power Access Keys & Locksets Latches User Interface Controls Aftermarket Other Highly Engineered Products for Leading OEMs Nasdaq: STRT WE ENGINEER THE ACCESS EXPERIENCE Sales By Customer Sales By Product MILWAUKEE, WI • Strattec HQ • Sales • Engineering • Manufacturing • Die casting • Plating • Stamping EL PASO, TX • Distribution AUBURN HILLS, MI • Sales • Engineering • Program Management • Prototype Development • Testing JUAREZ, MEXICO • Engineering • Testing • Assembly • PCB manufacturing LEON, MEXICO • Injection Molding • Assembly • Painting
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5 Permission Lock and Key Motion Power Access Hold Latches We engineer the access experience: Portfolio Realignment PRODUCTS PROVIDED THROUGH JOINT VENTURE WE ENGINEER THE ACCESS EXPERIENCE
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6 Capabilities Design & Engineering Quality Control & Inspection Injection Molding Zinc Die Casting Plating & Stamping Assembly WE ENGINEER THE ACCESS EXPERIENCE Painting PCB Manufacturing
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7 Transforming Strattec: Two Years of Progress WE ENGINEER THE ACCESS EXPERIENCE Nasdaq: STRT Strengthening the Team Driving to Operational Excellence Leveraging Value Proposition Modernizing Operations Completed • Injected new talent across the organization • Recently hired a new CHRO with more experience with public companies and culture change • Increased talent in 2 nd and 3 rd tiers of organization • Established Business Operating System • Reduced headcount by 24% over 2 years, realizing > $10M in annualized savings • Simplified product portfolio • Rebranded the Company • Captured ~$17M in structural and opportunistic pricing • Generated $128 million in cash from operations • Expanded gross margin 400 basis point • Implemented financial consolidation, pipeline mgmt., benefits admin., & expense reporting software • Reduced Milw . Footprint by 90,000 sq.ft . including move of test lab to Auburn Hills In Process • Breaking down organizational silos • Shifting culture to increase innovation, drive collaboration and enhance customer focus • Executing on opportunities for automation, flex lines and equipment upgrades • Working to create stability and predictability in the business • Actively pursuing new revenue opportunities for model years 2029 and beyond • Building relationships with an extended automotive customer base • Advancing acquisition funnel • Moving HQ to enable greater collaboration • Enhancing IT capabilities and action IT systems advances $
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8 Nasdaq: STRT Transforming Strattec: Future Vision WE ENGINEER THE ACCESS EXPERIENCE Strategic Enablers • Innovative products and differentiated solutions • Strong, longstanding relationships with customers • Realigned cost structure • Robust balance sheet to support growth initiatives • Refreshed leadership team and reinvigorated employee culture • Greater scale with M&A • Efficient organization and higher margins • Healthy long - term pipeline • More stable and predictable revenue • Greater customer diversification New Strattec : Our vision for the future • Lack of scale • Cost structure opportunities • Limited product launches: model years 2027 thru 2029 • Highly cyclical and competitive industry • Significant customer concentration Legacy Strattec : Where we were
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9 WE ENGINEER THE ACCESS EXPERIENCE Transforming Strattec : Accelerating Our Engagement with Customers Early customer engagement Product specification development w/ OEM RFQ Award Launch 5+ years to launch 3 - 5 years to launch 2 - 3 years to launch ~2 years to launch Start of production • Understand customer needs • Adapt product to future requirements • Adv. / Co - development • Be lead design partner • Set specifications for upcoming platforms • Develop advantage in RFQ • Understand market dynamics (competition / price / etc.) • Demonstrate solution development • Product costing • Market pricing to form quote • Regional sourcing • OEMs balance price with quality and resiliency • Will deviate from specs if price is attractive enough • Strategic Supply Chain Selection • Set up mfg. / tooling • Product validation by OEM • Supplier validation Necessary for winning new customers Required to develop sustainable product advantage New focus for Strattec Legacy focus for Strattec
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10 Nasdaq: STRT Transforming Strattec: Building a Better Business Execute Plan to Deliver Value • Continued strong cash generation through sustained profitability and disciplined execution • Developing plan for further productivity enhancements and cost reductions • Engaging with more prospective customers and building relationships for the longer term Advancing Business Development Efforts • Focused on diversification of customers, increased scale and enhancement of product offerings within Permission, Motion and Hold • Discipline around strategic fit, financial returns, capital requirements and execution risk • Active funnel of acquisition opportunities; $2.4 million invested in the quarter • $111.8 million cash balance and no debt • Liquidity supports strategy: productivity investments including automation, cushion for industry dynamics, share repurchases and M&A ($ in millions) $90.5 $99.0 $107.0 $108.2 $111.8 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Cash Balance Supports Strategic Initiatives WE ENGINEER THE ACCESS ENGINE
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11 Nasdaq: STRT Financial Review WE ENGINEER THE ACCESS EXPERIENCE Progress demonstrated in margin expansion and cash generation
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12 Nasdaq: STRT WE ENGINEER THE ACCESS EXPERIENCE Delivering Consistency Expect sales to track U.S. SAAR + Current concentration still in favored pickup trucks + Pricing − Lower build rates, production disruptions − Largest customers market share shrinking − Working on winning new platforms (MY 29 and beyond) $492.9 $537.8 $565.1 $579.4 $574.2 FY 2023 FY 2024 FY 2025 FY 2026 TTM FY 2027 NET SALES GROWTH ($ in millions) Q1 FY27 net sales reflects soft auto market + $1.0 million of pricing benefits − $6.2 million in volume − NA auto production down 3.8% − Includes Detroit 3 production down 6.8% $152.4 $147.2 Q1 FY26 Q1 FY27
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13 Nasdaq: STRT WE ENGINEER THE ACCESS EXPERIENCE Improve d Gross Margin and Managing SAE (1) GROSS PROFIT & MARGIN ($ in millions; narrative compared with prior - year period unless otherwise noted) SAE & % OF SALES (YTD) Q1 FY27 gross margin down 80 basis points y/y + $0.9 million in restructuring savings – $1.4 million FX headwind (90 bps) – $0.4 million in Mexico wages Q1 FY27 adj. gross margin 2 was 16.6% • Adjusted for $0.1 million in transformation costs Q1 FY27 SAE expenses increased $2.0 million y/y • $2.4 million increase in business development costs • $1.2 million benefit from E&D recoveries • $0.5 million lower bonus provision Q1 FY27 adj. SAE expenses 2 declined $0.2 million to 10.2% of sales • Excludes business development expenses • Cost discipline enables achieving target range of 10% to 11% (1) Selling, administrative and engineering expenses (2) Adjusted gross margin and SAE are a non - GAAP metrics. Refer to the reconciliation of GAAP to non - GAAP metrics in the supplemental tables of this presentation $26.3 $24.3 Q1 FY26 Q1 FY27 16.5% 17.3% $15.9 $17.9 Q1 FY26 Q1 FY27 12.2% 10.4%
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14 ADJ. NET INCOME 2 (QTR) ADJ. EBITDA 2 (QTR) NET INCOME 1 (QTR) Delivering Earnings in Challenging Environment Nasdaq: STRT WE ENGINEER THE ACCESS EXPERIENCE 1 Net Income Attributable to Strattec 2 Adjusted Net Income Attributable to Strattec, Adjusted Diluted Earnings per Share, Adjusted EBITDA and Adjusted EBITDA margin ar e non - GAAP metrics. Refer to the reconciliation of GAAP to non - GAAP metrics in the supplemental tables of this presentation. ▪ Q1 FY27 impacted by lower volume and business development costs as well as $1.9 million y/y headwind from changes in FX ▪ Expect FY27 effective tax rate in range of 23% to 25% ▪ Despite lower volume, continue to deliver profitability ▪ Q1 FY27 Adj. diluted EPS excludes business development costs ▪ Adj. EBITDA margin contracted in the quarter due to changes in FX ▪ Despite lower volume sequential improvement of 90 bps $8.5 $4.8 $2.07 $1.19 Q1 FY26 Q1 FY27 $9.2 $7.5 $2.22 $1.85 Q1 FY26 Q1 FY27 $15.6 $13.5 10.2% 9.2% Q1 FY26 Q1 FY27 ($ in millions except earnings per share data)
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15 Disciplined & Balanced Capital Allocation Priorities WE ENGINEER THE ACCESS EXPERIENCE 1 Invest in Growth • Organic initiatives • Innovation • New customer programs 2 Fund Transformation • Automation • Modernization • Structural cost adjustments 3 M&A • Scale to improve competitive position • Customer diversification to derisk • Product extensions to broaden addressable market 4 Return Capital to Shareholders • Repurchased 178,000 shares for $12.4 million at average price of $69.41 • $35 million remaining under authorized buyback program
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16 (as of October 29, 2026) Nasdaq: STRT Revenue • FY 2027 revenue forecast based on industry projections: • ~2% decline in NA auto production including Detroit 3 down nearly 6% • Expect Q2 FY27 to trend with industry production of customers and platforms Gross Margin • Challenged with lower volume and material cost inflation in FY27; FX improvement should offset material cost • Expect to be in 15% to 16% range for fiscal year; working to improve with additional transformation actions • Continuing to target 18% to 20% margins over next few years (assumes average 5 - year peso) SAE • Given planned investments expect quarterly run rate of $16.5 million to $17 million excluding unusual items • Longer term objective is SAE at 10% to 11% of sales Cash Generation • Expect normal run rate of ~$10 million +/ - per quarter OUTLOOK: Expect Continued Improvement in Operations and Solid Cash Generation Against Declining Market Demand WE ENGINEER THE ACCESS EXPERIENCE
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17 Strattec Investment Rationale Nasdaq: STRT WE ENGINEER THE ACCESS EXPERIENCE 1 2 3 4 5 Track record of growth and margin expansion demonstrate progress with transformation and building resiliency Robust balance sheet and strong cash generation support growth strategy & ability to weather industry challenges Rebranded as solutions provider to aid in advancing commercial initiatives for future model years Business modernization, rightsizing and process improvement initiatives unlocking value Injected new talent to drive transformational change
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The Access Engine
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19 Nasdaq: STRT Supplemental Slides WE ENGINEER THE ACCESS EXPERIENCE
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20 Served Customer Vehicles* WE ENGINEER THE ACCESS EXPERIENCE Nasdaq: STRT The vehicles listed here include models of various powertrain types — including electric (EV), hybrid, and internal combustion engine (ICE) platforms. Because our products are powertrain agnostic, our technologies can be integrated across these different configurations without significant modification. This enables consistent functionality regardless of propulsion system. Many of the vehicle models listed are offered in EV, hybrid, or ICE variants — and our components are used across all of these powertrain options. Acura MDX Cadillac XT4 Ford Bronco Sport Jeep Compass Acura RDX Cadillac XT5 Ford Expedition Jeep Gladiator Acura ZDX Cadillac XT6 Ford Explorer Jeep Grand Cherokee Aston Martin DB 11/12 Chevrolet Blazer Ford F - Series & Super Duty Pickup Jeep Meridian Aston Martin DBX Chevrolet Blazer EV Ford Maverick Pickup Jeep Recon Aston Martin Valhalla Chevrolet Cobalt Ford Mustang Jeep Wagoneer Aston Martin Vanquish Chevrolet Colorado Ford Mustang Mach - E Jeep Wrangler & Wrangler Unlimited Aston Martin Vantage Chevrolet Corvette Ford Ranger Pickup Kia Carnival Audi Q5 Chevrolet Equinox Freightliner (38N) Cascadia Lincoln Aviator BMW i/X - Series Chevrolet Equinox EV Freightliner (M2) Lincoln Corsair BMW X7 Chevrolet Express Van GMC Acadia Lincoln Navigator Buick Enclave Chevrolet Silverado EV GMC Canyon MACK Truck Buick Envision Chevrolet Silverado LD & Silverado HD GMC Hummer EV Ram 1500 Pickup Buick Envista Chevrolet Spin GMC Savana Ram HD Pickup Cadillac Celestiq Chevrolet Suburban GMC Sierra EV Ram REV Pickup Cadillac CT4 Chevrolet Tahoe GMC Sierra LD & Sierra HD Volkswagen Jetta Cadillac CT5 Chevrolet Traverse GMC Terrain Volvo EX90 Cadillac Escalade Chevrolet Trax GMC Yukon & Yukon XL Volvo Heavy Truck Cadillac Escalade ESV Chrysler Pacifica Honda Odyssey Volvo Polestar 3 Cadillac Escalade IQ Chrysler Voyager Honda Passport Cadillac Escalade IQL Dodge Charger Honda Prologue Cadillac Lyriq Dodge Durango Hyundai Staria Cadillac Optiq Dodge Hornet Jeep Cherokee Cadillac Vistiq Ford Amarok Pickup Jeep Commander *Source: STRT FY 2026 Form 10K
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21 Nasdaq: STRT WE ENGINEER THE ACCESS EXPERIENCE Variety of competitors across product categories: Door Handles Keys & Locksets Power Access Wireless Latches Aisin JNS Auto Parts OHI Automotive Alpha - Tech Magna Shin Chang Industry Brose Marquardt Group Stabilus Edscha Mitsuba Tokai Rika Group HUF Group Minebea Mitsumi U - Shin Ltd. Inteva Novares Valeo Witte Automotive
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22 Nasdaq: STRT ($ in thousands) Reconciliation of GAAP to Non -GAAP Financial Measures Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total NET SALES: Net Sales (GAAP) 152,399 $ 137,534 $ 137,632 $ 151,827 $ 579,392 $ 147,197 $ - $ - $ - $ 147,197 $ ADJUSTED GROSS PROFIT: Gross Profit (GAAP) 26,335 $ 22,722 $ 22,661 $ 23,647 $ 95,365 $ 24,315 $ - $ - $ - $ 24,315 $ Gross Margin as a % of Net Sales 17.3% 16.5% 16.5% 15.6% 16.5% 16.5% 16.5% Adjustments: Restructuring and similar charges - 91 11 (10) 92 - - - - - Business transformation costs - - 138 265 403 103 - - - 103 Cancelled program settlements - - (573) - (573) - - - - - - 91 (424) 255 (78) 103 - - - 103 Adjusted Gross Profit (Non-GAAP) 26,335 $ 22,813 $ 22,237 $ 23,902 $ 95,287 $ 24,418 $ - $ - $ - $ 24,418 $ Adjusted Gross Margin as a % of Net Sales 17.3% 16.6% 16.2% 15.7% 16.4% 16.6% 16.6% ADJUSTED SELLING, ADMINISTRATIVE AND ENGINEERING EXPENSES: Selling, administrative and engineering expenses (GAAP) 15,888 $ 17,860 $ 17,615 $ 17,479 $ 68,842 $ 17,892 $ - $ - $ - $ 17,892 $ Selling, administrative and engineering expenses as a % of Net Sales 10.4% 13.0% 12.8% 11.5% 11.9% 12.2% 12.2% Adjustments: Restructuring and similar charges - (1,570) (430) 44 (1,956) - - - - - Executive transition costs (136) (88) (423) (240) (887) (128) - - - (128) Business transformation costs (514) (994) (822) (796) (3,126) (360) - - - (360) Business development costs - - - (763) (763) (2,368) - - - (2,368) Cancelled program settlements - - 750 - 750 - - - - - (650) (2,652) (925) (1,755) (5,982) (2,856) - - - (2,856) Adjusted Selling, administrative and engineering expenses (Non-GAAP) 15,238 $ 15,208 $ 16,690 $ 15,724 $ 62,860 $ 15,036 $ - $ - $ - $ 15,036 $ Adjusted Selling, administrative and engineering expenses as a % of Net Sales 10.0% 11.1% 12.1% 10.4% 10.8% 10.2% 10.2% ADJUSTED OPERATING INCOME: Income from operations (GAAP) 10,447 $ 4,862 $ 5,046 $ 6,168 $ 26,523 $ 6,423 $ - $ - $ - $ 6,423 $ Operating Income as a % of Net Sales 6.9% 3.5% 3.7% 4.1% 4.6% 4.4% 4.4% Adjustments: Restructuring and similar charges - 1,661 441 (54) 2,048 - - - - - Executive transition costs 136 88 423 240 887 128 - - - 128 Business transformation costs 514 994 960 1,061 3,529 463 - - - 463 Business development costs - - - 763 763 2,368 - - - 2,368 Cancelled program settlements - - (1,323) - (1,323) - - - - - 650 2,743 501 2,010 5,904 2,959 - - - 2,959 Adjusted Operating Income (Non-GAAP) 11,097 $ 7,605 $ 5,547 $ 8,178 $ 32,427 $ 9,382 $ - $ - $ - $ 9,382 $ Adjusted Operating Income as a % of Net Sales 7.3% 5.5% 4.0% 5.4% 5.6% 6.4% 6.4% Fiscal 2026 Fiscal 2027
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23 Nasdaq: STRT ($ in thousands, except per share data) Reconciliation of GAAP to Non -GAAP Financial Measures Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total ADJUSTED EBITDA: Net income attributable to Strattec (GAAP) 8,529$ 4,947$ 3,240$ 3,882$ 20,598$ 4,833$ -$ -$ -$ 4,833$ Net income (loss) attributable to non-controlling interest 8 696 585 (264) 1,025 478 - - - 478 Income tax expense 2,356 1,699 1,282 6,002 11,339 1,881 - - - 1,881 Other (income) expense, net 275 (1,691) 748 (2,630) (3,298) 183 - - - 183 Interest income (877) (885) (879) (859) (3,500) (989) - - - (989) Interest expense 156 96 70 37 359 37 - - - 37 Income from operations 10,447 4,862 5,046 6,168 26,523 6,423 - - - 6,423 Adjustments: Depreciation 3,785$ 3,893$ 3,772$ 3,635$ 15,085$ 3,492$ -$ -$ -$ 3,492$ Non-cash stock-based compensation 669 1,125 811 700 3,305 618 - - - 618 Restructuring and similar charges - 1,305 424 (30) 1,699 - - - - - Executive transition costs 136 88 423 240 887 128 - - - 128 Business transformation costs 514 994 960 1,061 3,529 463 - - - 463 Business development costs - - - 763 763 2,368 - - - 2,368 Cancelled program settlements - - (1,323) - (1,323) - - - - - 5,104 7,405 5,067 6,369 23,945 7,069 - - - 7,069 Adjusted EBITDA (Non-GAAP) 15,551$ 12,267$ 10,113$ 12,537$ 50,468$ 13,492$ -$ -$ -$ 13,492$ Adjusted EBITDA as a % of Net Sales 10.2% 8.9% 7.3% 8.3% 8.7% 9.2% 9.2% ADJUSTED NET INCOME AND EARNINGS/(LOSS) PER SHARE: Net income attributable to Strattec (GAAP) 8,529$ 4,947$ 3,240$ 3,882$ 20,598$ 4,833$ -$ -$ -$ 4,833$ Adjustments: Restructuring and similar charges 570 1,165 572 49 2,356 107 - - - 107 Executive transition costs 136 88 423 240 887 128 - - - 128 Business transformation costs 514 994 960 1,061 3,529 463 - - - 463 Business development costs - - - 763 763 2,368 - - - 2,368 Cancelled program settlements - - (1,323) - (1,323) - - - - - Non-controlling interest impact (196) 190 (9) 28 13 (6) - - - (6) Tax effect on above adjustments and other discrete tax items (383) (335) (139) 2,388 1,531 (392) - - - (392) 641 2,102 484 4,529 7,756 2,668 - - - 2,668 Adjusted Net Income attributable to Strattec (Non-GAAP) 9,170$ 7,049$ 3,724$ 8,411$ 28,354$ 7,501$ -$ -$ -$ 7,501$ Weighted Average Basic Shares Outstanding 4,054 4,080 4,085 4,035 4,064 3,970 - - - 3,970 Weighted Average Diluted Shares Outstanding 4,127 4,131 4,141 4,091 4,122 4,053 - - - 4,053 Diluted earnings per share (GAAP) 2.07$ 1.20$ 0.78$ 0.95$ 5.00$ 1.19$ -$ -$ -$ 1.19$ Adjusted diluted earnings per share (Non-GAAP) 2.22$ 1.71$ 0.90$ 2.06$ 6.88$ 1.85$ -$ -$ -$ 1.85$ Fiscal 2026 Fiscal 2027
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Strattec: The Access Engine Investor Relations Contact: Deborah K. Pawlowski, Alliance Advisors IR 716 - 843 - 3908 dpawlowski@allianceadvisors.com