Earnings release
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1 Refer to “Use of Non-GAAP Financial Metrics and Additional Financial Information” as well as accompanying reconciliations to GAAP Exhibit 99.1 News Release 3333 West Good Hope Rd. • Milwaukee, Wisconsin 53209 IMMEDIATE RELEASE Strattec First Quarter Fiscal 2026 Financial Results Validate Operational Improvements • Gross margin for the quarter was 17.3% on $152.4 million in sales • Net income attributable to Strattec for the first quarter fiscal 2026 was $8.5 million, or $2.07 per diluted share; adjusted EBITDA1 was $15.6 million, or 10.2% of sales • Generated $11.3 million in cash from operations similar to the first quarter of fiscal 2025 • Strong balance sheet provides financial flexibility; $90.5 million in cash and $5.0 million in debt • Continued actions to streamline organization; additional restructuring in Mexico operations expected to provide approximately $1 million in annualized savings MILWAUKEE, WI, October 30, 2025 – Strattec Security Corporation (Nasdaq: STRT) (“Company” or “Strattec”), a leading provider of smart vehicle access, security and authorization solutions for the global automotive industry, reported financial results for its first quarter of fiscal year 2026, which ended September 28, 2025. Jennifer Slater, President and CEO of Strattec, said, “Our first quarter results demonstrate the hard work of the team over this last year to streamline our operations, simplify the organization and improve our profitability. We continue to manage our cost structure to be responsive to changing sales levels and have started various automation projects to further enhance our gross margins. At the end of the quarter, we implemented an additional restructuring action in our Mexico operations which is expected to deliver $1 million in annualized savings.” “We remain focused on advancing our business transformation, implementing improved foundational processes, systems and tools and are encouraged with our progress. We are carefully balancing a continuous review of our cost structure with investments in growth initiatives. We are actively engaged with customers to develop highly engineered products as we work to secure content on future vehicle platforms. Uncertainty, nevertheless, is prevalent for the North American automotive industry given recent industry wide supply chain challenges, a dynamic tariff environment and the resulting changes in OEM production levels. Our cash position and strong balance sheet support our resiliency through this dynamic environment and allow us to continue to execute on the business transformation while pursuing organic growth opportunities,” Ms. Slater concluded.
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1 Refer to “Use of Non-GAAP Financial Metrics and Additional Financial Information” as well as accompanying reconciliations to GAAP Strattec First Quarter Fiscal 2026 Financial Results Validate Operational Improvements October 30, 2025 Page 2 of 9 FY 2026 First Quarter Financial Summary (compared with prior-year period, except where otherwise noted) Net sales were $152.4 million, an increase of $13.3 million, or 10%. Sales growth was driven by$4.3 million of sales related to higher demand on existing platforms, $3.9 million of pricing, $3.0 million associated with favorable sales mix and higher content value and $2.1 million in net new program launches. Gross profit increased $7.4 million to $26.3 million, while gross margin expanded 370 basis points. The improvement was primarily the result of pricing actions and the contribution from higher volume complemented by $1.3 million in restructuring savings. This more than offset $1.1 million higher labor costs in Mexico related to annual merit increases, $0.8 million of incremental tariff costs, and $0.5 million related to unfavorable foreign exchange rates. Selling, administrative and engineering (“SAE”) expenses increased $2.0 million to $15.9 million, or 10.4% of sales, compared with $13.9 million, or 10.0% of sales, in the prior-year period. Higher SAE expenses include a $0.5 million increase in equity compensation costs, timing of professional fees,$0.9 million investment in additional headcount, and $0.4 million of incremental business transformation costs. Partially offsetting the higher SAE expenses were lower executive transition costs of $0.1 million in the first quarter of fiscal 2026 compared with $0.9 million in the first quarter of fiscal 2025. Interest income grew $0.5 million on higher cash balances, while interest expenses declined $0.1 million on lower borrowings. Other expense was $0.3 million, down from other income of $0.1 million in the prior-year period. The change was primarily due to $0.6 million in costs related to restructuring actions which was partially offset by a $0.3 million benefit as a result of changes in foreign currency exchange rates. Net income attributable to Strattec was $8.5 million, or $2.07 per diluted share, compared with $3.7 million, or $0.92 per diluted share, in the prior-year period. On an adjusted basis, first quarter fiscal 2026 net income attributable to Strattec1 was $9.2 million, and adjusted diluted earnings per share1 was $2.22. Adjusted EBITDA1 for the quarter was $15.6 million compared with $9.9 million in the prior-year period. Adjusted EBITDA margin of 10.2%, compared with 7.1% in the fiscal 2025 first quarter. Financial Flexibility with Strong Balance Sheet As expected, cash from operations in the first quarter of fiscal 2026 was $11.3 million, similar to the prior-year period. At September 28, 2025, the Company had $90.5 million in cash and cash equivalents, up from $84.6 million from the end of the fourth quarter of fiscal 2025. The Company had no borrowings outstanding under its $40 million revolving credit agreement. Borrowings under the joint venture’s $18 million revolving credit agreement were $5.0 million, down from $8.0 million at the end of the fourth quarter of fiscal 2025. On October 27, 2025, the Company entered into a new revolving credit agreement to replace the existing $40 million facility that was scheduled to mature in August 2026. The new credit facility extends the maturity to October 2028 and bears interest at a rate of SOFR plus an applicable margin of 1.50%.
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Strattec First Quarter Fiscal 2026 Financial Results Validate Operational Improvements October 30, 2025 Page 3 of 9 First Quarter Fiscal Year 2026 Webcast and Conference Call The Company will host a conference call and webcast tomorrow, Friday, October 31, 2025, at 9:00 am Eastern Time to review the financial and operating results for the period ended September 28, 2025, and provide an update on its transformation progress. A question-and-answer session will follow. You can access the call by phoning (201) 689-8470 or find the webcast and accompanying slide presentation at investors.strattec.com. A telephonic replay will be available from 12:00 p.m. ET on the day of the call through Friday, November 14, 2025. To listen to the archived call, dial +1 (412) 317-6671 and enter replay PIN 13755694. The webcast replay will be available on the Investor Relations section of the Company’s website investors.strattec.com, where a transcript will be posted once available. A BOUT S TRATTEC Strattec is a leading global provider of advanced automotive access, security & authorization solutions for leading vehicle manufacturers, primarily in the U.S. With a history spanning over 110 years, Strattec has consistently been at the forefront of innovation in vehicle security, transitioning from mechanical to integrated electro-mechanical systems. Its highly-engineered products include power access solutions, latches, vehicle start systems, keys, fobs & accessories, locks & locksets, door handles and other access products. Power access solutions provide the motion control for power liftgates, sliding power doors and power tailgates. For more information on Strattec and its solutions, visit www.strattec.com. S AFE H ARBOR S TATEMENT Certain statements contained in this release contain “forward-looking statements” within the meaning of the Private Securities 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 and business environment. These uncertainties include general economic conditions, in particular, relating to the automotive industry, consumer demand for the Company’s and its customers’ products, competitive and technological developments, customer purchasing actions, changes in warranty provisions and customer product recall policies, work 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. trade policies, tariffs and reactions to the same from foreign countries, matters adversely impacting the timing and availability of component parts and raw materials needed for the production of the Company’s products and the products of its customers and fluctuations in costs of operation. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances occurring after the date of this release. In addition, such uncertainties and other operational matters are discussed further in the Company’s quarterly and annual filings with the Securities and Exchange Commission.
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Strattec First Quarter Fiscal 2026 Financial Results Validate Operational Improvements October 30, 2025 Page 4 of 9 U SE OF N ON -GAAP F INANCIAL M ETRICS AND A DDITIONAL F INANCIAL I NFORMATION In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Strattec provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures 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, and evaluate performance. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, will help investors evaluate Strattec’s core operating and financial performance and business trends consistent with how management evaluates such performance and trends. Investors are 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. C ONTACT : Deborah K. Pawlowski, IRC Alliance Advisors IR Phone: 716-843-3908 Email: dpawlowski@allianceadvisors.com FINANCIAL TABLES FOLLOW
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Strattec First Quarter Fiscal 2026 Financial Results Validate Operational Improvements October 30, 2025 Page 5 of 9 STRATTEC SECURITY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (in thousands, except per share amounts) Three Months Ended September 28,2025 September 29,2024 Net sales $ 152,399 $ 139,052 Cost of goods sold 126,064 120,131 Gross profit 26,335 18,921 Gross margin 17.3% 13.6% Selling, administrative and engineering expenses 15,888 13,858 Income from operations 10,447 5,063 Operating margin 6.9% 3.6% Interest income 877 349 Interest expense (156) (295) Other (expense) income, net (275) 129 Income before provision for income taxes and non-controlling interest 10,893 5,246 Income tax expense 2,356 1,498 Net income 8,537 3,748 Net income attributable to non-controlling interest 8 45 Net income attributable to Strattec $ 8,529 $ 3,703 Earnings per share attributable to Strattec Basic $ 2.10 $ 0.92 Diluted $ 2.07 $ 0.92 Weighted average shares outstanding: Basic 4,054 4,005 Diluted 4,127 4,046
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Strattec First Quarter Fiscal 2026 Financial Results Validate Operational Improvements October 30, 2025 Page 6 of 9 STRATTEC SECURITY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share amounts) September 28,2025 June 29,2025 ASSETS Current Assets: Cash and cash equivalents $ 90,473 $ 84,579 Receivables, net 102,674 102,061 Inventories, net 61,592 64,701 Pre-production costs 7,480 8,657 Value-added tax recoverable 20,194 19,389 Other current assets 7,712 10,676 Total current assets 290,125 290,063 Noncurrent Assets: Property, plant and equipment, net 75,634 77,410 Deferred income taxes 19,649 19,531 Other long-term assets 4,649 4,450 Total Assets $ 390,057 $ 391,454 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 61,077 $ 65,824 Accrued payroll and benefits 15,386 22,956 Value-added tax payable 13,259 11,933 Warranty reserve 9,848 8,900 Current portion of borrowings under credit facilities 5,000 — Other current liabilities 11,939 9,737 Total current liabilities 116,509 119,350 Noncurrent Liabilities: Noncurrent portion of borrowings under credit facilities — 8,000 Post-employment benefits 13,609 13,325 Other noncurrent liabilities 4,160 4,348 Total Liabilities 134,278 145,023 Shareholders’ Equity: Common stock, authorized 18,000,000 shares, $.01 par value, 7,675,676 issued shares at September 28, 2025 and 7,635,883 issued shares at June 29, 2025 76 76 Capital in excess of par value 104,464 103,784 Retained earnings 277,826 269,297 Accumulated other comprehensive loss (15,453) (16,113) Less: treasury stock, at cost (3,610,271 shares at September 28, 2025 and 3,596,549 shares at June 29, 2025) (136,366) (135,452) Total Strattec shareholders’ equity 230,547 221,592 Non-controlling interest 25,232 24,839 Total Shareholders' Equity 255,779 246,431 Total Liabilities and Shareholders' Equity $ 390,057 $ 391,454
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Strattec First Quarter Fiscal 2026 Financial Results Validate Operational Improvements October 30, 2025 Page 7 of 9 STRATTEC SECURITY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Three Months Ended September 28,2025 September 29,2024 OPERATING ACTIVITIES: Net income $ 8,537 $ 3,748 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 3,785 3,662 Foreign currency transaction loss (gain) 671 (1,005)Stock-based compensation expense 669 652 Unrealized (gain) loss on peso forward contracts (293) 188 Change in operating assets and liabilities Receivables (574) (3,189) Inventories 3,109 (2,145) Prepaids and other assets 3,804 5,881 Accounts payable (4,817) 5,036 Accrued liabilities (3,880) (2,038) Other, net 316 547 Net cash provided by operating activities 11,327 11,337 INVESTING ACTIVITIES: Purchase of property, plant and equipment (1,529) (2,073) Net cash used in investing activities (1,529) (2,073) FINANCING ACTIVITIES: Borrowings under credit facilities — 3,000 Repayment of borrowings under credit facilities (3,000) (3,000) Shares withheld for employee taxes (919) — Employee stock purchases 16 13 Net cash (used in) provided by financing activities (3,903) 13 Foreign currency impact on cash (1) (284) NET INCREASE IN CASH AND CASH EQUIVALENTS 5,894 8,993 CASH AND CASH EQUIVALENTS Beginning of period 84,579 25,410 End of period $ 90,473 $ 34,403 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Income taxes $ 582 $ 4,081 Interest $ 123 $ 280 Non-cash investing activities: Change in capital expenditures in accounts payable $ 13 $ (506)
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Strattec First Quarter Fiscal 2026 Financial Results Validate Operational Improvements October 30, 2025 Page 8 of 9 STRATTEC SECURITY CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (in thousands, except per share amounts) Fiscal 2025 Fiscal 2026 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total NET SALES: Net Sales (GAAP) 139,052 129,919 144,082 152,013 $ 565,066 152,399 $152,399 ADJUSTED EBITDA: Net income attributable to Strattec (GAAP) $3,703 $1,319 $ 5,396 $ 8,267 $ 18,685 $ 8,529 $ 8,529 Net income (loss) attributable to non-controlling interest 45 79 315 (205) 234 8 8 Income tax expense 1,498 405 1,644 2,170 5,717 2,356 2,356 Other (income) expense, net (129) 482 16 (1,189) (820) 275 275 Interest income (349) (408) (529) (753) (2,039) (877) (877) Interest expense 295 257 243 212 1,007 156 156 Income from operations 5,063 2,134 7,085 8,502 22,784 10,447 - - - 10,447 Adjustments: Depreciation 3,662 3,544 3,746 3,812 $ 14,764 3,785 $ 3,785 Non-cash stock-based compensation 188 891 760 887 2,726 669 669 Restructuring and similar charges - 265 809 (676) 398 - - Executive transition costs 941 921 214 (17) 2,058 136 136 Business transformation costs 74 215 259 479 1,027 514 514 4,865 5,836 5,788 4,485 20,974 5,104 - - - 5,104 Adjusted EBITDA (Non-GAAP) $9,928 $7,970 $ 12,873 $ 12,987 $ 43,758 $ 15,551 $ - $- $ - $15,551 Adjusted EBITDA as a % of Net Sales 7.1% 6.1% 8.9% 8.5% 7.7% 10.2% 10.2%
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Strattec First Quarter Fiscal 2026 Financial Results Validate Operational Improvements October 30, 2025 Page 9 of 9 ADJUSTED NET INCOME AND EARNINGS/(LOSS) PER SHARE: Net income attributable to Strattec (GAAP) $ 3,703 $ 1,319 $ 5,396 $ 8,267 $ 18,685 $ 8,529 $ 8,529 Adjustments: Restructuring and similar charges - 265 809 (676) 398 570 570 Executive transition costs 1,224 1,225 214 115 2,778 136 136 Business transformation costs 74 215 259 479 1,027 514 514 Non-controlling interest impact on above adjustments - - (160) 160 - (196) (196) Tax effect on above adjustments (292) (384) (376) 107 (945) (383) (383) 1,006 1,321 746 185 3,258 641 - - - 641 Adjusted Net Income/(Loss) attributable to Strattec (Non-GAAP) $ 4,709 $ 2,640 $ 6,142 $ 8,452 $ 21,943 $ 9,170 $ - $- $ - $ 9,170 Weighted Average Basic Shares Outstanding 4,005 4,035 4,039 4,039 4,030 4,054 4,054 Weighted Average Diluted Shares Outstanding 4,046 4,070 4,085 4,105 4,076 4,127 4,127 Diluted earnings per share (GAAP) $ 0.92 $ 0.32 $ 1.32 $ 2.01 $ 4.58 $ 2.07 $ 2.07 Adjusted earnings/(loss) per share (Non-GAAP) $ 1.16 $ 0.65 $ 1.50 $ 2.06 $ 5.38 $ 2.22 $ 2.22