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Q2 FY2026 Financial Results Conference Call February 6, 2026 Nasdaq: STRT Jennifer Slater President and CEO Matthew Pauli Senior Vice President and CFO www.strattec.com
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Safe Harbor Statement Safe Harbor Statement Certain statements contained in this presentation 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, the impact of U.S. trade policies, tariffs and reactions to the same from foreign countries on costs and customer demand, matters adversely impacting the timing and availability of component parts and raw materials needed for the production of our products and the products of our customers and fluctuations in our 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 presentation 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 presentation. 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. 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 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. The Company has provided reconciliations of comparable GAAP to non-GAAP measures in the supplemental slides of this presentation. 2
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OPERATIONAL CASH FLOW: Generated $13.9 million in Q2 FY26 and $25.2 million year to date • Ended the quarter with $99.0 million in cash on hand REVENUE GROWTH: Primarily driven by accretive pricing, favorable sales mix and higher content value, net new program launches and tariff recovery • Q2 FY26 revenue up $7.6 million, or 5.9%, to $137.5 million PROFITABILITY: Margin expanded despite FX headwinds • Achieved 16.5% gross margin, a 330 bps improvement DELIVERING RESULTS FROM TRANSFORMATION: • Voluntary retirement program combined with fiscal 2026 operations restructuring expected to generate $3.4 million in annualized savings • Continue to invest in employees and tools to improve business processes and results 3 Strattec Q2 FY2026 Quarter and Fiscal Year Highlights
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4 Transformation: Driving Operational Improvements $42.6 $62.1 $84.6 $90.5 $99.0 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 • $99.0 million cash balance and debt (JV) reduced to $2.5 million • Significant liquidity to invest in organic growth and transformation initiatives CASH CUSHION PROVIDES OPTIONALITYEXECUTE PLAN TO DELIVER VALUE • Relentless focus on day-to-day actions that advance the transformation • Organization still on a steep learning curve • Significant efforts to mitigate supply chain disruption • Beginning to imbed new processes for improved predictability CUSTOMER CENTRIC STRATEGY: TALENT TO SUPPORT • Getting in front of customers to listen, learn and adapt • Continued talent refreshment to ignite ideas and improve communications and execution REFINE AND ENHANCE PRODUCT PORTFOLIO • Actively engaged on proposals for 2029 model years and beyond • Early stages of developing relationships with other North American vehicle manufacturers ($ in millions)
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$129.9 $137.5 Q2 FY25 Q2 FY26 29% 18% 18% 14% 12% 9% GM Ford Stellantis Tier 1 Com'l & Other Hyundai/Kia 5 ($ in millions) 26% 25%19% 12% 9% 7% 2% Door Handles Power Access Keys & Locksets Latches User Interface Controls Aftermarket Other Established Customers & Diverse Products Q2 FY26 SALES BY CUSTOMER Q2 FY26 SALES BY PRODUCTQ2 & YTD FY26 NET SALES Q1 FY26 net sales up $7.6 million, or 5.9% + 2.4% of pricing benefits + 2.4% favorable sales mix/higher content value + 1.9% net new program launches + 1.0% tariff recovery – 1.8% market $269.0 $289.9 1H FY25 1H FY26
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Q2 FY26 gross margin expanded 330 basis points y/y + Pricing actions and higher production volume drove improvement + $1.7 million in restructuring savings contributed to margin expansion + Favorable volume leverage from an inventory build, pricing and cost reductions more than offset: – $1.6 million FX headwind – $1.2 million in higher labor costs in Mexico ($ in millions; narrative compared with prior-year period unless otherwise noted) Solid Gross Margin Expansion GROSS PROFIT & MARGIN (QTR) 6 11.4% 13.2% $17.2 $22.7 Q2FY25 Q1FY26 16.5%13.2% 15.0%12.2% GROSS PROFIT & MARGIN (YTD) $36.1 $49.1 13.4% 16.9% Q2FY25 Q2FY26 YTD gross margin expanded 350 basis points + $8.0 million in pricing actions including tariff recoveries and higher production volume + $3.0 million in restructuring savings + Favorable volume leverage, pricing and cost reductions more than offset: – $2.3 million in higher labor costs in Mexico – $2.1 million FX headwind
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Q2FY26 SAE expenses increased $2.9 million y/y to 13% of sales, reflecting voluntary early retirement program charge • $1.7 million cost for voluntary retirement program (“VRP”) • $0.8 million in business transformation costs • $0.7 million investment in talent • Partially offset by $1.1 million lower executive transition costs ($ in millions; narrative compared with prior-year period unless otherwise noted) Managing SAE(1) & Investing in Talent SAE & % OF SALES (QTR) 7 11.4% 13.2% $15.0 $17.9 Q2FY25 Q2FY26 13.0%11.6% 15.0%12.2% SAE & % OF SALES (YTD) $28.9 $33.7 10.7% 11.6% 1HFY25 1HFY26 YTD SAE(1) expenses increased $4.9 million to 11.6% of sales • $1.7 million for VRP • $1.2 million in business transformation costs • $1.6 million investment in talent • Partially offset by $1.9 million lower executive transition costs (1) Selling, administrative and engineering expenses
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8 ($ in millions except earnings per share data; narrative compared with prior-year period unless otherwise noted) Net Income nearly quadrupled in Q2FY26 and YTD up 170% • Validates progress made on transformation actions Enhanced Earnings Power (1) Net Income Attributable to Strattec (2) Adjusted Net Income Attributable to Strattec, Adjusted Diluted Earnings per Share, Adjusted EBITDA and Adjusted EBITDA margin are non- GAAP metrics. Refer to the reconciliation of GAAP to non-GAAP metrics in the supplemental tables of this presentation. ADJ. NET INCOME(2) (QTR & YTD)NET INCOME(1) (QTR & YTD) $1.3 $4.9 $0.32 $1.20 Q2 FY25 Q2 FY26 ADJ. EBITDA(2) (QTR& YTD) $8.0 $12.3 6.1% 8.9% Q2 FY25 Q2 FY26 Adj. EPS(2) grew 163% y/y in quarter and more than doubled YTD • Reflects cost reductions and productivity improvements Adj. EBITDA margin(2) expanded 280 bps in quarter and 290 bps YTD • Q2FY26 up $4.3 million over prior-year, driven by pricing, volume and restructuring benefits • YTD up 55% $5.0 $13.5 $1.24 $3.26 1H FY25 1H FY26 $2.6 $7.0 $0.65 $1.71 Q2 FY25 Q2 FY26 $7.3 $16.2 $1.81 $3.93 1H FY25 1H FY26 $17.9 $27.8 6.7% 9.6% 1H FY25 1H FY26
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Cash flow from operations increased 47% in quarter and 21% YTD • Cash balance continues to grow from strong operating performance • Total debt reduced to $2.5 million, reflecting continued reductions on joint venture credit facility Capital priorities: Strong balance sheet provides optionality • Support organic growth and new customer programs • Continue investing in automation and process modernization • Preserve financial flexibility amid cyclical industry conditions • Evaluate M&A strategy 9 CAPITALIZATION June 29, 2025 December 28, 2025 Cash and cash equivalents $ 84.6 $ 99.0 Total debt 8.0 2.5 Shareholders’ equity 246.4 263.0 Total capitalization $ 254.4 $ 265.5 Debt / total capitalization 3.1% 1.0% ($ in millions; narrative compared with prior-year period unless otherwise noted) (1) Free cash flow is a non-GAAP metric defined as cash flow from operations less capital expenditures (CapEx) Strong Cash Generation & Capital Flexibility CASH FLOW Q2 FY 2025 Q2 FY 2026 YTD Q2 FY 2025 YTD Q2 FY 2026 Cash from operations $ 9.4 $ 13.9 $ 20.8 $ 25.2 CapEx (0.9) (2.6) (3.0) (4.2) Free cash flow (FCF)(1) $ 8.5 $ 11.3 $ 17.8 $ 21.0
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10 REVENUE: Automobile forecasts suggest flat to moderate decline in 2H FY26 MARGINS: Variability from quarter to quarter while building to long-term target • Lapping FY 2025 pricing actions beginning in Q3 • Less absorption advantage with inventory build • Merit increases effective in Q3 FY2026 • Continue to reassess and adjust cost structure in line with demand • Demonstrated new baseline for gross margin CASH GENERATION: Expect normalized run rate ~$10 million +/- ADVANCING TRANSFORMATION • Effort centralized on engineering design and customer priorities for platform launches for 2029 model year and beyond • Continuous improvement framework to drive operational productivity and functional process improvements each quarter • Sale/leaseback approach with Milwaukee facility on going; no Milwaukee HQ location identified to date Expect Continued Improvement in Operations Against Moderating Market Demand and Challenge of Future Project Wins (as of February 5, 2026)
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www.strattec.com Q2 FY2026 Financial Results Supplemental Slides
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Reconciliation of GAAP to Non-GAAP Financial Measures 12 ($ in thousands) 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$ 152,399 137,534 289,933$ ADJUSTED EBITDA: Net income attributable to Strattec (GAAP) 3,703$ 1,319$ 5,396$ 8,267$ 18,685$ 8,529$ 4,947$ 13,476$ Net income (loss) attributable to non-controlling interest 45 79 315 (205) 234 8 696 704 Income tax expense 1,498 405 1,644 2,170 5,717 2,356 1,699 4,055 Other (income) expense, net (129) 482 16 (1,189) (820) 275 (1,691) (1,416) Interest income (349) (408) (529) (753) (2,039) (877) (885) (1,762) Interest expense 295 257 243 212 1,007 156 96 252 Income from operations 5,063 2,134 7,085 8,502 22,784 10,447 4,862 - - 15,309 Adjustments: Depreciation 3,662 3,544 3,746 3,812 14,764$ 3,785 3,893 7,678$ Non-cash stock-based compensation 188 891 760 887 2,726 669 1,125 1,794 Restructuring and similar charges - 265 809 (676) 398 - 1,305 1,305 Executive transition costs 941 921 214 (17) 2,058 136 88 224 Business transformation costs 74 215 259 479 1,027 514 994 1,508 4,865 5,836 5,788 4,485 20,974 5,104 7,405 - - 12,509 Adjusted EBITDA (Non-GAAP) 9,928$ 7,970$ 12,873$ 12,987$ 43,758$ 15,551$ 12,267$ -$ -$ 27,818$ Adjusted EBITDA as a % of Net Sales 7.1% 6.1% 8.9% 8.5% 7.7% 10.2% 8.9% 9.6% Fiscal 2026Fiscal 2025
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Reconciliation of GAAP to Non-GAAP Financial Measures 13 ($ in thousands, except per share data) 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$ 4,947$ 13,476$ Adjustments: Restructuring and similar charges - 265 809 (676) 398 570 1,165 1,735 Executive transition costs 1,224 1,225 214 115 2,778 136 88 224 Business transformation costs 74 215 259 479 1,027 514 994 1,508 Non-controlling interest impact on above adjustments - - (160) 160 - (196) 190 (6) Tax effect on above adjustments (292) (384) (376) 107 (945) (383) (335) (718) 1,006 1,321 746 185 3,258 641 2,102 - - 2,743 Adjusted Net Income attributable to Strattec (Non-GAAP) 4,709$ 2,640$ 6,142$ 8,452$ 21,943$ 9,170$ 7,049$ -$ -$ 16,219$ Weighted Average Basic Shares Outstanding 4,005 4,035 4,039 4,039 4,030 4,054 4,080 4,067 Weighted Average Diluted Shares Outstanding 4,046 4,070 4,085 4,105 4,076 4,127 4,131 4,128 Diluted earnings per share (GAAP) 0.92$ 0.32$ 1.32$ 2.01$ 4.58$ 2.07$ 1.20$ 3.26$ Adjusted dilutive earnings per share (Non-GAAP) 1.16$ 0.65$ 1.50$ 2.06$ 5.38$ 2.22$ 1.71$ 3.93$
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Q2 FY2026 Financial Results February 6, 2026 Nasdaq: STRT www.strattec.com Investor Relations Contact: Deborah K. Pawlowski, Alliance Advisors IR 716-843-3908 dpawlowski@Allianceadvisors.com