Slides
Page 1
Nasdaq: STRT Jennifer Slater President and CEO Matthew Pauli Senior Vice President and CFO August 26, 2026 Q4 FY2026 Financial Results Conference Call
Page 2
2 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. August 26, 2026 Nasdaq: STRT Q4 FY2026 FINANCIAL RESULTS Safe Harbor Statement
Page 3
3August 26, 2026 Nasdaq: STRT Q4 FY2026 FINANCIAL RESULTS Transformation Delivering Results • Improved earnings power against industry fluctuations and FX headwinds • Fiscal 2026 adjusted EBITDA of $50.5 million, 8.7% margin up 100 bps y/y Positioning Strattec for Future Programs • Better than expected Q4 sales at $151.8 million and FY26 sales of $579.4 million • Portfolio focused on Permission, Motion and Hold: safety centric products • Shifting to more strategic and broader based customer engagement Operational Discipline Strengthens Margins • Gross margin of 15.6% in the quarter and 16.5% for the fiscal year • Measurable improvements from lower cost structure, improved operating efficiencies and investments in talent and equipment • Adjusted EBITDA of 7.7% for the quarter and 8.7% for fiscal year Consistent Strong Cash Generation • Generated $9.7 million in the quarter and $46.3 million in cash for the year • Returned $7.4 million to shareholders through previous share repurchase program and the Board authorized a new $40 million buyback plan Strattec FY2026 Fourth Quarter & Fiscal Year Highlights
Page 4
4 Nasdaq: STRT Transforming Strattec: Building a Better Business Execute Plan to Deliver Value • Continued strong cash generation through improved profitability and disciplined execution • Generated $9.5 million of annualized cost savings since initiating program in 2H FY25 with 6-month payback Driving Operational Performance • Consolidated test lab in Auburn Hills • Investing in upgraded equipment and assembly automation • Implemented tools and technology solutions for commercial pipeline management, financial consolidation, benefits enrollment and expense reporting Innovation, Collaboration and Accountability • Launched organizational culture pillars to move faster, work more effectively and deliver greater value to our customers • Rewards and recognition program recognizes team members that demonstrate the values in action • $108.2 million cash balance and no debt • Liquidity enables transformation and organic investments, provides cushion for industry dynamics, opportunistic share repurchases and supports an M&A strategy to build scale and diversification ($ in millions) $84.6 $90.5 $99.0 $107.0 $108.2 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Cash Balance Supports Strategic Initiatives Q4 FY2026 FINANCIAL RESULTS August 26, 2026
Page 5
5 Nasdaq: STRT August 26, 2026Q4 FY2026 FINANCIAL RESULTS Established Customers & Diverse Products ($ in millions) 27% 21% 16% 15% 12% 9% FY 2026 Sales by Customer GM Ford Stellantis Tier 1 Com'l & Other Hyundai/Kia 25% 24%21% 12% 9% 7% 2% FY 2026 Sales by Product Door Handles Power Access Keys & Locksets Latches User Interface Controls Aftermarket Other Q4 FY26 net sales flat with prior year period + $1.4 million of pricing benefits + Detroit 3 OEMs auto production up 1.9% – $3.2 million in EV program cancellations $152.0 $151.8 $565.1 $579.4 Q4 FY25 Q4 FY26 FY 2025 FY 2026 Q4 & FY 2026 Net Sales
Page 6
6 Nasdaq: STRT Q4 FY26 gross margin down 110 basis points y/y + $0.9 million lower tariff costs + $0.8 million in restructuring savings – $1.9 million FX headwind – $1.4 million in cost of quality – $1.3 million reduced tooling gains FY 2026 gross margin expanded 150 basis points + $9.5 million in pricing, including tariff recoveries, and higher production volume + $5.4 million in restructuring savings, partially offset by $1.8 million in higher labor costs in Mexico – $6.5 million FX headwind Gross Margin Expansion in FY2026 August 26, 2026Q4 FY2026 FINANCIAL RESULTS $25.4 $23.6 Q4 FY25 Q4 FY26 Gross Profit & Margin (QTR) $84.6 $95.4 FY 2025 FY 2026 Gross Profit & Margin (FY) ($ in millions) 15.6%16.7% 16.5%15.0%
Page 7
7 Nasdaq: STRT Q4 FY26 SAE expenses increased $0.6 million y/y to 11.5% of sales • $1.6 million increase in business transformation and executive transition costs • $0.4 million increase in salaries and benefits • Partially offset by $1.0 million lower bonus provision and $0.7 million reduction in engineering and professional fees FY 2026 SAE expenses increased $7.0 million to 11.9% of sales • $3.3 million increase in salaries and benefits • $2.8 million incremental spend from business transformation, restructuring and executive transition costs y/y • Partially offset by $0.5 million restructuring savings and $0.7 million recovery of costs related to cancelled EV programs Managing SAE & Investing in Talent August 26, 2026Q4 FY2026 FINANCIAL RESULTS $16.9 $17.5 Q4 FY25 Q4 FY26 SAE(1) & % of Sales (Qtr) $61.8 $68.8 FY 2025 FY 2026 SAE & % of Sales (FY) ($ in millions) (1) Selling, administrative and engineering expenses 11.5%11.1% 11.9%10.9%
Page 8
8 ADJ. NET INCOME2 (QTR & FY) ADJ. EBITDA2 (QTR & FY) NET INCOME1 (QTR & FY) Enhanced Earnings Power Nasdaq: STRT Q4 FY2026 FINANCIAL RESULTS 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. ▪ FY26 Q4 impacted by incremental business transformation and executive transition costs and $2.9 million discrete tax adjustments ▪ FY26 had $4.8 million negative FX impact ▪ FY 26 Adj. diluted EPS the result of pricing, volume, reduction in manufacturing costs ▪ Adj. EBITDA margin contracted in the quarter due to changes in FX ▪ FY26 adjusted EBITDA increased 15% and 100 bps $8.3 $3.9 $2.01 $0.95 Q4 FY25 Q4 FY26 August 26, 2026 $18.7 $20.6 $4.58 $5.00 FY 2025 FY 2026 $8.5 $8.4 $2.06 $2.06 Q4 FY25 Q4 FY26 $21.9 $28.4 $5.38 $6.88 FY 2025 FY 2026 $13.0 $12.5 8.5% 8.3% Q4 FY25 Q4 FY26 $43.8 $50.5 7.7% 8.7% FY 2025 FY 2026 ($ in millions except earnings per share data)
Page 9
9 Strong Cash Generation & Capital Flexibility ($ in millions) (1) Free cash flow is a non-GAAP metric defined as cash flow from operations less capital expenditures (CapEx) Q4 FY26 FINANCIAL RESULTS Nasdaq: STRT Cash Generation: • Lower cash from operations reflects one-time benefit in fiscal 2025 to reset working capital levels • 28% higher cash balance y/y from strong cash earnings and working capital management Capital Priorities: cash position supports strategy 1. Fund customer programs, automation and modernization 2. Maintain resilience through automotive cycles 3. Return capital through opportunistic share repurchases 4. Pursue disciplined M&A strategy to scale and diversify June 28, 2026 June 29, 2025 Cash and cash equivalents $ 108.2 $ 84.6 Total debt 0.0 8.0 CASH AND DEBT Q4 FY 2026 Q4 FY 2025 FY 2026 FY 2025 Cash from operations $ 9.7 $ 30.2 $ 46.3 $ 71.7 Capital Expenditures (1.4) (3.0) (7.3) (7.2) Free cash flow (FCF)(1) $ 8.3 $ 27.2 $ 39.0 $ 64.5 CASH FLOW August 26, 2026
Page 10
10 (as of August 25, 2026) Nasdaq: STRT Revenue • Industry projections show 2% decline in NA auto production with Detroit 3 down nearly 6% • Expect FY 2027 revenue to trend industry production of customers and platforms with typical seasonality in Q2 Gross Margin • Challenged with FX and lower volume in FY27 while working to offset with transformation actions • Continuing to target 18% to 20% margins over next few years (assumes average 5-year peso) SAE • Given planned investments expect to continue to run at 11% to 12% of revenue excluding unusual items • Longer term objective is SAE at 10% to 11% of sales Cash Generation • Expect normalized run rate of ~$10 million +/- per quarter OUTLOOK: Expect Continued Improvement in Operations and Solid Cash Generation Against Declining Market Demand August 26, 2026Q4 FY2026 FINANCIAL RESULTS
Page 11
11PREMISSION, MOTION & HOLD Our Vision : To be the most trusted, global leader in safe and secure access solutions for the automotive and mobility industries by creating the ultimate access experience for consumers. WE ENGINEER THE ACCESS EXPERIENCE
Page 12
Q4 FY2026 Financial Results Supplemental Slides www.strattec.com
Page 13
13 Nasdaq: STRT Reconciliation of GAAP to Non-GAAP Financial Measures ($ in thousands) August 26, 2026Q4 FY2026 FINANCIAL RESULTS 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$ 137,632$ 151,827$ 579,392$ ADJUSTED EBITDA: Net income attributable to Strattec (GAAP) 3,703$ 1,319$ 5,396$ 8,267$ 18,685$ 8,529$ 4,947$ 3,240$ 3,882$ 20,598$ Net income (loss) attributable to non-controlling interest 45 79 315 (205) 234 8 696 585 (264) 1,025 Income tax expense 1,498 405 1,644 2,170 5,717 2,356 1,699 1,282 6,002 11,339 Other (income) expense, net (129) 482 16 (1,189) (820) 275 (1,691) 748 (2,630) (3,298) Interest income (349) (408) (529) (753) (2,039) (877) (885) (879) (859) (3,500) Interest expense 295 257 243 212 1,007 156 96 70 37 359 Income from operations 5,063 2,134 7,085 8,502 22,784 10,447 4,862 5,046 6,168 26,523 Adjustments: Depreciation 3,662 3,544 3,746 3,812 14,764$ 3,785 3,893 3,772 3,635 15,085$ Non-cash stock-based compensation 188 891 760 887 2,726 669 1,125 811 700 3,305 Restructuring and similar charges - 265 809 (676) 398 - 1,305 424 (30) 1,699 Cancelled program settlements - - - - - - - (1,323) - (1,323) Executive transition costs 941 921 214 (17) 2,058 136 88 423 240 887 Business transformation costs 74 215 259 479 1,027 514 994 960 1,824 4,292 4,865 5,836 5,788 4,485 20,974 5,104 7,405 5,067 6,369 23,945 Adjusted EBITDA (Non-GAAP) 9,928$ 7,970$ 12,873$ 12,987$ 43,758$ 15,551$ 12,267$ 10,113$ 12,537$ 50,468$ Adjusted EBITDA as a % of Net Sales 7.1% 6.1% 8.9% 8.5% 7.7% 10.2% 8.9% 7.3% 8.3% 8.7% Fiscal 2026Fiscal 2025
Page 14
14 Nasdaq: STRT Reconciliation of GAAP to Non-GAAP Financial Measures ($ in thousands, except per share data) August 26, 2026Q4 FY2026 FINANCIAL RESULTS Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total ADJUSTED NET INCOME AND EARNINGS PER SHARE: Net income attributable to Strattec (GAAP) 3,703$ 1,319$ 5,396$ 8,267$ 18,685$ 8,529$ 4,947$ 3,240$ 3,882$ 20,598$ Adjustments: Restructuring and similar charges - 265 809 (676) 398 570 1,165 572 49 2,356 Cancelled program settlements - - - - - - - (1,323) - (1,323) Executive transition costs 1,224 1,225 214 115 2,778 136 88 423 240 887 Business transformation costs 74 215 259 479 1,027 514 994 960 1,824 4,292 Non-controlling interest impact - - (160) 160 - (196) 190 (9) 28 13 Tax effect on above adjustments and other discrete tax items (292) (384) (376) 107 (945) (383) (335) (139) 2,388 1,531 1,006 1,321 746 185 3,258 641 2,102 484 4,529 7,756 Adjusted Net Income attributable to Strattec (Non-GAAP) 4,709$ 2,640$ 6,142$ 8,452$ 21,943$ 9,170$ 7,049$ 3,724$ 8,411$ 28,354$ Weighted Average Basic Shares Outstanding 4,005 4,035 4,039 4,039 4,030 4,054 4,080 4,085 4,035 4,064 Weighted Average Diluted Shares Outstanding 4,046 4,070 4,085 4,105 4,076 4,127 4,131 4,141 4,091 4,122 Diluted earnings per share (GAAP) 0.92$ 0.32$ 1.32$ 2.01$ 4.58$ 2.07$ 1.20$ 0.78$ 0.95$ 5.00$ Adjusted dilutive earnings per share (Non-GAAP) 1.16$ 0.65$ 1.50$ 2.06$ 5.38$ 2.22$ 1.71$ 0.90$ 2.06$ 6.88$ Fiscal 2026Fiscal 2025
Page 15
Strattec: The Access Engine Investor Relations Contact: Deborah K. Pawlowski, Alliance Advisors IR 716-843-3908 dpawlowski@allianceadvisors.com