Slides
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Nasdaq: STRT Jennifer Slater President and CEO Matthew Pauli Senior Vice President and CFO October 30, 2026 Q1 FY2027 Financial Results Conference Call
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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, 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, the Company’s ability to identify, evaluate, negotiate 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 integrate any acquired business and realize any potential benefits should a transaction occur. 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. Such uncertainties and other operational matters are discussed further in the Company’s quarterly and annual filings with the Securities and Exchange Commission. The forward-looking statements made herein 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 events 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 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. October 30, 2026 Nasdaq: STRT Q1 FY2027 FINANCIAL RESULTS Safe Harbor Statement
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3October 30, 2026 Nasdaq: STRT Q1 FY2027 FINANCIAL RESULTS Transformation Drives Strong Cash Generation • Generated $10.8 million in the quarter • On track for ~$40 million of cash from operations for the year Balance Sheet Strength Enables Strategy • Investing organically • Returned $5.0 million to shareholders through share repurchase program • Active acquisition pipeline supports customer diversification, enhanced product offering and increased scale Productivity Actions Support Margins on Soft Sales • Achieved gross margin of 16.5% on $147.2 million in sales • Further reduced cost structure for $1.3 million in annualized savings • Adjusted EBITDA margin of 9.2% for the quarter Strattec Q1 FY2027 First Quarter Highlights
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4 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 $111.8 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Cash Balance Supports Strategic Initiatives Q1 FY2027 FINANCIAL RESULTS October 30, 2026
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5 Nasdaq: STRT October 30, 2026Q1 FY2027 FINANCIAL RESULTS Established Customers & Diverse Products ($ in millions) 28% 22%14% 14% 14% 8% Q1 FY27 Sales by Customer GM Ford Stellantis Tier 1 Com'l & Other Hyundai/Kia 26% 23%20% 13% 9% 9% Q1 FY27 Sales by Product Door Handles Power Access Keys & Locksets Latches User Interface Controls Aftermarket Q1 FY26 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 Net Sales
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6 Nasdaq: STRT Sustained Gross Margin Strength on Lower Volume October 30, 2026Q1 FY2027 FINANCIAL RESULTS $26.3 $24.3 Q1 FY26 Q1 FY27 Gross Profit & Margin (QTR) ($ in millions) 16.5%17.3% Q1 FY27 adjusted gross margin1 was 16.6% • Adjusted for $0.1 million in transformation costs 1 Adjusted gross profit and margin are non -GAAP metrics. Refer to the reconciliation of GAAP to non-GAAP metrics in the supplemental tab les of this presentation. 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 wage inflation
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7 Nasdaq: STRT 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 adjusted SAE expenses2 declined $0.2 million to 10.2% of sales • Excludes business development expenses • Cost discipline enables achieving target range of 10% to 11% Managing SAE & Investing in Talent October 30, 2026Q1 FY2027 FINANCIAL RESULTS $15.9 $17.9 Q1 FY26 Q1 FY27 SAE1 & % of Sales (QTR) ($ in millions) 1Selling, administrative and engineering expenses 2Adjusted SAE is a non-GAAP metric. Refer to the reconciliation of GAAP to non-GAAP metrics in the supplemental tables of this presentation 12.2%10.4%
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8 ADJ. NET INCOME2 (QTR) ADJ. EBITDA2 (QTR) NET INCOME1 (QTR) Delivering Earnings in Challenging Environment Nasdaq: STRT Q1 FY2027 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. ▪ 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 October 30, 2026 $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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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) Q1 FY27 FINANCIAL RESULTS Nasdaq: STRT Cash Generation: • Remained strong on lower net income • Benefit of ED&D recoveries • Building cash balance to execute strategic plan 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 September 27, 2026 June 28, 2026 Cash and cash equivalents $ 111.8 $ 108.2 Total debt $ 0.0 $ 0.0 CASH AND DEBT Q1 FY 2027 Q1 FY 2026 Cash from operations $ 10.8 $ 11.3 Capital Expenditures (1.2) (1.5) Free cash flow (FCF)(1) $ 9.6 $ 9.8 CASH FLOW October 30, 2026
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10 (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 and with holiday seasonality 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 ~$10 million +/- per quarter OUTLOOK: Expect Continued Improvement in Operations and Solid Cash Generation Against Declining Market Demand Q1 FY2027 FINANCIAL RESULTS October 30, 2026
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11PREMISSION, MOTION & HOLD Our Vision : To be the most trusted, global leader in safe and secure access solutions for the automotive and mobility industries by creating the ultimate access experience for consumers. WE ENGINEER THE ACCESS EXPERIENCE
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Q1 FY2027 Financial Results Supplemental Slides www.strattec.com
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13 Nasdaq: STRT ($ in thousands) October 30, 2026Reconciliation 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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14 Nasdaq: STRT ($ in thousands, except per share data) October 30, 2026Reconciliation 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