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 NEWSRELEASE 3333 WEST GOOD HOPE ROAD MILWAUKEE, WI 53209 414.247.3333 WWW.STRATTEC.COM NASDAQ: STRT IMMEDIATE RELEASE Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations in First Quarter Fiscal 2027 • Strong balance sheet with $111.8 million in cash and no debt at quarter end • Financial strength enables continued investment in transformation, $5.0 million return of cash in the quarter to shareholders through purchase of 67,904 shares as well as pursuit of strategic growth • First quarter net sales were $147.2 million, compared with $152.4 million in the prior year • Net income attributable to Strattec of $4.8 million, or $1.19 per diluted share, compared with $8.5 million, or $2.07 per diluted share, in the prior-year period; adjusted diluted EPS1 was $1.85, compared with $2.22 • Adjusted EBITDA1 of $13.5 million, or 9.2% of net sales, compared with $15.6 million, or 10.2% of net sales, in the prior-year period MILWAUKEE, WI, October 29, 2026 — Strattec (Nasdaq: STRT), a global provider of highly engineered access solutions for the automotive and mobility industries, today reported financial results for its first quarter of fiscal 2027, which ended September 27, 2026. Jennifer Slater, President and CEO of Strattec, said, “Our first quarter financial results demonstrate the impact of our transformation efforts, which enabled us to achieve a 9.2% adjusted EBITDA margin on $147.2 million in net sales. We continue to improve our cost structure through targeted operational initiatives. During the quarter, we took actions in our Mexico operations that are expected to generate $1.3 million in annualized savings. We believe there remain meaningful opportunities to reduce costs through supply chain improvements and automation which we expect to support margin improvement and strengthen our competitive position.” She added, “Importantly, the strength of our balance sheet provides us the flexibility to invest in our business while also returning capital to shareholders and pursuing strategic growth opportunities. We have an active acquisition funnel that we believe could advance our long-term strategy. Concurrently, we have remained focused on improving the performance of our operations and driving transformational change.” FY 2027 First Quarter Financial Summary (compared with prior-year period, except where otherwise noted) Net sales were $147.2 million, a decrease of $5.2 million, or 3%. Pricing of $1.0 million somewhat offset the $6.2 million impact of lower customer production volumes. Gross profit was $24.3 million, compared with $26.3 million in the prior-year period, and gross margin contracted 80 basis points to 16.5%. Pricing, $0.9 million in restructuring savings, lower overhead costs and better mix were more than offset by the impact of lower volume, elevated premium freight and annual labor cost increases. Unfavorable foreign currency exchange rates of $1.4 million had a 90 basis point negative impact to gross margin. Sequentially, gross margin improved from 15.6% in the fourth quarter of fiscal 2026 to 16.5% in the first quarter, on lower sales demonstrating continued progress with the transformation. Selling, administrative and engineering (“SAE”) expenses were $17.9 million, or 12.2% of sales, compared with $15.9 million, or 10.4% of sales, in the prior-year period. The increase was due to$2.4 million in business development expenses. Excluding business development, business transformation and
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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 Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations in First Quarter Fiscal 2027 October 29, 2026 Page 2 of 11 executive transition costs, adjusted SAE1 was $15.0 million, or 10.2% of sales, in line with the Company’s target of SAE being 10% to 11% of sales. Interest income increased $0.1 million to $1.0 million on higher cash balances, while interest expense declined $0.1 million as the Company had no outstanding bank borrowings. Other expense, net was $0.2 million, compared with $0.3 million in the prior-year period. The effective tax rate was 26.2%, compared with 21.6% in the prior-year period. The higher effective tax rate primarily reflects discrete tax items. Net income attributable to non-controlling interest was $0.5 million, compared with less than $0.1 million in the prior-year period. Net income attributable to Strattec was $4.8 million, or $1.19 per diluted share, compared with $8.5 million, or $2.07 per diluted share, in the prior-year period. On an adjusted basis, first quarter fiscal 2027 net income attributable to Strattec was $7.5 million, or $1.85 per diluted share, compared with $9.2 million, or $2.22 per diluted share, in the prior-year period. Adjusted EBITDA for the quarter was $13.5 million, or 9.2% of net sales, compared with $15.6 million, or 10.2% of net sales, in the prior-year period. Business Development Efforts The Company maintains an active acquisition funnel of strategic opportunities designed to diversify its customers and geographies, increase the scale of its operations and enhance its product offerings within Permission, Motion and Hold. During the first quarter of fiscal 2027, the Company incurred $2.4 million of business development expenses, primarily related to advancing and evaluating these inorganic growth opportunities. Additional acquisition-related expenses may be incurred in subsequent periods, with the amount and timing dependent on the progress of acquisition activities. Financial Flexibility with Strong Balance Sheet Cash provided by operating activities was $10.8 million in the first quarter of fiscal 2027, compared with $11.3 million in the prior-year period. During the quarter, the Company repurchased 67,904 shares of common stock for $5.0 million, leaving $35.0 million remaining available under the Company’s share repurchase authorization. At September 27, 2026, the Company had $111.8 million in cash and cash equivalents and no debt, compared with $108.2 million in cash and cash equivalents at the end of fiscal 2026 and $90.5 million at the end of the first quarter of fiscal 2026. First Quarter Fiscal 2027 Webcast and Conference Call Strattec will host a conference call and webcast tomorrow, Friday, October 30, 2026, at 8:00 am Central Time/9:00 am Eastern Time, to review the financial and operating results for the period ended September 27, 2026, and provide an update on its transformation progress. A question-and-answer session will follow. You can access the call by phoning +1 (201) 689-8470 or find the webcast and accompanying slide presentation at investors.strattec.com. A telephonic replay will be available from approximately 12:00 pm CT on the day of the call through Friday, November 13, 2026. To listen to the archived call, dial +1 (412) 317-6671 and enter replay PIN 13762673. The webcast replay will be available on the Investor Relations section of the Company’s website at investors.strattec.com, where a transcript will be posted once available. A BOUT S TRATTEC Strattec is a global automotive access company that designs and delivers safe, secure, and highly engineered access solutions for the automotive and mobility industries. Built on generations of access and security engineering expertise, Strattec partners closely with OEMs to create differentiated, system‐level access experiences for end
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Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations in First Quarter Fiscal 2027 October 29, 2026 Page 3 of 11 consumers. Strattec’s portfolio spans the access journey from Permission, enabling secure vehicle entry through advanced mechanical and electronic systems; to Motion, delivering effortless, reliable powered access that enhances everyday usability; and through to Hold, providing precision‐engineered latching solutions that give drivers confidence through proven strength, safety, and durability trusted by OEMs worldwide. As access becomes increasingly intelligent, connected, and central to vehicle experience, Strattec’s strategy is to expand its market share, further diversify its customers and geographic reach while becoming the most trusted access partner to drive long‐term growth across global automotive and mobility markets. For more information, 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, 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 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. 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. I NVESTOR 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 Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations in First Quarter Fiscal 2027 October 29, 2026 Page 4 of 11 Strattec Security Corporation Condensed Consolidated Statements of Income (unaudited) (in thousands, except per share amounts) Three Months Ended September 27,2026 September 28,2025 Net sales $ 147,197 $ 152,399 Cost of goods sold 122,882 126,064 Gross profit 24,315 26,335 Gross margin 16.5% 17.3% Selling, administrative and engineering expenses 17,892 15,888 Income from operations 6,423 10,447 Operating margin 4.4% 6.9% Interest income 989 877 Interest expense (37) (156) Other expense, net (183) (275) Income before provision for income taxes and non-controlling interest 7,192 10,893 Income tax expense 1,881 2,356 Net income 5,311 8,537 Net income attributable to non-controlling interest 478 8 Net income attributable to Strattec $ 4,833 $ 8,529 Earnings per share attributable to Strattec Basic $ 1.22 $ 2.10 Diluted $ 1.19 $ 2.07 Weighted average shares outstanding: Basic 3,970 4,054 Diluted 4,053 4,127
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Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations in First Quarter Fiscal 2027 October 29, 2026 Page 5 of 11 Strattec Security Corporation Condensed Consolidated Balance Sheets (unaudited) (in thousands, except share amounts) September 27,2026 June 28,2026 ASSETS Current Assets: Cash and cash equivalents $ 111,766 $ 108,243 Receivables, net 95,117 99,109 Inventories, net 64,903 64,310 Pre-production costs 5,072 6,489 Value-added tax recoverable 9,827 10,069 Other current assets 6,251 8,053 Total current assets 292,936 296,273 Noncurrent Assets: Property, plant and equipment, net 67,321 69,845 Deferred income taxes 16,143 16,080 Other long-term assets 5,143 5,281 Total Assets $ 381,543 $ 387,479 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 55,113 $ 54,973 Accrued payroll and benefits 15,001 20,773 Value-added tax payable 7,667 7,429 Warranty reserve 5,677 6,673 Other current liabilities 13,467 12,383 Total current liabilities 96,925 102,231 Noncurrent Liabilities: Post-employment benefits 12,800 13,350 Other noncurrent liabilities 6,760 6,401 Total Liabilities 116,485 121,982 Shareholders’ Equity: Common stock, authorized 18,000,000 shares, $.01 par value, 7,738,324 issued shares at September 27, 2026 and 7,704,994 issued shares at June 28, 2026 77 77 Capital in excess of par value 107,766 107,138 Retained earnings 294,728 289,895 Accumulated other comprehensive loss (14,352) (14,143) Less: treasury stock, at cost (3,807,746 shares at September 27, 2026 and 3,727,322 shares at June 28, 2026) (150,363) (144,321) Total Strattec shareholders’ equity 237,856 238,646 Non-controlling interest 27,202 26,851 Total Shareholders' Equity 265,058 265,497 Total Liabilities and Shareholders' Equity $ 381,543 $ 387,479
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Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations in First Quarter Fiscal 2027 October 29, 2026 Page 6 of 11 s Strattec Security Corporation Condensed Consolidated Statement of Cash Flows (unaudited) (in thousands) Three Months Ended September 27,2026 September 28,2025 OPERATING ACTIVITIES: Net income $ 5,311 $ 8,537 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 3,492 3,785 Foreign currency transaction (gain) loss (194) 671 Unrealized loss (gain) on peso forward contracts 1,425 (293) Stock-based compensation expense 618 669 Other, net 272 316 Change in operating assets and liabilities Receivables 3,934 (574) Inventories (593) 3,109 Prepaids and other assets 2,239 3,804 Accounts payable 170 (4,817) Accrued liabilities (5,909) (3,880) Net cash provided by operating activities 10,765 11,327 INVESTING ACTIVITIES: Purchase of property, plant and equipment (1,185) (1,529) Net cash used in investing activities (1,185) (1,529) FINANCING ACTIVITIES: Repayment of borrowings under credit facilities — (3,000) Payment for taxes withheld from stock-based awards (1,039) (919) Repurchases of common stock under share repurchase program (4,973) — Employee stock purchases 15 16 Net cash used in financing activities (5,997) (3,903)Foreign currency impact on cash (60) (1) NET INCREASE IN CASH AND CASH EQUIVALENTS 3,523 5,894 CASH AND CASH EQUIVALENTS Beginning of period 108,243 84,579 End of period $ 111,766 $ 90,473 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Income taxes $ 466 $ 582 Interest $ — $ 123 Non-cash investing activities: Change in capital expenditures in accounts payable $ 20 $ 13
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Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations in First Quarter Fiscal 2027 October 29, 2026 Page 7 of 11 Strattec Security Corporation Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share amounts) Fiscal 2026 Fiscal 2027 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)
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Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations in First Quarter Fiscal 2027 October 29, 2026 Page 8 of 11 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%
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Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations in First Quarter Fiscal 2027 October 29, 2026 Page 9 of 11 Strattec Security Corporation Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share amounts) Fiscal 2026 Fiscal 2027 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:
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Strattec Transformation Continues to Deliver Strong Cash Generation; Generated $10.8 Million in Cash from Operations in First Quarter Fiscal 2027 October 29, 2026 Page 10 of 11 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