Strattec Security Corp. reported first‑quarter fiscal 2026 results with net sales of $152.4 million, up 10% year‑over‑year, and net income of $8.5 million, or $2.07 per diluted share. Gross profit rose to $26.3 million, giving a gross margin of 17.3%, an increase of 370 basis points from the 13.6% margin reported in Q1 FY2025. Adjusted EBITDA reached $15.6 million, a 10.2% margin, while operating cash flow was $11.3 million.
The company highlighted ongoing cost‑control initiatives, noting $1 million in annualized restructuring savings from recent Mexico‑site actions. Pricing power and a higher mix of premium products contributed to the margin lift, while favorable foreign‑exchange movements offset higher labor costs, tariff expenses, and currency headwinds. Selling, administrative, and engineering expenses totaled $15.9 million, or 10.4% of sales, reflecting investment in the transformation program and incremental headcount.
Cash and liquidity remain robust, with $90.5 million in cash and cash equivalents at quarter‑end. Strattec secured a new revolving credit facility that extends its maturity to October 2028; the $40 million line had no outstanding borrowings at the close of the quarter, providing additional financial flexibility.
Management reiterated its focus on securing new platform wins and mitigating tariff impacts while maintaining disciplined working‑capital management. The company is investing in automation projects to further enhance gross margins and is pursuing opportunities in smart vehicle access and authorization solutions, positioning itself for growth in the evolving automotive security market.
The results demonstrate the effectiveness of Strattec’s strategic transformation, including cost optimization and investment in higher‑margin product lines, amid a challenging automotive environment marked by tariff uncertainty and supply‑chain pressures.
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