Strattec Security Corp. (NASDAQ: STRT ) is relatively underfollowed auto parts supplier that is quite niche. The company designs and manufactures access control systems for cars, and is a major player in its respectiveContrarian investor with a focus on value and deep value. Sectors of interest include financial services (regional banks and insurance), retail, software/technology, and waste management stocks. My personal investing style involves taking a concentrated portfolio approach in a few key companie ...

STRATTEC is a leading global provider of advanced automotive access, security & authorization and select user interface solutions. With a history spanning over 110 years, STRATTEC has consistently been at the forefront of innovation in vehicle security, transitioning from mechanical to integrated electro-mechanical systems. The Company serves a broad range of customers, including leading automotive OEMs, offering power access solutions and advanced security systems that include door handles, lift gates, lat ...

The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Strattec Security (STRT) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Auto-Tires-Trucks sector should help us answer this question.Strattec Security is a member of our Auto-Tires-Trucks group, which includes 100 different companies and currently sits at #13 in the Zacks Sector Rank. The ...

Automotive parts supplier Strattec Security Corp. (STRT) appears to be trading cheap at the moment from a valuation standpoint. Its forward sales multiple of 0.33 is lower than the industry. The company also has a Value Score of A. Image Source: Zacks Investment ResearchMany investors favor the P/CF ratio because cash flow is harder to manipulate on the income statement, making it a reliable indicator of a company’s financial health. At 4.51, STRT’s P/CF is intriguingly below the industry’s 22.98, as well a ...

Financial Data and Key Metrics Changes - The company generated $9.4 million in cash from operations in Q2 2025, totaling approximately $21 million for the first half of the fiscal year, a significant improvement compared to the cash used in the first half of fiscal 2024 [9] - Revenue increased by nearly 10% year-over-year, despite the previous year's second quarter benefiting from $4 million in retroactive pricing [10] - Adjusted EBITDA for the quarter was $8 million, up 60% compared to the same period last year, with an adjusted EBITDA margin expanding 180 basis points to 6.1% [26] - Net income for Q2 was up 29% to $1.3 million or $0.32 per diluted share, while adjusted non-GAAP net income was $2.6 million or $0.65 per diluted share, an 81% increase from the prior year [24][27] Business Line Data and Key Metrics Changes - Sales of power access products grew 27% year-over-year, driven by new programs and higher value content, while engineered latches increased by 20% [17][18] - The mature product line of keys and locksets continued to decline, indicating a shift in demand towards higher value products [18] Market Data and Key Metrics Changes - Approximately 70% of sales are shipped to the U.S., with the remaining 30% sold to OEMs globally, highlighting the company's reliance on the U.S. market [22] - The company is actively managing the impact of tariffs and is in discussions with customers and suppliers to mitigate potential risks [13][14] Company Strategy and Development Direction - The company is focused on stabilizing the business, optimizing costs, and evaluating its product portfolio as part of its transformation strategy [10] - Efforts to improve operational excellence in Milwaukee operations are expected to yield $1.2 million in annualized savings [11] - The company is also exploring organic growth initiatives and operational efficiencies to enhance its financial structure [64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress made in transforming the company but acknowledged that there is still significant work to be done [33] - The ongoing tariff situation is viewed as a challenge, but management is confident in the actions being taken to advance the company through operational excellence and commercial initiatives [30][63] Other Important Information - The Milwaukee facility has been listed for sale, and the company is evaluating its manufacturing operations to identify further cost reduction opportunities [12] - Free cash flow increased by $12.5 million compared to the previous year's second quarter, attributed to improved operating performance and reduced net working capital [28] Q&A Session Summary Question: Assessment of progress in company evaluation - Management feels positive about the progress but acknowledges that it is still early in the process [33] Question: Examples of higher value products contributing to top line - Growth in power access products, particularly power sliding doors and power lift gates, has been significant [35] Question: Background on $8 million in new pricing - The pricing reflects negotiations with customers regarding contract extensions and support [37] Question: Stability of tooling benefits - Significant progress has been made, but the pace of reduction in tooling costs is expected to level out [40] Question: Impact of wage increases in Mexico - The last impact of the 20% wage increase was seen in Q2, with a lesser merit increase expected moving forward [50] Question: Status of real estate listing - The facility was listed in January, and initial interest has been positive [54] Question: Run rate EBITDA power - Management indicated that the current run rate may not be sustainable due to historical pricing impacts [59] Question: Sales trends with Stellantis - Sales to Stellantis were down about 10% year-over-year, but no significant changes in platforms were noted [79]

Q2 FY2025 Financial Results February 7, 2025 Nasdaq: STRT Jennifer Slater President and CEO Matthew Pauli Senior Vice President and CFO www.strattec.com 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," " ...

Group 1 - The core investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective, rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious approach to market conditions, with only a small fraction of companies deemed suitable for purchase at any given time [1] Group 2 - The articles aim to provide important information for future investors and introduce a healthy skepticism towards a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, highlighting the need for readers to conduct their own due diligence [2][3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 29, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-25150 STRATTEC SECURITY CORPORATION (Exact Name of Registrant as Specified in Its Charter) Wisconsin 39-1804239 (State of Incorporation) (I. ...

Group 1 - Strattec Security reported quarterly earnings of $0.65 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and showing an increase from $0.26 per share a year ago, resulting in an earnings surprise of 132.14% [1] - The company achieved revenues of $129.92 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.85% and increasing from $118.53 million year-over-year [2] - Strattec Security has outperformed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] Group 2 - The stock has underperformed the market, losing about 11.6% since the beginning of the year, while the S&P 500 has gained 3.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.69 on revenues of $137.1 million, and for the current fiscal year, it is $2.76 on revenues of $537.6 million [7] - The Automotive - Original Equipment industry, to which Strattec Security belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

STRATTEC SECURITY CORPORATION Generated $9.4 million in Cash from Operations in Fiscal 2025 Second Quarter MILWAUKEE, WI, February 6, 2025 – STRATTEC SECURITY CORPORATION (Nasdaq: STRT) ("Company"), a leading provider of smart vehicle access, security and authorization solutions for the global automotive industry, reported financial results for its second quarter of fiscal year 2025, which ended December 29, 2024. STRATTEC President and CEO Jennifer Slater said, "Our solid financial results reflect the focu ...