Financial Data and Key Metrics Changes - The company reported a revenue growth of 6% in the fourth quarter and 5% for the fiscal year [7] - Cash generated from operations was $30 million for the quarter and $71 million for the fiscal year, indicating strong cash generation [7][18] - Gross margin expanded by 370 basis points to 16.7% in the fourth quarter and improved by 280 basis points for the year [12][14] - Adjusted EBITDA margin for the fourth quarter was 8.5%, with a year-over-year expansion of 220 basis points to 7.7% [7][16] Business Line Data and Key Metrics Changes - The company is focusing on digital key and power access products to expand its customer base and drive growth [10] - The gross profit for the fourth quarter increased to $25.4 million, driven by strategic pricing actions and higher production volumes [12] Market Data and Key Metrics Changes - North American automotive production is projected to decline by about 5% to 6% in fiscal year 2026, with softness expected in the second half [20] - The company anticipates that its sales will generally follow North American OEM production volumes [20] Company Strategy and Development Direction - The company aims to create shareholder value through transformation actions and operational improvements [8] - Future growth will focus on leveraging product expertise and expanding into new customer segments, particularly in transportation and heavy vehicles [10][30] - The company is committed to maintaining a healthy balance sheet to weather market uncertainties and invest in growth [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation process, indicating that significant changes have been made but more long-term efforts are required [26] - The company expects to continue generating solid cash from operations but at a more normalized rate moving forward [21] - Management highlighted the importance of pricing actions and operational improvements to achieve long-term gross margins in the 18% to 20% range [21] Other Important Information - The company reduced headcount by 15% and simplified operations as part of its transformation efforts [6] - Capital expenditures for the year totaled $7.2 million, focusing on new product programs and IT infrastructure upgrades [19] Q&A Session Summary Question: How far along is the transformation process? - Management indicated that they are still in the early stages of transformation, having addressed many low-hanging fruits in the past fiscal year [26] Question: Is the company considering exiting or divesting product lines? - Management mentioned that they are refocusing efforts on products with more growth potential, such as power access products and digital key fobs, while still supporting existing customers [28] Question: What is the expected sustainable range for gross margin in fiscal 2026? - Management expects gross margins to be impacted by pricing actions and labor inflation, with a target of maintaining margins around 15% [31] Question: How much cash is the company willing to hold given uncertain times? - Management expressed comfort with their current cash position, emphasizing the importance of liquidity for focusing on business transformation [39] Question: What are the expectations for free cash flow in the future? - Management indicated that free cash flow is expected to return to more normalized levels, estimating around $20 million to $30 million per year [58]

Financial Performance Highlights - Q4 FY25 revenue increased by $9 million, representing a 63% growth, reaching $152 million[8] - FY25 revenue grew by $273 million, a 51% increase, totaling $5651 million[21] - Q4 FY25 gross margin expanded by 370 basis points[31] - FY25 gross margin expanded by 280 basis points[6, 32] - FY25 Adjusted EBITDA margin expanded by 220 basis points to 77%[9, 41] - FY25 Net Income increased by 145%[41] - FY25 Adjusted EPS grew by 75% to $538[41] Cash Flow and Capitalization - Q4 FY25 operational cash flow was $302 million[6] - FY25 cash from operations reached $717 million[6] - Cash and cash equivalents stood at $846 million as of June 29, 2025[44] - Debt was reduced by $5 million to $8 million[46]

Exhibit 99.1 News Release 3333 West Good Hope Rd. • Milwaukee, Wisconsin 53209 IMMEDIATE RELEASE Strattec Expands Gross Margin in Fiscal 2025 Fourth Quarter MILWAUKEE, WI, August 14, 2025 – Strattec Security Corporation (Nasdaq: STRT) ("Company" or "Strattec"), a leading provider of smart vehicle access, security and authorization solutions for the global automotive industry, reported financial results for its fourth quarter of fiscal year 2025, which ended June 29, 2025. Jennifer Slater, President and CEO ...

Key Takeaways Strattec to post Q4 earnings after market close on Aug. 14, with EPS seen at $1.07.Q4 EPS estimate is up 16 cents in 90 days but signals a 55.23% year-over-year drop.Revenue forecast of $143.51M implies 0.32% growth from the prior-year quarter.Strattec Security Corporation (STRT) is slated to release fourth-quarter fiscal 2025 results on Aug. 14, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at $1.07 per share and $143.51 ...

Group 1 - The article highlights Strattec Security Corporation (STRT) as an undercovered stock that may have been overlooked by investors [1] - The author expresses a potential interest in initiating a long position in STRT through stock or options purchase within the next 72 hours [1]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1][2] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks can lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, which can be identified using the Zacks Momentum Style Score [3] Group 2: Strattec Security (STRT) Analysis - Strattec Security (STRT) has shown a four-week price change of 9.1%, indicating growing investor interest [4] - Over the past 12 weeks, STRT's stock has gained 85.8%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - STRT has a beta of 1.39, suggesting it moves 39% more than the market in either direction, indicating fast-paced momentum [5] - STRT has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [6] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [7] - STRT is trading at a Price-to-Sales ratio of 0.49, indicating it is reasonably valued at 49 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides STRT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Company Overview - Strattec Security (STRT) currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Price Performance - STRT shares have increased by 14.68% over the past week, outperforming the Zacks Automotive - Original Equipment industry, which rose by 3.83% during the same period [5] - Over the last month, STRT's price change is 11.4%, compared to the industry's 5.17% [5] - In the last quarter, STRT shares have surged by 84.76%, and over the past year, they have gained 176.83%, significantly outperforming the S&P 500, which increased by 25.34% and 13.06% respectively [6] Trading Volume - STRT's average 20-day trading volume is 110,963 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, one earnings estimate for STRT has moved higher, while none have moved lower, resulting in an increase in the consensus estimate from $3.67 to $4.40 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [9] Conclusion - Given the strong price performance, positive earnings outlook, and favorable momentum indicators, STRT is positioned as a solid momentum pick for investors [11]

Core Viewpoint - Garrett Motion (GTX) has shown strong year-to-date performance compared to its sector, indicating a positive outlook for the stock [1][4]. Company Performance - Garrett Motion has returned approximately 21.7% since the beginning of the calendar year, significantly outperforming the Auto-Tires-Trucks sector, which has returned an average of -14% [4]. - The Zacks Consensus Estimate for Garrett Motion's full-year earnings has increased by 4% over the past quarter, reflecting improved analyst sentiment [4]. - Garrett Motion currently holds a Zacks Rank of 2 (Buy), suggesting it is positioned to outperform the broader market in the near term [3]. Industry Context - Garrett Motion is part of the Automotive - Original Equipment industry, which consists of 50 companies and currently ranks 90 in the Zacks Industry Rank [6]. - Stocks within the Automotive - Original Equipment industry have gained about 8.4% year-to-date, indicating that Garrett Motion is performing better than its industry peers [6]. - Strattec Security (STRT), another stock in the Auto-Tires-Trucks sector, has returned 63.2% since the start of the year and has a Zacks Rank of 1 (Strong Buy) [5].

Core Insights - Strattec Security (STRT) benefits from over 90% of its U.S. sales qualifying for tariff-free or reduced-tariff treatment, providing a cost advantage and stability against potential tariff increases [1][7] - Only 6% of STRT's total sales are expected to be impacted by the latest tariffs, indicating a robust business model less vulnerable to financial damage from tariffs [2][7] - STRT has implemented measures to mitigate tariff-related costs, achieving a reduction of approximately 30% through changes in shipping, sourcing, and pricing strategies [3][7] Company Comparison - American Axle & Manufacturing Holdings, Inc. (AXL) is in a decent position regarding tariffs, with about 90% of its products adhering to USMCA trade rules, but it is not as well-prepared as STRT [4] - BorgWarner (BWA) anticipates that tariffs will negatively affect its profits this year and plans to pass these costs onto customers rather than finding ways to mitigate them [5] Financial Performance - STRT's stock has increased by 145.1% over the past year, contrasting with a 0.6% decline in the broader industry composite [6] - The company trades at a trailing 12-month price-to-earnings (P/E) ratio of 11.18x, significantly below the industry average of 27.09x [9]

Core Insights - Strattec Security (STRT) and Dorman Products, Inc. (DORM) are key suppliers in the automotive ecosystem, with revenues tied to vehicle production and aftermarket demand [1] Group 1: Performance Comparison - Over the past year, STRT has risen 145.1%, outperforming DORM's 37.7% growth, but deeper analysis of business fundamentals is necessary for a solid investment case [2][7] - STRT is trading at a 5.15x trailing 12-month EV/EBITDA, which is at a discount compared to DORM's 10.43x [11] Group 2: Tariff and Supply Chain Exposure - More than 90% of STRT's U.S. sales qualify for tariff-free or reduced-tariff rules, providing a cost advantage and stability [5][6] - DORM sources approximately 30% to 40% of its products from China, exposing it to geopolitical and trade risks [8] Group 3: Financial Health - STRT has a strong balance sheet with a debt-to-capitalization ratio of 5.25%, significantly lower than the industry average of 27.8%, allowing for greater financial flexibility [9] - DORM's free cash flow is healthy but is largely used for debt repayment and returning capital to shareholders, which may limit near-term flexibility [10] Group 4: Investment Outlook - STRT is working on reducing its China exposure, making it a more attractive investment option compared to DORM [15]