STRATTEC(US:STRT)2025-10-30 21:01Financial Performance - Strattec reported net sales of $152.4 million for Q1 FY 2026, an increase of $13.3 million, or 10% compared to the prior year[5]. - Net income attributable to Strattec was $8.5 million, or $2.07 per diluted share, compared to $3.7 million, or $0.92 per diluted share, in the prior-year period[9][20]. - Adjusted EBITDA for the quarter was $15.6 million, representing 10.2% of sales, compared to $9.9 million and 7.1% in the prior-year period[9][20]. - Net income for the three months ended September 28, 2025, was $8,537,000, a significant increase from $3,748,000 for the same period in 2024, representing a growth of 128.5%[22]. - The total net sales for fiscal 2025 were $565,060,000, with a projected increase to $152,390,000 for fiscal 2026[23]. - Strattec reported a net income attributable to the company of $3.703 million for the first quarter of fiscal 2026, compared to $1.319 million in the same quarter last year, reflecting a significant increase[24]. - Adjusted net income attributable to Strattec was $1.16 per share (Non-GAAP), up from $0.65 per share in the previous year, indicating a growth of 78.5%[24]. - The diluted earnings per share (GAAP) for the quarter was $0.92, compared to $0.32 in the same quarter last year, representing a 187.5% increase[24]. - The total revenue for the quarter was $4.709 million, compared to $2.640 million in the same quarter last year, marking an increase of 78.3%[24]. Cash and Assets - Cash generated from operations was $11.3 million, consistent with the first quarter of FY 2025[10]. - The company had $90.5 million in cash and cash equivalents at the end of the quarter, an increase from $84.6 million at the end of Q4 FY 2025[11]. - Total current assets as of September 28, 2025, were $290,125,000, slightly up from $290,063,000 as of June 29, 2025[21]. - Cash and cash equivalents increased to $90,473,000 at the end of the period, compared to $84,579,000 at the beginning, marking a rise of 6.7%[22]. - The total shareholders' equity increased to $255,779,000 as of September 28, 2025, compared to $246,431,000 as of June 29, 2025, representing a growth of about 3.8%[21]. Expenses and Liabilities - Selling, administrative, and engineering expenses increased to $15.9 million, or 10.4% of sales, compared to $13.9 million, or 10.0% of sales, in the prior-year period[7][20]. - Total liabilities decreased to $134,278,000 as of September 28, 2025, down from $145,023,000 as of June 29, 2025, indicating a reduction of approximately 7.4%[21]. - The company incurred restructuring and similar charges amounting to $265,000, which impacted overall profitability[24]. - Executive transition costs totaled $1.224 million, reflecting ongoing changes in leadership[24]. - Business transformation costs were reported at $74,000, indicating investment in operational improvements[24]. Operational Initiatives - Strattec implemented a restructuring action in Mexico expected to deliver $1 million in annualized savings[3][4]. - The company is focused on business transformation and developing highly engineered products to secure content on future vehicle platforms[3]. - The company continues to focus on operational improvements and strategic investments to enhance future performance[24]. Financing Activities - Strattec entered into a new revolving credit agreement extending maturity to October 2028, replacing the existing $40 million facility[12]. Inventory Management - Inventories decreased to $61,592,000 as of September 28, 2025, from $64,701,000 as of June 29, 2025, reflecting a decline of approximately 4.9%[21]. Foreign Currency Impact - The company had a foreign currency transaction loss of $671,000 for the three months ended September 28, 2025, compared to a gain of $1,005,000 in the same period last year[22].