When Will Strattec Security's Restructuring Begin to Show Results?

Core Insights - Strattec Security Corporation (STRT) has significantly improved its profit margins, with gross margin increasing by 560 basis points year over year to nearly 16% [1][7] - The adjusted EBITDA margin has nearly doubled from 4.4% to almost 9% year over year, indicating enhanced profitability in its core automotive security business [2][7] - STRT is investing in talent and operational restructuring in Mexico and Milwaukee, expecting full benefits from these changes to materialize in the first quarter of fiscal 2026 [3][7] Financial Performance - STRT's shares have surged by 147.3% over the past year, contrasting with a 4.5% decline in the broader industry [6] - The company trades at a trailing 12-month price-to-earnings (P/E) ratio of 10.86x, which is below the industry average of 25.22x [9] Future Projections - AXL projects adjusted EBITDA between $665 million and $745 million for full-year 2025, focusing on long-term profitable growth [4] - BWA aims for an operating margin of 9.6% to 10.2% and free cash flow of $650 million to $750 million for 2025, indicating confidence in sustained profitability [5] - The Zacks Consensus Estimate for STRT's fiscal 2025 earnings remains unchanged at 4.40 [10][11]