Company Overview - STRATTEC was founded in 1908 and went public in 1995, with a market capitalization of $277 million as of October 28, 2025 [5] - Institutional ownership is 76%, while insider ownership is 3.6% [5] - The company's revenue for the trailing twelve months (TTM) ending Q1 FY26 was $578.4 million [9] - The company provides highly engineered products for leading OEMs, with sales by product including Door Handles (25%), Power Access (25%), Keys & Locksets (18%), Latches (13%), Other (11%), and Aftermarket (8%) [8, 9] Financial Performance - Revenue has steadily increased from $492.9 million in FY2023 to $578.4 million in TTM Q1 FY26 [14] - Cash from operations has improved significantly, reaching $71.7 million in FY2025 and TTM Q1 FY26 [14] - Gross profit has risen from $42.2 million in FY2023 to $92.0 million in TTM Q1 FY26 [17] - Q1 FY26 net sales increased by $13.3 million, or 9.6%, to $152.4 million compared to $139.1 million in Q1 FY25 [35, 36] - Q1 FY26 gross margin expanded by 370 basis points year-over-year [44] - Net income attributable to STRATTEC was up 130% year-over-year in Q1 FY26 [49] Strategic Initiatives - The company reduced headcount by 15% in FY25, resulting in $5 million in savings [12] - The company captured $8 million in annualized pricing in FY2025 [12] - The company signed a new $40 million revolving credit facility in October 2025, extending the maturity to 2028 [61]

Financial Performance - Q1 FY26 revenue increased by $133 million, a 96% increase, reaching $1524 million[6, 18] - Gross margin improved to 173%, a 370 bps increase[6] - Net income increased by 130% year-over-year[31] - Adjusted EBITDA margin expanded by 310 bps year-over-year to 102%[37] Cash Flow and Capitalization - Generated $113 million in operational cash flow in Q1 FY26[6, 40] - Ended the quarter with $905 million in cash on hand[6] - Total debt reduced to $50 million[43] - A new $40 million revolving credit facility was extended to 2028[15, 43] Strategic Initiatives and Challenges - Restructuring actions in Mexico are expected to generate approximately $1 million in annualized savings starting in the latter half of Q2 FY26[7, 14] - Supply chain issues, including aluminum fire and semiconductor chip shortages, are expected to impact Q2 FY26[45, 49]

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]

Financial Performance - Revenue increased by $33 million, reaching $1441 million in Q3 FY25[6, 21] - Adjusted EBITDA was $129 million, representing 89% of sales, up from $62 million or 44% of sales in Q3 FY24[6] - Net income attributable to STRATTEC increased by 258% in Q3 FY25[44] - Adjusted diluted earnings per share grew by 305% to $150 in Q3 FY25[44] - Gross margin expanded by 560 basis points in Q3 FY25[28] Cash Flow and Capitalization - Generated $207 million in operational cash flow in Q3 FY25[6] - Year-to-date cash from operations totaled $415 million[6] - Cash and cash equivalents stood at $621 million[16, 45] Operational Efficiency and Cost Management - Implemented restructuring actions in Milwaukee and Mexico, expected to yield approximately $5 million in annual savings[9, 16] - Achieved a 12% headcount reduction year-to-date, improving operational leverage[9, 16] - Estimated annual tariff impact of $9 million to $12 million before mitigation, excluding USMCA compliant sales[17, 35]