Quarterly ResultMay 7, 2026, 05:17 PM
Strattec Q3 Net Sales Down 4.5% to $137.6M; EPS $0.78
AI Summary
Strattec Security Corporation reported fiscal third-quarter 2026 results, with net sales decreasing 4.5% to $137.6 million due to lower volumes and EV program cancellations. Despite the sales decline and foreign currency headwinds, gross margin improved by 50 basis points to 16.5%, driven by restructuring savings. Net income attributable to Strattec fell to $3.2 million, or $0.78 per diluted share, from $5.4 million, or $1.32 per diluted share, in the prior year. The company maintained a strong balance sheet with $107 million in cash and generated $11.4 million in cash from operations.
Key Highlights
- Net sales decreased 4.5% to $137.6 million in Q3 FY26 from $144.1 million in the prior-year period.
- Gross margin expanded 50 basis points to 16.5% in Q3 FY26, benefiting from $1.7 million in restructuring savings.
- Net income attributable to Strattec was $3.2 million, or $0.78 per diluted share, down from $5.4 million, or $1.32 per diluted share.
- Adjusted EBITDA for the quarter was $10.1 million, with an Adjusted EBITDA margin of 7.3%.
- Cash and cash equivalents stood at $107 million at March 29, 2026, up from $84.6 million at prior fiscal year-end.
- Cash generated from operations in Q3 FY26 was $11.4 million.
- Total debt was reduced to $1.0 million, and a new revolving credit facility was secured post-quarter end.
- Q4 FY26 revenue is expected to be down 3% to 4% year-over-year.