Strattec Security
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Strattec Security (STRT) investor relations material

Strattec Security Q2 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2026 earnings summary6 Feb, 2026

Executive summary

  • Q2 sales increased 6% year-over-year to $137.5 million, driven by pricing, favorable mix, new launches, and customer inventory builds.

  • Net income nearly quadrupled to $4.9 million, with adjusted EPS up 163% to $1.71.

  • Adjusted EBITDA was $12.3 million (8.9% margin), up from 6.1% prior year.

  • Operating cash flow reached $13.9 million in Q2, with a cash position of $99 million and debt reduced to $2.5 million.

  • Transformation initiatives, including voluntary retirement and restructuring, are expected to generate $3.4 million in annualized savings.

Financial highlights

  • Gross margin improved to 16.5%, up 330 bps year-over-year, with gross profit rising $5.6 million to $22.7 million.

  • Year-to-date gross margin expanded 350 bps to 16.9%.

  • Free cash flow for Q2 was $11.3 million; year-to-date $21 million.

  • Shareholders’ equity increased to $263.0 million as of December 28, 2025.

  • SAE expenses were $17.9 million (13% of sales), with $1.7 million in one-time retirement charges.

Outlook and guidance

  • Second half of FY26 expected to see flat to slightly declining automotive demand and continued FX headwinds.

  • Margins expected to vary quarter-to-quarter, with long-term improvement targeted.

  • CapEx for FY26 expected to be under $10 million; Q2 CapEx was $2.6 million.

  • Annual operating cash flow guidance remains at ~$40 million.

  • SAE expenses targeted at 10%-11% of sales in the back half of the year.

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Frequently asked questions

Strattec Security Corporation designs, manufactures, and markets mechanical locks, electro-mechanical locks, latches, and related security products for the automotive industry. The company’s product offerings include keyless entry systems, steering column and door handle components, and other vehicle access control products. Strattec serves major automotive original equipment manufacturers (OEMs) and the aftermarket sector, providing both high-volume production and custom solutions tailored to specific vehicle models. In addition to its core automotive focus, Strattec also supplies products for commercial, recreational, and industrial vehicles. The company is headquartered in Milwaukee, Wisconsin, and its shares are listed on the NASDAQ.

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