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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.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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