Strattec Security Corporation (STRT) Earnings
Strattec Security Corporation is expected to report next earnings on August 13, 2026 (in NaN days), with a consensus EPS estimate of $1.36. STRT has beaten EPS estimates in 10 of its last 12 reported quarters (average surprise +51.3% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 8, 2026 | $1.14 | $0.90 | -21.1% | $138M | -1.9% |
| Feb 5, 2026 | $0.93 | $1.71 | +83.9% | $138M | -2.0% |
| Oct 30, 2025 | $1.48 | $2.22 | +50.0% | $152M | +15.2% |
| Aug 14, 2025 | $1.07 | $2.06 | +92.5% | $152M | +9.6% |
| May 8, 2025 | $0.95 | $1.50 | +57.9% | $144M | +2.3% |
| Feb 6, 2025 | $0.28 | $0.65 | +132.1% | $130M | -5.4% |
| Aug 8, 2024 | $0.38 | $2.39 | +528.9% | $143M | +1.1% |
| May 9, 2024 | $0.10 | $0.37 | +270.0% | $141M | +8.8% |
| Feb 8, 2024 | $-0.46 | $0.26 | +156.5% | $119M | +7.6% |
| Oct 26, 2023 | $-0.21 | $1.05 | +600.0% | $135M | +7.4% |
| Aug 10, 2023 | $-0.20 | $0.50 | +350.0% | $132M | +5.7% |
| Apr 27, 2023 | $-0.23 | $-0.57 | -147.8% | $127M | +1.6% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q3 FY2026 · May 8, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
Greetings and welcome to the Strat Tech third quarter fiscal year 2026 financial results. Delivered solid quarter despite challenging automotive environment. Previously completed restructuring actions delivered $1.9 million in savings this quarter. Generated $11.4 million of operating cash flow in the quarter and ended with $107 million of cash on hand. Gross margin expanded to 16.5% supported by restructuring savings, recoveries tied to canceled customer programs, and operational focus. Made additional changes within Mexico operations expected to provide $800,000 in incremental annualized savings beginning in the fourth quarter. Focus on execution of transformation plan with discipline and consistency. Strategic growth initiatives centered on building sustainable business with resilient and predictable growth. Focus on capturing additional content with current customers, developing relationships with diverse set of customers with U.S. production sites, and innovation and product strategy anchored to engineering-led access systems.
Guidance
Expect revenue in the fourth quarter will be down 3% to 4% year over year. Target gross margin of 18 to 20% assuming peso at its five-year average of $19.50. Target SAE of approximately 10 to 11% of revenue, excluding unusual items. Focus on continuing to improve operational performance, maintaining cost discipline, supporting customers effectively, and generating cash.
Segment performance
Sales in the quarter were down 4.5% as lower volume and EV program cancellations were only partially offset by pricing benefits and tariff recoveries. Gross profit for the quarter was 22.7 million compared with 23.1 million in the prior year period. Gross margin improved by 50 basis points year over year to 16.5% reflecting the value of transformation actions. Selling, administrative, and engineering expenses were $17.6 million in the quarter, or 12.8% of sales, compared with $16 million, or 11.1% of sales, in the prior year period. Net income attributable to Stratec in the third quarter was 3.2 million, or 78 cents per diluted share, compared with 5.4 million, or $1.32 per diluted share in the prior year quarter. Adjusted EBITDA was $10.1 million in the quarter compared to $12.5 million in the prior year period. Cash from operations in the third quarter was $11.4 million. Ended the quarter with $107 million in cash and cash equivalents.
Risks & headwinds
Challenging automotive environment including tariffs and supply chain challenges. Foreign exchange headwinds impacting earnings. Uncertainty related to industry cyclicality and canceled EV programs.
Analyst Q&A
Q: I'd like to start with the $600,000 in canceled programs. I'm curious if those are programs that you walked away from or if those are programs that the customer canceled.
A: The canceled programs are really what you've seen in the headlines from our customers on a shift of EV programs back to ICE in North America. And so that's really just the impact of those decisions that the customer made.
Q: I guess the reason I phrased the question the way I did was that I know that there's a review of unprofitable or less profitable programs, so I'm curious where you stand in that evaluation.
A: We did a portfolio review first, and that's why we made the decision not to continue to invest in our switch portfolio. And then we continue, obviously, to look at opportunities for cost optimization versus pricing opportunities. So that's an ongoing effort for us, John, but nothing in this quarter related to that.
Q: Since we're talking about particular product lines, I saw in the presentation that power access was down. Maybe can we talk to why that was the case?
A: That really was just timing of builds from our customers, you know, between Hyundai, Kia, and Ford. So we don't see that impacting long-term. That's really more just of a timing of a build impact.
Q: What is needed to move the gross margin from the 16% threshold to the 18% target range? What are the levers you need to pull still?
A: We're pleased with the progress that we've made so far on gross margin. We'll continue to have very granular focus on further cost opportunities that will help that gross margin. The other piece is, as you mentioned, the portfolio review on pricing. We talked about in the past that we had really taken the low-hanging fruit, but we're continuing to look at where there's further opportunities on pricing. And then longer term, volume is important.
Q: What were the changes you actually made in Mexico that were beneficial?
A: We implemented additional restructuring action in Mexico. That's what's driving the additional savings that you'll see starting here in the fourth quarter. It's about $800,000. What we're balancing is making sure that as we optimize the business, we don't impact delivery or quality for our customers. So it's a measured approach of getting our cost structure in the right way. Part of it is just looking at the way we do our business and improving processes. Part of it is the automation activities, the simple automation activities that we've talked about, and continuing to look at benchmark cost structures against where we're at.