Strattec Security Corporation reported a 3% increase in net sales for the fiscal year ending June 28, 2026, totaling $579.4 million, compared to $565.1 million in the previous year. The growth was attributed to a combination of pricing adjustments, including $2.6 million from U.S. tariff surcharges, and an increase in sales volume. The company’s gross profit rose to $95.4 million, reflecting a gross margin improvement of 150 basis points to 16.5%. Net income attributable to Strattec increased by 10% to $20.6 million, or $5.00 per diluted share, up from $18.7 million, or $4.58 per diluted share, in the prior year.
In fiscal 2026, Strattec undertook significant organizational restructuring and operational improvements, resulting in a 7% reduction in total headcount while maintaining support for customer programs. The company focused on enhancing efficiency through manufacturing automation and supply chain resiliency projects, which contributed to improved profitability despite challenges from foreign exchange fluctuations and customer production schedule variability. Selling, administrative, and engineering expenses increased to $68.8 million, primarily due to investments in talent and business transformation initiatives.
Strattec's customer base remains concentrated, with General Motors, Ford, and Stellantis accounting for 64% of total sales. The company continues to engage in long-term relationships with these major automotive original equipment manufacturers (OEMs), which typically involve extensive product development cycles. Strattec's products are utilized in over 90 different vehicle models, including electric and hybrid platforms, indicating a broad market presence. The company is actively pursuing new business opportunities and aims to expand its geographic reach and customer diversification.
Looking ahead, Strattec anticipates a modest decline in North American light vehicle production in fiscal 2027, with expectations of a 5% to 6% decrease among its primary customers. The company is navigating a dynamic trade environment, including tariff-related uncertainties and foreign currency fluctuations, particularly with the Mexican peso. Despite these challenges, Strattec remains committed to its strategic priorities, including ongoing investments in process modernization and product innovation, to enhance its competitive position in the automotive access solutions market.
About STRATTEC SECURITY CORP
Strattec Security Corporation designs and manufactures advanced automotive access and security products, including locks, keys, vehicle start systems, and power access solutions. Serving primarily North American OEMs, the company provides highly engineered, customizable systems for internal combustion, hybrid, and electric vehicles. Its core value lies in engineering expertise, quality, and long-term customer relationships, supporting vehicle security, convenience, and safety across global automotive markets.
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