Strattec Security Corporation reported a notable financial performance for the fiscal year ending June 29, 2025, with net sales reaching $565.1 million, a 5.1% increase from $537.8 million in the previous fiscal year. The company also achieved a net income of $18.7 million, or $4.58 per share, compared to $16.3 million, or $4.07 per share, in fiscal 2024. This growth was attributed to new program launches, increased production volumes, and favorable pricing actions, despite a slight reduction in pricing due to prior year recoveries.
The company experienced significant operational improvements, with cash flow from operations rising sharply to $71.7 million from $12.2 million in the prior year. Strattec's gross profit margin improved to 15.0%, up from 12.2% in the previous year, driven by better cost management and increased sales volumes. However, selling, administrative, and engineering expenses rose by 30% year-over-year, reflecting ongoing investments in business transformation and increased incentive compensation.
Strattec's customer base remains concentrated, with General Motors, Ford, and Stellantis accounting for 29%, 23%, and 12% of total sales, respectively. The company continues to focus on its core automotive market while also exploring opportunities in the broader transportation sector. As of June 29, 2025, Strattec employed 2,848 associates, with a significant portion based in Mexico, where labor costs have been rising due to inflation and government mandates.
Looking ahead, Strattec anticipates challenges in the North American automotive market, including projected flat vehicle production levels and potential tariff impacts. The company is actively monitoring the evolving trade environment and has implemented strategies to mitigate cost increases associated with tariffs, estimating an annual impact of $5 to $7 million on its cost of goods sold. Despite these challenges, Strattec remains committed to its business transformation initiatives aimed at enhancing profitability and driving sustainable growth.
About STRATTEC SECURITY CORP
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