Strattec Security Corp 8-K, filed Oct 29, 2026

Strattec Security Corp (STRT)

8-K 2026-10-29 For: 2026-10-29

Added on October 29, 2026

About this 8-K

Strattec Security Corp filed this 8-K on October 29, 2026.

Strattec reported first-quarter net sales of $147.2 million, net income of $4.8 million and $10.8 million in cash from operations. It had $111.8 million in cash, no debt, and repurchased 67,904 shares for $5.0 million. AI summary

Items reported

Item 2.02: Financial results
Item 7.01: Regulation FD disclosure
Item 9.01: Financial statements and exhibits

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Wisconsin	0-25150	39-1804239
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $.01 par value	STRT	The Nasdaq Global Stock Market


Exhibit Number	Description
99.1	Press Release of Strattec Security Corporation, issued October 29, 2026
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).


Strattec Security Corporation
Condensed Consolidated Statements of Income (unaudited)
(in thousands, except per share amounts)

	Three Months Ended
	September 27, 2026			September 28, 2025
Net sales	$	147,197		$	152,399
Cost of goods sold		122,882			126,064
Gross profit		24,315			26,335
Gross margin		16.5	%		17.3	%
Selling, administrative and engineering expenses		17,892			15,888
Income from operations		6,423			10,447
Operating margin		4.4	%		6.9	%
Interest income		989			877
Interest expense		(37	)		(156	)
Other expense, net		(183	)		(275	)
Income before provision for income taxes and non-controlling interest		7,192			10,893
Income tax expense		1,881			2,356
Net income		5,311			8,537
Net income attributable to non-controlling interest		478			8
Net income attributable to Strattec	$	4,833		$	8,529

Earnings per share attributable to Strattec
Basic	$	1.22		$	2.10
Diluted	$	1.19		$	2.07

Weighted average shares outstanding:
Basic		3,970			4,054
Diluted		4,053			4,127


Strattec Security Corporation
Condensed Consolidated Balance Sheets (unaudited)
(in thousands, except share amounts)

	September 27, 2026			June 28, 2026
ASSETS
Current Assets:
Cash and cash equivalents	$	111,766		$	108,243
Receivables, net		95,117			99,109
Inventories, net		64,903			64,310
Pre-production costs		5,072			6,489
Value-added tax recoverable		9,827			10,069
Other current assets		6,251			8,053
Total current assets		292,936			296,273
Noncurrent Assets:
Property, plant and equipment, net		67,321			69,845
Deferred income taxes		16,143			16,080
Other long-term assets		5,143			5,281
Total Assets	$	381,543		$	387,479

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	55,113		$	54,973
Accrued payroll and benefits		15,001			20,773
Value-added tax payable		7,667			7,429
Warranty reserve		5,677			6,673
Other current liabilities		13,467			12,383
Total current liabilities		96,925			102,231
Noncurrent Liabilities:
Post-employment benefits		12,800			13,350
Other noncurrent liabilities		6,760			6,401
Total Liabilities		116,485			121,982
Shareholders’ Equity:
Common stock, authorized 18,000,000 shares, $.01 par value, 7,738,324 issued shares at September 27, 2026 and 7,704,994 issued shares at June 28, 2026		77			77
Capital in excess of par value		107,766			107,138
Retained earnings		294,728			289,895
Accumulated other comprehensive loss		(14,352	)		(14,143	)
Less: treasury stock, at cost (3,807,746 shares at September 27, 2026 and 3,727,322 shares at June 28, 2026)		(150,363	)		(144,321	)
Total Strattec shareholders’ equity		237,856			238,646
Non-controlling interest		27,202			26,851
Total Shareholders' Equity		265,058			265,497
Total Liabilities and Shareholders' Equity	$	381,543		$	387,479


		Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


		Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


3333 WEST GOOD HOPE ROAD MILWAUKEE, WI 53209	414.247.3333 WWW.STRATTEC.COM	NASDAQ: STRT


Strattec Security Corporation
Condensed Consolidated Statement of Cash Flows (unaudited)
(in thousands)

	Three Months Ended
	September 27, 2026			September 28, 2025
OPERATING ACTIVITIES:
Net income	$	5,311		$	8,537
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		3,492			3,785
Foreign currency transaction (gain) loss		(194	)		671
Unrealized loss (gain) on peso forward contracts		1,425			(293	)
Stock-based compensation expense		618			669
Other, net		272			316
Change in operating assets and liabilities
Receivables		3,934			(574	)
Inventories		(593	)		3,109
Prepaids and other assets		2,239			3,804
Accounts payable		170			(4,817	)
Accrued liabilities		(5,909	)		(3,880	)
Net cash provided by operating activities		10,765			11,327

INVESTING ACTIVITIES:
Purchase of property, plant and equipment		(1,185	)		(1,529	)
Net cash used in investing activities		(1,185	)		(1,529	)

FINANCING ACTIVITIES:
Repayment of borrowings under credit facilities		—			(3,000	)
Payment for taxes withheld from stock-based awards		(1,039	)		(919	)
Repurchases of common stock under share repurchase program		(4,973	)		—
Employee stock purchases		15			16
Net cash used in financing activities		(5,997	)		(3,903	)
Foreign currency impact on cash		(60	)		(1	)

NET INCREASE IN CASH AND CASH EQUIVALENTS		3,523			5,894

CASH AND CASH EQUIVALENTS
Beginning of period		108,243			84,579
End of period	$	111,766		$	90,473

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes	$	466		$	582
Interest	$	—		$	123
Non-cash investing activities:
Change in capital expenditures in accounts payable	$	20		$	13


Strattec Security Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except per share amounts)

	Fiscal 2026															Fiscal 2027
	Q1			Q2			Q3			Q4			Total			Q1			Q2		Q3		Q4		Total
NET SALES:
Net Sales (GAAP)	$	152,399		$	137,534		$	137,632		$	151,827		$	579,392		$	147,197		$	-	$	-	$	-	$	147,197

ADJUSTED GROSS PROFIT:
Gross Profit (GAAP)	$	26,335		$	22,722		$	22,661		$	23,647		$	95,365		$	24,315		$	-	$	-	$	-	$	24,315
Gross Margin as a % of Net Sales		17.3	%		16.5	%		16.5	%		15.6	%		16.5	%		16.5	%								16.5	%
Adjustments:
Restructuring and similar charges		-			91			11			(10	)		92			-			-		-		-		-
Business transformation costs		-			-			138			265			403			103			-		-		-		103
Cancelled program settlements		-			-			(573	)		-			(573	)		-			-		-		-		-
		-			91			(424	)		255			(78	)		103			-		-		-		103
Adjusted Gross Profit (Non-GAAP)	$	26,335		$	22,813		$	22,237		$	23,902		$	95,287		$	24,418		$	-	$	-	$	-	$	24,418

Adjusted Gross Margin as a % of Net Sales		17.3	%		16.6	%		16.2	%		15.7	%		16.4	%		16.6	%								16.6	%

ADJUSTED SELLING, ADMINISTRATIVE AND ENGINEERING EXPENSES:
Selling, administrative and engineering expenses (GAAP)	$	15,888		$	17,860		$	17,615		$	17,479		$	68,842		$	17,892		$	-	$	-	$	-	$	17,892
Selling, administrative and engineering expenses as a % of Net Sales		10.4	%		13.0	%		12.8	%		11.5	%		11.9	%		12.2	%								12.2	%
Adjustments:
Restructuring and similar charges		-			(1,570	)		(430	)		44			(1,956	)		-			-		-		-		-
Executive transition costs		(136	)		(88	)		(423	)		(240	)		(887	)		(128	)		-		-		-		(128	)
Business transformation costs		(514	)		(994	)		(822	)		(796	)		(3,126	)		(360	)		-		-		-		(360	)
Business development costs		-			-			-			(763	)		(763	)		(2,368	)		-		-		-		(2,368	)
Cancelled program settlements		-			-			750			-			750			-			-		-		-		-
		(650	)		(2,652	)		(925	)		(1,755	)		(5,982	)		(2,856	)		-		-		-		(2,856	)


Adjusted Selling, administrative and engineering expenses (Non-GAAP)	$	15,238		$	15,208		$	16,690		$	15,724		$	62,860		$	15,036		$	-	$	-	$	-	$	15,036

Adjusted Selling, administrative and engineering expenses as a % of Net Sales		10.0	%		11.1	%		12.1	%		10.4	%		10.8	%		10.2	%								10.2	%

ADJUSTED OPERATING INCOME:
Income from operations (GAAP)	$	10,447		$	4,862		$	5,046		$	6,168		$	26,523		$	6,423		$	-	$	-	$	-	$	6,423
Operating Income as a % of Net Sales		6.9	%		3.5	%		3.7	%		4.1	%		4.6	%		4.4	%								4.4	%
Adjustments:
Restructuring and similar charges		-			1,661			441			(54	)		2,048			-			-		-		-		-
Executive transition costs		136			88			423			240			887			128			-		-		-		128
Business transformation costs		514			994			960			1,061			3,529			463			-		-		-		463
Business development costs		-			-			-			763			763			2,368			-		-		-		2,368
Cancelled program settlements		-			-			(1,323	)		-			(1,323	)		-			-		-		-		-
		650			2,743			501			2,010			5,904			2,959			-		-		-		2,959
Adjusted Operating Income (Non-GAAP)	$	11,097		$	7,605		$	5,547		$	8,178		$	32,427		$	9,382		$	-	$	-	$	-	$	9,382

Adjusted Operating Income as a % of Net Sales		7.3	%		5.5	%		4.0	%		5.4	%		5.6	%		6.4	%								6.4	%


Net income attributable to Strattec (GAAP)	$	8,529		$	4,947		$	3,240		$	3,882	$	20,598		$	4,833		$	-	$	-	$	-	$	4,833
Adjustments:
Restructuring and similar charges		570			1,165			572			49		2,356			107			-		-		-		107
Executive transition costs		136			88			423			240		887			128			-		-		-		128
Business transformation costs		514			994			960			1,061		3,529			463			-		-		-		463
Business development costs		-			-			-			763		763			2,368			-		-		-		2,368
Cancelled program settlements		-			-			(1,323	)		-		(1,323	)		-			-		-		-		-
Non-controlling interest impact		(196	)		190			(9	)		28		13			(6	)		-		-		-		(6	)
Tax effect on above adjustments and other discrete tax items		(383	)		(335	)		(139	)		2,388		1,531			(392	)		-		-		-		(392	)
		641			2,102			484			4,529		7,756			2,668			-		-		-		2,668
Adjusted Net Income attributable to Strattec (Non-GAAP)	$	9,170		$	7,049		$	3,724		$	8,411	$	28,354		$	7,501		$	-	$	-	$	-	$	7,501

Weighted Average Basic Shares Outstanding		4,054			4,080			4,085			4,035		4,064			3,970			-		-		-		3,970
Weighted Average Diluted Shares Outstanding		4,127			4,131			4,141			4,091		4,122			4,053			-		-		-		4,053

Diluted earnings per share (GAAP)	$	2.07		$	1.20		$	0.78		$	0.95	$	5.00		$	1.19		$	-	$	-	$	-	$	1.19
Adjusted diluted earnings per share (Non-GAAP)	$	2.22		$	1.71		$	0.90		$	2.06	$	6.88		$	1.85		$	-	$	-	$	-	$	1.85


Item 2.02	Results of Operations and Financial Condition.


Item 7.01	Regulation FD Disclosure.


Item 9.01	Financial Statements and Exhibits.