Strattec Security (STRT) Q4 2026 Earnings Report

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Previous Report: Q3 2026

STRT Q4 2026 EPS Results

Actual EPS$2.06

Consensus EPS$1.36

Beat/MissBeat by +$0.70

One Year Ago EPS$2.06

STRT Q4 2026 Revenue Results

Actual Revenue$151.83M

Expected Revenue$146.77M

Beat/MissBeat by +$5.06M

YoY Revenue Growth-0.12%

Earnings Announcement Details

QuarterQ4 2026

Date08/25/2026

TimeAfter Close

Conference CallTuesday, August 25, 2026

STRT Upcoming Earnings

Strattec Security's next earnings date is estimated for October 22, 2026, based on past reporting schedules.

Q4 2026 Earnings Call Audio

STRT Q4 2026 Earnings Call

0:00 / 0:00

Q4 2026 Earnings Slide Deck

Q4 2026 Earnings Call Summary

Q4 2026

Earnings Call Date:Aug 25, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The call communicated meaningful operational progress and financial improvements — record revenue, margin expansion, stronger adjusted EBITDA, EPS growth, solid cash generation, a debt-free balance sheet and an active capital return plan — all achieved despite several external headwinds. Management acknowledged near-term challenges including softer industry production (especially at its top three customers), foreign exchange pressure, higher transformation and SG&A investments, and the impact of canceled EV programs and discrete tax adjustments. Overall, the company presented a credible path to further margin improvement (targeting 18–20% gross margin and SAE of 10–11% long-term) while remaining cautious on fiscal 2027 volume and FX exposure.

Company Guidance

For fiscal 2027, Strattec expects a challenging auto market with North American production down about 2% (and nearly a 6% decline at its three largest customers), typical Q2 seasonality, and foreign‑exchange headwinds — the peso started the year at ~$16.90 versus last year’s average ~$18 (a return to the 5‑year average of $19.50 would have boosted FY‑26 gross margin by ~100 bps), and a 5% move in USD/MXN could change annual manufacturing costs by roughly $4 million; management targets longer‑term gross margins of 18%–20% (with current FY‑26 margins at 16.5%), longer‑term SAE of ~10%–11% of revenue (near‑term slightly higher), expects a normalized operating cash flow run‑rate of ~$10 million per quarter, plans ~ $12 million of CapEx for the year, and anticipates an effective tax rate of ~24%–25%.

Record Annual Revenue

Fiscal 2026 record revenue of $579.4 million, up 2.5% from $565.1 million in fiscal 2025; pricing contributed ~2% to full-year sales.

Gross Margin Expansion

Full-year gross margin expanded by 150 basis points to 16.5%; on a constant currency basis gross margin improved despite FX headwinds.

Improved Adjusted EBITDA and EPS

Full-year adjusted EBITDA rose to $50.5 million, up 15% year-over-year, with adjusted EBITDA margin of 8.7% (100 bps improvement). Fiscal 2026 diluted EPS grew 9% to $5.00.

Strong Cash Generation and Balance Sheet

Generated $46.3 million in operating cash flow for the year ($9.7 million in Q4), ended the year with $108.2 million in cash and no debt; normalized operating cash flow target ~ $10 million per quarter.

Shareholder Returns and Capital Allocation

Returned $7.4 million via share repurchases in Q4 (~110,000 shares, ~2% of outstanding shares) and Board authorized a new $40 million buyback program to offset dilution and buy opportunistically.

Restructuring, Pricing and Cost Actions Delivered Savings

Since fiscal '25 restructuring actions have delivered $9.5 million in savings; realized approximately $6 million of savings in fiscal '26 and captured $11 million in pricing.

Operational Improvements and Automation Progress

Consolidated test lab operations, invested in equipment and manufacturing flow, added 16 automated assembly stations (automation now ~9% of stations) and freed ~91,000 sq ft (26%) of Milwaukee production space; simple automation projects showing <1 year payback.

STRT Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Oct 22, 2026	2027 (Q1)	1.47 / -	2.22	―
Aug 25, 2026	2026 (Q4)	1.36 / 2.06	2.06	0.00% (0.00)
May 07, 2026	2026 (Q3)	1.22 / 0.90	1.5	-40.00% (-0.60)
Feb 05, 2026	2026 (Q2)	1.04 / 1.71	0.65	163.08% (+1.06)
Oct 30, 2025	2026 (Q1)	1.47 / 2.22	0.92	141.30% (+1.30)
Aug 14, 2025	2025 (Q4)	1.07 / 2.06	2.39	-13.81% (-0.33)
May 08, 2025	2025 (Q3)	0.95 / 1.50	0.37	305.41% (+1.13)
Feb 06, 2025	2025 (Q2)	0.28 / 0.65	0.26	150.00% (+0.39)
Nov 04, 2024	2025 (Q1)	0.56 / 0.92	1.05	-12.38% (-0.13)
Aug 08, 2024	2024 (Q4)	0.38 / 2.39	-0.69	446.38% (+3.08)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed