Strattec Security Corporation (STRT) Earnings Call Transcripts

Strattec Security Corporation's Latest Earnings Call - Q3 FY2026

In the third quarter of fiscal year 2026, Strattec Security Corporation reported a revenue decline of 4.5% year-over-year, aligning with management's expectations. The company generated $22.7 million in gross profit, resulting in a gross margin of 16.5%, an improvement of 50 basis points from the previous year. Despite lower sales, Strattec maintained strong cash flow, with $11.4 million generated in operating cash flow and $107 million in cash on hand, indicating financial stability. Management expects fourth-quarter revenue to decline by 3% to 4% year-over-year, maintaining their long-term gross margin target of 18% to 20%.

Reported metrics

Guidance from management

Management expects fourth-quarter revenue to decline by 3% to 4% year-over-year and maintains a long-term gross margin target of 18% to 20%. They are focused on improving operational performance and maintaining cost discipline.

What management said

Yes. I'll let Matt talk a little bit more about the financials. But 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.

Yes. And John, it's about $1.3 million of a benefit in our results. About half of it is in cost of goods sold and the other half is within SAE. And it's really recovery of costs that we previously had expensed for the development on those programs.

What analysts pressed on

Analysts expressed concerns regarding the impact of canceled EV programs on future revenue and the need for further clarity on cost optimization strategies. There was also a focus on how foreign exchange losses might affect future earnings.

Main topics on the call

• Cost Savings from Restructuring — Strattec achieved $1.9 million in savings this quarter from previously completed restructuring actions. Management noted, 'This is a peak level as we lap some of the benefits from the prior year restructuring actions.'
• Gross Margin Improvement — Gross margin improved to 16.5%, up 50 basis points year-over-year, supported by restructuring savings and recoveries from canceled programs. Management stated, 'We are seeing improvement in our gross margins.'
• Revenue Decline — Sales decreased by 4.5% due to lower volume and EV program cancellations, which was expected. Management highlighted that the annual impact of customer cancellations is about $9 million.
• Future Guidance — Management expects fourth-quarter revenue to decline by 3% to 4% year-over-year, reflecting ongoing challenges in the automotive market. They reiterated their long-term target for gross margins of 18% to 20%.

Read the full Strattec Security Corporation transcript (Q3 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 10 Strattec Security Corporation earnings call transcripts on record, spanning November 4, 2024 to May 8, 2026. Based on this history, Strattec Security Corporation reports quarterly. The most recent call on file is dated May 8, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

STRT

Exchange

NasdaqGM

Country

US

Sector

Consumer Discretionary

Industry

Automobile Components

Calls on record

10

First call

November 4, 2024

Most recent

May 8, 2026

Reporting cadence

quarterly