STRATTEC SECURITY CORP SEC 10-Q Report
STRATTEC SECURITY CORP has released its Form 10-Q report for Q1, highlighting strong financial performance with net sales of $152.4 million, a 10% increase year-over-year. Gross profit rose to $26.3 million, improving gross margin from 13.6% to 17.3%. Net income surged 128% to $8.5 million, with earnings per share at $2.10. Growth was driven by demand in power access solutions and successful new product launches, contributing $2.1 million to sales. The company aims to enhance cost structure and drive future growth amid rising material costs.
STRATTEC SECURITY CORP, a leading provider of automotive access control products, has released its Form 10-Q report for the first quarter, showcasing robust financial and operational performance. The company has demonstrated significant growth in key financial metrics and operational efficiency, driven by higher demand, favorable product mix, and successful new program launches.
Financial Highlights
Net Sales: $152.4 million, representing an increase of $13.3 million or 10% compared with the prior year first quarter, driven by higher demand, pricing, favorable mix, and new program launches.
Gross Profit: $26.3 million, with a gross margin improvement from 13.6% to 17.3%, reflecting enhanced leverage of fixed cost structure and benefits from pricing.
Income from Operations: $10.4 million, a significant increase of 106% from the prior year, driven by higher sales and improved cost structure.
Net Income: $8.5 million, an increase of 128% from the prior year, reflecting strong operational performance and cost management.
Earnings per Share Attributable to STRATTEC: Basic $2.10, Diluted $2.07, both showing substantial growth from $0.92 in the prior year, indicating improved profitability per share.
Business Highlights
Revenue Segments: The company reported growth in its power access solutions, door handles & exterior trim, and keys & locksets product lines, contributing significantly to the overall increase in net sales.
Sales Units: The increase in net sales was driven by higher demand, favorable mix and content per vehicle, and net new program launches, indicating strong operational performance.
New Product Launches: The company launched new programs that contributed $2.1 million to the net sales increase, highlighting successful product development and market introduction.
Operational Efficiency: Gross profit margin improved from 13.6% to 17.3% due to enhanced leverage of the fixed cost structure from higher volume and restructuring actions completed in the prior year.
Cost Management: Despite increased material costs, the company achieved labor cost savings and lower provision for annual bonuses, reflecting effective cost management strategies.
Future Outlook: The company is focused on executing new initiatives to improve its cost structure, mitigate the impact of tariffs, drive cash flow through improved working capital utilization, and secure new platforms for future sales growth.
SEC Filing: STRATTEC SECURITY CORP [ STRT ] - 10-Q - Oct. 31, 2025
