Strattec Q2 sales rise 6%, gross margin improves

Strattec Security

05/02/2026 21:39

Overview

Automotive security provider's fiscal Q2 sales grew 6% yr/yr

Net income for fiscal Q2 rose compared to prior year period

Company continued restructuring actions expected to save $3.4 mln annually

Outlook

Company expects softer U.S. automotive production market in second half of fiscal 2026

Company aims to enhance productivity and invest in future vehicle access solutions

Result Drivers

SALES GROWTH - Sales increased 6% to $137.5 mln, driven by pricing, new program launches, and customer inventory builds

GROSS MARGIN IMPROVEMENT - Gross margin expanded to 16.5% from 13.2% due to pricing actions and higher production volumes

RESTRUCTURING SAVINGS - Restructuring actions, including early retirement program, expected to save $3.4 mln annually

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$137.53 mln
$132.29 mln (2 Analysts)
Q2 EPS
$1.20
Q2 Net Income
$5.64 mln
Q2 Gross Profit
$22.72 mln


Analyst Coverage

The one available analyst rating on the shares is "buy"

The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

Wall Street's median 12-month price target for Strattec Security Corp is $89.00, about 1.9% above its February 4 closing price of $87.31

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw8h4Twja

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)