Strattec Q4 sales rise 6.3%

Strattec Security

14/08/2025 21:25

Overview

Automotive access control products maker Strattec Security Corp fiscal Q4 net sales rise 6.3%

Adjusted EPS for fiscal Q4 beats estimates, reflecting operational improvements

Gross margin expands to 16.7% from 13.0% yr/yr, aided by cost management

Outlook

Company faces near-term market uncertainty due to revised auto production estimates

Strattec plans to stabilize operations and deepen customer relationships

Company aims to enhance product roadmaps and improve competitive position

Result Drivers

GROSS MARGIN EXPANSION - Gross margin improved to 16.7% from 13.0% in the prior year period, driven by favorable foreign currency exchange, restructuring savings, improved pricing, and higher volume, per CEO Jennifer Slater

SALES GROWTH - Net sales increased by 6.3% to $152 mln, driven by $3.7 mln in additional pricing, $4.1 mln from higher demand, $1.2 mln from new program launches, and favorable sales mix

TARIFF IMPACT - Company faced a $1.6 mln net impact from tariffs and $1.1 mln higher labor costs in Mexico, with tariff recovery expected to lag

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$152.01 mln
$143.50 mln (1 Analyst)
Q4 Adjusted EPS
Beat
$2.06
$1.07 (1 Analyst)
Q4 EPS
$2.01
Q4 Net Income
$8.06 mln
Q4 Gross Profit
$25.40 mln


Analyst Coverage

Wall Street's median 12-month price target for Strattec Security Corp is $63.00, about 29.8% below its August 13 closing price of $81.76

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw3qrfqja

(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.)