Strattec Security Q3 sales fall 4.5% on lower OEM volumes

Strattec Security

07/05/2026 21:51

Overview

Automotive access solutions provider's fiscal Q3 sales fell 4.5% yr/yr on lower OEM volumes

Gross margin expanded 50 bps to 16.5%, aided by restructuring savings and tariff recoveries

Company ended Q3 with $107 mln in cash, up from $99 mln at prior quarter end

Outlook

Company says near-term focus remains on improving cost structure and business predictability

Strattec cites ongoing challenges from weak end market demand, platform changes and tariffs

Company did not provide specific financial guidance for upcoming quarters or full year

Result Drivers

LOWER OEM VOLUMES AND EV PROGRAM CANCELLATIONS - Sales declined due to $7.7 mln in lower volume, including $3.4 mln from customer EV program cancellations

RESTRUCTURING SAVINGS AND PROGRAM RECOVERIES - Gross margin improved due to $1.7 mln in restructuring savings and $0.6 mln of recoveries from customer program cancellations

FOREIGN EXCHANGE AND COST INCREASES - Unfavorable foreign currency changes and higher labor and benefit costs offset some margin gains and reduced adjusted EPS

Company press release: ID:nBw8Jqsbna

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$137.63 mln
$140.35 mln (2 Analysts)
Q3 EPS
$0.78
Q3 Net Income
$3.83 mln
Q3 Gross Profit
$22.66 mln


Analyst Coverage

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

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 $92.00, about 21.3% above its May 6 closing price of $75.85

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)