Strattec Q2 sales rise 6%, gross margin improves

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

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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