Overview

• Strattec fiscal Q1 2026 sales rose 10% yr/yr, beating analyst expectations, per LSEG data

• Net income for fiscal Q1 2026 increased significantly compared to prior-year period

• Company improved gross margin by 370 basis points due to pricing and volume

Outlook

• Company highlights uncertainty in North American automotive industry due to supply chain challenges

• Strattec focuses on balancing cost management with growth investments

• Company maintains strong cash position to support business transformation

Result Drivers

• SALES GROWTH - Driven by higher demand on existing platforms, favorable pricing, improved sales mix, and new program launches

• GROSS MARGIN IMPROVEMENT - Pricing actions and higher volume contributed to gross margin expansion, offsetting increased labor and tariff costs

• RESTRUCTURING SAVINGS - Mexico operations restructuring expected to save $1 million annually, aiding profitability

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 $80.00, about 17.8% above its October 29 closing price of $65.74

Press Release: ID:nBw9llq45a

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