Strattec Security Q4 net income USD 3.618 million

Strattec Security Corporation (Nasdaq: STRT) reported a net income of $4.9 million for the second quarter of fiscal 2026, which ended December 28, 2025, translating to $1.20 per diluted share. This represents a significant increase compared to the prior-year period, where net income attributable to Strattec was $1.3 million, or $0.32 per diluted share. The company's net sales for the quarter grew to $137.5 million, a 6% increase from the previous year, driven by pricing, new program launches, and favorable sales mix.

Gross margin for the quarter expanded to 16.5%, up from 13.2% in the prior year period, primarily due to pricing actions and higher production volumes. The company also benefited from $1.7 million in restructuring savings, which helped offset increased labor costs and unfavorable foreign exchange rates.

Strattec generated $13.9 million in cash from operations during the quarter, reflecting strong cash flow generation despite ongoing market and supply chain challenges. As of December 28, 2025, the company held $99.0 million in cash and cash equivalents, with $2.5 million in debt, underscoring its strong balance sheet and financial flexibility.

The company also announced restructuring actions in its operations in Mexico, which are expected to result in annualized savings of $3.4 million. These actions include a voluntary early retirement program and operational improvements.

Strattec's performance highlights its ability to adapt to market conditions while maintaining profitability and investing in long-term growth initiatives.