Short answer
STRATTEC SECURITY CORP (STRT) filed its fiscal 2026 10-K annual report with the SEC on Aug 28, 2026. It reported revenue of $579M (+2.5% year over year) and net income of $21M.
- Top risk flagged: Regulatory risk from potential adverse modifications to USMCA after July 2026 joint review, impacting trade terms, tariff treatment, and regional value content requirements
FY2026 key financial metrics · XBRL
- Revenue
- $579M
- +2.5% YoY
- Net income
- $21M
- +10.2% YoY
- Operating margin
- 4.6%
- +0.5 pp YoY
- Gross margin
- 16.5%
- +1.5 pp YoY
- EPS (diluted)
- $5.00
- +9.2% YoY
- ROE
- 8.6%
- +0.2 pp YoY
- Operating cash flow
- $46M
- −35.4% YoY
Source: XBRL data from the STRATTEC SECURITY CORP (STRT) FY2026 10-K on SEC EDGAR. USD.
STRATTEC SECURITY CORP FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: designs and supplies automotive vehicle access and security systems focused on Permission (authorized entry), Motion (powered access), and Hold (latching solutions)
- Fiscal 2026 emphasis on digital key products leveraging system/software integration, and increased automation and supply chain resiliency in manufacturing
- Strategic shift: ongoing multi-year business transformation to improve profitability, operational efficiency, and customer diversification including international expansion
- Notable quantitative: 3% net sales growth to $579.4M, 7% workforce reduction, gross margin up 150 basis points to 16.5%, cash flow from operations $46.3M
- Share repurchase program renewed with $40M authorization in May 2026; repurchased 110,269 shares for $7.4M in Q4 fiscal 2026
Management Discussion & Analysis
- Net sales $579.4M, up 3% YoY (+$14.3M) driven by $11.0M pricing including tariffs and $3.3M volume increases
- Gross margin 16.5% vs 15.0%, +150bps; operating margin 4.6% vs 4.0%, +60bps; net income $20.6M, up 10% YoY
- Best segment: existing platforms +$9.5M sales; worst: EV programs down $9.5M due to cancellations
- Cash flow from operations $46.3M; capex $7.3M; share repurchases $7.4M for 110,269 shares; no dividends paid or planned
- Management outlook cautious: FY27 light vehicle production expected to decline 2-3%, customer production declines 5-6%, tariff and FX uncertainty ongoing
Risk Factors
- Regulatory risk from potential adverse modifications to USMCA after July 2026 joint review, impacting trade terms, tariff treatment, and regional value content requirements
- Geopolitical instability including U.S.-China tensions affecting supply chain for key components with uncertain future trade actions from U.S. administration
- Supply chain vulnerability due to reliance on a consolidated supplier base and Mexico manufacturing, risking shortages and cost increases of raw materials and components
- Competitive pressure from Chinese OEMs growing market share in electric vehicles through pricing, technology, and scale, potentially reducing traditional OEM production volumes
- Financial risk from customer concentration: top three OEMs GM, Ford, Stellantis represent 64% of sales, with non-binding contracts and annual market tests creating revenue unpredictability
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