Strattec ended fiscal 2026 with a significantly stronger balance sheet and improved full-year profitability as its transformation program helped expand gross margin and adjusted EBITDA.
Full-year sales reached $579.4 million. Gross margin expanded to 16.5% from 15% in fiscal 2025, an improvement of 150 basis points, reflecting disciplined pricing, cost actions and operational improvements despite foreign-exchange pressure and tariffs.
Fiscal 2026 adjusted EBITDA increased 15.3% to $50.5 million. The company ended the year with $108.2 million of cash and cash equivalents, up from $84.6 million a year earlier, and paid down the remaining $1 million of borrowings on its joint-venture credit facility, leaving Strattec with no debt.
The balance-sheet improvement gives Strattec additional flexibility as the automotive supplier invests in product technologies, production automation and customer relationships. During the fourth quarter, Strattec repurchased 110,269 shares for $7.4 million at an average price of $67.10.
The board also authorized a new $40 million share repurchase program. Fourth-quarter sales were $151.8 million, roughly unchanged from the prior year, while adjusted diluted EPS was $2.06, unchanged year-over-year.
Fourth-quarter GAAP profitability remained under pressure. Net income attributable to Strattec fell to $3.9 million from $8.3 million as gross margin contracted 110 basis points during the quarter, with foreign-exchange costs and a difficult prior-year tooling comparison offsetting restructuring savings, lower tariff charges and pricing actions.
KEY QUOTE:
“Fiscal 2026 was a year of progress and discipline as we continued to reshape Strattec into a more resilient, higher-performing business.”
Jennifer Slater, President and CEO of Strattec
