tiprankstipranks

Strattec Security Reports Strong Q3 Earnings and Cash Flow

Strattec Security Reports Strong Q3 Earnings and Cash Flow

Strattec Security ( (STRT) ) has released its Q3 earnings. Here is a breakdown of the information Strattec Security presented to its investors.

Confident Investing Starts Here:

Strattec Security Corporation is a leading provider of smart vehicle access, security, and authorization solutions for the global automotive industry, known for its innovative approach in transitioning from mechanical to integrated electro-mechanical systems. In its fiscal 2025 third-quarter earnings report, Strattec Security Corporation announced a strong cash generation of $20.7 million from operations, reflecting improved working capital velocity and cash earnings. The company reported a net income of $5.4 million, or $1.32 per diluted share, marking a significant increase from the previous year’s $1.5 million, or $0.37 per diluted share.

Key financial highlights include a 2.4% increase in net sales to $144.1 million, driven by price increases, favorable product mix, and new program launches. The company’s gross profit rose to $23.1 million, with a gross margin expansion of 560 basis points, aided by favorable foreign currency exchange and cost improvements. Strattec also achieved an adjusted EBITDA of $12.9 million, representing 8.9% of sales, up from 4.4% in the prior-year period. The company continued its cost reduction efforts, notably restructuring operations in Mexico and Milwaukee, aiming for $5 million in annualized savings.

Looking ahead, Strattec Security Corporation remains focused on mitigating the impact of tariffs, which are estimated to add $9 million to $12 million in costs annually. The company is implementing strategies to offset these costs through supply chain adjustments and operational excellence initiatives. With a healthy balance sheet and strategic cost-saving measures, Strattec is poised to navigate the evolving market conditions and enhance its earnings power.

Disclaimer & Disclosure

Looking for a trading platform? Check out TipRanks' Best Online Brokers guide, and find the ideal broker for your trades.

Report an Issue

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App
1