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Get filing alertsSTRATTEC reports FY2026 results: gross margin expands to 16.5%, $108M cash, zero debt
Filed August 25, 2026 · Period ending August 25, 2026 · ~1 min read
Key Changes
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Full-year gross margin expanded 150 basis points to 16.5% from 15.0% in FY2025, driven by pricing actions, cost reductions, and operational improvements despite foreign exchange headwinds and tariffs.
Exhibit 99.1 view on EDGAR → -
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Ended FY2026 with $108.2M cash (up from $84.6M prior year) and zero debt after paying down final $1.0M on JV credit facility; repurchased 110,269 shares for $7.4M in Q4 at $67.10 average price.
Exhibit 99.1 view on EDGAR → -
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Full-year Adjusted EBITDA grew 15.3% to $50.5M; Q4 sales of $151.8M essentially flat year-over-year, with Q4 adjusted diluted EPS of $2.06 unchanged from prior year.
Exhibit 99.1 view on EDGAR → -
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Q4 gross margin contracted 110 basis points to 15.6% as $1.9M unfavorable FX impact and absence of $1.3M prior-year tooling gains offset restructuring savings and reduced tariff charges.
Exhibit 99.1 view on EDGAR → -
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Q4 SAE expenses included $1.4M in business transformation and executive transition costs, partially offset by lower engineering and professional fees.
Exhibit 99.1 view on EDGAR →
Summary
STRATTEC disclosed fiscal 2026 results showing meaningful margin expansion and balance sheet improvement despite a challenging operating environment. Full-year gross margin expanded 150 basis points to 16.5% from 15.0% in the prior year, driven by pricing actions, cost reductions, and operational improvements that more than offset foreign exchange headwinds and tariff pressures.
Adjusted EBITDA grew 15.3% to $50.5 million, demonstrating the company's ability to convert margin gains into profitability. The balance sheet strengthened significantly: cash increased to $108.2 million from $84.6 million at the prior year-end, and the company eliminated all debt by paying down the final $1.0 million on its JV credit facility during the quarter.
STRATTEC deployed $7.4 million to repurchase 110,269 shares at an average price of $67.10 and has $40 million remaining under its current buyback authorization. Fourth quarter results were mixed—sales of $151.8 million were flat year-over-year and gross margin contracted 110 basis points to 15.6% due to unfavorable foreign exchange impacts and the absence of prior-year tooling gains, though adjusted diluted EPS of $2.06 matched the prior year. The company incurred $1.4 million in business transformation and executive transition costs during the quarter, reflecting ongoing operational reshaping efforts.
Section-by-Section Diff
Event · Item 7.01 — Regulation FD Disclosure
STRATTEC furnished Q4 FY2026 earnings results via press release under Regulation FD.
Added in current filing · verify on EDGAR →
on August 25, 2026, the Company issued a Press Release announcing earnings results for the fiscal fourth quarter ended June 28, 2026.
STRATTEC disclosed fiscal fourth quarter 2026 earnings results ending June 28, 2026 via press release. The 8-K body does not contain the actual financial figures; those appear in the attached Exhibit 99.1 press release.
Event · Exhibit 99.1
Strattec reported Q4 and FY2026 results, expanded gross margin to 16.5%, generated $50.5M Adjusted EBITDA, ended with $108.2M cash and no debt.
Added in current filing · view on EDGAR →
Fourth quarter fiscal 2026 sales of $151.8 million was better than expected and relatively unchanged from prior year; achieved sales of $579.4 million for fiscal year 2026 ... Reported fourth quarter gross margin of 15.6%; full year gross margin expanded to 16.5%, up from 15.0% in fiscal 2025 ... Generated fourth quarter net income attributable to Strattec of $3.9 million, or $0.95 per diluted share; adjusted diluted earnings per share were $2.06, unchanged from the prior-year period ... Fourth quarter Adjusted EBITDA was $12.5 million, or 8.3% of net sales, compared with $13.0 million, or 8.5% of sales in the prior-year period; fiscal 2026 Adjusted EBITDA1 was $50.5 million, a 15.3% increase over the prior year
Strattec disclosed fourth quarter fiscal 2026 sales of $151.8 million, essentially flat year-over-year, and full-year sales of $579.4 million. Full-year gross margin expanded 150 basis points to 16.5% from 15.0% in fiscal 2025, driven by pricing actions, cost reductions, and operational improvements. Fourth quarter adjusted diluted EPS was $2.06, unchanged from the prior year, while full-year Adjusted EBITDA grew 15.3% to $50.5 million. Results were impacted by foreign exchange headwinds and tariffs, but the company delivered margin improvement through disciplined execution.
Added in current filing · view on EDGAR →
$108.2 million in cash and no debt; returned $7.4 million to shareholders through share repurchases in the fourth quarter and authorized a new $40 million share buyback program ... At June 28, 2026, Strattec had $108.2 million in cash and cash equivalents, up from $107.0 million at the end of the third quarter of fiscal 2026 and $84.6 million at the end of the prior fiscal year. During the quarter, the Company paid down the remaining $1.0 million in outstanding borrowings on the JV credit facility. The Company also repurchased 110,269 shares for $7.4 million for an average price of $67.10. There is $40 million remaining under the current share repurchase authorization.
Strattec ended fiscal 2026 with $108.2 million in cash and zero debt, having paid down the final $1.0 million on its JV credit facility during the quarter. The company repurchased 110,269 shares for $7.4 million at an average price of $67.10 per share in Q4 and has $40 million remaining under its current share repurchase authorization. The strong cash position provides flexibility for investments in product technology, automation, and potential strategic opportunities.
Added in current filing · view on EDGAR →
Gross profit was $23.6 million, compared with $25.4 million in the prior year while gross margin contracted 110 basis points to 15.6%. Restructuring savings of $0.8 million, a $0.9 million reduction in tariff charges and pricing were more than offset by $1.9 million of higher costs related to unfavorable foreign currency exchange rates and the prior year benefit of $1.3 million of incremental tooling gains.
Fourth quarter gross margin contracted 110 basis points to 15.6% from 16.7% in the prior year. Restructuring savings of $0.8 million, a $0.9 million reduction in tariff charges, and pricing actions were more than offset by $1.9 million of unfavorable foreign currency impacts and the absence of $1.3 million in prior-year tooling gains. Despite the quarterly contraction, full-year gross margin expanded significantly.
Added in current filing · view on EDGAR →
Selling, administrative and engineering (“SAE”) expenses increased 3%, or $0.6 million, to $17.5 million, or 11.5% of sales, compared with $16.9 million, or 11.1% of sales, in the prior-year period. Higher SAE expenses included $1.4 million in business transformation and executive transition costs. These costs were partially offset by a $0.7 million reduction in engineering and professional fees and $0.2 million of restructuring savings.
Fourth quarter SAE expenses increased 3% to $17.5 million, or 11.5% of sales, from $16.9 million in the prior year. The increase included $1.4 million in business transformation and executive transition costs, partially offset by $0.7 million in lower engineering and professional fees and $0.2 million in restructuring savings. These transformation costs reflect the company's ongoing efforts to reshape its operations.
Added in current filing · view on EDGAR →
Cash from operations in the fourth quarter of fiscal 2026 was $9.7 million, compared with $30.2 million in the prior-year period which benefited from a significant reduction in working capital.
Fourth quarter operating cash flow was $9.7 million, down from $30.2 million in the prior year. The prior-year quarter benefited from a significant reduction in working capital, making the comparison less meaningful. Despite the year-over-year decline, the company generated positive cash flow and increased its cash balance during the quarter.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 26, 2026 · How we verify