Strattec Security(NASDAQ) STRT

Strattec Security Corporation makes locks and keys for cars. They also build power doors and tailgates for vehicle brands. These products help keep vehicles secure and easy to use.

Keys, Doors, and Latches

• Permission: Mechanical and electronic locks, keys, and digital key products that let drivers enter and start vehicles; accounts for about 90% of net sales when combined with other original equipment manufacturer (OEM) products.
• Motion: Powered systems for sliding side doors, tailgates, and liftgates that improve vehicle usability through automated movement.
• Hold: Latching solutions designed to keep doors and trunks closed with high strength and safety across various vehicle types.
• Handles: Exterior door components produced through a joint venture using specialized plastic molding and painting techniques.

Scaling for Future Vehicles

• Launched digital key products to replace traditional fobs with software for better security and packaging.
• Reduced total employee count by 7% during fiscal 2026 to improve efficiency and cost competitiveness.
• Targeted vehicle platforms scheduled for production in model years 2030 and beyond to secure future revenue.
• Repaid all outstanding bank debt by the end of fiscal 2026 to strengthen the balance sheet.

Engineering for Every Engine

The company focuses on powertrain agnostic products, meaning its locks and latches work for gasoline, hybrid, or electric vehicles. It maintains long-term relationships with vehicle makers, often serving as the sole supplier for a vehicle model throughout its five to seven year production life.

Performance by the Numbers

• Net sales were $579.4 million in fiscal 2026, up 3% year over year.
• Gross margin was 16.5% in fiscal 2026, up 150 basis points year over year.
• Net income was $20.6 million in fiscal 2026, up 10% year over year.
• Net cash from operating activities reached $46.3 million in fiscal 2026.
• Returned $7.4 million to shareholders through stock repurchases during fiscal 2026.

Bottom Line

Strattec has transitioned from a traditional mechanical lock manufacturer into a technology partner providing integrated electronic and power access systems. Its focus on efficiency and software-based solutions helps it maintain its position with major global vehicle manufacturers.