Brian Sponheimer

Dennis Ganell

John Franzreb

Mario Gabelli

- **STRATTEC reported net sales of $152.4 million for Q1 FY2026, a 9.6% increase**, with **gross margin expanding to 17.3%**.  **[933034_0001193125-25-258802_strt-ex99_2.htm:1]** **[933034_0001193125-25-258802_strt-ex99_1.htm:3]**  **Net income attributable to Strattec was $8.5 million, or $2.07 per diluted share**.  **[933034_0001193125-25-258802_strt-ex99_1.htm:0]** **[933034_0001193125-25-258802_strt-ex99_1.htm:3]** 
- The company ended Q1 FY2026 with a **strong cash position of $90.5 million** and **total debt reduced to $5.0 million** as of September 28, 2025.  **[933034_0001193125-25-258802_strt-ex99_1.htm:0]** **[933034_0001193125-25-258802_strt-ex99_2.htm:2]** **[933034_0001193125-25-258802_strt-ex99_1.htm:4]**  **Cash from operations was $11.3 million**.  **[933034_0001193125-25-258802_strt-ex99_1.htm:0]** **[933034_0001193125-25-258802_strt-ex99_1.htm:5]** 
- Strattec enhanced its financial flexibility by entering into a **new $40 million revolving credit facility, extending its maturity to October 2028**.  **[933034_0001193125-25-258802_strt-ex99_2.htm:1]** **[933034_0001193125-25-258802_strt-20251027.htm:1]** **[933034_0001193125-25-258802_strt-ex99_2.htm:2]**  Additionally, **restructuring actions in Mexico are expected to generate approximately $1 million in annualized savings**.  **[933034_0001193125-25-258802_strt-ex99_1.htm:0]** **[933034_0001193125-25-258802_strt-ex99_2.htm:1]** 
- The company anticipates **near-term headwinds in Q2 FY2026 due to supply chain disruptions, including an aluminum fire and semiconductor chip shortage**, which are expected to impact production.  **[933034_0001193125-25-258802_strt-ex99_2.htm:2]**

STRATTEC Reports Strong Q1 FY2026 Financial Results Amidst Operational Improvements and Anticipated Supply Chain Headwinds

- Strattec reported **net sales of $152.4 million** and a **gross margin of 17.3%** for the first quarter of fiscal year 2026, which ended September 28, 2025.  **[933034_0f941fa36e1c455093967a7d33b178d2_0]** 
- **Net income attributable to Strattec was $8.5 million**, or **$2.07 per diluted share**, and **adjusted EBITDA was $15.6 million** for Q1 FY2026.  **[933034_0f941fa36e1c455093967a7d33b178d2_0]**  These figures represent significant increases from the prior-year period, with net income up from $3.7 million and diluted EPS from $0.92.  **[933034_0f941fa36e1c455093967a7d33b178d2_5]** 
- The company generated **$11.3 million in cash from operations** and maintained a strong balance sheet with **$90.5 million in cash** and **$5.0 million in debt** as of September 28, 2025.  **[933034_0f941fa36e1c455093967a7d33b178d2_0]** 
- Sales increased by **10%** compared to the prior-year period, and gross margin expanded by **370 basis points**, partly due to **$1.3 million in restructuring savings**.  **[933034_0f941fa36e1c455093967a7d33b178d2_0]** **[933034_0f941fa36e1c455093967a7d33b178d2_1]**  An additional restructuring in Mexico is expected to provide **$1 million in annualized savings**.  **[933034_0f941fa36e1c455093967a7d33b178d2_0]**

STRATTEC SECURITY (STRT)