STRTMEDIUM SIGNALFINANCIAL10-K

STRATTEC showed strong operational improvements with gross profit growing meaningfully and R&D investment substantially higher, while successfully reducing inventory levels.

The company demonstrated improved profitability with gross margins expanding notably alongside higher operating income, suggesting better cost management or pricing power. The substantial increase in R&D spending signals strategic investment in future products, which is positive for long-term competitiveness in the automotive security market.

Comparing 2025-08-25 vs 2024-09-05View on EDGAR →
FINANCIAL ANALYSIS

STRATTEC delivered solid financial performance with gross profit growing meaningfully to $84.6M and operating income rising 28% to $22.8M. The company substantially increased R&D investment to $21.7M while successfully reducing inventory by $16.9M to $64.7M, indicating improved working capital management. Lower capital expenditures of $7.2M combined with stronger earnings contributed to a healthier balance sheet with stockholders' equity growing to $221.6M.

FINANCIAL STATEMENT CHANGES
R&D Expense
P&L
+46.6%
$14.8M→$21.7M

R&D investment increased 46.6% — signals commitment to future product development, though near-term margin impact.

Gross Profit
P&L
+29.2%
$65.5M→$84.6M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Operating Income
P&L
+27.9%
$17.8M→$22.8M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Capital Expenditure
Cash Flow
-26.9%
$9.8M→$7.2M

Capex reduced 26.9% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Inventory
Balance Sheet
-20.8%
$81.6M→$64.7M

Inventory reduced 20.8% — lean inventory management or demand outpacing supply.

Net Income
P&L
+14.5%
$16.3M→$18.7M

Net income grew 14.5% — bottom-line growth signals improving overall business health.

Current Assets
Balance Sheet
+14.3%
$253.8M→$290.1M

Current assets grew 14.3% — improving short-term liquidity or inventory/receivables build.

Stockholders Equity
Balance Sheet
+10.5%
$200.5M→$221.6M

Equity base grew 10.5% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2025-08-25
PRIOR — 2024-09-05
ADDED
On August 1, 2025, there were outstanding 4,161,334 shares of the Registrant s $.01 par value Common Stock (which includes any unvested restricted shares previously awarded).
M arket for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 16 Item 6.
M anagement's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 7A.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 48 Item 13.
The use of words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "project" or "plan" or similar terminology are generally intended to identify forward-looking statements.
trade agreements such as the USMCA; delays and restrictions impacting the import of goods and components stemming from heightened security procedures or changes in policies implemented by the U.S.
The forward-looking statements made herein are only made as of the date of this Form 10-K and the Company undertakes no obligation to update such forward-looking statements.
BUSINESS Overview Strattec, which has a history serving the automotive industry for over 100 years, was incorporated as a stand-alone company in 1995.
Our Milwaukee, Wisconsin headquarters oversees operations in the United States and Mexico for a global customer base.
Since the Company s inception, we have partnered with our customers to design and manufacture highly engineered products and solutions creating a broad range of innovative automotive access products.
REMOVED
Shares of common stock held by any executive officer or director of the registrant have been excluded from this computation because such persons may be deemed to be affiliates.
This determination of affiliate status is not a conclusive determination for other purposes.
On August 2, 2024, there were outstanding 4,068,052 shares of the Registrant s $.01 par value Common Stock (which includes any unvested restricted shares previously awarded).
STRATTEC SECURITY CORPORATION ANNUAL REPORT IN FORM 10-K June 30, 2024 Page PART I 2 Item 1.
MARKET FOR THE REGISTRANT S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 18 Item 6.
MANAGEMENT S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 19 Item 7A.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS 59 Item 13.
FORM 10-K SUMMARY 62 SIGNATURES 63 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS A number of the matters and subject areas discussed in this Form 10-K as well as in portions of the Company s Proxy Statement, dated September 20, 2024, which is incorporated herein by reference, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements may be identified by the use of forward-looking words or phrases such as anticipate, believe, would, expect, intend, may, planned, potential, should, will and could, or the negative of these terms or words of similar meaning.
These statements include expected future financial results, product offerings, global expansion, liquidity needs, financing ability, planned capital expenditures, management s or the Company s expectations and beliefs, and similar matters discussed, or otherwise incorporated herein by reference, in this Form 10-K.
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