# EDGAR Filing Document

**Accession Number:** 0000933034
**File Stem:** 0001193125-25-180821
**Filing Date:** 2025-8
**Character Count:** 32587
**Document Hash:** 80c69f1f00b59a7c5417c83142d78055
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-180821.hdr.sgml**: 20250814

**ACCESSION NUMBER**: 0001193125-25-180821

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20250814

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250814

**DATE AS OF CHANGE**: 20250814

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** STRATTEC SECURITY CORP
- **CENTRAL INDEX KEY:** 0000933034
- **STANDARD INDUSTRIAL CLASSIFICATION:** MOTOR VEHICLE PARTS & ACCESSORIES [3714]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 391804239
- **STATE OF INCORPORATION:** WI
- **FISCAL YEAR END:** 0629

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-25150
- **FILM NUMBER:** 251219910

**BUSINESS ADDRESS:**
- **STREET 1:** 3333 WEST GOOD HOPE ROAD
- **CITY:** MILWAUKEE
- **STATE:** WI
- **ZIP:** 53209
- **BUSINESS PHONE:** 4142473333

**MAIL ADDRESS:**
- **STREET 1:** 3333 W GOOD HOPE ROAD
- **CITY:** MILWAUKEE
- **STATE:** WI
- **ZIP:** 53209

?xml version='1.0' encoding='ASCII'? 8-K

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549** 

**FORM** 8-K

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

**Date of report (Date of earliest event reported):** August 14, 2025

STRATTEC SECURITY CORPORATION

(Exact Name of Registrant as Specified in Charter)

---

| | | |
|:---|:---|:---|
| Wisconsin | 0-25150 | 39-1804239 |
| (State or Other Jurisdiction<br>of Incorporation) | (Commission<br>File Number) | (I.R.S. Employer<br>Identification No.) |

---

3333 West Good Hope Road**,** Milwaukee**,** Wisconsin 53209

(Address of Principal Executive Offices, and Zip Code)

(414) 247-3333

Registrant's Telephone Number, Including Area Code

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Title of each class** | &nbsp;&nbsp;**Trading Symbol** | &nbsp;&nbsp;**Name of each exchange on which registered** |
| &nbsp;&nbsp;Common Stock, $.01 par value | &nbsp;&nbsp;STRT | &nbsp;&nbsp;The Nasdaq Global Stock Market |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Section 2 – Financial Information**

**Item 2.02. Results of Operations and Financial Condition**.

On August 14, 2025, Strattec Security Corporation (the "<u>Company</u>") issued a press release (the "<u>Press Release</u>") announcing results for the fiscal fourth quarter ended June 29, 2025. A copy of the Press Release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 2.02 and Exhibit 99.1 is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"), or otherwise subject to the liability of that section. Furthermore, the information in this Item 2.02 and Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), except as may be expressly set forth by specific reference in such filing.

**Item 7.01 Regulation FD Disclosure.**

As described in "Item 2.02 Results of Operations and Financial Condition" above, on August 14, 2025, the Company issued a Press Release announcing earnings results for the fiscal fourth quarter ended June 29, 2025. The Press Release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K.

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 7.01 and Exhibit 99.1 is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section. Furthermore, the information in this Item 7.01 and Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act, except as may be expressly set forth by specific reference in such filing.

**Item 9.01 Financial Statements and Exhibits.** 

(d) <u>Exhibits</u>.

---

| | |
|:---|:---|
| &nbsp;&nbsp;<u>Exhibit Number</u> | &nbsp;&nbsp;<u>Description</u> |
| &nbsp;&nbsp;99.1 | &nbsp;&nbsp;[<u>Press Release of Strattec Security Corporation, issued August 14, 2025</u>](strt-ex99_1.htm) |
| &nbsp;&nbsp;104 | &nbsp;&nbsp;Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

**STRATTEC SECURITY CORPORATION**

By: <u>/s/ Matthew Pauli</u> 

Matthew Pauli, Senior Vice President and

Chief Financial Officer

Date: August 14, 2025

------

## Exhibit 99.1

![gfx57970978_0.gif](gfx57970978_0.gif)

***Exhibit 99.1***

![img57970978_0.jpg](img57970978_0.jpg)News Release

*3333 West Good Hope Rd. • Milwaukee, Wisconsin 53209* 

IMMEDIATE RELEASE

**Strattec Expands Gross Margin in Fiscal 2025 Fourth Quarter** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Gross margin for the quarter was 16.7% compared with 13.0% in prior year period;<br> fiscal 2025 gross margin was 15.0%, a 280 basis point improvement year-over-year <br>on sales of $565.1 million*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Cash from operations was $30.2 million in fiscal 2025 fourth quarter and $71.7 million <br>for the full year*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Further strengthened already healthy balance sheet by reducing debt by $5 million; $84.6 million in cash enables continued investment in transformation efforts and provides safeguard against near term market tempering* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Net income attributable to Strattec for the fourth quarter fiscal 2025 was $8.3 million, or $2.01 per diluted share; adjusted EBITDA*<sup>1</sup> *was $13.0 million, or 8.5% of sales*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Net income attributable to Strattec for fiscal 2025 was $18.7 million, or $4.58 per diluted share, compared with $16.3 million, or $4.07 per diluted share in the prior year*

MILWAUKEE, WI, August 14, 2025 – Strattec Security Corporation (Nasdaq: STRT) ("Company" or "Strattec"), a leading provider of smart vehicle access, security and authorization solutions for the global automotive industry, reported financial results for its fourth quarter of fiscal year 2025, which ended June 29, 2025.

Jennifer Slater, President and CEO of Strattec, said, "Fiscal 2025 has been a year of significant change and advancement for Strattec. We delivered measurably improved results with stronger margins and cash flow. We executed over $8 million in new annualized pricing, restructured our operations to take out $5 million in costs and drove significant improvement in our working capital velocity and cash flow focus. We also initiated actions to mitigate the impact of incremental tariffs, which are now estimated to be a<br>$5 million to $7 million increase in costs prior to mitigation efforts. This first year as CEO of Strattec has been very busy and challenging, but the advancements we are making are the result of the dedication and contribution of every member of the team. While still early in our business transformation, I am encouraged by the progress we have made over the last twelve months."

"Looking forward, we are excited about our longer-term future but recognize in the near term we face market uncertainty. North American automotive production estimates have recently been revised downward, coupled with a lull in the launch cycle of new vehicles by our key customers. In the near term, we will continue to stabilize our business operations, deepen and expand our customer relationships, enhance our product roadmaps and improve our competitive position, as we transform Strattec to be a more dynamic and innovative enterprise," she concluded.

------

<sup>1</sup> Refer to "Use of Non-GAAP Financial Metrics and Additional Financial Information" as well as accompanying reconciliations to GAAP

------

**Strattec Expands Gross Margin in Fiscal 2025 Fourth Quarter <br>August 14, 2025**

**Page 2 of 8**

***FY 2025 Fourth Quarter Financial Summary****<br>(compared with prior-year period, except where otherwise noted)*

Net sales were $152.0 million, an increase of $9.0 million, or 6.3%. Sales growth was driven by<br>$3.7 million of additional pricing, $4.1 million of sales related to higher demand, $1.2 million in net new program launches and favorable sales mix.

Gross profit increased $6.8 million to $25.4 million, while gross margin expanded 370 basis points. The improvement was due in part to $3.0 million, or 210 basis points, of favorable foreign currency exchange, $1.3 million in restructuring savings, as well as improved pricing and the contribution from higher volume. This more than offset the $1.6 million net impact of tariffs and $1.1 million higher labor costs in Mexico. Tariff recovery will tend to lag the expense.

Selling, administrative and engineering ("SAE") expenses increased $8.0 million to $16.9 million compared with $8.9 million in the prior-year period. SAE expenses in the prior-year fourth quarter included a $4.7 million benefit related to one-time engineering ("ED&D") recovery. Higher SAE expenses include higher professional fees and additional performance compensation of $2.2 million, as well as business transformation costs and investments in talent.

Interest income grew $0.5 million on higher cash balances, while other income was down $0.8 million as a result of changes in foreign currency exchange rates.

Net income attributable to Strattec was $8.3 million, or $2.01 per diluted share, compared with <br>$9.6 million, or $2.39 per diluted share, in the prior-year period. On an adjusted basis, net income attributable to Strattec<sup>1</sup> was $8.5 million and adjusted diluted earnings per share<sup>1</sup> was $2.06. Adjusted EBITDA<sup>1</sup> for the quarter was $13.0 million compared with $13.8 million in the prior-year period. Expanded gross margin on higher sales mostly offset the ED&D benefit to SAE in the fourth quarter of fiscal 2024. Adjusted EBITDA margin of 8.5%, compared with 9.6% in the fiscal 2024 fourth quarter.

***Balance Sheet and Liquidity*** 

Increased cash earnings and improved working capital management delivered $30.2 million in cash from operations in the fourth quarter of fiscal 2025, compared with $19.5 million in the prior-year period. Cash from operations for fiscal 2025 was $71.7 million.

At June 29, 2025, the Company had $84.6 million in cash and cash equivalents, up $22.5 million from the end of the third quarter of fiscal 2025. The Company had no borrowings outstanding under its $40 million revolving credit agreement. Borrowings under the joint venture's $20 million revolving credit agreement were $8.0 million, down from $13.0 million at the end of the third quarter fiscal 2025 and 2024's fiscal year end.

***Fourth Quarter Fiscal Year 2025 Webcast and Conference Call*** 

The Company will host a conference call and webcast tomorrow, Friday, August 15, 2025, at 9:00 am Eastern Time to review the financial and operating results for the period ended June 29, 2025, and provide an update on its transformation progress. A question-and-answer session will follow.

You can access the call by phoning (201) 689-8470 or find the webcast and accompanying slide presentation at investors.strattec.com.

------

<sup>1</sup> Refer to "Use of Non-GAAP Financial Metrics and Additional Financial Information" as well as accompanying reconciliations to GAAP

------

**Strattec Expands Gross Margin in Fiscal 2025 Fourth Quarter <br>August 14, 2025**

**Page 3 of 8**

A telephonic replay will be available from 12:00 p.m. ET on the day of the call through Friday,<br>August 29, 2025. To listen to the archived call, dial +1 (412) 317-6671 and enter replay PIN 13754276.

The webcast replay will be available on the Investor Relations section of the Company's website investors.strattec.com, where a transcript will be posted once available.

**About Strattec**<br> Strattec is a leading global provider of advanced automotive access, security & authorization solutions for leading vehicle manufacturers, primarily in the U.S. With a history spanning over 110 years, Strattec has consistently been at the forefront of innovation in vehicle security, transitioning from mechanical to integrated electro-mechanical systems. Its highly-engineered products include power access solutions, latches, vehicle start systems, keys, fobs & accessories, locks & locksets, door handles and other access products. Power access solutions provide the motion control for power liftgates, sliding power doors and power tailgates. For more information on Strattec and its solutions, visit www.strattec.com.

**Safe Harbor Statement**<br>Certain statements contained in this release 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," "could," "expect," "intend," "may," "planned," "potential," "should," "will," and "would." Such forward-looking statements are inherently subject to many uncertainties in the Company's operations and business environment. These uncertainties include general economic conditions, in particular, relating to the automotive industry, consumer demand for the Company's and its customers' products, competitive and technological developments, customer purchasing actions, changes in warranty provisions and customer product recall policies, work stoppages at the Company or at the location of its key customers as a result of labor disputes, foreign currency fluctuations, uncertainties stemming from U.S. trade policies, tariffs and reactions to the same from foreign countries, matters adversely impacting the timing and availability of component parts and raw materials needed for the production of the Company's products and the products of its customers and fluctuations in costs of operation. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances occurring after the date of this release. In addition, such uncertainties and other operational matters are discussed further in the Company's quarterly and annual filings with the Securities and Exchange Commission.

**Use of Non-GAAP Financial Metrics and Additional Financial Information**<br>In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Strattec provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from similarly titled non-GAAP financial measures used by other companies. Strattec's management uses these measures to make strategic decisions, establish budget plans and forecasts, identify trends affecting Strattec's business, and evaluate performance. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, will help investors evaluate Strattec's core operating and financial performance and business trends consistent with how management evaluates such performance and trends. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

**Contact:**

---

| |
|:---|
| &nbsp;&nbsp;Deborah K. Pawlowski, IRC |
| &nbsp;&nbsp;Alliance Advisors IR |
| &nbsp;&nbsp;Phone: 716-843-3908 |
| &nbsp;&nbsp;Email: dpawlowski@allianceadvisors.com |

---

**FINANCIAL TABLES FOLLOW** 

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**Strattec Expands Gross Margin in Fiscal 2025 Fourth Quarter <br>August 14, 2025**

**Page 4 of 8**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **STRATTEC SECURITY CORPORATION** | **STRATTEC SECURITY CORPORATION** | **STRATTEC SECURITY CORPORATION** |  |  |
| **CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)** |  |  |
| ***(in thousands, except per share amounts)*** | ***(in thousands, except per share amounts)*** | ***(in thousands, except per share amounts)*** |  |  |
|  | **Three Months Ended** | **Three Months Ended** | **Years Ended** | **Years Ended** |
|  | **June 29, 2025** | **June 30, 2024** | **June 29, 2025** | **June 30, 2024** |
| **Net sales** | $**152013** | $**143055** | $**565066** | $**537766** |
| Cost of goods sold | 126613 | 124488 | 480489 | 472298 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Gross profit** | **25400** | **18567** | **84577** | **65468** |
| &nbsp;&nbsp;&nbsp;&nbsp;*Gross margin* | *16.7%* | *13.0%* | *15.0%* | *12.2%* |
| Selling, administrative and engineering expenses | 16898 | 8876 | 61793 | 47654 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Income from operations** | **8502** | **9691** | **22784** | **17814** |
| &nbsp;&nbsp;&nbsp;&nbsp;*Operating margin* | *5.6%* | *6.8%* | *4.0%* | *3.3%* |
| Interest income | 753 | 235 | 2039 | 572 |
| Interest expense | (212) | (239) | (1007) | (900) |
| Other income (expense), net | 1189 | 1958 | 820 | 2717 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income before provision for income taxes and non-controlling interest | 10232 | 11645 | 24636 | 20203 |
| Provision for income taxes | 2170 | 1578 | 5717 | 3775 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | 8062 | 10067 | 18919 | 16428 |
| Net income (loss) attributable to non-controlling interest | (205) | 447 | 234 | 115 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net income attributable to Strattec** | $**8267** | $**9620** | $**18685** | $**16313** |
| **Earnings per share attributable to Strattec** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $2.05 | $2.41 | $4.64 | $4.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $2.01 | $2.39 | $4.58 | $4.07 |
| Weighted Average shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 4039 | 3988 | 4030 | 3975 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 4105 | 4027 | 4076 | 4004 |

---

------

**Strattec Expands Gross Margin in Fiscal 2025 Fourth Quarter <br>August 14, 2025**

**Page 5 of 8**

---

| | | |
|:---|:---|:---|
| **STRATTEC SECURITY CORPORATION** | **STRATTEC SECURITY CORPORATION** | **STRATTEC SECURITY CORPORATION** |
| **CONSOLIDATED BALANCE SHEETS (UNAUDITED)** | **CONSOLIDATED BALANCE SHEETS (UNAUDITED)** | **CONSOLIDATED BALANCE SHEETS (UNAUDITED)** |
| ***(in thousands, except share amounts)*** | ***(in thousands, except share amounts)*** | ***(in thousands, except share amounts)*** |
|  | **June 29, 2025** | **June 30, 2024** |
| **ASSETS** |  |  |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $84579 | $25410 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables, net | 102061 | 99297 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | 64701 | 81649 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pre-production costs | 8657 | 22173 |
| &nbsp;&nbsp;&nbsp;&nbsp;Value-added tax recoverable | 19389 | 19684 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax recoverable | 2465 | 319 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 8211 | 5282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 290063 | 253814 |
| Noncurrent Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment, net | 77410 | 86184 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 19531 | 17593 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other long-term assets | 4450 | 6698 |
| **Total Assets** | $**391454** | $**364289** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $65824 | $54911 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll and benefits | 22956 | 28953 |
| &nbsp;&nbsp;&nbsp;&nbsp;Value-added tax payable | 11933 | 9970 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax payable | 88 | 5103 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warranty reserve | 8900 | 10695 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 9649 | 8656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 119350 | 118288 |
| Noncurrent Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings under credit facilities | 8000 | 13000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Post-employment benefits | 13325 | 2429 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities | 4348 | 4957 |
| **Total Liabilities** | **145023** | **138674** |
| Shareholders' Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, authorized 18,000,000 shares, $.01 par value, 7,635,883<br> issued shares at June 29, 2025 and 7,586,920 issued shares at<br> June 30, 2024 | 76 | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital in excess of par value | 103784 | 101024 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 269297 | 250612 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (16113) | (15689) |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: treasury stock, at cost (3,596,549 shares at June 29, 2025 and <br> 3,598,126 shares at June 30, 2024) | (135452) | (135478) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Strattec shareholders' equity | 221592 | 200545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interest | 24839 | 25070 |
| **Total Shareholders' Equity** | **246431** | **225615** |
| **Total Liabilities and Shareholders' Equity** | $**391454** | $**364289** |

---

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**Strattec Expands Gross Margin in Fiscal 2025 Fourth Quarter <br>August 14, 2025**

**Page 6 of 8**

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| | | | | |
|:---|:---|:---|:---|:---|
| **STRATTEC SECURITY CORPORATION** | **STRATTEC SECURITY CORPORATION** | **STRATTEC SECURITY CORPORATION** |  |  |
| **CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)** |  |  |
| ***(in thousands)*** | ***(in thousands)*** | ***(in thousands)*** |  |  |
|  | **Three Months Ended** | **Three Months Ended** | **Years Ended** | **Years Ended** |
|  | **June 29, 2025** | **June 30, 2024** | **June 29, 2025** | **June 30, 2024** |
| **OPERATING ACTIVITIES:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $8062 | $10067 | $18919 | $16428 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 3812 | 3773 | 14764 | 16547 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency transaction loss (gain) | 1643 | (2279) | 591 | (2153) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (1890) | (4711) | (1890) | (4711) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 886 | 243 | 2725 | 1467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gain) loss on peso forward contracts | (2545) | 604 | (2314) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in operating assets and liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables | 7152 | (1849) | (3085) | (9356) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 10890 | (3037) | 16948 | (4052) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 6033 | 3336 | 12027 | (13562) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (6056) | 4086 | 10674 | (3016) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 1918 | 9007 | 970 | 13754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 271 | 248 | 1348 | 919 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by operating activities** | **30176** | **19488** | **71677** | **12265** |
| **INVESTING ACTIVITIES:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of interest in joint ventures |  |  |  | 2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property, plant and equipment | (2996) | (3723) | (7156) | (9788) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in investing activities** | **(2996)** | **(3723)** | **(7156)** | **(7788)** |
| **FINANCING ACTIVITIES:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings under credit facilities |  |  | 3000 | 2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of borrowings under credit facilities | (5000) |  | (8000) | (2000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee stock purchases | 17 | 17 | 61 | 72 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net cash (used in) provided by financing activities** | **(4983)** | **17** | **(4939)** | **72** |
| Foreign currency impact on cash | 276 | 34 | (413) | 290 |
| **NET INCREASE IN CASH AND CASH EQUIVALENTS** | **22473** | **15816** | **59169** | **4839** |
| CASH AND CASH EQUIVALENTS |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning of period | 62106 | 9594 | 25410 | 20571 |
| &nbsp;&nbsp;&nbsp;&nbsp;End of period | $84579 | $25410 | $84579 | $25410 |
| **SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:** |  |  |  |  |
| Cash paid during the period for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes | $5039 | $624 | $14174 | $3801 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest | $276 | $229 | $1007 | $888 |
| Non-cash investing activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in capital expenditures in accounts payable | $(1148) | $435 | $(422) | $171 |

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**Strattec Expands Gross Margin in Fiscal 2025 Fourth Quarter <br>August 14, 2025**

**Page 7 of 8**

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **STRATTEC SECURITY CORPORATION** | **STRATTEC SECURITY CORPORATION** | **STRATTEC SECURITY CORPORATION** |  |  |  |  |  |  |  |  |
| **RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES** | **RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES** | **RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES** | **RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES** | **RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES** |  |  |  |  |  |  |
| ***(in thousands, except per share amounts)*** | ***(in thousands, except per share amounts)*** | ***(in thousands, except per share amounts)*** |  |  |  |  |  |  |  |  |
|  | **Fiscal 2024** | **Fiscal 2024** | **Fiscal 2024** | **Fiscal 2024** | **Fiscal 2024** | **Fiscal 2025** | **Fiscal 2025** | **Fiscal 2025** | **Fiscal 2025** | **Fiscal 2025** |
|  | **Q1** | **Q2** | **Q3** | **Q4** | **Total** | **Q1** | **Q2** | **Q3** | **Q4** | **Total** |
| **ADJUSTED NET SALES:** |  |  |  |  |  |  |  |  |  |  |
| Net Sales (GAAP) | 135406 | 118532 | 140773 | 143055 | $537766 | 139052 | 129919 | 144082 | 152013 | $565066 |
| Adjustments: |  |  |  |  |  |  |  | - |  |  |
| Retroactive FY23 one-time pricing recovery | (7950) | (1551) | (397) | 175 | (9723) | - | - | - | - | - |
| Adjusted Sales (Non-GAAP) | 127456 | 116981 | 140376 | 143230 | 528043 | 139052 | 129919 | 144082 | 152013 | 565066 |
| **ADJUSTED EBITDA:** |  |  |  |  |  |  |  |  |  |  |
| Net income attributable to Strattec (GAAP) | $4165 | $1022 | $1506 | $9620 | $16313 | $3703 | $1319 | $5396 | $8267 | $18685 |
| Net income (loss) attributable to non-controlling interest | 290 | (242) | (380) | 447 | 115 | 45 | 79 | 315 | (205) | 234 |
| Provision for income tax | 1387 | 264 | 546 | 1578 | 3775 | 1498 | 405 | 1644 | 2170 | 5717 |
| Other (income) expense, net | 131 | (1098) | 208 | (1958) | (2717) | (129) | 482 | 16 | (1189) | (820) |
| Investment and interest income | (87) | (107) | (143) | (235) | (572) | (349) | (408) | (529) | (753) | (2039) |
| Interest expense | 220 | 219 | 222 | 239 | 900 | 295 | 257 | 243 | 212 | 1007 |
| Income from operations | 6106 | 58 | 1959 | 9691 | 17814 | 5063 | 2134 | 7085 | 8502 | 22784 |
| Adjustments: |  |  |  |  |  |  |  |  |  |  |
| Depreciation | 4385 | 4330 | 4059 | 3773 | $16547 | 3662 | 3544 | 3746 | 3812 | $14764 |
| Non-cash stock-based compensation | 505 | 479 | 240 | 243 | 1467 | 188 | 891 | 760 | 887 | 2726 |
| Restructuring and similar charges | - | - | - | - | - | - | 265 | 809 | (676) | 398 |
| Retroactive FY23 one-time pricing recovery, net | (7078) | (641) | (298) | 24 | (7993) | - | - | - | - | - |
| Executive transition costs | - | 774 | 211 | 73 | 1058 | 941 | 921 | 214 | (17) | 2058 |
| Business transformation costs | - | - | - | - | - | 74 | 215 | 259 | 479 | 1027 |
|  | (2188) | 4942 | 4212 | 4113 | 11079 | 4865 | 5836 | 5788 | 4485 | 20974 |
| Adjusted EBITDA (Non-GAAP) | $3918 | $5000 | $6171 | $13804 | $28893 | $9928 | $7970 | $12873 | $12987 | $43758 |
| Adjusted EBITDA as a % of Adjusted Net Sales | 3.1% | 4.3% | 4.4% | 9.6% | 5.5% | 7.1% | 6.1% | 8.9% | 8.5% | 7.7% |
| **ADJUSTED NET INCOME AND EARNINGS/(LOSS) PER SHARE:** |  |  |  |  |  |  |  |  |  |  |

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**Strattec Expands Gross Margin in Fiscal 2025 Fourth Quarter <br>August 14, 2025**

**Page 8 of 8**

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Net income attributable to Strattec (GAAP) | $4165 | $1022 | $1506 | $9620 | $16313 | $3703 | $1319 | $5396 | $8267 | $18685 |
| Adjustments: |  |  |  |  |  |  |  |  |  |  |
| Restructuring and similar charges | 265 | 3 | - | 63 | 331 | - | 265 | 809 | (676) | 398 |
| Retroactive FY23 one-time pricing recovery, net | (7078) | (641) | (298) | 24 | (7993) | - | - | - | - | - |
| Executive transition costs | - | 973 | 211 | 73 | 1257 | 1224 | 1225 | 214 | 115 | 2778 |
| Business transformation costs | - | - | - | - | - | 74 | 215 | 259 | 479 | 1027 |
| Non-controlling interest impact on above adjustments | 1014 | 181 | 55 | 22 | 1272 | - | - | (160) | 160 | - |
| Tax effect on above adjustments | 1305 | (116) | 7 | (41) | 1155 | (292) | (384) | (376) | 107 | (945) |
|  | (4494) | 400 | (25) | 141 | (3978) | 1006 | 1321 | 746 | 185 | 3258 |
| Adjusted Net Income/(Loss) attributable to Strattec (Non-GAAP) | $(329) | $1422 | $1481 | $9761 | $12335 | $4709 | $2640 | $6142 | $8452 | $21943 |
| Weighted Average Basic Shares Outstanding | 3948 | 3976 | 3988 | 3988 | 3975 | 4005 | 4035 | 4039 | 4039 | 4030 |
| Weighted Average Diluted Shares Outstanding | 3974 | 3998 | 4017 | 4027 | 4004 | 4046 | 4070 | 4085 | 4105 | 4076 |
| Diluted earnings per share (GAAP) | $1.05 | $0.26 | $0.37 | $2.39 | $4.07 | $0.92 | $0.32 | $1.32 | $2.01 | $4.58 |
| Adjusted dilutive earnings/(loss) per share (Non-GAAP) | $(0.08) | $0.36 | $0.37 | $2.42 | $3.08 | $1.16 | $0.65 | $1.50 | $2.06 | $5.38 |

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