# EDGAR Filing Document

**Accession Number:** 0000933034
**File Stem:** 0001193125-26-039481
**Filing Date:** 2026-2
**Character Count:** 29773
**Document Hash:** f9aa58a23b730166d836f8195bf3b298
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-039481.hdr.sgml**: 20260205

**ACCESSION NUMBER**: 0001193125-26-039481

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20260205

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

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260205

**DATE AS OF CHANGE**: 20260205

**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:** 0628

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-25150
- **FILM NUMBER:** 26603377

**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):** February 5, 2026

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. ☐

------

---

| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition**. |

---

On February 5, 2026, Strattec Security Corporation (the "<u>Company</u>") issued a press release (the "<u>Press Release</u>") announcing results for the fiscal second quarter ended December 28, 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 <u>Securities Exchange Act of 1934</u>, 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 <u>Securities Act of 1933</u>, 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 February 5, 2026, the Company issued a Press Release announcing earnings results for the fiscal second quarter ended December 28, 2025. 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 7.01 and Exhibit 99.1 is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the <u>Exchange Act</u>, 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 <u>Securities Act</u>, 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;Exhibit <u>Number</u> | &nbsp;&nbsp; <br><u>Description</u> |
| &nbsp;&nbsp;99.1 | &nbsp;&nbsp;[<u>Press Release of Strattec Security Corporation, issued February 5, 2026</u>](strt-ex99_1.htm) |
| &nbsp;&nbsp;104 | &nbsp;&nbsp;104 – 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 P. Pauli</u> 

Matthew P. Pauli, Senior Vice President and

Chief Financial Officer

Date: February 5, 2026

------

## Exhibit 99.1

![gfx57970978_0.gif](gfx57970978_0.gif)

**Exhibit 99.1**

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

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

IMMEDIATE RELEASE

Strattec Generated $14 million in Cash from Operations in<br>Second Quarter Fiscal 2026

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Sales for the quarter grew 6% to $137.5 million driven by pricing, new program launches, customer inventory builds and select platform successes* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Gross margin for the quarter was 16.5%, compared with 13.2% in the prior year period* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Net income attributable to Strattec for the second quarter fiscal 2026 was $4.9 million, or <br>$1.20 per diluted share; compared with $0.32 per diluted share in the prior year period*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Adjusted EBITDA*<sup>1</sup> *was $12.3 million, or 8.9% of sales, compared with $8.0 million in the prior year second quarter.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Strong balance sheet provides financial flexibility; $99.0 million in cash and $2.5 million in debt*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Furthered fiscal 2026 restructuring actions which collectively are expected to result in annualized savings of $3.4 million*

MILWAUKEE, WI, February 5, 2026 – 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 second quarter of fiscal year 2026, which ended December 28, 2025.

Jennifer Slater, President and CEO of Strattec, said, "We delivered a solid second quarter despite market and supply chain headwinds and unfavorable foreign exchange trends. A focus on pricing and cost reductions protected our gross margin. That focus continued during the quarter as we offered a voluntary early retirement program and implemented additional restructuring actions in our operations in Mexico. We expect $3.4 million in annual savings from these actions. We continue to generate strong cash flow even as we are investing to improve our business."

"The second half of fiscal 2026 is expected to have a softer U.S. automotive production market and continued FX headwinds. We remain centered on transforming Strattec into a better business with stronger earnings power and a predictable path for growth. We will continue to find ways to improve productivity while investing in creating the products that will provide vehicle access solutions for the future," Ms. Slater concluded.

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

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**Strattec Generated $14 million in Cash from Operations in Second Quarter Fiscal 2026 <br>February 5, 2026**

**Page 2 of 10**

*FY 2026 Second Quarter Financial Summary<br>(compared with prior-year period, except where otherwise noted)*

Net sales were $137.5 million, an increase of $7.6 million, or 6%. Sales growth was driven by $3.1 million of pricing, $3.0 million associated with favorable sales mix and higher content value, $2.4 million in net new program launches and $1.4 million in tariff recovery more than offsetting $2.3 million in reduced market demand.

Gross profit increased $5.6 million to $22.7 million, while gross margin expanded 330 basis points. The improvement was primarily the result of pricing actions and the contribution from higher production volumes, complemented by $1.7 million in restructuring savings. This more than offset $0.9 million of incremental tariff costs, $1.2 million of higher labor costs in Mexico related to annual merit increases, and $1.6 million related to unfavorable foreign exchange rates.

Selling, administrative and engineering ("SAE") expenses increased $2.8 million to $17.9 million, or 13.0% of sales, compared with $15.0 million, or 11.6% of sales, in the prior-year period. Elevated SAE expenses included a $1.7 million charge related to the voluntary retirement program and an increase in business transformation costs of $0.8 million. The $0.7 million investment in additional talent was mostly offset by the $1.1 million reduction in executive transition costs.

Interest income grew $0.5 million on higher cash balances, while interest expenses declined $0.2 million on lower borrowings. Other income increased $2.2 million as a result of changes in foreign currency exchange rates.

Net income attributable to Strattec was $4.9 million, or $1.20 per diluted share, compared with <br>$1.3 million, or $0.32 per diluted share, in the prior-year period. On an adjusted basis, second quarter fiscal 2026 net income attributable to Strattec<sup>1</sup> was $7.1 million, and adjusted diluted earnings per share<sup>1</sup> was $1.71. Adjusted EBITDA<sup>1</sup> for the quarter was $12.3 million compared with $8.0 million in the prior-year period. Adjusted EBITDA margin of 8.9%, compared with 6.1% in the fiscal 2025 second quarter.

*Financial Flexibility with Strong Balance Sheet* 

Cash from operations in the second quarter of fiscal 2026 was $13.9 million, an increase of $4.4 million, or 47%, as a result of higher cash earnings.

At December 28, 2025, the Company had $99.0 million in cash and cash equivalents, up from<br>$90.5 million at the end of the first quarter fiscal 2026 and $84.6 at the end of the fourth quarter of fiscal 2025. Inventories increased $10.3 million in the quarter to improve service levels and reduce expedites.

*Second Quarter Fiscal Year 2026 Webcast and Conference Call* 

The Company will host a conference call and webcast tomorrow, Friday, February 6, 2026, at 9:00 am Eastern Time to review the financial and operating results for the period ended December 28, 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.

A telephonic replay will be available from 12:00 p.m. ET on the day of the call through Friday,<br>February 20, 2026. To listen to the archived call, dial +1 (412) 317-6671 and enter replay PIN

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

------

**Strattec Generated $14 million in Cash from Operations in Second Quarter Fiscal 2026 <br>February 5, 2026**

**Page 3 of 10**

13757872. 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. Such uncertainties and other operational matters are discussed further in the Company's quarterly and annual filings with the Securities and Exchange Commission. 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.

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 |

---

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**Strattec Generated $14 million in Cash from Operations in Second Quarter Fiscal 2026 <br>February 5, 2026**

**Page 4 of 10**

FINANCIAL TABLES FOLLOW

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**Strattec Generated $14 million in Cash from Operations in Second Quarter Fiscal 2026 <br>February 5, 2026**

**Page 5 of 10**

**Strattec Security Corporation**

**Consolidated Statements of Income**

(Unaudited)

*(In thousands, except per share amounts)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended |
|  | December 28,<br>2025 | December 29,<br>2024 | December 28,<br>2025 | December 29,<br>2024 |
| Net sales | $137534 | $129919 | $289933 | $268971 |
| Cost of goods sold | 114812 | 112768 | 240876 | 232899 |
| &nbsp;&nbsp;&nbsp;Gross profit | 22722 | 17151 | 49057 | 36072 |
| &nbsp;&nbsp;&nbsp;&nbsp;*Gross margin* | *16.5%* | *13.2%* | *16.9%* | *13.4%* |
| Selling, administrative and engineering expenses | 17860 | 15017 | 33748 | 28875 |
| &nbsp;&nbsp;&nbsp;Income from operations | 4862 | 2134 | 15309 | 7197 |
| &nbsp;&nbsp;&nbsp;&nbsp;*Operating margin* | *3.5%* | *1.6%* | *5.3%* | *2.7%* |
| Interest income | 885 | 408 | 1762 | 757 |
| Interest expense | (96) | (257) | (252) | (552) |
| Other (expense) income, net | 1691 | (482) | 1416 | (353) |
| &nbsp;&nbsp;&nbsp;Income before provision for income taxes and <br>non-controlling interest | 7342 | 1803 | 18235 | 7049 |
| Income tax expense | 1699 | 405 | 4055 | 1903 |
| &nbsp;&nbsp;&nbsp;Net income | 5643 | 1398 | 14180 | 5146 |
| Net income attributable to non-controlling interest | 696 | 79 | 704 | 124 |
| &nbsp;&nbsp;&nbsp;Net income attributable to Strattec | $4947 | $1319 | $13476 | $5022 |
| Earnings per share attributable to Strattec |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $1.21 | $0.33 | $3.31 | $1.25 |
| &nbsp;&nbsp;&nbsp;Diluted | $1.20 | $0.32 | $3.26 | $1.24 |
| Weighted average shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 4080 | 4035 | 4067 | 4020 |
| &nbsp;&nbsp;&nbsp;Diluted | 4131 | 4070 | 4129 | 4058 |

---

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**Strattec Generated $14 million in Cash from Operations in Second Quarter Fiscal 2026 <br>February 5, 2026**

**Page 6 of 10**

**Strattec Security Corporation**

**Consolidated Balance Sheets**

(Unaudited)

*(In thousands, except share amounts)*

---

| | | |
|:---|:---|:---|
|  | December 28,<br>2025 | June 29,<br>2025 |
| ASSETS |  |  |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $99027 | $84579 |
| &nbsp;&nbsp;&nbsp;Receivables, net | 89217 | 102061 |
| &nbsp;&nbsp;&nbsp;Inventories, net | 71934 | 64701 |
| &nbsp;&nbsp;&nbsp;Pre-production costs | 6857 | 8657 |
| &nbsp;&nbsp;&nbsp;Value-added tax recoverable | 19858 | 19389 |
| &nbsp;&nbsp;&nbsp;Other current assets | 6374 | 10676 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 293267 | 290063 |
| Noncurrent Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net | 74636 | 77410 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | 19758 | 19531 |
| &nbsp;&nbsp;&nbsp;Other long-term assets | 4584 | 4450 |
| Total Assets | $392245 | $391454 |
| LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $59568 | $65824 |
| &nbsp;&nbsp;&nbsp;Accrued payroll and benefits | 15709 | 22956 |
| &nbsp;&nbsp;&nbsp;Value-added tax payable | 12732 | 11933 |
| &nbsp;&nbsp;&nbsp;Warranty reserve | 8567 | 8900 |
| &nbsp;&nbsp;&nbsp;Current portion of borrowings under credit facilities | 2500 |  |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 13374 | 9737 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 112450 | 119350 |
| Noncurrent Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Noncurrent portion of borrowings under credit facilities |  | 8000 |
| &nbsp;&nbsp;&nbsp;Post-employment benefits | 12806 | 13325 |
| &nbsp;&nbsp;&nbsp;Other noncurrent liabilities | 3975 | 4348 |
| Total Liabilities | 129231 | 145023 |
| Shareholders' Equity: |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, authorized 18,000,000 shares, $.01 par value, 7,699,083 issued shares at December 28, 2025 and 7,635,883 issued shares at June 29, 2025 | 77 | 76 |
| &nbsp;&nbsp;&nbsp;Capital in excess of par value | 105601 | 103784 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 282773 | 269297 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (14935) | (16113) |
| &nbsp;&nbsp;&nbsp;Less: treasury stock, at cost (3,615,268 shares at December 28, 2025 and 3,596,549 shares at June 29, 2025) | (136718) | (135452) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Strattec shareholders' equity | 236798 | 221592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interest | 26216 | 24839 |
| Total Shareholders' Equity | 263014 | 246431 |
| Total Liabilities and Shareholders' Equity | $392245 | $391454 |

---

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**Strattec Generated $14 million in Cash from Operations in Second Quarter Fiscal 2026 <br>February 5, 2026**

**Page 7 of 10**

**Strattec Security Corporation** 

**Consolidated Statements of Cash Flows** (Unaudited) *(In thousands)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended |
|  | December 28,<br>2025 | December 29,<br>2024 | December 28,<br>2025 | December 29,<br>2024 |
| OPERATING ACTIVITIES: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $5643 | $1398 | $14180 | $5146 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 3893 | 3544 | 7678 | 7206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency transaction loss (gain) | 463 | (188) | 1134 | (1193) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 1125 | 891 | 1794 | 1079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gain) loss on peso forward contracts | (79) | 284 | (372) | 936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 227 | 269 | 543 | 816 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in operating assets and liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables | 13468 | 10568 | 12894 | 7379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (10342) | 2283 | (7233) | 138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaids and other assets | 2845 | 1963 | 6649 | 7844 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (1545) | (9026) | (6362) | (3990) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | (1817) | (2542) | (5697) | (4580) |
| &nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 13881 | 9444 | 25208 | 20781 |
| INVESTING ACTIVITIES: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of property, plant and equipment | (2631) | (917) | (4160) | (2990) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of property, plant and equipment | 259 |  | 259 |  |
| &nbsp;&nbsp;&nbsp;Net cash used in investing activities | (2372) | (917) | (3901) | (2990) |
| FINANCING ACTIVITIES: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Borrowings under credit facilities |  |  |  | 3000 |
| &nbsp;&nbsp;&nbsp;Repayment of borrowings under credit facilities | (2500) |  | (5500) | (3000) |
| &nbsp;&nbsp;&nbsp;Payment for debt issuance costs | (98) |  | (98) |  |
| &nbsp;&nbsp;&nbsp;Payment for taxes withheld from stock-based awards | (355) |  | (1274) |  |
| &nbsp;&nbsp;&nbsp;Share issuances | 16 | 15 | 32 | 28 |
| &nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities | (2937) | 15 | (6840) | 28 |
| Foreign currency impact on cash | (18) | (320) | (19) | (604) |
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 8554 | 8222 | 14448 | 17215 |
| CASH AND CASH EQUIVALENTS |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning of period | 90473 | 34403 | 84579 | 25410 |
| &nbsp;&nbsp;&nbsp;End of period | $99027 | $42625 | $99027 | $42625 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |  |  |  |  |
| Cash paid during the period for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Income taxes | $575 | $4458 | $1157 | $8539 |
| &nbsp;&nbsp;&nbsp;Interest | $61 | $279 | $184 | $559 |
| Non-cash investing activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in capital expenditures in accounts payable | $(13) | $56 |  | $(450) |

---

**Strattec Security Corporation**

**Reconciliation of GAAP to Non-GAAP Financial Measures** *(in thousands, except per share amounts)*

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**Strattec Generated $14 million in Cash from Operations in Second Quarter Fiscal 2026 <br>February 5, 2026**

**Page 8 of 10**

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Fiscal 2025 | Fiscal 2025 | Fiscal 2025 | Fiscal 2025 | Fiscal 2025 | Fiscal 2026 | Fiscal 2026 | Fiscal 2026 | Fiscal 2026 | Fiscal 2026 |
|  | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total |
| NET SALES: |  |  |  |  |  |  |  |  |  |  |
| Net Sales (GAAP) | 139052 | 129919 | 144082 | 152013 | $565066 | 152399 | 137534 |  |  | $289933 |
| ADJUSTED EBITDA: |  |  |  |  |  |  |  |  |  |  |
| Net income attributable to Strattec (GAAP) | $3703 | $1319 | $5396 | $8267 | $18685 | $8529 | $4947 |  |  | $13476 |
| &nbsp;&nbsp;&nbsp;Net income (loss) attributable to non-controlling interest | 45 | 79 | 315 | (205) | 234 | 8 | 696 |  |  | 704 |
| &nbsp;&nbsp;&nbsp;Income tax expense | 1498 | 405 | 1644 | 2170 | 5717 | 2356 | 1699 |  |  | 4055 |
| &nbsp;&nbsp;&nbsp;Other (income) expense, net | (129) | 482 | 16 | (1189) | (820) | 275 | (1691) |  |  | (1416) |
| &nbsp;&nbsp;&nbsp;Interest income | (349) | (408) | (529) | (753) | (2039) | (877) | (885) |  |  | (1762) |
| &nbsp;&nbsp;&nbsp;Interest expense | 295 | 257 | 243 | 212 | 1007 | 156 | 96 |  |  | 252 |
| Income from operations | 5063 | 2134 | 7085 | 8502 | 22784 | 10447 | 4862 | - | - | 15309 |
| Adjustments: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation | 3662 | 3544 | 3746 | 3812 | $14764 | 3785 | 3893 |  |  | $7678 |
| &nbsp;&nbsp;&nbsp;Non-cash stock-based compensation | 188 | 891 | 760 | 887 | 2726 | 669 | 1125 |  |  | 1794 |
| &nbsp;&nbsp;&nbsp;Restructuring and similar charges | - | 265 | 809 | (676) | 398 | - | 1305 |  |  | 1305 |
| &nbsp;&nbsp;&nbsp;Executive transition costs | 941 | 921 | 214 | (17) | 2058 | 136 | 88 |  |  | 224 |
| &nbsp;&nbsp;&nbsp;Business transformation costs | 74 | 215 | 259 | 479 | 1027 | 514 | 994 |  |  | 1508 |
|  | 4865 | 5836 | 5788 | 4485 | 20974 | 5104 | 7405 | - | - | 12509 |
| Adjusted EBITDA (Non-GAAP) | $9928 | $7970 | $12873 | $12987 | $43758 | $15551 | $12267 | $- | $- | $27818 |
| Adjusted EBITDA as a % of Net Sales | 7.1% | 6.1% | 8.9% | 8.5% | 7.7% | 10.2% | 8.9% |  |  | 9.6% |
| ADJUSTED NET INCOME AND <br>EARNINGS/(LOSS) PER SHARE: |  |  |  |  |  |  |  |  |  |  |

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**Strattec Generated $14 million in Cash from Operations in Second Quarter Fiscal 2026 <br>February 5, 2026**

**Page 9 of 10**

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Net income attributable to Strattec (GAAP) | $3703 | $1319 | $5396 | $8267 | $18685 | $8529 | $4947 |  | $13476 |
| Adjustments: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Restructuring and similar charges | - | 265 | 809 | (676) | 398 | 570 | 1165 |  | 1735 |
| &nbsp;&nbsp;&nbsp;Executive transition costs | 1224 | 1225 | 214 | 115 | 2778 | 136 | 88 |  | 224 |
| &nbsp;&nbsp;&nbsp;Business transformation costs | 74 | 215 | 259 | 479 | 1027 | 514 | 994 |  | 1508 |
| &nbsp;&nbsp;&nbsp;Non-controlling interest impact on above adjustments | - | - | (160) | 160 | - | (196) | 190 |  | (6) |
| &nbsp;&nbsp;&nbsp;Tax effect on above adjustments | (292) | (384) | (376) | 107 | (945) | (383) | (335) |  | (718) |
|  | 1006 | 1321 | 746 | 185 | 3258 | 641 | 2102 | - | 2743 |
| Adjusted Net Income attributable to Strattec (Non-GAAP) | $4709 | $2640 | $6142 | $8452 | $21943 | $9170 | $7049 | $- | $16219 |
| Weighted Average Basic Shares Outstanding | 4005 | 4035 | 4039 | 4039 | 4030 | 4054 | 4080 |  | 4067 |
| Weighted Average Diluted Shares Outstanding | 4046 | 4070 | 4085 | 4105 | 4076 | 4127 | 4131 |  | 4128 |
| Diluted earnings per share (GAAP) | $0.92 | $0.32 | $1.32 | $2.01 | $4.58 | $2.07 | $1.20 |  | $3.26 |
| Adjusted dilutive earnings per share (Non-GAAP) | $1.16 | $0.65 | $1.50 | $2.06 | $5.38 | $2.22 | $1.71 |  | $3.93 |

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