STRTNasdaqMotor Vehicle Parts & AccessoriesUS GAAP · USD

STRATTEC SECURITY CORPORATION

STRATTEC SECURITY CORP designs and manufactures highly engineered automotive access and security products for vehicle makers and related channels. The company is headquartered in Milwaukee, Wisconsin and operates manufacturing facilities in the United States and Mexico, serving OEM and aftermarket customers globally.

Revenue579m USD
+2.5 %y/y
Operating profit (EBIT)26.5m USD
+16.4 %y/y
EBIT margin4.6%
+0.5 ppy/y
Net income20.6m USD
+10.2 %y/y
Free cash flow39.0m USD
−39.6 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

-2000200400600m USD2021: 485 m USD2021: EBIT 34 m USD20212022: 452 m USD2022: EBIT 8.9 m USD20222023: 493 m USD2023: EBIT -6.1 m USD20232024: 538 m USD2024: EBIT 18 m USD20242025: 565 m USD2025: EBIT 23 m USD20252026: 579 m USD2026: EBIT 27 m USD202657927
RevenueOperating profit (EBIT)

Business

Share of revenue
Security and authorization products45 %

Locks, keys, fobs, digital key and entry/start authorization systems.

Vehicle access systems30 %

Door handles, latches, power access and related access hardware.

Ignition and steering column components15 %

Ignition lock housings and related steering column security parts.

Aftermarket and service channel products10 %

Replacement and service-channel sales of access and security parts.

Customers

The company sells primarily to automotive and light truck OEMs, with additional sales to other transportation OEMs, service channels and the aftermarket. Its products are typically engineered into specific vehicle platforms, so customer demand depends on vehicle production volumes and platform content decisions.

North American automotive OEMs

Buy locks, keys, fobs, latches and access systems for vehicle platforms; core demand driver.

Major OEM accounts

General Motors, Ford and Stellantis source model-specific products across multiple programs.

Tier 1 suppliers

Purchase selected components or assemblies tied to OEM platform requirements.

Aftermarket and OEM service channels

Buy replacement and service parts such as keys, locks and fobs.

Other transportation OEMs

Buy customized access and security products outside the core light-vehicle base.

Strategy

The company is focused on business transformation, using upgraded systems, modernized support functions and manufacturing productivity to improve its operating model. It also aims to grow organically by adding content on current platforms, winning new platforms, expanding with existing customers and broadening its reach beyond core automotive accounts.

Operational transformationMedium term

Better systems and manufacturing discipline should improve execution and cost structure.

Organic growth with OEMsMedium term

More content per platform and new program wins deepen customer relationships and revenue visibility.

Broaden end-market exposureLong term

Expanding beyond core automotive programs can diversify demand over time.

Geography

STRATTEC is headquartered in Milwaukee, Wisconsin and manufactures substantially all of its products in the United States and Mexico. The company serves a global customer base, but its business is concentrated in North America, where it is tied to OEM production cycles and cross-border supply chains.

Risks

The business is exposed to OEM production volatility, especially because a large share of sales is concentrated with a few major North American automakers. Cross-border trade, tariffs, foreign exchange and Mexico labor inflation can affect costs and supply chain efficiency, while cybersecurity and warranty exposure can create operational and financial disruption.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Cross-border trade and tariffs1Customer concentration2OEM production volatility3Foreign exchange and labor inflation4Warranty and product quality claims5Cybersecurity and IT disruption6
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Cross-border trade and tariffsImpact: HighLikelihood: High

    The company imports and exports parts across the U.S., Mexico and other markets.

    ExposureUnited StatesMexicoCanadaChinaEurope
  2. Customer concentrationImpact: HighLikelihood: Medium

    A significant portion of sales comes from a small number of major OEMs.

    ExposureGeneral MotorsFordStellantis
  3. OEM production volatilityImpact: HighLikelihood: Medium

    Products are tied to specific vehicle platforms and production volumes.

    Exposure: North American light vehicle programs

  4. Foreign exchange and labor inflationImpact: MediumLikelihood: High

    Mexican operations expose the company to peso moves and wage inflation.

    Exposure: Mexico operations

  5. Warranty and product quality claimsImpact: MediumLikelihood: Medium

    Claims depend on platform content, volumes and customer negotiations.

    Exposure: Vehicle access and security products

  6. Cybersecurity and IT disruptionImpact: MediumLikelihood: Medium

    Manufacturing, order processing and customer data depend on secure systems.

    ExposureInternal networksCloud servicesPartner systems

Accounting

Judgemental items
Revenue recognition and variable consideration

Vehicle program contracts may include price adjustments and estimated consideration.

Impact: Can shift revenue timing and reported margins

Warranty reserve

Reserve estimates rely on historical claims, current trends and settlements.

Impact: Can materially affect operating expense and liabilities

Unrecognized tax benefits

Cross-jurisdiction tax positions may be challenged by authorities.

Impact: Can create uncertain future cash payments

Lease obligations

Operating leases, including the El Paso warehouse, create fixed commitments.

Impact: Affects lease liabilities and cash requirements

Post-employment benefit assumptions

Discount rates and compensation growth assumptions drive actuarial liabilities.

Impact: Can change pension and termination benefit expense

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026