STRATTEC SECURITY CORPORATION (STRT)

Over the past six months, STRATTEC Security Corp.'s stock has experienced significant growth, with the share price increasing by 90.69% from December 30, 2024, to December 26, 2025, and reaching a new 52-week high of $83.19 on December 19, 2025. In Q1 Fiscal Year 2025, the company reported improved pricing, a favorable product mix, and innovative content, with revenue growing 2.7% year-over-year and adjusted diluted earnings per share (EPS) of $0.92. In Q2 Fiscal Year 2025, STRATTEC announced solid financial results driven by production trends with key customers and higher-value content and restructured its U.S. manufacturing operations, anticipating $1.2 million in annualized savings. In Q3 Fiscal Year 2025, the company generated strong cash from operations of $20.7 million and saw net income increase to $5.4 million, with net sales rising by 2.4% due to price increases and a favorable product mix. Recent tariff changes are estimated to result in $9-12 million in incremental annual costs, and insider selling amounted to $199,050.00 in the past three months.

Demand for STRATTEC's products and services is influenced by the inherent seasonality of the automotive industry. Typically, July and August experience slower demand due to summer vacation shutdowns and model year changeovers at automotive assembly plants. September usually marks a rapid increase in volumes as new model years begin, a trend that generally continues through October and into early November. As the holiday and winter seasons approach, demand for automobiles, and consequently production, tends to slow. March typically brings a significant increase in sales and production, which then persists through most of June. This cyclical pattern generally results in STRATTEC's first fiscal quarter (July-September) being its weakest in terms of sales and operating results, with the remaining quarters demonstrating more consistency.

STRATTEC Security Corp. specializes in automotive security, access control, and user interface control products and solutions, operating within the Consumer Discretionary sector, specifically in the Auto Parts: O.E.M. industry. The company's product portfolio includes mechanical and electronically enhanced locks and keys, key fobs, passive entry passive start systems (PEPS), digital key and phone-as-a-key systems, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power tailgate and liftgate systems, power deck lid systems, door handles, steering wheel switches and controllers, E-shifters, and paddle switches. STRATTEC also provides full-service and aftermarket support for its products.

STRATTEC's primary market is North America, serving leading automotive Original Equipment Manufacturers (OEMs). The company's products are shipped to customer locations across the United States, Canada, Mexico, Europe, South America, Korea, and China. STRATTEC maintains manufacturing and engineering facilities in the United States, Mexico, and Europe.

STRATTEC has cultivated a strong brand reputation, recognized as a leading global provider of advanced automotive access, security & authorization and select user interface solutions. The company is noted for its strong legacy in the automotive industry, its solid customer base and its reputation for innovation. STRATTEC has been consistently at the forefront of innovation in vehicle security, transitioning from mechanical to integrated electro-mechanical systems. Its strategic pivot towards advanced electronic security products has been highlighted, and the company has outpaced industry earnings growth with a 48% increase over the past year. STRATTEC boasts a solid debt profile, reducing its debt-to-equity ratio from 16% to 2% over five years.

STRATTEC Security Corp.'s ownership is heavily concentrated among institutional investors, who hold between 73.33% and 81% of the company's stock. Major institutional owners include Gamco Investors, Inc. Et Al, BlackRock, Inc., Dimensional Fund Advisors Lp, Vanguard Group Inc, Gabelli Funds Llc, Millennium Management Llc, Acadian Asset Management Llc, and Gate City Capital Management LLC. Company insiders hold a smaller but significant portion, ranging from 3.90% to 13.98% of the stock, while retail shareholders account for the remainder.