Expect continued pressure on STRT shares given the earnings miss, declining revenue, and guidance for further top-line contraction. Monitor for potential restructuring acceleration or M&A activity as the company seeks to offset operational headwinds. Weak fundamentals likely keep the stock underperforming near-term.
Price Chart
Executive Summary
Strattec's Q3 FY2026 earnings missed Street expectations: adjusted EPS of $0.90 fell 21% short of the $1.14 consensus, and revenue declined 4.5% YoY to $137.6M, driven by lower production volumes and EV program cancellations. Management guided Q4 revenue down another 3-4%, signaling continued headwinds. Despite gross margin expansion and a solid balance sheet, the fundamental deterioration points to near-term bearish pressure.
Key Financial Metrics
Key Facts
- Q3 FY2026 revenue $137.6M, down 4.5% YoY from $144.1M
- GAAP diluted EPS $0.78 vs $1.32 YoY; adjusted diluted EPS $0.90 vs $1.50 YoY
- Adjusted EPS $0.90 missed consensus of $1.14 (21% miss)
- Gross margin improved 50 bps to 16.5%, but operating margin fell to 3.7% from 4.9%
- Management expects Q4 FY2026 revenue to decline 3-4% YoY
- Cash from operations $11.4M vs $20.7M YoY; cash balance $107M, debt reduced to $1.0M
Financial Impact
Adjusted EPS miss of $0.24 (21%) versus consensus; revenue decline of $6.5M (4.5%) YoY; negative guidance for Q4.
Risk Factors
- Further deterioration in North American auto production volumes
- Additional EV program cancellations or platform changes
- Persistent FX headwinds from peso strength
- Inability to achieve targeted 18-20% gross margins amid cost pressures
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-212420 |
| Document: strt-20260507.htm | 0001193125-26-212420 |
| Document: strt-ex99_2.htm | 0001193125-26-212420 |
| Document: 0001193125-26-212420-index-headers.html | 0001193125-26-212420 |
| Document: 0001193125-26-212420-index.html | 0001193125-26-212420 |
| Document: 0001193125-26-212420.txt | 0001193125-26-212420 |
| 8-K Data (Synthetic) | 0001193125-26-212420 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 16, 2026 5w ago | DEF 14A | $68.50 | awaiting T+60 | — | $62.51 (−8.74%) |
Jun 11, 2026 19w ago | Institutional Cluster | $78.79 $75.84 | ▼ −3.74% | ▼ −8.14% | $62.51 (−20.66%) |
May 12, 2026 24w ago | Insider Cluster | $62.76 $86.82 | ▲ +38.34% | ▲ +33.95% | $62.51 (−0.40%) |
May 7, 2026 24w ago | 8-K | $62.45 $88.48 | ▼ −41.68% | ▼ −36.84% | $62.51 (−0.10%) |
US Market Status
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