STRATTEC SECURITY CORPORATION (STRT) reports earnings

The report was filed on February 7, 2025

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STRATTEC SECURITY CORPORATION (STRT-5.87%) has submitted its 10-Q filing for the quarterly period ended December 29, 2024.

The filing includes financial statements for the quarter, showing an increase in net sales to $129.9 million, up from $118.5 million in the same quarter the previous year. This growth was driven by new program launches and increased production volumes.

Cost of goods sold for the quarter was $112.8 million, representing 86.8% of sales, compared to 88.6% in the same quarter of the previous year. The improvement in cost ratio is attributed to better leverage of fixed costs and favorable currency exchange rates.

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The company reported a gross profit of $17.2 million for the quarter, compared to $13.5 million in the previous year, with the increase attributed to higher sales volumes and improved cost management.

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Engineering, selling, and administrative expenses increased to $15.0 million from $13.4 million, primarily due to business transformation costs and restructuring charges.

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Net income for the quarter was $1.4 million, up from $0.8 million in the previous year. The increase is attributed to higher sales and improved gross margins.

Cash provided by operating activities was $20.8 million, while cash used in investing activities was $3.0 million.

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STRATTEC had a working capital of $123 million as of December 29, 2024. The company is focused on improving its cost structure and securing new platforms for future sales growth.

The filing also details various financial agreements, including a $40 million secured revolving credit facility with BMO Harris Bank N.A.

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STRATTEC does not anticipate any significant changes in its dividend policy in the near future.

The company continues to focus on its core automotive security and access solutions, serving major OEMs in North America and globally.

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This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the STRATTEC SECURITY CORPORATION quarterly 10-Q report dated February 7, 2025. To report an error, please email earnings@qz.com.