--06-28falseQ200009330342026October 31, 2028August 31, 2026November 30, 2025December 31, 2026http://fasb.org/srt/2025#ChiefExecutiveOfficerMember0000933034us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-12-280000933034us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2025-09-292025-12-280000933034strt:OtherProductMemberstrt:ReportableSegmentMember2025-09-292025-12-280000933034us-gaap:NoncontrollingInterestMember2024-09-302024-12-290000933034strt:StellantisFormerlyFiatChryslerAutomobilesMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2024-07-012025-06-290000933034us-gaap:NoncontrollingInterestMember2024-07-012024-09-290000933034strt:ReportableSegmentMember2024-07-012024-12-290000933034us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-09-280000933034us-gaap:RetainedEarningsMember2024-12-290000933034strt:ReportableSegmentMemberstrt:UserInterfaceControlsMember2025-09-292025-12-280000933034us-gaap:NoncontrollingInterestMember2025-09-292025-12-280000933034us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2025-06-302025-12-280000933034us-gaap:TreasuryStockCommonMember2024-09-290000933034strt:OtherProductMemberstrt:ReportableSegmentMember2025-06-302025-12-280000933034us-gaap:NoncontrollingInterestMember2024-06-300000933034us-gaap:SalesRevenueNetMemberstrt:GeneralMotorsCompanyMemberus-gaap:CustomerConcentrationRiskMember2024-09-302024-12-290000933034us-gaap:RelatedPartyMember2024-07-012024-12-2900009330342024-07-012024-12-290000933034us-gaap:AdditionalPaidInCapitalMember2024-09-302024-12-290000933034us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberstrt:TotalOfMajorCustomersMember2024-09-302024-12-290000933034strt:KeysAndLocksetsMemberstrt:ReportableSegmentMember2024-09-302024-12-290000933034us-gaap:RetainedEarningsMember2024-07-012024-09-290000933034us-gaap:AdditionalPaidInCapitalMember2025-06-302025-09-280000933034strt:LatchesMemberstrt:ReportableSegmentMember2024-09-302024-12-290000933034us-gaap:RestrictedStockMember2024-12-290000933034strt:PowerAccessSolutionsMemberstrt:ReportableSegmentMember2024-09-302024-12-290000933034us-gaap:SalesRevenueNetMemberstrt:GeneralMotorsCompanyMemberus-gaap:CustomerConcentrationRiskMember2025-09-292025-12-280000933034strt:ReportableSegmentMemberstrt:UserInterfaceControlsMember2024-07-012024-12-290000933034us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-290000933034us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2025-12-280000933034strt:AftermarketAndServiceMemberstrt:ReportableSegmentMember2025-06-302025-12-280000933034us-gaap:CommonStockMember2025-09-280000933034strt:StellantisFormerlyFiatChryslerAutomobilesMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2024-09-302024-12-290000933034us-gaap:AdditionalPaidInCapitalMember2025-12-280000933034strt:TwoThousandTwentyFourEquityIncentivePlanMember2025-12-2800009330342025-10-272025-10-270000933034us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-290000933034us-gaap:CommonStockMember2025-09-292025-12-280000933034us-gaap:PerformanceSharesMember2024-12-290000933034us-gaap:TreasuryStockCommonMember2024-06-300000933034us-gaap:RelatedPartyMember2025-06-290000933034strt:PowerAccessSolutionsMemberstrt:ReportableSegmentMember2025-06-302025-12-280000933034strt:ADACSTRATTECLLCCreditFacilityMember2025-06-302025-12-280000933034us-gaap:RelatedPartyMember2024-09-302024-12-290000933034strt:StellantisFormerlyFiatChryslerAutomobilesMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2024-07-012024-12-290000933034us-gaap:NoncontrollingInterestMember2025-12-2800009330342025-06-302025-09-280000933034us-gaap:NoncontrollingInterestMember2024-12-290000933034us-gaap:RetainedEarningsMember2024-06-300000933034us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-09-290000933034us-gaap:AdditionalPaidInCapitalMember2025-09-292025-12-280000933034us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300000933034strt:KeysAndLocksetsMemberstrt:ReportableSegmentMember2024-07-012024-12-290000933034strt:KeysAndLocksetsMemberstrt:ReportableSegmentMember2025-09-292025-12-280000933034strt:LatchesMemberstrt:ReportableSegmentMember2025-06-302025-12-280000933034us-gaap:PerformanceSharesMember2025-06-290000933034us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-06-300000933034us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2025-09-292025-12-280000933034us-gaap:NoncontrollingInterestMember2024-09-290000933034strt:ReportableSegmentMember2025-09-292025-12-280000933034us-gaap:TreasuryStockCommonMember2025-06-302025-09-2800009330342025-06-290000933034strt:STRATTECCreditFacilityMember2025-12-280000933034us-gaap:RelatedPartyMember2025-06-302025-12-280000933034us-gaap:TreasuryStockCommonMember2025-09-292025-12-2800009330342024-06-300000933034us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberstrt:TotalOfMajorCustomersMember2025-06-302025-12-280000933034us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-09-302024-12-290000933034strt:GeneralMotorsCompanyMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2025-06-290000933034us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2025-12-280000933034us-gaap:AdditionalPaidInCapitalMember2024-09-290000933034strt:DoorHandlesAndExteriorTrimMemberstrt:ReportableSegmentMember2025-09-292025-12-280000933034us-gaap:CommonStockMember2024-09-290000933034us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-302024-12-290000933034us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-09-302024-12-2900009330342025-12-280000933034us-gaap:RetainedEarningsMember2025-09-280000933034us-gaap:NoncontrollingInterestMember2025-06-290000933034us-gaap:RelatedPartyMember2025-09-292025-12-280000933034us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-06-300000933034us-gaap:RetainedEarningsMember2025-06-302025-09-280000933034strt:StellantisFormerlyFiatChryslerAutomobilesMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2025-06-2900009330342024-12-290000933034us-gaap:NoncontrollingInterestMember2025-06-302025-09-280000933034strt:DoorHandlesAndExteriorTrimMemberstrt:ReportableSegmentMember2024-09-302024-12-290000933034strt:ReportableSegmentMemberstrt:UserInterfaceControlsMember2025-06-302025-12-280000933034strt:ADACSTRATTECLLCCreditFacilityMember2025-12-2800009330342024-07-012024-09-290000933034us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-09-292025-12-280000933034us-gaap:RetainedEarningsMember2025-09-292025-12-2800009330342025-10-270000933034strt:StellantisFormerlyFiatChryslerAutomobilesMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2025-12-280000933034us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2025-09-2800009330342026-01-300000933034strt:PowerAccessSolutionsMemberstrt:ReportableSegmentMember2024-07-012024-12-290000933034us-gaap:CommonStockMember2025-06-290000933034us-gaap:SecuredOvernightFinancingRateSofrMember2025-10-272025-10-270000933034us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-12-290000933034us-gaap:AdditionalPaidInCapitalMember2024-12-290000933034us-gaap:CommonStockMember2024-06-300000933034strt:OtherProductMemberstrt:ReportableSegmentMember2024-07-012024-12-290000933034us-gaap:NoncontrollingInterestMember2025-09-280000933034strt:ReportableSegmentMember2025-06-302025-12-280000933034strt:STRATTECCreditFacilityMember2024-12-290000933034us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberstrt:TotalOfMajorCustomersMember2025-09-292025-12-280000933034us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-290000933034us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberstrt:FordMotorCompanyMember2025-06-290000933034us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberstrt:TotalOfMajorCustomersMember2024-07-012024-12-290000933034us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2025-06-302025-12-280000933034us-gaap:SalesRevenueNetMemberstrt:GeneralMotorsCompanyMemberus-gaap:CustomerConcentrationRiskMember2025-06-302025-12-280000933034us-gaap:AdditionalPaidInCapitalMember2025-09-280000933034us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-302025-09-280000933034us-gaap:RestrictedStockMember2025-06-2900009330342024-09-302024-12-290000933034us-gaap:RelatedPartyMember2025-12-280000933034strt:OtherProductMemberstrt:ReportableSegmentMember2024-09-302024-12-290000933034us-gaap:RetainedEarningsMember2025-12-280000933034us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberstrt:FordMotorCompanyMember2025-06-302025-12-280000933034strt:GeneralMotorsCompanyMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2024-07-012025-06-290000933034us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberstrt:TotalOfMajorCustomersMember2025-06-302025-12-280000933034us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-290000933034strt:ADACSTRATTECLLCCreditFacilityMember2024-07-012024-12-290000933034us-gaap:AdditionalPaidInCapitalMember2024-06-300000933034us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2025-06-290000933034us-gaap:TreasuryStockCommonMember2025-09-280000933034strt:StellantisFormerlyFiatChryslerAutomobilesMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2025-06-302025-12-280000933034strt:ADACSTRATTECLLCCreditFacilityMember2025-06-290000933034strt:CurrencyBuySellUnderContractMember2025-06-302025-12-280000933034us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-290000933034us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberstrt:FordMotorCompanyMember2024-07-012025-06-290000933034us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberstrt:FordMotorCompanyMember2024-07-012024-12-290000933034strt:StellantisFormerlyFiatChryslerAutomobilesMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2025-06-302025-12-280000933034us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberstrt:TotalOfMajorCustomersMember2024-07-012025-06-290000933034us-gaap:AdditionalPaidInCapitalMember2025-06-290000933034strt:ReportableSegmentMember2024-09-302024-12-290000933034us-gaap:CommonStockMember2025-12-280000933034us-gaap:SalesRevenueNetMemberstrt:GeneralMotorsCompanyMemberus-gaap:CustomerConcentrationRiskMember2024-07-012024-12-290000933034us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-07-012024-12-290000933034strt:LatchesMemberstrt:ReportableSegmentMember2025-09-292025-12-280000933034strt:KeysAndLocksetsMemberstrt:ReportableSegmentMember2025-06-302025-12-280000933034us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2025-06-2900009330342024-09-290000933034strt:DoorHandlesAndExteriorTrimMemberstrt:ReportableSegmentMember2024-07-012024-12-290000933034us-gaap:TreasuryStockCommonMember2024-12-290000933034us-gaap:CommonStockMember2024-12-290000933034strt:GeneralMotorsCompanyMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2025-06-302025-12-280000933034us-gaap:RetainedEarningsMember2025-06-290000933034us-gaap:TreasuryStockCommonMember2024-07-012024-09-290000933034us-gaap:RestrictedStockMember2025-06-302025-12-280000933034strt:DoorHandlesAndExteriorTrimMemberstrt:ReportableSegmentMember2025-06-302025-12-280000933034strt:AftermarketAndServiceMemberstrt:ReportableSegmentMember2025-09-292025-12-280000933034us-gaap:RestrictedStockMember2025-12-280000933034strt:AftermarketAndServiceMemberstrt:ReportableSegmentMember2024-09-302024-12-290000933034us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberstrt:FordMotorCompanyMember2025-09-292025-12-280000933034us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberstrt:TotalOfMajorCustomersMember2025-06-290000933034strt:GeneralMotorsCompanyMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2025-12-2800009330342025-06-302025-12-280000933034strt:STRATTECCreditFacilityMember2025-10-270000933034us-gaap:TreasuryStockCommonMember2025-12-280000933034us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberstrt:FordMotorCompanyMember2024-09-302024-12-290000933034us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberstrt:FordMotorCompanyMember2025-06-302025-12-280000933034strt:ADACSTRATTECLLCCreditFacilityMemberus-gaap:SecuredOvernightFinancingRateSofrMember2025-06-302025-12-280000933034us-gaap:PerformanceSharesMember2025-12-280000933034us-gaap:PerformanceSharesMember2025-06-302025-12-280000933034strt:CurrencyBuySellUnderContractMember2025-12-280000933034strt:LatchesMemberstrt:ReportableSegmentMember2024-07-012024-12-290000933034us-gaap:RetainedEarningsMember2024-09-302024-12-290000933034strt:StellantisFormerlyFiatChryslerAutomobilesMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2025-09-292025-12-280000933034strt:ReportableSegmentMemberstrt:UserInterfaceControlsMember2024-09-302024-12-290000933034strt:AftermarketAndServiceMemberstrt:ReportableSegmentMember2024-07-012024-12-290000933034us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberstrt:TotalOfMajorCustomersMember2025-12-280000933034us-gaap:TreasuryStockCommonMember2024-09-302024-12-290000933034us-gaap:RetainedEarningsMember2024-09-290000933034strt:ADACSTRATTECLLCCreditFacilityMemberus-gaap:PrimeRateMember2025-06-302025-12-280000933034us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-09-290000933034us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-12-290000933034us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberstrt:FordMotorCompanyMember2025-12-280000933034us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2024-07-012024-12-290000933034us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2025-09-2800009330342025-09-292025-12-2800009330342025-09-280000933034us-gaap:TreasuryStockCommonMember2025-06-290000933034strt:PowerAccessSolutionsMemberstrt:ReportableSegmentMember2025-09-292025-12-28utr:Ratexbrli:pureiso4217:USDxbrli:sharesxbrli:sharesiso4217:USD

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 28, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 0-25150

STRATTEC SECURITY CORPORATION

(Exact Name of Registrant as Specified in Its Charter)


Wisconsin		39-1804239
(State of Incorporation)		(I.R.S. Employer Identification No.)

3333 West Good Hope Road, Milwaukee, WI 53209

(Address of Principal Executive Offices)

(414) 247-3333

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of exchange on which registered
Common stock, $.01 par value	STRT	The Nasdaq Global Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller Reporting Company	☒
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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.

Common stock, par value $0.01 per share: 4,179,778 shares outstanding as of January 30, 2026 (which number includes all restricted shares previously awarded that have not vested as of such date).

STRATTEC SECURITY CORPORATION

TABLE OF CONTENTS

December 28, 2025


		Page
PART 1. FINANCIAL INFORMATION
Item 1.	Financial Statements	4
	Condensed Consolidated Statement of Income (Unaudited)	4
	Condensed Consolidated Statement of Comprehensive Income (Unaudited)	5
	Condensed Consolidated Balance Sheets (Unaudited)	6
	Condensed Consolidated Statements of Cash Flows (Unaudited)	7
	Condensed Consolidated Statements of Shareholders' Equity (Unaudited)	8
	Notes to Condensed Consolidated Financial Statements (Unaudited)	9
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	17
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	21
ITEM 4.	Controls and Procedures	21

Part II. OTHER INFORMATION
ITEM 1.	Legal Proceedings
ITEM 1A.	Risk Factors	22
ITEM 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	22
ITEM 3.	Defaults Upon Senior Securities	23
ITEM 4.	Mine Safety Disclosures	23
ITEM 5.	Other Information	23
ITEM 6.	Exhibits	23

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

In this Quarterly Report on Form 10-Q for Strattec Security Corporation ("Strattec," "the Company," "we," "us," or "our"), statements that are not reported financial results or other historic information are "forward-looking statements." These forward-looking statements relate to, among other things, the Company's future financial position, business strategy, targets, projected sales, costs, income, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations. The use of words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "project" or "plan" or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors, some of which are beyond the Company's control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements.

The Company’s operations and financial performance are subject to certain risks and uncertainties, including:

•

an uncertain economic environment and inflationary conditions coupled with the cyclical nature of the automotive industry may adversely affect global vehicle production and demand for our products;

•

we operate in a highly competitive market and technological developments within our sphere of offerings are rapidly evolving;

•

changes in customer purchasing actions, warranty provisions and product recall policies could adversely affect our business, results of operations and financial condition;

•

work stoppages within our operations or at the location of our key customers as a result of labor disputes could adversely impact our business, results of operations and financial condition;

•

labor cost inflation or unionization efforts in Mexico, coupled with a shortage of skilled laborers in the United States, could increase our manufacturing expenses and impact production efficiency;

•

changes in tariffs or international trade policies could adversely affect our results, particularly with respect to goods imported into the United States or produced under U.S. trade agreements such as the USMCA;

•

delays and restrictions impacting the import of goods and components stemming from heightened security procedures or changes in policies implemented by the U.S. or Mexican governments related to U.S.-Mexico border crossings could have a negative effect on our business;

•

an increase in the volume and scope of product returns or customer cost reimbursement actions could adversely impact our business, results of operations and financial condition;

•

our ability to manage changes in the costs of operations, warranty claims, adverse business and operational issues could be affected by a material global supply chain and logistics disruption;

•

future shortages in the supply of semiconductor chips and other matters adversely impacting the timing, availability and costs of material component parts and raw materials for the production of our products could adversely affect our business, results of operations and financial condition;

•

macroeconomic and geopolitical conditions, including regional conflicts, could adversely affect our business, results of operations and financial condition;

•

interruptions to our information security management systems and cybersecurity incidents could adversely affect our business, results of operations and financial condition; and

•

other matters including, but not limited to, the factors listed in the “Risk Factors” in Part I, Item 1A included in the Company’s Annual Report on Form 10-K for the year ended June 29, 2025 filed with the SEC on August 25, 2025 (the "Annual Report").

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. The forward-looking statements made herein are only made as of the date of this Form 10-Q and the Company undertakes no obligation to update such forward-looking statements.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

STRATTEC SECURITY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in thousands, except per share amounts)


	Three Months Ended						Six Months Ended
	December 28, 2025			December 29, 2024			December 28, 2025			December 29, 2024
Net sales	$	137,534		$	129,919		$	289,933		$	268,971
Cost of goods sold		114,812			112,768			240,876			232,899
Gross profit		22,722			17,151			49,057			36,072
Selling, administrative and engineering expenses		17,860			15,017			33,748			28,875
Income from operations		4,862			2,134			15,309			7,197
Interest income		885			408			1,762			757
Interest expense		(96	)		(257	)		(252	)		(552	)
Other income (expense), net		1,691			(482	)		1,416			(353	)
Income before income taxes and non-controlling interest		7,342			1,803			18,235			7,049
Income tax expense		1,699			405			4,055			1,903
Net income		5,643			1,398			14,180			5,146
Net income attributable to non-controlling interest		696			79			704			124
Net income attributable to Strattec	$	4,947		$	1,319		$	13,476		$	5,022

Earnings per share attributable to Strattec
Basic	$	1.21		$	0.33		$	3.31		$	1.25
Diluted	$	1.20		$	0.32		$	3.26		$	1.24

Weighted average shares outstanding:
Basic		4,080			4,035			4,067			4,020
Diluted		4,131			4,070			4,129			4,058

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements

STRATTEC SECURITY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(in thousands)


	Three Months Ended					Six Months Ended
	December 28, 2025		December 29, 2024			December 28, 2025		December 29, 2024
Net income	$	5,643	$	1,398		$	14,180	$	5,146

Other comprehensive income (loss), net of tax:
Currency translation adjustments		774		(1,245	)		1,787		(4,005	)
Pension and postretirement plans		32		36			64		292
Total other comprehensive income (loss), net of tax		806		(1,209	)		1,851		(3,713	)
Comprehensive income		6,449		189			16,031		1,433
Comprehensive income (loss) attributable to non-controlling interest		984		(407	)		1,377		(1,451	)
Comprehensive income attributable to Strattec	$	5,465	$	596		$	14,654	$	2,884

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements

STRATTEC SECURITY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except share amounts and per share amounts)


	December 28, 2025			June 29, 2025
ASSETS
Current Assets:
Cash and cash equivalents	$	99,027		$	84,579
Receivables, net		89,217			102,061
Inventories:
Finished products		16,955			12,398
Work in process		11,868			11,303
Purchased materials		43,111			41,000
Inventories, net		71,934			64,701
Pre-production costs		6,857			8,657
Value-added tax recoverable		19,858			19,389
Other current assets		6,374			10,676
Total current assets		293,267			290,063
Noncurrent Assets:
Property, plant and equipment:
Land and improvements		6,808			6,582
Buildings and improvements		41,976			39,821
Machinery and equipment		232,369			236,545
Total property, plant and equipment		281,153			282,948
Less: accumulated depreciation		206,517			205,538
Property, plant and equipment, net		74,636			77,410
Deferred income taxes		19,758			19,531
Other noncurrent assets		4,584			4,450
Total Assets	$	392,245		$	391,454
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	59,568		$	65,824
Accrued payroll and benefits		15,709			22,956
Value-added tax payable		12,732			11,933
Warranty reserve		8,567			8,900
Current portion of borrowings under credit facilities		2,500			-
Other current liabilities		13,374			9,737
Total current liabilities		112,450			119,350
Noncurrent Liabilities:
Noncurrent portion of borrowings under credit facilities		-			8,000
Post-employment benefits		12,806			13,325
Other noncurrent liabilities		3,975			4,348
Total Liabilities	$	129,231		$	145,023
Shareholders' Equity:
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
Capital in excess of par value		105,601			103,784
Retained earnings		282,773			269,297
Accumulated other comprehensive loss		(14,935	)		(16,113	)
Less: treasury stock, at cost (3,615,268 shares at December 28, 2025 and 3,596,549 shares at June 29, 2025)		(136,718	)		(135,452	)
Total Strattec shareholders’ equity		236,798			221,592
Non-controlling interest		26,216			24,839
Total Shareholders' Equity		263,014			246,431
Total Liabilities and Shareholders' Equity	$	392,245		$	391,454

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements

STRATTEC SECURITY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)


	Six Months Ended
	December 28, 2025			December 29, 2024
OPERATING ACTIVITIES:
Net income	$	14,180		$	5,146
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		7,678			7,206
Foreign currency transaction loss (gain)		1,134			(1,193	)
Unrealized (gain) loss on peso contracts		(372	)		936
Stock-based compensation expense		1,794			1,079
Other, net		543			816
Change in operating assets and liabilities:
Receivables		12,894			7,379
Inventories		(7,233	)		138
Prepaids and other assets		6,649			7,844
Accounts payable		(6,362	)		(3,990	)
Accrued liabilities		(5,697	)		(4,580	)
Net cash provided by operating activities		25,208			20,781

INVESTING ACTIVITIES:
Purchase of property, plant and equipment		(4,160	)		(2,990	)
Proceeds from sale of property, plant and equipment		259			—
Net cash used in investing activities		(3,901	)		(2,990	)

FINANCING ACTIVITIES:
Borrowings under credit facilities		—			3,000
Repayments under credit facilities		(5,500	)		(3,000	)
Payment for debt issuance costs		(98	)		—
Payment for taxes withheld from stock-based awards		(1,274	)		—
Share issuances		32			28
Net cash (used in) provided by financing activities		(6,840	)		28

Foreign currency impact on cash		(19	)		(604	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		14,448			17,215

CASH AND CASH EQUIVALENTS:
Beginning of period		84,579			25,410
End of period	$	99,027		$	42,625

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes	$	1,157		$	8,539
Interest	$	184		$	559
Non-cash investing activities:
Change in capital expenditures in accounts payable	$	-		$	(450	)

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements

STRATTEC SECURITY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(in thousands)


	Common Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss			Treasury Stock			Non-Controlling Interest		Total Shareholders’ Equity
Balance -- June 29, 2025	$	76	$	103,784	$	269,297	$	(16,113	)	$	(135,452	)	$	24,839	$	246,431
Net income		—		—		8,529		—			—			8		8,537
Currency translation adjustments		—		—		—		628			—			385		1,013
Pension and postretirement adjustment, net of tax		—		—		—		32			—			—		32
Shares withheld for taxes on stock-based awards		—		—		—		—			(919	)		—		(919	)
Stock-based compensation		—		669		—		—			—			—		669
Share issuances		—		11		—		—			5			—		16
Balance -- September 28, 2025	$	76	$	104,464	$	277,826	$	(15,453	)	$	(136,366	)	$	25,232	$	255,779
Net income		—		—		4,947		—			—			696		5,643
Currency translation adjustments		—		—		—		486			—			288		774
Pension and postretirement adjustment, net of tax		—		—		—		32			—			—		32
Shares withheld for taxes on stock-based awards		—		—		—		—			(355	)		—		(355	)
Stock-based compensation		—		1,125		—		—			—			—		1,125
Share issuances		1		12		—		—			3			—		16
Balance -- December 28, 2025	$	77	$	105,601	$	282,773	$	(14,935	)	$	(136,718	)	$	26,216	$	263,014


	Common Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss			Treasury Stock			Non-Controlling Interest			Total Shareholders’ Equity
Balance -- June 30, 2024	$	76	$	101,024	$	250,612	$	(15,689	)	$	(135,478	)	$	25,070		$	225,615
Net income		—		—		3,703		—			—			45			3,748
Currency translation adjustments		—		—		—		(1,671	)		—			(1,089	)		(2,760	)
Pension and postretirement adjustment, net of tax		—		—		—		256			—			—			256
Stock-based compensation		—		188		—		—			—			—			188
Share issuances		—		6		—		—			7			—			13
Balance -- September 29, 2024	$	76	$	101,218	$	254,315	$	(17,104	)	$	(135,471	)	$	24,026		$	227,060
Net income		—		—		1,319		—			—			79			1,398
Currency translation adjustments		—		—		—		(759	)		—			(486	)		(1,245	)
Pension and postretirement adjustment, net of tax		—		—		—		36			—			—			36
Stock-based compensation		—		891		—		—			—			—			891
Share issuances		—		9							6						15
Balance -- December 29, 2024	$	76	$	102,118	$	255,634	$	(17,827	)	$	(135,465	)	$	23,619		$	228,155

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements

STRATTEC SECURITY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Strattec Security Corporation (the "Company" or “Strattec”), headquartered in Milwaukee, Wisconsin, is a leading global manufacturer and provider of highly engineered advanced automotive access and security products and solutions. Products include power access solutions, locks & locksets, keys & fobs, engineered latches, vehicle start systems, door handles, and other vehicle access products. Power access solutions provide the motion control for power liftgates, sliding power doors and power tailgates. While the Company serves major automotive OEMs globally, the majority of sales are to the three largest automobile original equipment manufacturers (“OEMs”) in North America.

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial reporting and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The condensed consolidated balance sheet data as of June 29, 2025 was derived from the Company’s audited financial statements but does not include all disclosures required by GAAP. For additional information, including the Company’s significant accounting policies, refer to the consolidated financial statements and related footnotes in the Annual Report.

In the opinion of management, all adjustments considered necessary for a fair statement of financial results have been made. Such adjustments consist of only those of a normal recurring nature. Operating results for the three and six months ended December 28, 2025 are not necessarily indicative of the results that may be expected for the entire fiscal year ending June 28, 2026. The condensed consolidated financial statements include the results of all wholly owned subsidiaries, as well as the results of a majority owned joint venture.

NOTE 2. RECENTLY ISSUED ACCOUNTING STANDARDS

In December 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU is intended to enhance the transparency and decision usefulness of income tax disclosures to provide information to better assess how an entity's operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. For the Company, this ASU is effective for annual periods beginning after December 15, 2024 (fiscal 2026). The adoption of ASU 2023-09 will not affect the Company’s financial position or its results of operations but will result in additional disclosures for the fiscal 2026 annual period and for interim periods thereafter.

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation, intangible asset amortization and depletion) included in certain expense captions presented on the face of the income statement. The ASU is effective for fiscal years beginning after December 15, 2026 (fiscal 2028) and for interim periods beginning after December 15, 2027 (fiscal 2029). The adoption of ASU 2024-03 will not affect the Company’s financial position or its results of operations but will result in additional disclosures for the fiscal 2028 annual period and for interim periods thereafter.

NOTE 3. WARRANTY

The Company generally offers its customers an assurance warranty on products sold, although warranty periods may vary by product type and application. The Company has a warranty reserve related to known and potential exposure to warranty claims in the event products fail to perform as expected and in the event the Company may be required to participate in the repair costs incurred by customers for such products. The estimation of the warranty reserve involves judgment and assumptions and is based on an analysis of historical warranty data as well as current trends and information. Changes in the warranty reserve were as follows (in thousands):


	Three Months Ended						Six Months Ended
	December 28, 2025			December 29, 2024			December 28, 2025			December 29, 2024
Balance, beginning of period	$	9,848		$	10,698		$	8,900		$	10,695
Provision charged to expense		933			582			1,893			969
Payments, net of recoveries		(2,214	)		(334	)		(2,226	)		(718	)
Balance, end of period	$	8,567		$	10,946		$	8,567		$	10,946

NOTE 4. CREDIT FACILITIES

On October 27, 2025, the Company entered into a new revolving credit agreement with BMO Harris N.A. ("Amended & Restated Credit Agreement"), to replace the existing $40 million Strattec Credit Facility. The Amended & Restated Credit Agreement provides for a $40 million revolving line of credit which matures October 2028. The new facility bears interest at varying rates based on the bank's prime rate or SOFR plus 1.50%. The previous Strattec Credit Facility was terminated upon the closing of the new agreement. There were no outstanding borrowings on either facility during the six months ended December 28, 2025 and December 29, 2024.

The Company's joint venture has an $18 million secured revolving credit facility (the “ADAC-Strattec Credit Facility”) with BMO Harris Bank N.A., which the Company guarantees. The ADAC-Strattec Credit Facility matures in August 2026. Interest on borrowings under the ADAC-Strattec Credit Facility is at varying rates based on the bank's prime rate plus 2% or SOFR plus 3.10%.

The credit facilities are secured by U.S. cash balances, accounts receivable, inventory, and fixed assets located in the U.S. and contain a restrictive financial covenant that requires the applicable borrower to maintain a minimum net worth level. The ADAC-Strattec Credit Facility includes an additional restrictive financial covenant that requires the maintenance of a minimum fixed charge coverage ratio. As of December 28, 2025, the Company was in compliance with all financial covenants.

Outstanding borrowings under the ADAC-Strattec Credit Facility were as follows (in thousands):


	December 28, 2025		June 29, 2025
Outstanding borrowings	$	2,500	$	8,000

Average outstanding borrowings and the weighted average interest rate under the ADAC-Strattec Credit Facility were as follows (in thousands, except percentages):


	Six Months Ended
	December 28, 2025			December 29, 2024
Average outstanding borrowings	$	3,374		$	13,368
Weighted average interest rate		7.1	%		8.2	%

NOTE 5. DERIVATIVE INSTRUMENTS

A portion of the Company's manufacturing costs are incurred in Mexican pesos, which causes earnings and cash flows to fluctuate with changes in the U.S. dollar/Mexican peso exchange rate. During the three and six month periods ended December 28, 2025 and December 29, 2024, the Company entered into contracts with a creditworthy counterparty that provide for monthly Mexican peso currency forward contracts for a portion of peso denominated operating costs. The following table quantifies the outstanding forward contracts as of December 28, 2025 (in thousands, except with respect to the average forward exchange rate):


	Effective Dates	Notional Amount		Average Forward Exchange Rate		Fair Market Value
Buy MXP/Sell USD	November 2025 - December 2026	$	32,152		19.74	$	2,687

NOTE 6. INCOME TAXES

The Company's income tax expense and effective tax rate for the three and six month periods ended December 28, 2025 and December 29, 2024 were as follows (in thousands and percentage of Income before income taxes and non-controlling interest):


	Three Months Ended						Six Months Ended
	December 28, 2025			December 29, 2024			December 28, 2025			December 29, 2024
Income before income taxes and non-controlling interest	$	7,342		$	1,803		$	18,235		$	7,049
Income tax expense	$	1,699		$	405		$	4,055		$	1,903
Effective tax rate		23.1	%		22.5	%		22.2	%		27.0	%

The Company is subject to income taxes in the United States and foreign jurisdictions, primarily Mexico. The Company's income tax positions are based on interpretations of income tax laws and rulings in each of the jurisdictions in which the Company operates. Interim income tax expense is determined based on an estimate of the overall annual effective income tax rate which can vary due to the relationship of foreign and domestic earnings, state taxes and available deductions, credits and discrete items. The effective tax rate for each period presented differs from the U.S. federal statutory rate of 21% primarily due to the accrual of foreign income taxes, which are generally higher than the U.S. federal statutory rate, partially offset by the recognition of U.S. research and development tax credits and discrete income tax benefits associated with share-based payments.

On July 4, 2025, the One Big Beautiful Bill Act was enacted. There are multiple business tax provisions for which further guidance from the U.S. Treasury and the Internal Revenue Service is needed. The Company is currently reviewing and evaluating the impact of the guidance provided to date that could affect our income tax payable and deferred tax liability, including changes related to bonus depreciation and the expensing of research and development expenditures, among other topics.

NOTE 7. RESTRUCTURING

In an effort to optimize its cost structure, the Company implemented a one-time voluntary retirement program during the second quarter of fiscal 2026. The total expected cost of this action is $2.2 million, of which $1.7 million was recognized in the the three months ended December 28, 2025. This cost included $1.3 million of separation payments and $0.4 million for the acceleration of share-based awards. The remaining $0.5 million of cost is expected to be recognized during the remainder of fiscal 2026. Restructuring costs were $0.3 million in the three months ended December 29, 2024. All accrued retirement payments will be paid in the next twelve months. Voluntary retirement expense is reported in the accompanying Condensed Consolidated Statements of Income as part of Selling, Administrative, and Engineering Expenses.

NOTE 8. EARNINGS PER SHARE

A reconciliation of the components of the basic and diluted per-share computations follows (in thousands, except per share amounts):


	Three Months Ended				Six Months Ended
	December 28, 2025		December 29, 2024		December 28, 2025		December 29, 2024
Net income attributable to Strattec	$	4,947	$	1,319	$	13,476	$	5,022

Basic weighted-average shares outstanding		4,080		4,035		4,067		4,020
Effect of dilutive securities - employee stock compensation plan		51		35		62		38
Diluted weighted-average shares outstanding		4,131		4,070		4,129		4,058
Earnings per share attributable to Strattec
Basic	$	1.21	$	0.33	$	3.31	$	1.25
Diluted	$	1.20	$	0.32	$	3.26	$	1.24

NOTE 9. STOCK-BASED COMPENSATION

The Company has granted service-based restricted stock awards ("RSAs") and performance stock units ("PSUs") to employees and non-employee directors under existing stock incentive plans.

The number of shares of the Company's common stock authorized under the current 2024 Equity Incentive Plan is 550,000. As of December 28, 2025, there were 361,794 shares available for future awards.

As of December 28, 2025, there was $1.6 million of unrecognized compensation cost related to non-vested PSUs and $3.5 million of unrecognized compensation cost related to non-vested RSAs, which will be expensed over the remaining vesting period of approximately 2 years. As of December 29, 2024, there was $4.4 million of unrecognized compensation cost related to non-vested RSAs and PSUs.

A summary of restricted stock award and performance stock unit activity was as follows:


	RSAs					PSUs
				Weighted Average				Weighted Average
				Grant Date				Grant Date
	Shares			Fair Value		Shares		Fair Value
Nonvested balance, June 29, 2025		129,139		$	36.37		16,878	$	39.16
Granted		36,912		$	67.45		19,506		68.06
Vested		(63,200	)	$	34.97		-		—
Forfeited		(5,226	)	$	39.93		-		—
Nonvested balance, December 28, 2025		97,625		$	48.35		36,384	$	54.65

NOTE 10. OTHER INCOME (EXPENSE), NET

The following table summarizes the components of Other income (expense), net included in the accompanying consolidated statements of income (in thousands):


	Three Months Ended						Six Months Ended
	December 28, 2025			December 29, 2024			December 28, 2025			December 29, 2024
Foreign currency transaction (loss) gain	$	(463	)	$	188		$	(1,134	)	$	1,193
Rabbi trust assets gain (loss)		59			(19	)		133			77
Realized and unrealized gain (loss) on peso forward contracts, net		1,372			(569	)		2,615			(1,304	)
Non-service pension and postemployment cost		674			(80	)		(333	)		(443	)
Other		49			(2	)		135			124
	$	1,691		$	(482	)	$	1,416		$	(353	)

NOTE 11. ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT

The following tables summarize the changes in accumulated other comprehensive loss (“AOCL”) by component (in thousands):


	Three Months Ended						Six Months Ended
	December 28, 2025			December 29, 2024			December 28, 2025			December 29, 2024
Foreign currency translation adjustments:
Balance, beginning of period	$	14,793		$	16,387		$	15,421		$	14,716
Other comprehensive (income) loss before reclassifications		(774	)		1,245			(1,787	)		4,005
Other comprehensive (income) loss attributable to non-controlling interest		(288	)		486			(673	)		1,575
Balance, end of period		14,307			17,146			14,307			17,146
Retirement and postretirement benefit plans:
Balance, beginning of period	$	660		$	717		$	692		$	973
Other comprehensive (income) loss before reclassifications		—			—			—			—
Unrecognized net income		(32	)		(36	)		(64	)		(292	)
Balance, end of period		628			681			628			681
Accumulated other comprehensive loss, end of period	$	14,935		$	17,827		$	14,935		$	17,827

NOTE 12. RELATED PARTY

The Company owns 51% of a joint venture, which was formed in fiscal 2007 to support customers with painted door handles and exterior trim products from operations in Mexico. The following tables summarize the related party transactions that arise as a result of the joint venture operating agreement (in thousands):


	Three Months Ended				Six Months Ended
	December 28, 2025		December 29, 2024		December 28, 2025		December 29, 2024
Management fee expense	$	2,488	$	2,316	$	5,225	$	4,796
Net sales to joint venture partner	$	1,254	$	1,297	$	3,004	$	3,622


	December 28, 2025		June 29, 2025
Accounts receivable from joint venture partner	$	511	$	731
Accounts payable to joint venture partner	$	5,887	$	7,413

NOTE 13. SEGMENT INFORMATION

The Company's Chief Operating Decision Maker ("CODM") is the Chief Executive Officer. The CODM assesses the performance and makes capital and resource allocation decisions based on Net income attributable to Strattec.

The CODM considers the impact of significant segment expenses on this measure to assess profitability and guide strategic decision making including entering into significant contracts, expanding into new markets or launching new products, making significant capital expenditures, hiring and terminating key personnel and approving operating budgets.

Net sales and significant segment expenses are as follows (in thousands):


	Three Months Ended						Six Months Ended
	December 28, 2025			December 29, 2024			December 28, 2025			December 29, 2024
Net sales	$	137,534		$	129,919		$	289,933		$	268,971
Significant expenses:
Direct material costs		76,420			72,506			160,308			150,575
Labor and overhead costs		38,392			40,262			80,568			82,324
Selling costs		2,534			2,473			5,354			5,084
Administrative costs		8,504			6,159			14,575			10,699
Engineering costs		6,822			6,385			13,819			13,092
Interest income		(885	)		(408	)		(1,762	)		(757	)
Interest expense		96			257			252			552
Other (income) expense, net		(1,691	)		482			(1,416	)		353
Income tax expense		1,699			405			4,055			1,903
Net income		5,643			1,398			14,180			5,146
Net income attributable to non-controlling interest		696			79			704			124
Net income attributable to Strattec	$	4,947		$	1,319		$	13,476		$	5,022

Sales by product group were as follows (in thousands):


	Three Months Ended				Six Months Ended
	December 28, 2025		December 29, 2024		December 28, 2025		December 29, 2024
Power access solutions	$	34,458	$	31,720	$	72,582	$	65,062
Door handles & exterior trim		35,016		32,903		73,661		68,244
Keys & locksets		26,757		20,066		56,087		43,088
Latches		16,322		17,708		36,051		36,819
User interface controls		12,491		13,991		25,337		27,830
Aftermarket and service		9,420		11,091		20,177		22,639
Other		3,070		2,440		6,038		5,289
	$	137,534	$	129,919	$	289,933	$	268,971

Sales to and receivables from customers that individually accounted for 10% or more of the Company's total net sales were as follows (in thousands and percent of total):


	Three Months Ended										Six Months Ended
	December 28, 2025					December 29, 2024					December 28, 2025					December 29, 2024
	Net Sales		%			Net Sales		%			Net Sales		%			Net Sales		%
General Motors Company	$	39,386		29	%	$	39,550		30	%	$	81,164		28	%	$	81,710		30	%
Ford Motor Company		25,436		18			28,956		22			59,295		20			61,093		23
Stellantis		25,329		18			11,727		9			48,121		17			24,492		9
	$	90,151		65	%	$	80,233		61	%	$	188,580		65	%	$	167,295		62	%


	December 28, 2025					June 29, 2025
	Receivables		%			Receivables		%
General Motors Company	$	22,433		25	%	$	26,581		26	%
Ford Motor Company		16,679		19			19,916		20
Stellantis		17,709		20			14,812		15

STRATTEC SECURITY CORP 10-Q