Slide 1: Q3 FY2025 Financial Results Conference Call
Q3 FY2025 Financial Results Conference Call May 9, 2025 Nasdaq: STRT Jennifer Slater President and CEO Matthew Pauli Senior Vice President and CFO www.strattec.com
Slide 2: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Statement Certain statements contained in this presentation contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as “an
Slide 3: STRATTEC Q3 FY2025 Highlights
Operational Cash Flow: Generated $20.7 million in Q3 YTD cash from operations of $41.5 million Revenue Growth: up $3.3 million to $144.1 million Driven by strategic pricing actions & favorable product mix Boosted by net new program launches Profitability: Delivered adj. EBITDA of $12.9 million (8.9%
Slide 4: Executing Transformation Amid Uncertainty
Executing Transformation Amid Uncertainty Managing Through Trade Uncertainty Executing Plan to Deliver Value Restructuring in Q3 FY25 expected to deliver ~$5M in annual savings 12% total headcount reduction FYTD Evaluating long-term modernization of manufacturing and assembly processes Price actions
Slide 5: Q3 FY25 Sales Increased 2.4% Y/Y
Ford up 6%: higher volume and added content for power tailgate and latches Stellantis up 14%: new key and lockset content on Dodge Ram Heavy Duty trucks GM down 4%: lower demand across products ($ in millions; narrative compared with prior-year period unless otherwise noted) Q3 FY25 Sales Increased
Slide 6: Higher Gross Profit and Margin Expansion
Gross margin expanded 560 basis points in Q3 Stronger US dollar $4.4 million, or 310 bps, FX benefit Current rate of ~20 MXN peso at 5-year average Margin-accretive strategic pricing actions Materials and labor cost improvements $0.8 million tariff expenses related to U.S. tariff policy changes YTD
Slide 7: Well positioned to manage dynamic tariff environment
Well positioned to manage dynamic tariff environment. ~93% of US imports are USMCA compliant and are not subject to additional tariffs. Strong balance sheet and cost focus provide support as mitigation actions are implemented. TARIFF IMPACT Reassessing our supplier network – focused on in-region for
Slide 8: Strengthening Operations for Efficiency
Increase in ES&A(1) reflects business investment, transformation costs and investments in human capital Up $3.3 million to 11.1% of sales $1.2 million incentive and bonus compensation $0.8 million in restructuring charges $0.8 million timing of engineering spend and outside services Investments in l
Slide 9: Enhanced Earnings Power
($ in millions except earnings per share data; narrative compared with prior-year period unless otherwise noted) Q3 FY25 Net Income(1) up 258% Q3 FY25 Adj. EPS(2) grew 305% to $1.50 Q3 FY25 Adj. EBITDA(2) margin expanded 450 basis points Driven by higher sales volume, FX and cost management initiati
Slide 10: Cash flow, liquidity and capital priorities
$21.0 million increase in operating cash flow Improved operating performance Working capital efficiency improvements, including improvement in days payable outstanding Financial flexibility $62.1 million in cash $47 million available under lines of credit FY 2025 CapEx Focused on new product program
Slide 11: Q3 FY2025 Financial Results Supplemental Slides
www.strattec.com Q3 FY2025 Financial Results Supplemental Slides
Slide 12: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Fiscal 2024 Fiscal 2025 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total ADJUSTED NET SALES: Net Sales (GAAP) 135,406 118,532 140,773 143,055 $537,766 139,052 129,919 144,082 - $413,053 Adjustments: - Retroactive FY23 one-time pricing recovery (7,950) (1,551)
Slide 13: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Fiscal 2024 Fiscal 2025 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total ADJUSTED NET INCOME AND EARNINGS/(LOSS) PER SHARE: Net income attributable to STRATTEC (GAAP) $ 4,165 $ 1,022 $ 1,506 $ 9,620 $ 16,313 $ 3,703 $ 1,319 $ 5,396 $ - $ 10,418 Adjustments: R
Slide 14: Investor Relations Contact
Q3 FY2025 Financial Results May 8, 2025 Nasdaq: STRT www.strattec.com Investor Relations Contact: Deborah K. Pawlowski, Alliance Advisors IR 716-843-3908 dpawlowski@Allianceadvisors.com