Strattec Security Corporation (STRT): History, Ownership, Mission, How It Works & Makes Money

As an investor, are you defintely overlooking Strattec Security Corporation's (STRT) quiet pivot in the critical automotive access and security market?

This is a company with a 110-year history that just posted fiscal year 2025 revenue of $565.07 million, marking a solid 5.08% year-over-year increase, while simultaneously driving its gross margin up by 280 basis points to 15.0% through operational restructuring and new pricing initiatives. They are transitioning from mechanical products to integrated electro-mechanical solutions like digital key and passive entry systems, a shift that is crucial for securing content on future vehicle platforms.

With institutional heavyweights like BlackRock, Inc. and Vanguard Group Inc. holding significant stakes-part of the 73.33% institutional ownership-the market is clearly signaling that this provider of smart vehicle access is one to watch, especially as their fiscal 2025 cash from operations hit a strong $71.7 million.

Strattec Security Corporation (STRT) History

Strattec Security Corporation's story is one of strategic spin-off and a century-long focus on vehicle access, but the modern company was born in 1995. You need to understand this lineage because it explains their deep Original Equipment Manufacturer (OEM) relationships, which drive their business today. Strattec is defintely not a startup; it's an established industry leader that has consistently adapted its product from simple mechanical locks to complex electro-mechanical security systems.

Given Company's Founding Timeline

Year established

Strattec Security Corporation was formally established in 1995, spinning off from Briggs & Stratton Corporation. The company's heritage, however, stretches back to the founding of Briggs & Stratton in 1908.

Original location

The company's headquarters and original location remain in Milwaukee, Wisconsin, the same city where its predecessor began operations.

Founding team members

The company was formed when Briggs & Stratton spun off its automotive lock division. The new, independent company was initially headed by Harold Stratton II, maintaining a direct link to the original founding family of Stephen F. Briggs and Harold M. Stratton.

Initial capital/funding

As a spin-off from a larger public company, Strattec Security Corporation became a separate public entity, listed on the NASDAQ (STRT). The separation was specifically intended to allow the automotive lock business to secure its own funding through stock sales and loans to pursue its independent business strategies.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The most recent transformative period, Fiscal Year 2025, shows a decisive shift toward operational efficiency and a modern, leaner business model. This is where the rubber meets the road for investors and strategists like you, because management is taking clear, non-clichéd action to improve margins.

Here's the quick math: Strattec Security Corporation's net income for fiscal 2025 was $18.7 million, a 14% increase from the prior year, on revenue of $565.1 million. That margin improvement didn't just happen; it was driven by specific, measurable actions.

• Executed over $8 million in new annualized pricing with customers, reflecting the value of their security and access solutions.
• Restructured operations to take out $5 million in annualized costs, demonstrating a commitment to a more efficient cost structure.
• Announced plans to sell the Milwaukee facility in late 2024/early 2025 to fund an operational upgrade and modernization, a necessary move to stay competitive in high-tech automotive components.
• Reduced the Milwaukee manufacturing schedule to a 10-hour, 4-day work week in Q1 2025, eliminating approximately 20 direct labor roles while improving employee flexibility and productivity.

The strategic focus is clearly on transitioning from a legacy mechanical lock supplier to a provider of smart vehicle access and electronic authorization solutions. If you want to dive deeper into the financial health that resulted from these changes, you should read Breaking Down Strattec Security Corporation (STRT) Financial Health: Key Insights for Investors.

Strattec Security Corporation (STRT) Ownership Structure

Strattec Security Corporation's (STRT) ownership is heavily concentrated among institutional investors, which is typical for a publicly traded automotive components supplier, leaving a smaller, but still significant, portion for company insiders and retail shareholders to control.

This structure means that while the company is public, large fund managers-like Vanguard Group Inc. and BlackRock, Inc.-ultimately hold the most sway in major corporate decisions, not individual investors.

Strattec Security Corporation's Current Status

Strattec Security Corporation is a publicly traded company listed on the NASDAQ Stock Market under the ticker symbol STRT. As a public entity, it is subject to the rigorous reporting and transparency requirements of the U.S. Securities and Exchange Commission (SEC), including filing quarterly and annual financial statements.

For the fiscal year 2025, the company reported strong financial performance, with total revenue reaching $565.1 million and net income at $18.7 million. This public status allows for easy investment access but also exposes the company's valuation to the volatility of the broader market, which is why a clear ownership picture is defintely important.

Strattec Security Corporation's Ownership Breakdown

The company's ownership is dominated by institutional players, holding nearly four-fifths of the outstanding common stock as of late 2025. This high institutional ownership, at 79.5%, signals strong confidence from professional money managers in Strattec's long-term strategy and transformation efforts. Here's the quick math on the shareholder breakdown:

What this estimate hides is the varied nature of the institutional holders; some are passive index funds, and others are more active hedge funds. You can dive deeper into who is buying and why by reading Exploring Strattec Security Corporation (STRT) Investor Profile: Who's Buying and Why?

Strattec Security Corporation's Leadership

The company is steered by a relatively new, but experienced, leadership team focused on operational streamlining and margin improvement, a clear strategic shift evident in the fiscal 2025 results. The average tenure for the management team is about one year, reflecting a recent transformation in the executive suite. The key leaders as of November 2025 include:

• Jennifer Slater: President, Chief Executive Officer (CEO), and Director. She took the helm in July 2024, bringing over 25 years of automotive industry experience.
• F. Jack Liebau, Jr.: Independent Chairman of the Board. He was appointed to this role in January 2024, providing oversight and governance.
• Matthew Pauli: Senior Vice President and Chief Financial Officer (CFO). He joined in November 2024, overseeing global finance and IT.
• Chey Becker-Varto: Chief Commercial Officer (CCO). Appointed in November 2024, she is responsible for the commercial strategy and driving profitable revenue growth.
• Linda Redmann: Chief People Officer (CPO). Also appointed in November 2024, she focuses on aligning human capital with business objectives.

This team has been aggressive in restructuring operations, executing over $8 million in new annualized pricing and initiating actions to mitigate an estimated $5 million to $7 million increase in tariff costs in fiscal 2025.

Strattec Security Corporation (STRT) Mission and Values

Strattec Security Corporation's (STRT) mission is fundamentally about delivering high-value, sophisticated vehicle access and security products, which is the bedrock of their financial success. This commitment to innovation and customer satisfaction is what drove their fiscal year 2025 revenue to a strong $565.1 million.

They stand for more than just making a profit; their cultural DNA is rooted in being the trusted partner for original equipment manufacturers (OEMs) as vehicle security transitions from simple mechanical keys to complex, integrated electro-mechanical systems. You can see how this focus impacts their bottom line in our deeper dive: Breaking Down Strattec Security Corporation (STRT) Financial Health: Key Insights for Investors

Strattec Security Corporation's Core Purpose

As a seasoned analyst, I look past the glossy language to the core promise, and for Strattec Security Corporation, that promise is twofold: total customer satisfaction and enhanced shareholder value. They are defintely a global player in a niche but critical market.

Official mission statement

The company's formal mission is a clear declaration of their value proposition, focusing on the entire product lifecycle from mechanical to electronic solutions for the global motor vehicle industry.

• Provide the highest value mechanical, electro-mechanical, and electronic security/access control products.
• Ensure customers' total satisfaction with all supplied products and services.
• Provide enhanced economic value to shareholders.

Vision statement

Strattec Security Corporation's vision is a projection of their current market strength into future global leadership, emphasizing continuous evolution in a rapidly changing automotive landscape.

• Continue to grow as a global market leader of Vehicle Power Access and Electronic and Security Solutions.
• Expand market presence and product offerings beyond the traditional automotive industry.
• Create value for shareholders, employees, and customers through continuous innovation.

This vision is backed by concrete results, like the company's fiscal 2025 net income of $18.7 million, a 14% increase year-over-year, showing their value-creation efforts are working.

Strattec Security Corporation slogan/tagline

Their slogan is a concise summary of their market position and service scope, which is exactly what you want to see from a business-to-business (B2B) supplier.

• Strattec is your Global Solutions Provider.

Beyond the formal statements, the company's core values-integrity, teamwork, and commitment to excellence-are what underpin their ability to generate a record $71.7 million in operating cash flow in fiscal 2025. They know that consistent operational excellence is the only way to sustain a 3.3% profit margin in the auto components sector.

Strattec Security Corporation (STRT) How It Works

Strattec Security Corporation operates as a specialized Tier 1 supplier, designing and manufacturing highly-engineered access, security, and authorization solutions for the global automotive industry, moving vehicles from simple mechanical locks to integrated electro-mechanical and digital access systems. The company makes money by securing long-term supply contracts with major Original Equipment Manufacturers (OEMs) for high-value components on new vehicle platforms, a strategy that drove fiscal year 2025 net sales to approximately $565.1 million.

Strattec Security Corporation's Product/Service Portfolio

Strattec's product portfolio has strategically shifted toward higher-value electronic and power-driven components, aligning with modern vehicle architecture and the industry's move to smart access. This focus on content-rich systems, like new latch content on all Ford F series pickups, is key to their value delivery.

Strattec Security Corporation's Operational Framework

The company's operational framework is centered on cost optimization, manufacturing efficiency, and a transformation agenda to improve profitability, which resulted in a fiscal 2025 gross margin of 15.0%, a 280-basis-point improvement year-over-year. Here's the quick math: this margin expansion was driven by a combination of strategic pricing and significant restructuring.

• Manufacturing Streamlining: Strattec restructured its U.S. manufacturing operations in fiscal 2025, moving the Milwaukee facility from a three-shift to a two-shift operation, which is part of the actions that generated approximately $5 million in annualized cost savings.
• Supply Chain Agility: The company is actively implementing tariff mitigation actions-including shifting supply chain sources and changing logistics processes-to offset an estimated $9 million to $12 million annual impact of incremental tariffs prior to mitigation efforts.
• Working Capital Velocity: Improved working capital management and cash earnings delivered strong cash generation, with cash from operations hitting $71.7 million for the full fiscal year 2025.
• Modernization Focus: Strattec is evaluating its manufacturing and corporate footprint, including listing its Milwaukee facility for sale, to upgrade and modernize operations for better efficiency and an enhanced work environment.

We're seeing a clear focus on getting more output from a leaner, smarter footprint. For a deeper dive into the numbers, check out Breaking Down Strattec Security Corporation (STRT) Financial Health: Key Insights for Investors.

Strattec Security Corporation's Strategic Advantages

Strattec's market success is defintely grounded in its deep history and its current, aggressive pivot toward high-value content, which is crucial in the capital-intensive automotive sector.

• Legacy and OEM Trust: With over 110 years of history, Strattec has a long-standing, trusted relationship with major automotive OEMs, establishing them as a reliable partner for mission-critical security components.
• Technology Transition Expertise: The company has successfully navigated the transition from purely mechanical systems to complex integrated electro-mechanical and digital solutions, securing new program launches that added $1.2 million to net sales in the fourth quarter of fiscal 2025 alone.
• Financial Strength for Investment: A healthy balance sheet, including $84.6 million in cash and cash equivalents at the end of fiscal 2025, provides a defensive buffer against market uncertainty and enables continued investment in growth initiatives like digital key and power access solutions.
• High-Value Content Focus: By prioritizing high-growth segments like power access and digital access, Strattec is securing higher content value per vehicle, which directly contributes to its improved profitability and margin expansion.

Strattec Security Corporation (STRT) How It Makes Money

Strattec Security Corporation primarily makes money by designing, developing, and manufacturing smart vehicle access, security, and authorization solutions for global automotive manufacturers (OEMs). The revenue model is fundamentally built on high-volume, long-term supply contracts for components like locks, keys, and power access systems, with a growing focus on higher-value electronic and digital key technologies.

This is a component supplier model, but it's evolving fast with an eye on future subscription revenue from digital key fobs.

Strattec Security Corporation's Revenue Breakdown

While the full Fiscal Year 2025 (FY 2025) net sales were $565.1 million, the most recent quarterly data from Q1 FY 2026 (ended September 28, 2025) provides the clearest picture of where the sales concentration lies in the current financial engine.

The company's net sales for FY 2025 grew by 5.1% compared to the prior year, and the first quarter of fiscal 2026 saw a 10% increase in net sales to $152.4 million, which shows a strong, accelerating trend in the core product lines.

Business Economics

Strattec Security Corporation's business economics are centered on operational efficiency and strategic pricing to manage the volatile automotive supply chain environment.

• Pricing Power: Revenue growth in FY 2025 and Q1 FY 2026 was explicitly driven by strategic pricing actions and favorable product mix, which is a sign the company is successfully passing through costs to its major automotive OEM customers.
• Cost Structure Optimization: The company executed a restructuring of its operations in FY 2025 to take out approximately $5 million in annualized costs, which directly contributed to margin expansion.
• Tariff Headwinds: A major near-term risk is the estimated annual impact of incremental tariffs, which is projected to be between $9 million and $12 million of incremental costs before mitigation efforts. The company is actively working to shift sourcing and negotiate cost pass-throughs to offset this.
• Digital Pivot: The strategic investment in digital key fobs is a critical long-term move, as it positions the company to potentially capture future subscription revenue, moving beyond a pure component sales model.

Here's the quick math on the tariff risk: $9 million to $12 million in cost is a significant headwind against the FY 2025 net income of $18.7 million. That's why cost mitigation is a top priority.

Strattec Security Corporation's Financial Performance

The company's financial performance in FY 2025 shows a significant turnaround, driven by operational discipline and a focus on higher-margin business. This is defintely a story of margin expansion.

• Net Sales: Full-year Fiscal 2025 net sales reached $565.1 million, a 5.1% increase year-over-year.
• Gross Margin: The full-year FY 2025 gross margin was 15.0%, a notable 280 basis point improvement from the prior year. The momentum continued into Q1 FY 2026, with gross margin expanding further to 17.3%.
• Net Income: Net income attributable to Strattec Security Corporation for FY 2025 was $18.7 million, representing a 14% increase from the previous fiscal year.
• Adjusted EBITDA Margin: The adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin for Q1 FY 2026 hit 10.2%, demonstrating that the business transformation efforts are yielding double-digit profitability.
• Cash Flow: Operating cash flow for FY 2025 was a record $71.7 million, which is a massive jump from the prior year and provides a strong foundation for continued investment in new programs and technology.

For more on the strategic direction driving these numbers, you should review the Mission Statement, Vision, & Core Values of Strattec Security Corporation (STRT).

Strattec Security Corporation (STRT) Market Position & Future Outlook

Strattec Security Corporation is actively transforming its business model, moving past its legacy as a mechanical lock supplier to become a key player in smart vehicle access, a segment projected to reach $17.87 billion in 2025. The company's recent operational improvements and focus on higher-margin electronic products position it for more stable and profitable growth, but its heavy reliance on a few North American Original Equipment Manufacturers (OEMs) remains a structural risk.

Competitive Landscape

In the specialized, but growing, $6.57 billion automotive door latch market, Strattec Security Corporation holds a significant, albeit niche, position. The company competes with both pure-play latch specialists and massive, diversified Tier 1 suppliers that offer complete mechatronic and digital access systems.

Opportunities & Challenges

The company's strategic pivot toward electronic access is the right move, but execution is everything. They are defintely moving to capture the higher-value content per vehicle that comes with the industry's shift to connected and electric vehicles.

Industry Position

Strattec Security Corporation is a critical Tier 1 supplier, deeply embedded with the 'Detroit Three' OEMs, providing essential security and access solutions. The company's strength lies in its long-standing relationships and its historical position as the world's largest producer of automotive locks and keys.

• Niche Leadership: While its overall auto parts market share is small (1.17% in Q1 2025), Strattec Security Corporation is a leader in the mechanical and electro-mechanical lock and key segment.
• Financial Stability: Fiscal Year 2025 showed measurable improvement, with net income rising 14% to $18.7 million and cash from operations hitting $71.7 million. This capital provides a cushion for the ongoing transformation.
• Technology Transition: The move from purely mechanical locks to integrated systems like power sliding doors and digital key solutions is essential for future relevance, especially as competitors like Continental roll out advanced Ultra-Wideband (UWB) digital key systems.

To understand the foundation of this transition, you should review the company's core values and strategic direction: Mission Statement, Vision, & Core Values of Strattec Security Corporation (STRT).