- STRT Q3 Earnings Miss Estimates on Lower Volume and Forex Drag
May 12, 2026
Strattec Security Corporation STRT reported third-quarter fiscal 2026 adjusted earnings of 90 cents per share, missing the Zacks Consensus Estimate of $1.14 by 21.1%. Adjusted earnings declined 40% from $1.50 a year ago.
Net sales were $137.6 million, down 4.5% year over year, and came in below the consensus estimate of $141 million by about 2.4%. Results reflected lower North American OEM production on key platforms and the impact of EV program cancellations.
STRT stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Strattec Security Corporation Price, Consensus and EPS SurpriseStrattec Security Corporation Price, Consensus and EPS Surprise
Strattec Security Corporation price-consensus-eps-surprise-chart | Strattec Security Corporation Quote
Strattec Leans on Core Customers and Access Products
The quarter’s revenue mix underscored STRT’s close ties to large automotive programs. General Motors accounted for 28% of third-quarter sales, followed by Ford at 21% and Stellantis at 16%. Tier 1 customers contributed 15%, commercial and other customers represented 11% and Hyundai/Kia made up 9%.
Product concentration also remained clear. Door handles represented 26% of sales and power access products contributed 24%. Keys and locksets were 20% of the mix, with latches at 13%, user interface controls at 8%, aftermarket at 7% and other products at 2%. The mix highlights STRT’s positioning in access and security content per vehicle, but also means near-term results can swing with platform volumes.
STRT Absorbs FX and Tariff Pressure
Cost headwinds were evident even as the company executed on internal actions. Gross profit was $22.7 million compared with $23.1 million in the prior-year quarter, reflecting lower volume. However, gross margin improved 50 basis points year over year to 16.5%, thanks to restructuring savings and recoveries from customer program cancellations. Restructuring savings totaled $1.7 million and recoveries tied to customer program cancellations added $0.6 million.
Those benefits were partly offset by $2.5 million of higher costs from unfavorable foreign exchange movements, a $0.5 million increase in labor and benefit costs, and $0.3 million of incremental tariff costs.
Strattec Steps Up Spending, Operating Profit Hit
Operating discipline was pressured by higher overhead spending. Selling, administrative and engineering expenses increased $1.6 million year over year to $17.6 million, representing 12.8% of sales versus 11.1% in the prior-year period.
The increase reflected a mix of strategic and recurring cost items. STRT cited $1.4 million of business transformation and executive transition costs, a $1.3 million rise in salaries and employee benefits, and a $0.4 million increase in professional fees. These were partially offset by $0.2 million of restructuring savings and a $0.7 million recovery of costs related to canceled EV programs.
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Operating income declined to $5 million from $7.1 million a year ago, with operating margin at 3.7% compared with 4.9% in the prior-year quarter. Interest income increased to $0.9 million from $0.5 million, while other expenses totaled $0.7 million versus near breakeven a year ago. Net income attributable to STRT was $3.2 million compared with $5.4 million in the prior-year period. Adjusted EBITDA was $10.1 million, or 7.3% of net sales, compared with $12.9 million, or 8.9%, a year ago.
STRT’s Financial Position
Liquidity remained a key support. Cash and cash equivalents were $107 million as of March 29, 2026, up from $99 million at the end of the second quarter of fiscal 2026 and $84.6 million at the end of fiscal 2025. Total debt was reduced to $1 million from $8 million at fiscal-year end, leaving debt-to-total capitalization at 0.3%.
Cash generation was positive but moderated by working capital. Net cash provided by operating activities was $11.4 million in the quarter versus $20.7 million a year ago. Capital expenditures were $2.6 million, leading to free cash flow of $8.8 million compared with $19.5 million in the prior-year quarter.
The company reiterated capital priorities centered on funding organic growth programs, investing in automation and process modernization, and preserving flexibility through cyclical automotive conditions.
STRT Outlook Points to Softer Q4 Revenues
Management expects near-term sales to track North American auto production volumes, but expects fourth-quarter fiscal 2026 revenues to be down 3% to 4% year over year, reflecting continued EV cancellations and lower production on key programs.
The company reiterated its longer-term objective of reaching gross margins of 18% to 20% over the next few years. STRT also expects operating costs to run at 10% to 11% of revenues, excluding unusual items, while it continues investing in its transformation program.
Peer Releases
Gentex Corporation GNTX reported first-quarter 2026 results on April 24. The company’s adjusted earnings of 48 cents per share beat the Zacks Consensus Estimate of 44 cents. The figure increased 11.6% from 43 cents a year ago. Gentex’s net sales were $675 million, which topped the consensus mark of $647 million. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.Gentex raised its full-year 2026 revenue outlook to $2.65-$2.75 billion from the previous estimate of $2.6-$2.7 billion, while maintaining its gross margin guidance at 34-35%.
Magna International Inc. MGA reported first-quarter 2026 results on May 1. The company’s adjusted earnings of $1.38 per share increased 76.9% year over year and beat the Zacks Consensus Estimate of $1.01. Magna’s net sales rose 3.1% year over year to $10.38 billion and topped the Zacks Consensus Estimate of $10.08 billion by 3.03%.For 2026, Magna revised its total sales outlook. It now projects total sales of $41.5-$43.1 billion, down from the previous guidance of $41.9-$43.5 billion. The company projects an adjusted EBIT margin of 6-6.6%, the same as the prior guidance.
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- Geotab Establishes Engineering Center in Metro Detroit
May 12, 2026
Connected transportation leader deepens its investment in Michigan's automotive innovation ecosystem with dedicated product development and innovation hub
Geotab Establishes Engineering Center in Metro DetroitMichigan Governor Gretchen Whitmer and Geotab CEO Neil Cawse·GlobeNewswire Inc.
MADISON HEIGHTS, Mich., May 12, 2026 (GLOBE NEWSWIRE) -- Geotab, a global leader in connected transportation, video and asset tracking solutions, has officially opened a new engineering center in metro Detroit Michigan, strengthening its presence at the heart of the North American automotive industry. The facility, located at 31435 Stephenson Highway, will create up to 40 engineering roles over the next several years.
The new facility serves as a dedicated product development and innovation hub. Engineering teams based in Metro Detroit will develop next-generation connected transportation solutions that help fleet organizations make smarter, and more cost efficient data driven decisions. Proximity to Geotab's key OEM partners including Ford, GM, and Stellantis enables faster iteration and tighter collaboration with the companies reshaping the future of transportation.
The opening was celebrated alongside Michigan Governor Gretchen Whitmer, and local leaders from Oakland County and Madison Heights.
“Michigan is open for business and on the move,” said Governor Whitmer. “Geotab’s new engineering center of excellence will create good-paying jobs researching and developing new technologies that keep people safe on the road and help businesses improve efficiency. We’re working hard to help companies expand, develop their next great idea, and hire skilled workers right here in Michigan. Let’s keep getting it done.”
The center is supported by the Michigan Economic Development Corporation (MEDC) through the Michigan Business Development Program, and has been welcomed by Oakland County, the Detroit Regional Partnership, and the Madison Heights Community & Economic Development office.
"Geotab keeps tabs on the wheels that make the world go around. They are demonstrating the power of innovation to drive efficiency, smart data-gathering and safety for fleet operators like the U.S. Postal Service. Geotab's growth in our state is proof that if you have an idea to make vehicles (or anything else) better, you can make it in Michigan," said Quentin L. Messer Jr., CEO of the MEDC.
“This engineering center in metro Detroit puts us at the center of the automotive ecosystem - closer to our partners and customers, Michigan's world-class engineering talent drawn from institutions such as the University of Michigan, Michigan State and other top learning institutions, making it a natural home for Geotab's next phase of growth" said Neil Cawse, Founder and CEO of Geotab.
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Geotab's global platform connects more than 6 million vehicles, processing 100 billion data points daily, and serves 100,000 customers worldwide supporting some of the world’s largest fleets including the U.S. Federal Government, the United States Postal Service (USPS), and logistics and transportation companies.
-ENDS-
About Geotab
Geotab is a global leader in intelligent operations, video telematics and AI-powered insights. Trusted by more than 100,000 customers — from small and mid-size fleets to Fortune 500 enterprises and public-sector organizations, including the U.S. federal government, Geotab connects approximately 6 million vehicles and assets and processes 100 billion data points daily. With ISO/IEC 27001:2022, SOC2, FIPS 140-3 and FedRAMP authorizations, Geotab's open platform and 700 +partner ecosystem unify safety, compliance and operations in a single system. Our mission: a safer, more efficient, and more sustainable world in motion.
Attachment
Geotab Establishes Engineering Center in Metro Detroit
CONTACT: Nicole Riddle Geotab Inc. pr@geotab.com
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- General Motors' Latest Cuts Show EV Pressures Persist
May 12, 2026
This article first appeared on GuruFocus.
General Motors Company (NYSE:GM) fell 3.82% intraday after reports that the automaker plans to cut 500 to 600 salaried workers as part of an effort to trim costs and clear the way to bring in staff with skills in other technology areas. Affected employees began receiving notifications Monday morning. General Motors confirmed the cuts in a statement, saying the reductions stem from an effort "to transform its information technology department to better position the company for the future."
The move reflects ongoing pressure on General Motors' cost structure. US auto sales stagnated in early 2026, and the company continues facing pressure tied to weaker-than-expected electric vehicle demand and profitability. The Monday cuts follow hundreds of salaried layoffs in October 2025, which came alongside thousands of blue-collar job reductions tied to GM's struggling EV business.
Warning! GuruFocus has detected 11 Warning Signs with GM. Is GM fairly valued? Test your thesis with our free DCF calculator.
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- Client Command® Appoints Automotive Industry Veteran Wally Burchfield as Chief Revenue Officer
May 12, 2026
ATLANTA, May 12, 2026--(BUSINESS WIRE)--Client Command®, known for developing the patented Active Shopper Network® platform that delivers real-time intent signals to the automotive industry’s leading brands, today announced the appointment of Wally Burchfield as Chief Revenue Officer. Burchfield will lead all revenue functions with a focus on rapid expansion across automotive groups, OEM’s, and expanding the Active Shopper Network® into new vertical markets.
Burchfield brings extensive leadership experience across automotive retail, OEM operations, digital media, and advertising. Throughout his career, he has built and led high-performing teams focusing on driving measurable growth through data, technology, and performance marketing. Most recently, he helped scale a major automotive digital partnership, contributing to the growth of one of the industry’s largest Tier 3 franchise dealer networks aligned with Amazon. Earlier in his career, he held leadership positions with General Motors and Nissan North America, where he supported national sales, dealer operations, sales finance and customer experience.
In addition to his OEM and automotive technology background, Burchfield has worked extensively alongside advertising agencies and media organizations, developing expertise in audience targeting, attribution, campaign strategy, and integrated marketing execution. His experience connecting marketing performance with revenue growth aligns closely with Client Command’s data-driven approach to helping clients identify, engage, and convert Active Shoppers®.
"Wally is a proven leader with a strong track record of building relationships, leading teams, and delivering growth," said Jonathan Lucenay, Chief Executive Officer of Client Command®. "His experience across automotive, media, and performance marketing makes him an outstanding fit for where Client Command® is headed. We’re excited to welcome him to the leadership team."
"Client Command® has built a powerful platform and an incredible reputation in the industry," said Burchfield. "The combination of the patented Active Shopper Network®, identity-level data, and measurable attribution gives clients a true competitive advantage. I’m excited to join the team and help drive the next phase of growth."
About Client Command®
Founded in 1999, Client Command® delivers identity-level, real-time intent data through its patented Active Shopper Network®. Additionally, as a leading Customer Data and Marketing Automation Platform, the company enables organizations to identify, engage, and convert in-market consumers across devices. With advanced multi-touch attribution and identity-level match-back to sale, Client Command® provides unmatched visibility into performance, customer journeys, and marketing effectiveness.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20260512393097/en/
Contacts
Media Contact: Jordan West
888-786-6489
jordanw@clientcommand.com
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- Dow Jones Futures: Techs Fall As South Korea Eyes Excess AI Profits; CPI Inflation Due
May 12, 2026
Techs fell as South Korea's Kospi index as a top official suggested excess AI profits could be given to citizens. The CPI inflation report is on tap.
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- GM just laid off hundreds of IT workers to hire those with stronger AI skills
May 11, 2026
General Motors (GM) has laid off more than 10% of its IT department, or about 600 salaried employees — in a deliberate skills swap: clearing out workers whose expertise no longer fits and making room for some with AI-focused backgrounds.
GM confirmed to TechCrunch that it had conducted layoffs; they were first reported by Bloomberg News.
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In an emailed statement, the automaker framed the layoffs as means to prepare it for the future, without providing specifics. “GM is transforming its Information Technology organization to better position the company for the future,” the company said.
These layoffs are not all permanent headcount reductions. A person familiar with the layoffs told TechCrunch that the company is still hiring people for roles in its IT department, but for different skills. The most sought-after capabilities are AI-native development, data engineering and analytics, cloud-based engineering, and agent and model development, prompt engineering, and new AI workflows. In practical terms, GM is looking for people who know how to build with AI from the ground up — designing the systems, training the models, and engineering the pipelines — not just use AI as a productivity tool.
GM has laid off white-collar employees in several departments over the past 18 months, as it focuses its resources on high-priority initiatives, including AI. In August 2024, for example, the company cut about 1,000 software workers.
The software workforce has undergone significant change since Sterling Anderson — co-founder of the autonomous trucking startup Aurora and a veteran of the autonomous vehicle industry — was hired in May 2025 as chief product officer. Last November, three top executives left the company’s software team as Anderson pushed to consolidate GM’s disparate technology businesses into one organization: Baris Cetinok, senior vice president of software and services product management, Dave Richardson, senior vice president of software and services engineering, and Barak Turovsky, a former VP at Cisco who spent just nine months as GM’s chief AI officer.
GM has since moved to fill the gap with new AI-focused hires. It hired Behrad Toghi, who previously worked at Apple, in October as AI lead. The company also brought on Rashed Haq as its vice president of autonomous vehicles. Haq spent five years at Cruise — the self-driving vehicle company acquired and later shuttered by GM — as its head of AI and robotics.
For the industry, GM’s restructuring is a signal of what enterprise AI adoption actually looks like in practice — not just adding AI tools on top of existing teams, but deliberately rebuilding the workforce from the ground up. The specific capabilities it’s hiring for — agent development, model engineering, AI-native workflows — point directly at where large-enterprise demand is heading.
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- GM just laid off hundreds of IT workers to hire those with stronger AI skills
May 11, 2026
General Motors has laid off more than 10% of its IT department, or about 600 salaried employees — in a deliberate skills swap: clearing out workers whose expertise no longer fits and making room for some with AI-focused backgrounds.
GM confirmed to TechCrunch that it had conducted layoffs; they were first reported by Bloomberg News.
In an emailed statement, the automaker framed the layoffs as means to prepare it for the future, without providing specifics. “GM is transforming its Information Technology organization to better position the company for the future,” the company said.
These layoffs are not all permanent headcount reductions. A person familiar with the layoffs told TechCrunch that the company is still hiring people for roles in its IT department, but for different skills. The most sought-after capabilities are AI-native development, data engineering and analytics, cloud-based engineering, and agent and model development, prompt engineering, and new AI workflows. In practical terms, GM is looking for people who know how to build with AI from the ground up — designing the systems, training the models, and engineering the pipelines — not just use AI as a productivity tool.
GM has laid off white-collar employees in several departments over the past 18 months, as it focuses its resources on high-priority initiatives, including AI. In August 2024, for example, the company cut about 1,000 software workers.
The software workforce has undergone significant change since Sterling Anderson — co-founder of the autonomous trucking startup Aurora and a veteran of the autonomous vehicle industry — was hired in May 2025 as chief product officer. Last November, three top executives left the company’s software team as Anderson pushed to consolidate GM’s disparate technology businesses into one organization: Baris Cetinok, senior vice president of software and services product management, Dave Richardson, senior vice president of software and services engineering, and Barak Turovsky, a former VP at Cisco who spent just nine months as GM’s chief AI officer.
GM has since moved to fill the gap with new AI-focused hires. It hired Behrad Toghi, who previously worked at Apple, in October as AI lead. The company also brought on Rashed Haq as its vice president of autonomous vehicles. Haq spent five years at Cruise — the self-driving vehicle company acquired and later shuttered by GM — as its head of AI and robotics.
For the industry, GM’s restructuring is a signal of what enterprise AI adoption actually looks like in practice — not just adding AI tools on top of existing teams, but deliberately rebuilding the workforce from the ground up. The specific capabilities it’s hiring for — agent development, model engineering, AI-native workflows — point directly at where large-enterprise demand is heading.
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- GM cuts jobs as pressure builds across the auto industry
May 11, 2026
This article first appeared on GuruFocus.
General Motors (NYSE:GM) is reportedly cutting as many as 600 white collar IT jobs as the automaker continues reshaping its business around cost pressures, slower EV demand and broader operational changes. According to Bloomberg, affected employees began receiving notifications Monday morning as GM moves to reorganize parts of its information technology division.
Warning! GuruFocus has detected 11 Warning Signs with GM. Is GM fairly valued? Test your thesis with our free DCF calculator.
The company did not officially confirm the number of layoffs, but it said the cuts are part of an effort to better position GM for the future. The move comes during an increasingly difficult stretch for automakers trying to balance heavy spending on EVs, software and technology upgrades while also dealing with rising manufacturing and supply chain costs.
GM has already been facing pressure from weaker than expected EV demand, a more expensive union labor agreement and costs tied to bringing parts of its manufacturing footprint back closer to home. On top of that, the company is also dealing with rising raw material costs and concerns that the prolonged closure of the Strait of Hormuz could trim operating profit by as much as $2 billion through higher supply chain and energy expenses.
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- Ford Goes Full Tesla—Again
May 11, 2026
Ford Motor is starting up a new business that Tesla pioneered: Energy Storage. Monday, Ford introduced “Ford Energy,” which will deliver “United States-assembled battery energy storage systems for utilities, data centers, and large industrial and commercial customers in the United States.” Tesla has a large energy storage business.
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- Sector Update: Consumer Stocks Decline Late Afternoon
May 11, 2026
Consumer stocks fell late Monday afternoon with the State Street Consumer Staples Select Sector SPDR
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