Strattec Security Corporation delivered a solid Q4 2024 performance, underscored by growth in revenue and meaningful margin expansion alongside robust cash flow generation. Revenue for the quarter was $143.1 million, up 8.2% year over year and 1.6% quarter over quarter, supported by stronger volumes in North America and favorable product mix. Gross profit rose to $18.57 million with a gross margin of 12.98%, while operating income reached $9.69 million (operating margin ~6.77%), and EBITDA stood at $13.46 million. Net income was $9.62 million, or $2.41 per basic share and $2.39 per diluted share, reflecting a substantial YoY uplift (net income up 456.3% YoY) driven by scale and cost discipline.
From a cash-flow perspective, Strattec generated $19.49 million of operating cash flow and $15.77 million of free cash flow, ending the period with $25.41 million of cash and cash equivalents and a net cash position of approximately $(12.41) million after considering debt. The balance sheet remains healthy with total assets of $364.29 million and total stockholders’ equity of $200.55 million, and liquidity metrics show a current ratio of 2.15 and a quick ratio of 1.46, signaling ample short-term coverage for obligations.
Valuation appears attractive by traditional multiples (P/E ~ 2.6; P/B ~ 0.50; EV/EBITDA ~ 6.45), reflecting the company’s small cap profile and cyclicality of auto demand, but also a favorable risk-reward given the strong cash generation and conservative balance sheet. Management commentary is not captured in the provided transcript dataset, so conclusions about forward guidance and strategic commentary rely on the reported results and typical market expectations for auto parts suppliers serving OEMs and aftermarket channels.
Overall, the QQ4 2024 results reinforce Strattec’s position as a cash-generative, low-leverage specialty auto parts provider with improving profitability and favorable liquidity, though the business remains exposed to the cyclicality of North American auto production and broader OEM capex cycles. Investors should weigh the robust cash flow against the cyclicality risk and the company’s relatively small scale when considering longer-term positioning.