Strattec expects FY2027 gross margin of 15%-16%
STRT•Strattec expects fiscal 2027 gross margin of 15%-16%, pressured by lower volume and material cost inflation. It forecasts quarterly selling, administrative and engineering expenses of $16.5 million-$17 million and cash generation of about $10 million per quarter.
1. Fiscal 2027 outlook
Strattec expects fiscal 2027 gross margin of 15%-16%, with lower volume and material cost inflation creating pressure; foreign-exchange improvement is expected to offset material cost pressures. Its longer-term gross margin target remains 18%-20%. The revenue forecast assumes North American auto production declines 2%, including a nearly 6% drop at Detroit Three automakers. Quarterly selling, administrative and engineering expenses are expected at $16.5 million-$17 million, excluding unusual items; cash generation is expected at about $10 million per quarter, and the effective tax rate is forecast at 23%-25%.
