STRATTEC SECURITY CORPORATION

Greetings and welcome to the Strat Tech third quarter fiscal year 2026 financial results. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Deborah Polowski, Investor Relations for Strat Tech. Please go ahead.

Thank you and good morning, everyone. We appreciate you joining us for STRATAC's third quarter fiscal 2026 financial results conference call. Joining me on the call today are Jennifer Slater, our President and Chief Executive Officer, and Matthew Pawley, our Senior Vice President and Chief Financial Officer. Jen and Matt will review our financial results, the progress we are making on our transformation, and our outlook. You can find a copy of the news release and the slides that accompany our conversation today on the Investor Relations section of the company's website. If you are reviewing those slides, please turn to slide two for the safe harbor statement. As you are aware, we may make some forward-looking statements on this call during the formal discussion as well as during the Q&A. These statements apply to future events that are subject to risks and uncertainties as well as other factors that could cause actual results to differ materially from what is stated on today's call. These risks and uncertainties and other factors are discussed in the earnings release as well as with other documents filed by the company with Securities and Exchange Commission. You can find these documents on our website as well. I want to also point out that during today's call, we will discuss some non-GAAP measures. We believe these will be useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAPs. We've provided reconciliations of non-GAAP to comparable GAAP measures in the tables accompanying the earnings release and slides. So with that, I'll turn the call over to Jen, who will begin with slide three.

Thank you, Deb, and good morning, everyone. We delivered another solid quarter and continued to make progress on our transformation despite a challenging automotive environment. Our previously completed restructuring actions delivered $1.9 million in savings this quarter, This is a peak level as we lap some of the benefits from the prior year restructuring actions. We generated $11.4 million of operating cash flow in the quarter and ended the third quarter with $107 million of cash on hand. That liquidity gives us flexibility to continue investing in the business, support customers, and navigate a dynamic industry backdrop. While sales were down from prior year, the decline was in line with expectations, and we continued to improve profitability, generate strong cash flow, and maintain a very strong balance sheet. Despite lower revenue and ongoing foreign exchange headwinds, gross margin expanded to 16.5%, supported by restructuring savings, recoveries tied to canceled customer programs, and continued operational focus. As highlighted on slide four, our priority remains the execution of our transformation plan with discipline and consistency. We are working to build a more predictable, higher-performing company, and that means staying focused on daily operational execution while continuing to put the right processes, talent, and systems in place. During the quarter, we made additional changes within our Mexico operations that are expected to provide $800,000 in incremental annualized savings beginning in the fourth quarter. More broadly, the actions we have taken over the last several quarters help to improve the way the business operates and better aligns our cost structure with the business we have today. Equally as important as our focus on improving our cost structure is a transformation for how we approach growth. As you know, the automotive industry is long cycle and cyclical with intense competition and more recently there have also been challenging external factors such as tariffs and supply chain challenges within our business and the broader industry. As a result, our strategic growth initiatives are centered on how we build a sustainable business that can deliver resilient and predictable growth even in a challenging industry. From a commercial standpoint, we are focused on capturing additional content with our current customers by deepening our relationships and being involved in advanced development on new platforms. In addition, we are starting to develop relationships with a more diverse set of customers that have U.S. production sites and looking to source locally. We are also focused on innovation and a product strategy that is anchored to engineering-led access systems organized into three core product categories of permission, motion, and hold. The team is busy defining technical product roadmaps that are aligned with customer requirements and current and future technologies. We are very early in our execution on these growth initiatives. Importantly, we have the balance sheet and financial flexibility to support our efforts and the broader transformation of Strat Tech. With that, I'll turn the call over to Matt to walk through the financial details.