STRATTEC SECURITY CORPORATION

Greetings. Welcome to StratTech's fourth quarter and fiscal year 2026 financial results conference call. At this time, all participants are in listen-only mode. Question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Please note this conference is being recorded. At this time, I'll turn the conference over to Deborah Pawlowski, Investor Relations for StratTech. Thank you. You may begin.

Thank you and good morning everyone. We appreciate you joining us for STRATEC's fourth quarter and fiscal 2026 financial results conference call. Joining me on the call today are Jennifer Slater, our President and Chief Executive Officer, and Mathew Pauli, our Senior Vice President and Chief Financial Officer. Jen and Matt will review our fourth quarter and full year financial results, the progress we are making on our transformation, and our outlook for fiscal 2027. You can find a copy of the news release in 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 forward-looking statements during the formal discussion and during 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 and in other documents filed by the company with the Securities and Exchange Commission. You can find these documents on our website as well. I also want to point out that during today's call, we will discuss certain non-GAAP financial measures, which we believe are useful in evaluating our performance. You should not consider this additional information in isolation or as a substitute for the results prepared in accordance with GAAP. We provided reconciliations of non-GAAP measures with the most directly comparable GAAP measures in the tables accompanying the earnings release and in the supplemental 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. Fiscal 26 was a year of progress as we continued to reshape Stratec into a more resilient, higher-performing business. We delivered record annual revenue of $579.4 million, expanded full-year gross margin by 150 basis points to 16.5%, generated $46.3 million in operating cash flow, and ended the year with $108.2 million of cash and no debt. In the fourth quarter, sales of $151.8 million were better than expected and essentially flat with the prior year period. These results were achieved in a dynamic automotive environment. Throughout the year, we managed fluctuating North American production levels, the evolving tariff environment, foreign exchange headwinds, and customer cancellations of certain EV programs. We believe that our fiscal 26 results are an affirmation that the transformation is delivering, our teams are executing, and we have the resiliency to offset a meaningful portion of these external pressures through pricing, cost actions, and operational improvement. During the year, we realized approximately $6 million of savings from restructuring actions. We also continue to invest in our commercial organization, innovation capabilities, and the operating infrastructure needed to improve our margin profile. We are continuing to evolve our approach to growth. Automotive is a long cycle and cyclical industry, so it's critical that we engage customers earlier and more strategically in their development process. This is a relatively new concept for Stratec that historically did not have a process around a future-looking sales pipeline and only engaged with the customer when an RFQ was received. We have invested in our team and are in the early stages of developing the foundation around a future-looking development process with a focused product portfolio around three pillars, permission, motion, and hold. Permission includes secure vehicle entry technologies. Motion encompasses powered access systems, and hold includes latching products designed for safety, strength, and durability. This framework better aligns our commercial, innovation, and engineering teams around customers' evolving access needs and future program opportunities. Our consistent cash generation also allowed us to return $7.4 million to shareholders in the form of share buybacks in the fourth quarter, and our Board of Directors has authorized a new $40 million stock repurchase program, which we intend to use to offset equity share dilution and opportunistically buy back shares. Slide 4 highlights the disciplined execution of our transformation plan. We are working to improve how the business operates every day. Since fiscal 25, we have implemented restructuring actions that have delivered $9.5 million of savings. This past year, we consolidated our test lab operations in Auburn Hills and continued to invest in equipment and improve manufacturing flow at our Milwaukee operations. We also implemented new tools for sales pipeline management, financial consolidation, benefits administration, and expense reporting. These technology innovations help us make better decisions, enhance accountability, simplify processes, and create a more scalable operating platform. In addition, we introduce culture pillars centered on innovation, collaboration, and accountability. Reinforced by a recognition program that highlights team members who put those values into action, the culture element of our transformation is critical to our success. Our strong balance sheet and cash balance of $108.2 million give us the flexibility to invest in organic growth and modernization, maintain an appropriate cushion for industry variability, repurchase shares opportunistically, and evaluate M&A opportunities that can provide scale and diversification. With that, I'll turn the call over to Matt to walk through the financial details.