Strattec Security (STRT) risk factors, FY2025 10-K

Strattec Security's FY2025 10-K, filed Aug 25, 2025, lists 16 risk factors in 5 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
165 groups
Section length
5k wordsItem 1A

Strattec Security's biggest risks in the FY2025 10-K

  • Sales are concentrated among General Motors, Ford and Stellantis, which represented 64% of fiscal 2025 sales combined.
  • Vehicle production volumes, customer slowdowns and program pricing directly drive revenue and profitability.
  • Manufacturing in Mexico and global sourcing expose operations to currency, supply, trade and regulatory disruptions.

The risks most specific to Strattec Security

  • Business Risks

    Loss of Significant Customers, Vehicle Content, Vehicle Models and Market Share

    General Motors, Ford and Stellantis represented 64% of fiscal 2025 sales, creating substantial exposure to lost customers, vehicle models or content.

  • Operational Risks

    Shortages, Increases in Costs, or Other Restrictions on the Availability of Raw Materials or Components Supply

    Shortages affecting STRATTEC, its suppliers or customers could halt production, while reliance on fewer suppliers increases component availability risk.

  • Operational Risks

    During recent fiscal years, we have experienced higher costs on raw materials and purchased components, as well as freight costs. The continuation or renewal of these cost increases could have a material adverse effect on our future revenue, financial results, financial condition and cash flows

    Higher raw-material, purchased-component and freight costs could continue, with supplier consolidation increasing dependence on fewer sources.

  • Financial Risks

    Program Volume and Pricing Fluctuations

    STRATTEC may spend on vehicle programs based on forecast volumes but recover less if actual model production is lower.

  • Financial Risks

    Currency Exchange Rate Fluctuations

    Manufacturing costs incurred in Mexican pesos expose profitability, cash flows and financial position to U.S. dollar/Mexican peso movements.

  • Operational Risks

    Disruptions Due to Work Stoppages and Other Labor Matters

    Customer or supplier labor stoppages could slow or close vehicle assembly plants and reduce demand for STRATTEC products.

  • Financial Risks

    Financial Distress of Automotive Supply Base

    Financially distressed automotive suppliers could fail, requiring STRATTEC to provide assistance or other measures to preserve uninterrupted production.

  • Legal and Regulatory Risks

    Environmental, Safety and Other Regulations

    Manufacturing and assembly operations must comply with environmental, safety and other requirements governing materials handling and disposal.

All 16 risk factors

Headings as the filing states them, in filing order.

Business Risks

  1. 01Loss of Significant Customers, Vehicle Content, Vehicle Models and Market Share
  2. 02Production Slowdowns by Customers
  3. 03Cross-border Trade Issues and Tariffs
  4. 04Highly Competitive Automotive Supply Industry
  5. 05Cyclicality and Seasonality in the Automotive Market
  6. 06Market Acceptance of New or Enhanced Products

Operational Risks

  1. 07Shortages, Increases in Costs, or Other Restrictions on the Availability of Raw Materials or Components Supply
  2. 08During recent fiscal years, we have experienced higher costs on raw materials and purchased components, as well as freight costs. The continuation or renewal of these cost increases could have a material adverse effect on our future revenue, financial results, financial condition and cash flows
  3. 09Disruptions Due to Work Stoppages and Other Labor Matters
  4. 10Climate Change and Environmental, Social, and Governance (ESG) Matters

Financial Risks

  1. 11Financial Distress of Automotive Supply Base
  2. 12Currency Exchange Rate Fluctuations
  3. 13Program Volume and Pricing Fluctuations
  4. 14Existing Indebtedness and Ability to Access Capital Markets

Legal and Regulatory Risks

  1. 15Environmental, Safety and Other Regulations

Other Risks

  1. 16Pandemics, Epidemics and Infectious Disease Outbreaks

Other Strattec Security 10-Ks

  • FY2026 10-K risk factors
    18 risks4 new2 dropped7 reworded

    Customer concentration remains significant: GM, Ford and Stellantis represented 27%, 21% and 16% of fiscal 2026 sales.

    Filed Aug 28, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.