MEI
Methode Electronics, Inc.6.72
-0.03-0.44%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q3 '26
Q&A details Mexico lags, EV cuts
Q&A unpacked Mexico's transformation lagging six months behind Egypt, hit by revenue roll-offs, program delays, and extra S&A costs despite scrap improvements, fueling the EBITDA guide cut to $58-62M. North American EV exposure proved lower than planned at 14% of auto EVs, with outright cancellations like Stellantis and delayed launches (56% more planned YoY) explaining upfront spends sans revenue; recoveries excluded from guide. Data center power run rate hit $120M annualized in Q4 despite flat FY26 from VMI revenue gap, backed by EDI off $80-85M base toward 50% growth. DataMATE added $18M revenue, $3M profit before accretive sale. Portfolio review ongoing. Q&A adds gritty details on headwinds. Watch Mexico fixes, EV ramps.
Key Stats
Market Cap
237.94MP/E (TTM)
-Basic EPS (TTM)
-1.78Dividend Yield
0.06%Recent Filings
8-K
Q3 loss widens, guidance trimmed
Methode Electronics posted Q3 FY26 net sales of $233.7 million, down 2.6% year-over-year, with a $15.9 million net loss amid Automotive weakness from EV volume cuts and Mexico woes, offset by Industrial gains. They closed the $16 million dataMate sale post-quarter and finalized Harwood Heights divestiture to streamline operations. FY26 sales guidance narrowed to $950M-$1B; adjusted EBITDA cut to $58-62M. Debt weighs heavy.
10-Q
Q3 FY2026 results
Methode's Q3 FY2026 sales dipped 2.6% y/y to $233.7M (derived), with Automotive down sharply from EV slowdowns while Industrial grew 9.5% y/y on lighting and power demand; gross margin slipped to 16.6% from 17.2%. Operating loss widened to $(6.1)M from $(2.2)M y/y, but net loss narrowed slightly to $(15.9)M versus $(14.4)M as forex gains offset taxes. Cash swelled to $133.7M on $33.1M operating cash flow (up from $(9.0)M y/y), with free cash flow $16.5M (derived); revolver debt at $340.9M (5.5-7.3% rates, compliant). dataMate sale closed March 2026 for ~$16.4M. Automotive volumes remain volatile.
8-K
Amends CIC agreements, ends plan
Methode Electronics amended Change in Control Agreements for CFO Laura Kowalchik, SVP Lars Ullrich, Chief Procurement Officer John Erwin, and General Counsel Kerry Vyverberg on December 16, 2025, trimming COBRA coverage from 24 to 18 months. Approved by the Compensation Committee during annual review. Board also terminated the Deferred Compensation Plan effective December 31, 2025. Modest executive tweaks signal routine governance.
10-Q
Q2 FY2026 results
Methode's Q2 FY2026 sales fell 15.6% y/y to $246.9M (13 vs 14 weeks), driven by Automotive's 24.1% drop from legacy program roll-offs, yet Industrial surged with 33.4% gross margins on power products. Operating income held at $2.9M, down from $9.4M but up q/q, while gross margin slipped to 19.3% amid Automotive weakness. Cash jumped to $118.5M on $17.7M operating cash flow (capex $11.3M), supporting $332.5M debt under amended $400M revolver (due 2027, covenants met). Diluted EPS loss of $0.28 aligns with 35.5M shares. Automotive drags profitability.
8-K
Q2 sales drop 15.6%
Methode Electronics posted Q2 fiscal 2026 net sales of $246.9 million, down 15.6% year-over-year amid EV demand slowdown and program roll-offs, with Automotive sales plunging 24.1% to $110.5 million. Yet net loss widened to $9.9 million from $1.6 million. Transformation advances. Company reaffirmed FY2026 guidance of $900-1,000 million sales and $70-80 million adjusted EBITDA, but debt sits at $332.5 million.
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