Methode Electronics, Inc. Reports Fiscal 2027 First Quarter Financial Results

Methode Electronics, Inc. Reports Fiscal 2027 First Quarter Financial Results Consolidated Fiscal First Quarter 2027 Highlights

SOUTHFIELD, Mich., Sept. 02, 2026 (GLOBE NEWSWIRE) -- Methode Electronics, Inc. (NYSE: MEI), a leading global supplier of custom-engineered solutions for power distribution, user interface, lighting, and sensor applications, today announced financial results for the first quarter of fiscal 2027 ended August 1, 2026.

President and Chief Executive Officer Jon DeGaynor said, "We delivered a strong start to fiscal 2027, with net sales up 10%, driven primarily by higher volumes across our industrial portfolio, led by data centers. However, one-time costs, including the impact of last year’s dataMate divestiture and our investments in talent and capabilities, more than offset the higher sales and operational improvements. Absent the impact of the divestiture, Adjusted EBITDA would have increased year-over-year."

Mr. DeGaynor continued, “We booked new non-data center awards representing $75 million of peak annual revenue, or approximately $400 million of lifetime revenue - proof of the commercial momentum we are building as our execution improvements continue to translate into results with customers. Our transformation is a multi-year effort, and progress won't always be linear, but I'm confident we have the right strategy and the right team in place to deliver sustainable, profitable growth and long-term value for our shareholders."

Consolidated Fiscal First Quarter 2027 Financial Results

Methode's net sales were $265.4 million, compared to $240.5 million in the same quarter of fiscal 2026. The increase was primarily driven by higher Industrial segment volumes and mix, partially offset by the impact of the sale of the dataMate business and consumer appliance program roll-offs.

Gross profit was $47.7 million, up from $43.5 million in the prior-year quarter, primarily reflecting higher Industrial sales volumes and mix as well as operational improvements across the business, partially offset by higher material and freight costs.

Selling and administrative expenses were $45.9 million, up from $36.6 million in the prior-year quarter, primarily reflecting investments in talent and capabilities as well as higher professional fees.

Loss from operations was $3.9 million, compared to income from operations of $1.1 million in the same quarter of fiscal 2026. Adjusted loss from operations, a non-GAAP financial measure, was $2.2 million, compared to adjusted income from operations of $2.0 million in the same quarter of fiscal 2026.

Income tax expense was $4.1 million, compared to $4.2 million in the same quarter of fiscal 2026.

Net loss was $11.4 million or $0.32 per diluted share, compared to $10.3 million or $0.29 per diluted share in the same quarter of fiscal 2026. Adjusted net loss, a non-GAAP financial measure, was $7.7 million or $0.22 per diluted share, compared to $7.8 million or $0.22 per diluted share in the same quarter of fiscal 2026.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization of Intangibles), a non-GAAP financial measure, was $12.0 million or 4.5% of net sales, compared to $14.7 million or 6.1% of net sales in the same quarter of fiscal 2026. Adjusted EBITDA, a non-GAAP financial measure, was $13.7 million, or 5.2% of net sales, compared to $15.7 million, or 6.5% of net sales, in the same quarter of fiscal 2026.

Net cash used in operating activities was $7.8 million, compared to net cash provided by operating activities of $25.1 million in the same quarter of fiscal 2026. The increase in cash usage was primarily due to timing that resulted in higher accounts receivable and inventory levels. Free cash flow, a non-GAAP financial measure defined as net cash provided by operating activities less purchases of property, plant, and equipment, was an outflow of $10.9 million, compared to an inflow of $18.0 million in the same quarter of fiscal 2026.

Subsequent to quarter end, the Company completed an amendment to its revolving credit agreement, extending certain maturities one year to October 2028. As part of that extension, the Company reduced its revolving credit facility from $400 million to $375 million at closing.

Segment Fiscal First Quarter 2027 Financial Results

Comparing the Automotive segment’s quarter to the same quarter of fiscal 2026:

Comparing the Industrial segment’s quarter to the same quarter of fiscal 2026:

Comparing the Interface segment’s quarter to the same quarter of fiscal 2026:

Guidance

For fiscal 2027, the Company affirmed its previous guidance expectation. The Company's fiscal 2027 guidance reflects its current expectations based on available market information, including third-party industry forecasts, customer demand projections, current U.S. tariff policies, and bank forecast currency. The guidance is subject to change due to a variety of factors including the uncertainty in the global trade environment (tariffs, import duties and other trade compliance regulations), geopolitical instability such as conflicts in the Middle East, the successful launch of multiple new programs, the ultimate take rates on EV programs, success and timing of cost recovery actions, inflation, global economic instability, supply chain disruptions, transformation and restructuring efforts, potential impairments, any acquisitions or divestitures, and legal matters.

Adjusted EBITDA is a non-GAAP financial measure. In reliance on the safe harbor provided under Section 10(e) of Regulation S-K, the company has not quantitatively reconciled from net income/loss (the most comparable GAAP measure) to Adjusted EBITDA presented in the fiscal 2027 guidance as the company is unable to quantify certain amounts included in net income due to the inherent uncertainty regarding such variables which may be significant.

Conference Call

The company will conduct a conference call and webcast tomorrow, September 3, 2026, at 8:00 a.m. Eastern Time to review financial and operational highlights led by its President and Chief Executive Officer, Jon DeGaynor, and Chief Financial Officer, Laura Kowalchik.

To participate in the conference call, please dial 888-506-0062 (domestic) or 973-528-0011 (international) and provide participant code 335951, at least ten minutes prior to the start of the event. A simultaneous webcast can be accessed through the company’s website, www.methode.com, on the Investors page.

A webcast replay will also be available on the company’s website, www.methode.com, on the Investors page.

About Methode Electronics, Inc.

Methode Electronics, Inc. (NYSE: MEI) is a leading global supplier of custom engineered solutions with sales, engineering, and manufacturing locations in North America, Europe, the Middle East and Asia. We design, engineer, and manufacture mechatronic products for OEMs and tiered suppliers across mobility, industrial, and commercial markets. Our capabilities include power distribution, including busbars, smart connect systems, battery disconnect units, and integrated circuit boards; as well as user interface components, specialized light-emitting diode (“LED”) lighting solutions, and sensor applications.

Our products are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus, and rail), cloud computing and data center infrastructure, and construction equipment. Our business is managed on a segment basis, with those segments being Automotive, Industrial, and Interface.

Non-GAAP Financial Measures

To supplement the company's financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Methode uses Adjusted Net Income (Loss), Adjusted Earnings (Loss) Per Diluted Share, Adjusted Pre-Tax Income (Loss), Adjusted Income (Loss) from Operations, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt and Free Cash Flow as non-GAAP measures. Reconciliation to the nearest GAAP measures of all non-GAAP measures included in this press release can be found at the end of this release. Methode's definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. The company believes that these non-GAAP measures are useful because they (i) provide both management and investors meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results, (ii) permit investors to view Methode's performance using the same tools that management uses to evaluate its past performance, reportable business segments and prospects for future performance, (iii) are commonly used by other companies in our industry and provide a comparison for investors to the company’s performance versus its competitors and (iv) otherwise provide supplemental information that may be useful to investors in evaluating Methode.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect, when made, our current views with respect to current events and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to our operations and business environment, which may cause our actual results to be materially different from any future results, expressed or implied, by such forward-looking statements. All statements that address future operating, financial or business performance or our strategies or expectations are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “outlook” or “continue,” and other comparable terminology. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following:

Additional details and factors are discussed under the caption “Risk Factors” in our periodic reports filed with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. Any forward-looking statements made by us speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, subsequent events or otherwise.

Contact Information

ir@methode.com