Methode Electronics, Inc. Reports Fiscal 2026 Second Quarter Financial Results
CHICAGO, Dec. 03, 2025 (GLOBE NEWSWIRE) -- Methode Electronics, Inc. (NYSE: MEI), a leading global supplier of custom-engineered solutions for user interface, lighting, and power distribution applications, today announced financial results for the second quarter of fiscal 2026 ended November 1, 2025.
President and Chief Executive Officer Jon DeGaynor said, “Methode's transformation journey made further progress in the quarter and is on track. I am proud of the unwavering commitment and hard work that the Methode team has put into our transformation. The tangible improvements we have made are creating real value for our customers and shareholders. We are laser focused on improving execution and making Methode a more reliable and resilient company."
DeGaynor concluded, “We are reaffirming our fiscal 2026 guidance, driven by strategic operational enhancements - even as we navigate an approximately $100 million decline in annual net sales primarily due to evolving EV market demand. In addition, we continue to expect to deliver positive free cash flow for the year."
Consolidated Fiscal Second Quarter 2026 Financial Results
Methode's net sales were $246.9 million, compared to $292.6 million in the same quarter of fiscal 2025. The decrease reflected lower sales volumes across all segments. Fiscal 2Q 2026 contained 13 weeks compared to 14 weeks in Fiscal 2Q 2025.
Income from operations was $2.9 million, compared to $9.4 million in the same quarter of fiscal 2025. Income from operations as a percentage of net sales was 1.2%, compared to 3.2% in the same quarter of fiscal 2025. Gross profit was lower when compared to the prior-year quarter, a result of lower sales volume and product mix in the Automotive segment. Adjusted income from operations, a non-GAAP financial measure, was $4.0 million, compared to $14.3 million in the same quarter of fiscal 2025. The adjusted income from operations excluded expenses of $1.1 million for restructuring costs and asset impairment charges.
Net loss was $9.9 million or $0.28 per diluted share, compared to a loss of $1.6 million or $0.05 per diluted share in the same quarter of fiscal 2025. Adjusted net loss, a non-GAAP financial measure, was $6.7 million or $0.19 per diluted share, compared to income of $5.2 million or $0.14 per diluted share in the same quarter of fiscal 2025. The adjusted net loss excluded $0.9 million for restructuring costs and asset impairment charges and $2.3 million for valuation allowance for deferred tax assets.
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization of Intangibles), a non-GAAP financial measure, was $16.5 million or 6.7% of net sales, compared to $22.1 million or 7.6% of net sales in the same quarter of fiscal 2025. Adjusted EBITDA, a non-GAAP financial measure, was $17.6 million, compared to $26.7 million in the same quarter of fiscal 2025. Adjusted EBITDA excluded $1.1 million for restructuring costs and asset impairment charges.
Debt was $332.5 million at the end of the quarter, up from $317.6 million at the end of fiscal 2025. Increased borrowings and foreign currency translation drove the increase. Net debt, a non-GAAP financial measure defined as debt less cash and cash equivalents, was $214.0 million, which was flat when compared to fiscal year-end 2025.
Net cash used by operating activities was $7.4 million for the quarter, compared to $48.0 million in the same quarter of fiscal 2025. Free cash flow, a non-GAAP financial measure defined as net cash provided by operating activities less purchases of property, plant, and equipment, was negative $11.6 million, compared to negative $58.4 million in the same quarter of fiscal 2025. Free cash flow for the first half of fiscal 2026 was positive $6.4 million.
Segment Fiscal Second Quarter 2026 Financial Results
Comparing the Automotive segment’s quarter to the same quarter of fiscal 2025:
Comparing the Industrial segment’s quarter to the same quarter of fiscal 2025:
Comparing the Interface segment’s quarter to the same quarter of fiscal 2025:
Guidance
For fiscal 2026, the company reaffirmed its guidance expectation as follows:
This guidance is based on the current market outlook based on third party forecasts and customer projections and the current U.S. tariff policy. The guidance is subject to change due to a variety of factors including tariffs, 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.
Due to the inherent difficulty of forecasting the timing and amount of certain items that would impact net income margin, such as foreign currency gains and losses, we are unable to reasonably estimate net income margin, the GAAP financial measure most directly comparable to Adjusted EBITDA margin. Accordingly, we are unable to provide a reconciliation of Adjusted EBITDA margin to net income margin with respect to the guidance provided.
Conference Call
The company will conduct a conference call and webcast tomorrow, December 4, 2025, at 10:00 a.m. Central 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 802322, 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, Middle East and Asia. We design, engineer, and produce mechatronic products for OEMs utilizing our broad range of technologies for user interface, lighting system, power distribution and sensor applications.
Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus, and rail), cloud computing infrastructure, construction equipment, and consumer appliances. 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
Randy Wilson
Vice President, Investor Relations & Treasury
ir@methode.com
248.327.0943
This press release was published by a CLEAR® Verified individual.