Methode Electronics, Inc. Reports Fiscal 2026 Second Quarter Financial Results

Rhea-AI Summary

Methode Electronics (NYSE: MEI) reported fiscal 2Q 2026 net sales of $246.9M, down 15.6% YoY but up 2.6% sequentially, and a net loss of $9.9M (4.0% of sales). Adjusted EBITDA for the quarter was $17.6M (about 7% of sales). The company reaffirmed fiscal 2026 guidance: sales $900M–$1,000M and adjusted EBITDA $70M–$80M. Segment trends included a 24.1% decline in Automotive sales and stronger Industrial margins (income from operations 23.1% of sales). Free cash flow for H1 fiscal 2026 was positive $6.4M. Management cited a ~$100M annual sales decline tied to evolving EV demand.

Positive

• Guidance reaffirmed: sales $900M–$1,000M, adjusted EBITDA $70M–$80M
• Industrial operating margin improved to 23.1% of sales (from 18.5%)
• First-half fiscal 2026 free cash flow +$6.4M

Negative

• Consolidated net sales down 15.6% YoY to $246.9M
• Automotive sales declined 24.1% YoY to $110.5M
• Adjusted EBITDA fell from $26.7M to $17.6M (~34% decline)
• Reported net loss $9.9M vs prior-year loss $1.6M

News Market Reaction

+4.70% 1.8x vol

14 alerts

+4.70% News Effect

+4.1% Peak Tracked

-8.7% Trough Tracked

+$14M Valuation Impact

$306M Market Cap

1.8x Rel. Volume

On the day this news was published, MEI gained 4.70%, reflecting a moderate positive market reaction. Argus tracked a peak move of +4.1% during that session. Argus tracked a trough of -8.7% from its starting point during tracking. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $14M to the company's valuation, bringing the market cap to $306M at that time. Trading volume was above average at 1.8x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Net sales: $246.9M Net loss: $9.9M Adjusted EBITDA margin: 7.1% +5 more

8 metrics

Net sales $246.9M Fiscal 2Q 2026; down 15.6% year-over-year, up 2.6% sequentially

Net loss $9.9M Fiscal 2Q 2026; 4.0% of net sales

Adjusted EBITDA margin 7.1% Fiscal 2Q 2026; non-GAAP

FY26 sales guidance $900–$1,000M Fiscal 2026 net sales guidance reaffirmed

FY26 adj. EBITDA guide $70–$80M Fiscal 2026 adjusted EBITDA guidance reaffirmed

Automotive net sales $110.5M Fiscal 2Q 2026; down 24.1% vs prior year quarter

Industrial op margin 23.1% Fiscal 2Q 2026 income from operations as % of Industrial sales

H1 FY26 free cash flow $6.4M Free cash flow for first half of fiscal 2026

Market Reality Check

Price: $7.51 Vol: Volume 240,495 is about 2...

normal vol

$7.51 Last Close

Volume Volume 240,495 is about 27% below the 20-day average of 327,423, suggesting a relatively light reaction to the earnings release. normal

Technical Price at $7.27 is trading slightly below the 200-day MA of $7.36, keeping shares in a longer-term lagging posture despite today’s gain.

Peers on Argus

MEI’s move contrasts with mixed peers: LPTH is down 7.89% on momentum screens, w...

1 Down

MEI’s move contrasts with mixed peers: LPTH is down 7.89% on momentum screens, while others like MPTI and GAUZ show smaller, directionally mixed changes, pointing to a company-specific reaction to earnings.

Historical Context

5 past events · Latest: Dec 03 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 03	Earnings results	Positive	+4.7%	Fiscal 2Q 2026 results with guidance reaffirmed and segment updates.
Nov 26	Earnings call notice	Neutral	+2.0%	Announcement of upcoming fiscal 2Q 2026 results conference call.
Nov 06	Conference appearance	Neutral	+2.0%	Planned fireside chat at a major industrial investor conference.
Oct 17	Dividend declaration	Positive	-0.1%	Board approval of a <b>$0.05</b> per share quarterly dividend.
Sep 11	Conference appearance	Neutral	-1.0%	Participation announcement for a small-cap virtual investor conference.

Pattern Detected

Recent company-specific news has often produced modest single-digit moves, with occasional divergences such as a slight dip on a dividend announcement and mixed reactions around earnings.

Recent Company History

Over the last six months, MEI’s news flow has centered on earnings, investor outreach, and capital returns. The company reported fiscal 2026 Q1 results on Sep 09 with lower sales but improved operations and strong free cash flow, while reaffirming full-year guidance. Earlier, a fiscal 2025 Q3 earnings release on Mar 05 showed declining sales and a wider net loss. Subsequent conference and dividend announcements saw relatively small price moves. Today’s fiscal 2Q 2026 results and guidance reaffirmation continue this transformation narrative.

Market Pulse Summary

This announcement outlines fiscal 2Q 2026 results with net sales of $246.9M, a wider net loss of $9....

Analysis

This announcement outlines fiscal 2Q 2026 results with net sales of $246.9M, a wider net loss of $9.9M, and segment pressure, particularly in Automotive. Management reaffirmed full-year guidance for $900–$1,000M in sales and $70–$80M in adjusted EBITDA, highlighting ongoing transformation efforts and positive free cash flow for the first half. Investors may track execution on cost actions, segment mix, and progress toward the full-year targets in upcoming quarters.

Key Terms

adjusted EBITDA, non-GAAP financial measure, free cash flow, net debt, +4 more

8 terms

adjusted EBITDA financial

"reaffirming fiscal 2026 guidance for net sales of $900 million to $1 billion and adjusted EBITDA of $70 to $80 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-GAAP financial measure financial

"Adjusted income from operations, a non-GAAP financial measure, was $4.0 million"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

free cash flow financial

"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"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

net debt financial

"Net debt, a non-GAAP financial measure defined as debt less cash and cash equivalents, was $214.0 million"

Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.

EBITDA financial

"EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization of Intangibles), a non-GAAP financial measure, was $16.5 million"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

restructuring costs financial

"The adjusted income from operations excluded expenses of $1.1 million for restructuring costs and asset impairment charges"

Restructuring costs are the immediate expenses a company incurs when reorganizing operations, such as closing facilities, laying off staff, breaking leases, or consolidating divisions. Investors care because these upfront outlays can lower short-term profits but may reduce future running costs or improve efficiency—like paying to renovate a house to make it cheaper to maintain—so they signal whether near-term earnings are being affected and what benefits might follow.

asset impairment charges financial

"The adjusted income from operations excluded expenses of $1.1 million for restructuring costs and asset impairment charges"

Asset impairment charges happen when a company realizes that the value of something it owns, like equipment or property, has dropped significantly and is now worth less than its current book value. This is important because it shows the company needs to write down the asset's value on its financial records, which can affect its profits and overall financial health.

foreign currency translation financial

"Foreign currency translation increased net sales by $3.3 million as compared to the same quarter of fiscal 2025"

Foreign currency translation is the process of converting financial statements prepared in one currency into another currency so they can be combined or compared. Investors care because exchange rate swings can change reported revenue, profit and asset values even when a company’s underlying business hasn’t changed — like converting vacation spending back to your home money and seeing the total rise or fall depending on the day’s exchange rate.

AI-generated analysis. Not financial advice.

• Net sales of $246.9 million down 15.6% year-over-year; up 2.6% on a sequential quarter basis
• Net loss of $9.9 million or 4.0% of net sales; adjusted EBITDA margin of 7.1%
• Reaffirming fiscal 2026 guidance for net sales of $900 million to $1 billion and adjusted EBITDA of $70 to $80 million

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:

• Net sales were $110.5 million, down from $145.5 million. Net sales decreased $35.0 million or 24.1% due to the roll-off of legacy programs along with lower sales volumes of sensor and user interface products. Foreign currency translation increased net sales by $3.3 million as compared to the same quarter of fiscal 2025.
• Loss from operations was $10.9 million, compared to income of $0.7 million in the prior year. The higher loss from operations was primarily due to lower gross profit.

Comparing the Industrial segment’s quarter to the same quarter of fiscal 2025:

• Net sales were $126.9 million, down from $131.4 million. Net sales decreased $4.5 million or 3.4%, due to lower sales volumes for lighting products for commercial vehicles and radio remote control devices, partially offset by higher sales volumes for lighting products for off-road equipment markets. Foreign currency translation increased net sales by $2.6 million as compared to the same quarter of fiscal 2025.
• Income from operations was $29.3 million, increased from $24.3 million. Income from operations was 23.1% of net sales, increased from 18.5%. The increase was primarily due to higher gross profit and lower selling and administrative expenses.

Comparing the Interface segment’s quarter to the same quarter of fiscal 2025:

• Net sales were $9.5 million, down from $15.7 million. The decrease was primarily due to lower sales volumes of touch panels for appliances.
• Income from operations was $2.3 million, down from $4.7 million. Income from operations was 24.2% of net sales, decreased from 29.9%. The decrease was primarily due to lower gross profit.
  

Guidance
For fiscal 2026, the company reaffirmed its guidance expectation as follows:

Fiscal 2026	$ Millions
Sales	$900-1,000
Interest Expense	$21-23
Tax Expense	$17-21
D&A	$58-63
Adjusted EBITDA	$70-80
Capital Expenditures	$24-29

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:

• Dependence on the automotive, commercial vehicle, and construction industries;
• Timing, quality and cost of new program launches;
• Changes in electric vehicle (“EV”) demand;
• Investment in programs prior to the recognition of revenue;
• Production delays or cancelled orders;
• Changes in global trade policies, including tariffs;
• Failure to attract and retain qualified personnel;
• Inflation;
• Dependence on the availability and price of materials;
• Dependence on a small number of large customers;
• Dependence on our supply chain;
• Risks related to conducting global operations;
• Effects of potential catastrophic events or other business interruptions;
• Ability to withstand pricing pressures, including price reductions;
• Ability to compete effectively;
• Our lengthy sales cycle;
• Risks relating to our use of requirements contracts;
• Potential work stoppages;
• Ability to successfully benefit from acquisitions and divestitures;
• Ability to manage our debt levels;
• Ability to comply with restrictions and covenants under our credit agreement;
• Interest rate changes and variable rate instruments;
• Timing and magnitude of costs associated with restructuring activities;
• Recognition of goodwill and other intangible asset impairment charges;
• Risks associated with inventory;
• Ability to remediate a material weakness in our internal control over financial reporting;
• Currency fluctuations;
• Income tax rate fluctuations;
• Judgments related to accounting for tax positions;
• Risks associated with litigation and government inquiries;
• Risks associated with warranty claims;
• Changing government regulations;
• Changing requirements by stakeholders on environmental or social matters;
• Effects of IT disruptions or cybersecurity incidents;
• Ability to innovate and keep pace with technological changes; and
• Ability to protect our intellectual property.

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

METHODE ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in millions, except per-share data)
		Three Months Ended								Six Months Ended
		November 1, 2025				November 2, 2024				November 1, 2025				November 2, 2024
		(13 Weeks)				(14 Weeks)				(26 Weeks)				(27 Weeks)
Net sales		$	246.9			$	292.6			$	487.4			$	551.1
Cost of products sold			199.2				234.7				396.2				448.6
Gross profit			47.7				57.9				91.2				102.5
Selling and administrative expenses			39.0				42.6				75.6				88.8
Amortization of intangibles			5.8				5.9				11.6				11.8
Income from operations			2.9				9.4				4.0				1.9
Interest expense, net			5.7				6.2				11.6				11.0
Other expense, net			1.4				1.6				2.7				2.4
Pre-tax (loss) income			(4.2	)			1.6				(10.3	)			(11.5	)
Income tax expense			5.7				3.2				9.9				8.4
Net loss		$	(9.9	)		$	(1.6	)		$	(20.2	)		$	(19.9	)
Loss per share:
Basic		$	(0.28	)		$	(0.05	)		$	(0.57	)		$	(0.56	)
Diluted		$	(0.28	)		$	(0.05	)		$	(0.57	)		$	(0.56	)
Cash dividends per share		$	0.05			$	0.14			$	0.12			$	0.28

METHODE ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions, except share and per-share data)
		November 1, 2025				May 3, 2025
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	118.5			$	103.6
Accounts receivable, net			229.6				241.0
Inventories, net			190.2				194.1
Income tax receivable			2.5				4.1
Prepaid expenses and other current assets			14.5				17.1
Total current assets			555.3				559.9
Long-term assets:
Property, plant and equipment, net			225.5				221.6
Goodwill			173.4				172.7
Other intangible assets, net			228.6				238.4
Operating lease right-of-use assets, net			20.6				23.7
Deferred tax assets			38.8				37.8
Pre-production costs			25.5				31.7
Other long-term assets			19.7				20.0
Total long-term assets			732.1				745.9
Total assets		$	1,287.4			$	1,305.8
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	124.2			$	125.9
Accrued employee liabilities			27.2				32.0
Other accrued liabilities			46.6				50.2
Short-term operating lease liabilities			7.6				7.4
Short-term debt			0.2				0.2
Income tax payable			11.8				17.5
Total current liabilities			217.6				233.2
Long-term liabilities:
Long-term debt			332.3				317.4
Long-term operating lease liabilities			15.3				18.2
Other long-term liabilities			17.1				16.9
Deferred tax liabilities			25.8				26.8
Total long-term liabilities			390.5				379.3
Total liabilities			608.1				612.5
Shareholders' equity:
Common stock, $0.50 par value, 100,000,000 shares authorized, 36,746,962 shares and 37,151,365 shares issued as of November 1, 2025 and May 3, 2025, respectively			18.4				18.6
Additional paid-in capital			195.8				191.8
Accumulated other comprehensive loss			(22.3	)			(29.8	)
Treasury stock, 1,346,624 shares as of November 1, 2025 and May 3, 2025			(11.5	)			(11.5	)
Retained earnings			498.9				524.2
Total shareholders' equity			679.3				693.3
Total liabilities and shareholders' equity		$	1,287.4			$	1,305.8

METHODE ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in millions)
		Six Months Ended
		November 1, 2025				November 2, 2024
		(26 Weeks)				(27 Weeks)
Operating activities:
Net loss		$	(20.2	)		$	(19.9	)
Adjustments to reconcile net loss to net cash provided (used) by operating activities:
Depreciation and amortization			29.9				28.4
Stock-based compensation expense			4.2				3.7
Amortization of debt issuance costs			0.8				0.5
Partial write-off of unamortized debt issuance costs			0.6				1.2
Gain on sale of property, plant and equipment			(0.5	)			(0.3	)
Impairment of long-lived assets			0.1				0.4
Inventory obsolescence			3.4				5.6
Change in deferred income taxes			(1.9	)			2.5
Other			(1.6	)			1.1
Changes in operating assets and liabilities:
Accounts receivable			14.1				5.2
Inventories, net			1.7				(46.9	)
Prepaid expenses and other assets			6.5				(6.9	)
Accounts payable			(2.5	)			(2.0	)
Other liabilities			(16.9	)			(9.7	)
Net cash provided (used) by operating activities			17.7				(37.1	)
Investing activities:
Purchases of property, plant and equipment			(11.3	)			(24.0	)
Proceeds from sale of property, plant and equipment			1.3				3.0
Proceeds from redemption of life insurance			0.5				—
Net cash provided (used) by investing activities			(9.5	)			(21.0	)
Financing activities:
Taxes paid related to net share settlement of equity awards			(0.9	)			(0.5	)
Repayments of finance leases			(0.1	)			(0.1	)
Debt issuance costs			(1.6	)			(1.8	)
Purchases of common stock			—				(1.6	)
Cash dividends			(4.7	)			(10.0	)
Proceeds from borrowings			88.5				45.0
Repayments of borrowings			(78.1	)			(39.1	)
Net cash provided (used) by financing activities			3.1				(8.1	)
Effect of foreign currency exchange rate changes on cash and cash equivalents			3.6				1.7
Increase (decrease) in cash and cash equivalents			14.9				(64.5	)
Cash and cash equivalents at beginning of the period			103.6				161.5
Cash and cash equivalents at end of the period		$	118.5			$	97.0
Supplemental cash flow information:
Cash paid during the period for:
Interest		$	10.2			$	10.3
Income taxes, net of refunds		$	15.3			$	15.5
Operating lease obligations		$	4.4			$	4.6

METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (unaudited) (in millions)
		Three Months Ended								Six Months Ended
		November 1, 2025				November 2, 2024				November 1, 2025				November 2, 2024
		(13 Weeks)				(14 Weeks)				(26 Weeks)				(27 Weeks)
EBITDA:
Net loss		$	(9.9	)		$	(1.6	)		$	(20.2	)		$	(19.9	)
Income tax expense			5.7				3.2				9.9				8.4
Interest expense, net			5.7				6.2				11.6				11.0
Amortization of intangibles			5.8				5.9				11.6				11.8
Depreciation			9.2				8.4				18.3				16.6
EBITDA			16.5				22.1				31.2				27.9
Transformation costs *			—				4.8				—				7.0
Partial write-off of unamortized debt issuance costs			—				—				0.6				1.2
Restructuring costs and asset impairment charges			1.1				0.1				2.0				0.7
Net gain on sale of non-core assets			—				(0.3	)			(0.5	)			(0.3	)
Adjusted EBITDA		$	17.6			$	26.7			$	33.3			$	36.5
* Represents professional fees related to the Company's cost reduction initiative.

		Three Months Ended								Six Months Ended
		November 1, 2025				November 2, 2024				November 1, 2025				November 2, 2024
		(13 Weeks)				(14 Weeks)				(26 Weeks)				(27 Weeks)
Free Cash Flow:
Net cash provided (used) by operating activities		$	(7.4	)		$	(48.0	)		$	17.7			$	(37.1	)
Purchases of property, plant and equipment			(4.2	)			(10.4	)			(11.3	)			(24.0	)
Free cash flow		$	(11.6	)		$	(58.4	)		$	6.4			$	(61.1	)

		November 1, 2025				May 3, 2025
Net Debt:
Short-term debt		$	0.2			$	0.2
Long-term debt			332.3				317.4
Total debt			332.5				317.6
Less: cash and cash equivalents			(118.5	)			(103.6	)
Net debt		$	214.0			$	214.0

METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (unaudited) (in millions, except per share data)
		Three Months Ended
		November 1, 2025 (13 Weeks)																November 2, 2024 (14 Weeks)
		Income from operations				Pre-tax loss				Net loss				Diluted loss per share				Income from operations				Pre-tax income				Net (loss) income				Diluted (loss) income per share
U.S. GAAP (as reported)		$	2.9			$	(4.2	)		$	(9.9	)		$	(0.28	)		$	9.4			$	1.6			$	(1.6	)		$	(0.05	)
Transformation costs			—				—				—			$	—				4.8				4.8				3.7			$	0.10
Restructuring costs and asset impairment charges			1.1				1.1				0.9			$	0.03				0.1				0.1				0.1			$	0.01
Net gain on sale of non-core assets			—				—				—			$	—				—				(0.3	)			(0.2	)		$	(0.01	)
Valuation allowance on deferred tax assets			—				—				2.3			$	0.06				—				—				3.2			$	0.09
Non-U.S. GAAP (adjusted)		$	4.0			$	(3.1	)		$	(6.7	)		$	(0.19	)		$	14.3			$	6.2			$	5.2			$	0.14
		Six Months Ended
		November 1, 2025 (26 Weeks)																November 2, 2024 (27 Weeks)
		Loss from operations				Pre-tax loss				Net loss				Diluted (loss) income per share				Income from operations				Pre-tax loss				Net loss				Diluted (loss) income per share
U.S. GAAP (as reported)		$	4.0			$	(10.3	)		$	(20.2	)		$	(0.57	)		$	1.9			$	(11.5	)		$	(19.9	)		$	(0.56	)
Transformation costs			—				—				—			$	—				7.0				7.0				5.4			$	0.15
Partial write-off of unamortized debt issuance costs			—				0.6				0.5			$	0.01				—				1.2				0.9			$	0.03
Restructuring costs and asset impairment charges			2.0				2.0				1.6			$	0.05				0.7				0.7				0.6			$	0.02
Net gain on sale of non-core assets			—				(0.5	)			(0.4	)		$	(0.01	)			—				(0.3	)			(0.2	)		$	(0.01	)
Valuation allowance on deferred tax assets			—				—				4.0			$	0.11				—				—				7.5			$	0.21
Non-U.S. GAAP (adjusted)		$	6.0			$	(8.2	)		$	(14.5	)		$	(0.41	)		$	9.6			$	(2.9	)		$	(5.7	)		$	(0.16	)

This press release was published by a CLEAR® Verified individual.

FAQ

What were Methode Electronics (MEI) fiscal 2Q 2026 net sales and net loss?

Methode reported net sales $246.9M and a net loss $9.9M for fiscal 2Q 2026.

Did Methode (MEI) update its fiscal 2026 guidance on Dec 3, 2025?

Yes. Methode reaffirmed fiscal 2026 guidance of sales $900M–$1,000M and adjusted EBITDA $70M–$80M.

How did Methode's Automotive segment perform in fiscal 2Q 2026 (MEI)?

Automotive net sales were $110.5M, down 24.1% YoY, driven by legacy program roll-offs and lower volumes.

What happened to Methode's adjusted EBITDA and margins in fiscal 2Q 2026 (MEI)?

Adjusted EBITDA was $17.6M (about 7% of sales), down from $26.7M in the year‑ago quarter.

Is Methode (MEI) generating cash after the first half of fiscal 2026?

Yes. Free cash flow for the first half of fiscal 2026 was positive $6.4M.

When is Methode's conference call to discuss fiscal 2Q 2026 results (MEI)?

The conference call and webcast are scheduled for Dec 4, 2025 at 10:00 a.m. Central Time.