Methode Electronics, Inc. Reports Fiscal 2027 First Quarter Financial Results
Industrial-led revenue growth and new awards contrast with a wider quarterly loss, weaker cash flow and lower margins, as Methode reaffirms fiscal 2027 guidance.
Rhea-AI Summary
Methode Electronics (MEI) reported fiscal 2027 first quarter net sales of $265.4 million, up 10.4% year-over-year, with a net loss of $11.4 million, or $0.32 per diluted share.
Growth was driven primarily by the Industrial segment, where net sales rose 27.0% to $156.8 million and income from operations increased to $31.6 million, or 20.2% of segment sales. Automotive sales were roughly flat at $105.7 million, with the segment loss narrowing to $11.7 million. Interface sales declined to $2.9 million, mainly due to the prior dataMate divestiture and consumer appliance roll-offs.
Adjusted EBITDA was $13.7 million, or 5.2% of net sales, compared to $15.7 million, or 6.5%, in the prior-year quarter. Free cash flow was an outflow of $10.9 million versus an inflow of $18.0 million a year ago. The company repaid $10.1 million of net debt, amended its revolving credit facility by extending certain maturities to October 2028 and reducing the facility to $375 million, booked new non-data center awards with approximately $75 million peak annual and ~$400 million lifetime revenue, and affirmed its fiscal 2027 guidance, including net sales of $1.025–$1.075 billion and adjusted EBITDA of $72–$82 million.
Positive
- Net sales rose 10.4% year-over-year to $265.4 million in Q1 FY2027.
- Industrial segment sales increased 27.0% to $156.8 million, with segment operating income of $31.6 million and a 20.2% margin.
- New non-data center awards total approximately $75 million peak annual revenue and ~$400 million lifetime revenue.
- Net debt repayment of $10.1 million during the quarter supports balance sheet discipline.
- Revolving credit facility amended, extending certain maturities to October 2028 and setting total capacity at $375 million.
- Fiscal 2027 guidance affirmed with net sales expected at $1.025–$1.075 billion and adjusted EBITDA at $72–$82 million.
Negative
- Net loss widened to $11.4 million from $10.3 million, with loss per diluted share at $0.32 versus $0.29.
- Adjusted EBITDA declined to $13.7 million (5.2% margin) from $15.7 million (6.5% margin).
- Loss from operations was $3.9 million, compared to income from operations of $1.1 million in the prior-year quarter.
- Free cash flow was an outflow of $10.9 million versus an inflow of $18.0 million a year earlier, as net cash from operating activities moved to a $7.8 million use.
- Interface segment net sales dropped to $2.9 million from $10.9 million, shifting from $3.0 million operating income to a $0.8 million loss, largely due to the dataMate divestiture and program roll-offs.
- Selling and administrative expenses increased to $45.9 million from $36.6 million, reflecting higher investment in talent, capabilities and professional fees.
- Cash dividend per share was $0.05 in the quarter compared with $0.07 in the prior-year period.
Market reaction after 1Q27 earnings report: MEI -19.06%
Following this news, MEI has declined 19.06%, reflecting a significant negative market reaction. Argus tracked a trough of -7.1% from its starting point during tracking. Our momentum scanner has triggered 7 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $14.65. Trading volume is elevated at 2.1x the average, suggesting increased selling activity.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 24 | Fourth-quarter earnings | Positive | +37.5% | Full-year results, improved cash flow, and fiscal 2027 guidance supported the announcement. |
| Mar 05 | Third-quarter earnings | Negative | -11.8% | Lowered guidance and continued losses accompanied declining year-over-year sales. |
| Dec 03 | Second-quarter earnings | Negative | -10.9% | Lower sales and a net loss outweighed reaffirmed fiscal guidance. |
| Sep 09 | First-quarter earnings | Positive | +12.2% | Operational improvement, positive cash flow, and affirmed guidance supported the results. |
| Mar 05 | Third-quarter earnings | Negative | -28.9% | Lower sales and a larger net loss reflected automotive demand challenges. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
All five tag-matched earnings events were followed by price moves aligned with the assessed news sentiment.
Key Terms
adjusted ebitda financial
free cash flow financial
gaap financial
revolving credit facility financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Continued transformation progress drove robust revenue growth and operational excellence gains
Consolidated Fiscal First Quarter 2027 Highlights
- Net sales of
$265.4 million , up10.4% year-over-year - Net loss of
$11.4 million , compared to$10.3 million in prior-year period - Adjusted EBITDA of
$13.7 million compared to$15.7 million in prior-year period - Net repayment on debt of
$10.1 million in the quarter reflecting disciplined balance sheet management - Booked new non-data center awards totaling
$75 million of peak annual revenue or ~$400 million of lifetime revenue - Subsequent to quarter-end, amended revolving credit facility to extend certain maturities one year to October 2028
- The Company affirmed its fiscal 2027 guidance
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
Mr. DeGaynor continued, “We booked new non-data center awards representing
Consolidated Fiscal First Quarter 2027 Financial Results
Methode's net sales were
Gross profit was
Selling and administrative expenses were
Loss from operations was
Income tax expense was
Net loss was
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization of Intangibles), a non-GAAP financial measure, was
Net cash used in operating activities was
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
Segment Fiscal First Quarter 2027 Financial Results
Comparing the Automotive segment’s quarter to the same quarter of fiscal 2026:
- Net sales were
$105.7 million , down from$106.1 million . Net sales decreased$0.4 million or0.4% largely due to lower sales volumes in EMEA and Asia, mostly offset by increased sales, including customer recoveries, in North America. Foreign exchange increased net sales by$0.6 million . - Loss from operations was
$11.7 million , or (11.1)% of Automotive segment net sales, compared to a loss of$12.5 million , or (11.8)% in the prior-year. Loss from operations narrowed primarily due to improved operating performance, partially offset by an increase in selling and administrative expenses.
Comparing the Industrial segment’s quarter to the same quarter of fiscal 2026:
- Net sales were
$156.8 million , up from$123.5 million . Net sales increased$33.3 million or27.0% , due to higher sales volumes for data center, on-highway and off-highway lighting products, including customer recoveries. Foreign currency translation increased net sales by$1.3 million . - Income from operations was
$31.6 million , or20.2% of Industrial segment net sales, compared to$26.5 million . The increase was primarily due to higher sales volumes and mix, partially offset by higher material and freight costs.
Comparing the Interface segment’s quarter to the same quarter of fiscal 2026:
- Net sales were
$2.9 million , down from$10.9 million . The decrease was primarily due to the divestiture of the dataMate business in the fourth quarter of fiscal 2026 and program roll-offs as the consumer appliance business winds down. - Loss from operations was
$0.8 million , or (27.6)% of Interface segment net sales, compared to income from operations of$3.0 million . The decrease was primarily due to lower sales volumes and product mix.
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.
| Fiscal 2027 | $ Millions |
| Net sales | |
| Interest expense | |
| Tax expense | |
| D&A | |
| Adjusted EBITDA | |
| Capital expenditures |
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:
- Dependence on the automotive, commercial vehicle, data center, 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;
- Effects from production delays or cancelled orders;
- Changes in global trade policies, including tariffs, and other costs of our global business;
- Changes, expiration, or renegotiation of the United States Mexico Canada Agreement (“USMCA”);
- Failure to attract and retain qualified personnel;
- Effects from 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;
- Risks related to geopolitical conflicts;
- Effects of potential catastrophic events or other business interruptions;
- Our ability to withstand pricing pressures, including price reductions;
- Our ability to compete effectively;
- Our lengthy sales cycle;
- Contracts with customers are not for guaranteed volumes;
- Risks related to our exposure to technological change, customer concentration, and cyclical demand in the data center market;
- Potential work stoppages;
- Our ability to successfully benefit from acquisitions and divestitures;
- Our ability to manage our debt levels and refinance or extend our credit agreement;
- Our 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, other intangible asset, and long-lived asset impairment charges;
- Risks associated with inventory;
- Currency fluctuations;
- Income tax rate fluctuations;
- Judgments related to accounting for tax positions;
- Our ability to realize the benefits from our deferred tax assets;
- Risks associated with litigation;
- Risks associated with government inquiries;
- Risks associated with warranty claims;
- Effects of changing government regulations;
- Changing requirements by stakeholders on environmental or social matters;
- Effects of information technology (“IT”) disruptions or cybersecurity incidents;
- Our ability to innovate and keep pace with technological changes; and
- Our 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
ir@methode.com
METHODE ELECTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in millions, except per-share data)
| Three Months Ended | ||||||||
| August 1, 2026 | August 2, 2025 | |||||||
| (13 Weeks) | (13 Weeks) | |||||||
| Net sales | $ | 265.4 | $ | 240.5 | ||||
| Cost of products sold | 217.7 | 197.0 | ||||||
| Gross profit | 47.7 | 43.5 | ||||||
| Selling and administrative expenses | 45.9 | 36.6 | ||||||
| Amortization of intangibles | 5.7 | 5.8 | ||||||
| Income (loss) from operations | (3.9 | ) | 1.1 | |||||
| Interest expense, net | 5.2 | 5.9 | ||||||
| Other expense (income), net | (1.8 | ) | 1.3 | |||||
| Pre-tax income (loss) | (7.3 | ) | (6.1 | ) | ||||
| Income tax expense (benefit) | 4.1 | 4.2 | ||||||
| Net income (loss) | $ | (11.4 | ) | $ | (10.3 | ) | ||
| Income (loss) per share: | ||||||||
| Basic | $ | (0.32 | ) | $ | (0.29 | ) | ||
| Diluted | $ | (0.32 | ) | $ | (0.29 | ) | ||
| Cash dividends per share | $ | 0.05 | $ | 0.07 | ||||
METHODE ELECTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in millions, except share and per-share data)
| August 1, 2026 | May 2, 2026 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 116.2 | $ | 139.6 | ||||
| Accounts receivable, net | 256.4 | 257.3 | ||||||
| Inventories, net | 184.6 | 178.7 | ||||||
| Income tax receivable | 2.9 | 3.2 | ||||||
| Prepaid expenses and other current assets | 24.3 | 21.2 | ||||||
| Total current assets | 584.4 | 600.0 | ||||||
| Long-term assets: | ||||||||
| Property, plant and equipment, net | 202.9 | 209.3 | ||||||
| Goodwill | 173.5 | 174.9 | ||||||
| Other intangible assets, net | 211.4 | 218.9 | ||||||
| Operating lease right-of-use assets, net | 19.4 | 20.5 | ||||||
| Deferred tax assets | 39.1 | 39.5 | ||||||
| Pre-production costs | 16.0 | 18.2 | ||||||
| Other long-term assets | 17.0 | 24.8 | ||||||
| Total long-term assets | 679.3 | 706.1 | ||||||
| Total assets | $ | 1,263.7 | $ | 1,306.1 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 136.9 | $ | 134.1 | ||||
| Accrued employee liabilities | 36.3 | 49.1 | ||||||
| Other accrued liabilities | 44.8 | 45.6 | ||||||
| Short-term operating lease liabilities | 8.9 | 8.9 | ||||||
| Short-term debt | 0.2 | 0.2 | ||||||
| Income tax payable | 15.2 | 15.6 | ||||||
| Total current liabilities | 242.3 | 253.5 | ||||||
| Long-term liabilities: | ||||||||
| Long-term debt | 310.3 | 324.8 | ||||||
| Long-term operating lease liabilities | 13.8 | 14.8 | ||||||
| Other long-term liabilities | 5.2 | 5.8 | ||||||
| Deferred tax liabilities | 29.0 | 29.7 | ||||||
| Total long-term liabilities | 358.3 | 375.1 | ||||||
| Total liabilities | 600.6 | 628.6 | ||||||
| Shareholders' equity: | ||||||||
| Common stock, | 18.4 | 18.4 | ||||||
| Additional paid-in capital | 202.2 | 200.1 | ||||||
| Accumulated other comprehensive loss | (11.4 | ) | (8.8 | ) | ||||
| Treasury stock, 1,346,624 shares as of August 1, 2026 and May 2, 2026 | (11.5 | ) | (11.5 | ) | ||||
| Retained earnings | 465.4 | 479.3 | ||||||
| Total shareholders' equity | 663.1 | 677.5 | ||||||
| Total liabilities and shareholders' equity | $ | 1,263.7 | $ | 1,306.1 | ||||
METHODE ELECTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
| Three Months Ended | ||||||||
| August 1, 2026 | August 2, 2025 | |||||||
| (13 Weeks) | (13 Weeks) | |||||||
| Operating activities: | ||||||||
| Net income (loss) | $ | (11.4 | ) | $ | (10.3 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ||||||||
| Depreciation and amortization | 14.1 | 14.9 | ||||||
| Stock-based compensation expense | 2.1 | 1.2 | ||||||
| Amortization of debt issuance costs | 0.4 | 0.3 | ||||||
| Partial write-off of unamortized debt issuance costs | — | 0.6 | ||||||
| Gain on sale of property, plant and equipment | — | (0.5 | ) | |||||
| Inventory obsolescence | 2.7 | 1.7 | ||||||
| Change in deferred income taxes | (0.8 | ) | 0.5 | |||||
| Other | 0.1 | (1.0 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (0.7 | ) | 28.3 | |||||
| Inventories, net | (9.3 | ) | 2.8 | |||||
| Prepaid expenses and other assets | 8.0 | 6.2 | ||||||
| Accounts payable | 1.7 | (6.2 | ) | |||||
| Other liabilities | (14.7 | ) | (13.4 | ) | ||||
| Net cash provided (used) by operating activities | (7.8 | ) | 25.1 | |||||
| Investing activities: | ||||||||
| Purchases of property, plant and equipment | (3.1 | ) | (7.1 | ) | ||||
| Proceeds from disposition of assets | — | 1.3 | ||||||
| Net cash provided (used) by investing activities | (3.1 | ) | (5.8 | ) | ||||
| Financing activities: | ||||||||
| Taxes paid related to net share settlement of equity awards | (0.3 | ) | (0.4 | ) | ||||
| Repayments of finance leases | (0.1 | ) | (0.1 | ) | ||||
| Debt issuance costs | — | (1.6 | ) | |||||
| Cash dividends | (1.8 | ) | (2.8 | ) | ||||
| Proceeds from borrowings | 10.0 | 78.5 | ||||||
| Repayments of borrowings | (20.1 | ) | (78.1 | ) | ||||
| Net cash provided (used) by financing activities | (12.3 | ) | (4.5 | ) | ||||
| Effect of foreign currency exchange rate changes on cash and cash equivalents | (0.2 | ) | 2.7 | |||||
| Increase (decrease) in cash and cash equivalents | (23.4 | ) | 17.5 | |||||
| Cash and cash equivalents at beginning of the period | 139.6 | 103.6 | ||||||
| Cash and cash equivalents at end of the period | $ | 116.2 | $ | 121.1 | ||||
| Supplemental cash flow information: | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 5.0 | $ | 4.8 | ||||
| Income taxes, net of refunds | $ | 4.4 | $ | 5.7 | ||||
| Operating lease obligations | $ | 2.4 | $ | 2.2 | ||||
METHODE ELECTRONICS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES (unaudited)
(in millions)
| Three Months Ended | ||||||||
| August 1, 2026 | August 2, 2025 | |||||||
| (13 Weeks) | (13 Weeks) | |||||||
| EBITDA: | ||||||||
| Net income (loss) | $ | (11.4 | ) | $ | (10.3 | ) | ||
| Income tax expense | 4.1 | 4.2 | ||||||
| Interest expense, net | 5.2 | 5.9 | ||||||
| Amortization of intangibles | 5.7 | 5.8 | ||||||
| Depreciation | 8.4 | 9.1 | ||||||
| EBITDA | 12.0 | 14.7 | ||||||
| Partial write-off of unamortized debt issuance costs | — | 0.6 | ||||||
| Restructuring costs and asset impairment charges | 0.6 | 0.9 | ||||||
| Net gain on sale of non-core assets | — | (0.5 | ) | |||||
| Transaction cost and other strategic costs | 1.1 | — | ||||||
| Adjusted EBITDA | $ | 13.7 | $ | 15.7 | ||||
| EBITDA as a % of net sales | 4.5 | % | 6.1 | % | ||||
| Adjusted EBITDA as a % of net sales | 5.2 | % | 6.5 | % | ||||
| Three Months Ended | ||||||||
| August 1, 2026 | August 2, 2025 | |||||||
| (13 Weeks) | (13 Weeks) | |||||||
| Free Cash Flow: | ||||||||
| Net cash provided (used) by operating activities | $ | (7.8 | ) | $ | 25.1 | |||
| Purchases of property, plant and equipment | (3.1 | ) | (7.1 | ) | ||||
| Free cash flow | $ | (10.9 | ) | $ | 18.0 | |||
| August 1, 2026 | May 2, 2026 | |||||||
| Net Debt: | ||||||||
| Short-term debt | $ | 0.2 | $ | 0.2 | ||||
| Long-term debt | 310.3 | 324.8 | ||||||
| Total debt | 310.5 | 325.0 | ||||||
| Less: cash and cash equivalents | (116.2 | ) | (139.6 | ) | ||||
| Net debt | $ | 194.3 | $ | 185.4 | ||||
METHODE ELECTRONICS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES (unaudited)
(in millions, except per share data)
| Three Months Ended | ||||||||||||||||||||||||||||||||
| August 1, 2026 (13 Weeks) | August 2, 2025 (13 Weeks) | |||||||||||||||||||||||||||||||
| Income (loss) from operations | Pre-tax income (loss) | Net income (loss) | Diluted income (loss) per share | Income (loss) from operations | Pre-tax income (loss) | Net income (loss) | Diluted income (loss) per share | |||||||||||||||||||||||||
| U.S. GAAP (as reported) | $ | (3.9 | ) | $ | (7.3 | ) | $ | (11.4 | ) | $ | (0.32 | ) | $ | 1.1 | $ | (6.1 | ) | $ | (10.3 | ) | $ | (0.29 | ) | |||||||||
| Restructuring costs and asset impairment charges | 0.6 | 0.6 | 0.5 | $ | 0.01 | 0.9 | 0.9 | 0.7 | $ | 0.02 | ||||||||||||||||||||||
| Partial write-off of unamortized debt issuance costs | — | — | — | $ | — | — | 0.6 | 0.5 | $ | 0.01 | ||||||||||||||||||||||
| Net gain on sale of non-core assets | — | — | — | $ | — | — | (0.5 | ) | (0.4 | ) | $ | (0.01 | ) | |||||||||||||||||||
| Transaction cost and other strategic costs | 1.1 | 1.1 | 0.8 | $ | 0.02 | — | — | — | $ | — | ||||||||||||||||||||||
| Valuation allowance on deferred tax assets | — | — | 2.4 | $ | 0.07 | — | — | 1.7 | $ | 0.05 | ||||||||||||||||||||||
| Non-U.S. GAAP (adjusted) | $ | (2.2 | ) | $ | (5.6 | ) | $ | (7.7 | ) | $ | (0.22 | ) | $ | 2.0 | $ | (5.1 | ) | $ | (7.8 | ) | $ | (0.22 | ) | |||||||||
FAQ
How did Methode Electronics (MEI) perform in Q1 fiscal 2027?
Methode Electronics reported Q1 FY2027 net sales of $265.4 million, up 10.4% year-over-year, and a net loss of $11.4 million, or $0.32 per diluted share. Adjusted EBITDA was $13.7 million, equal to 5.2% of net sales.
What drove revenue growth for Methode Electronics (MEI) in Q1 fiscal 2027?
Revenue growth was primarily driven by the Industrial segment, where net sales increased 27.0% to $156.8 million. Higher volumes for data center, on-highway and off-highway lighting products, including customer recoveries, were the main contributors.
How did the Automotive and Interface segments of Methode Electronics (MEI) perform in Q1 fiscal 2027?
The Automotive segment posted net sales of $105.7 million, slightly down 0.4%, with the segment loss narrowing to $11.7 million. The Interface segment saw net sales fall to $2.9 million from $10.9 million and recorded a $0.8 million operating loss, mainly due to the dataMate divestiture and consumer appliance program roll-offs.
What were Methode Electronics (MEI) key profitability and cash flow metrics in Q1 fiscal 2027?
Adjusted EBITDA was $13.7 million, down from $15.7 million a year earlier, with margin decreasing to 5.2%. Net cash used in operating activities was $7.8 million, leading to free cash flow of negative $10.9 million, compared to positive $18.0 million in the prior-year quarter.
What new business awards did Methode Electronics (MEI) secure in Q1 fiscal 2027?
Methode Electronics booked new non-data center awards representing approximately $75 million of peak annual revenue and about $400 million of lifetime revenue, which the company presents as evidence of ongoing commercial momentum.
What changes did Methode Electronics (MEI) make to its debt and credit facility?
During Q1 FY2027, Methode repaid $10.1 million of net debt. After quarter-end, it amended its revolving credit agreement, extending certain maturities to October 2028 and reducing the facility size from $400 million to $375 million.
What is Methode Electronics (MEI) fiscal 2027 guidance for sales and adjusted EBITDA?
For fiscal 2027, Methode reaffirmed guidance with expected net sales of $1.025–$1.075 billion and adjusted EBITDA of $72–$82 million. The guidance also includes interest expense of $20–$22 million, tax expense of $24–$26 million, and capital expenditures of $25–$30 million.