Methode Electronics Reports Q1 Fiscal 2026 Results

Methode Electronics ( (MEI) ) has released its Q1 earnings. Here is a breakdown of the information Methode Electronics presented to its investors.

Methode Electronics, Inc. is a global supplier specializing in custom-engineered solutions for user interface, lighting, and power distribution applications across various industries, including automotive and cloud computing infrastructure.

In its fiscal 2026 first-quarter earnings report, Methode Electronics highlighted growth in power product sales and an increase in income from operations, despite a decrease in overall net sales compared to the previous year. The company also reported strong free cash flow and a reduction in net debt for the third consecutive quarter.

Key financial metrics for the quarter included net sales of $240.5 million, with electric and hybrid vehicle applications accounting for 19% of these sales. Income from operations improved significantly to $1.1 million from a loss in the previous year, while the net loss narrowed to $10.3 million. The Industrial segment showed notable growth, driven by increased demand for power and lighting products, while the Automotive segment faced challenges due to lower sales volume in North America.

Despite facing a pre-tax loss, Methode Electronics managed to generate $25.1 million in net cash from operating activities, leading to a free cash flow of $18.0 million. The company also reduced its net debt to $202.3 million, reflecting effective cost management and operational improvements.

Looking ahead, Methode Electronics reaffirmed its fiscal 2026 guidance, projecting net sales between $900 million and $1,000 million and EBITDA between $70 million and $80 million, with expectations for stronger performance in the second half of the fiscal year.