The earnings call reflects a company undergoing significant transformation with operational improvements, strong cash flow, and record sales in certain segments. However, it also faces challenges with inventory adjustments, declining automotive sales, and a projected decrease in EV sales due to market demand issues and program delays. While there are promising areas and improvements, the negative impacts weigh heavily on the overall outlook.

Company Guidance -

Q1 2026

During the Methode Electronics fiscal 2025 fourth quarter results conference call, the company provided guidance for fiscal 2026, anticipating a doubling of EBITDA despite a projected $100 million decline in sales, primarily due to reduced EV demand. The guidance reflects operational improvements, including a $12 million improvement in tolling recovery, a $22 million reduction in accounts receivable, and a focus on cost-cutting and efficiency measures. The company also highlighted a strong performance in data center power products, with full-year sales exceeding $80 million, nearly double those of fiscal 2024. Sales for the fourth quarter were $257 million, an increase from the third quarter but a decline from the previous year, due to large program roll-offs and EV market challenges. The adjusted loss from operations was reported at $22 million, primarily driven by $15 million in unplanned inventory adjustments. Despite these challenges, Methode Electronics expects to leverage operational improvements and market opportunities to enhance financial performance in fiscal 2026.

Record Sales in Data Center Power Products

The company set records for the quarter and the full year in data center power product sales, finishing the year with over $80 million in sales, almost double those of fiscal 2024.

Strong Free Cash Flow

Methode Electronics delivered $26 million in free cash flow in the quarter, marking the best quarter since Q4 of fiscal 2023 and the second consecutive quarter of strong free cash flow.

Reduction in Debt and Improved Working Capital

The company reduced both its debt and net debt levels by $10 million from Q3, driven by a $12 million improvement in tolling recovery and a $22 million reduction in accounts receivable.

Significant Operational Improvements

Methode achieved a 100 basis points improvement in gross margin, $9 million in SG&A reductions, and an $11 million reduction in freight costs, along with a reduction in headcount by over 500 people.

Successful New Program Launches

The company launched 22 new programs in fiscal 2025 and expects to launch another 30 in fiscal 2026, with $170 million in bookings for new and extended programs.

Methode Electronics (MEI) Earnings, Revenues Date & History

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MEI Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Sep 04, 2025	2026 (Q1)	-0.35 / -	-0.52	―	―	―
Jul 09, 2025	2025 (Q4)	<0.01 / -0.80	-1.63	50.92% (+0.83)
Mar 05, 2025	2025 (Q3)	-0.07 / -0.41	-0.33	-24.24% (-0.08)
Dec 05, 2024	2025 (Q2)	-0.17 / -0.05	-1.55	96.77% (+1.50)
Sep 05, 2024	2025 (Q1)	-0.31 / -0.52	0.02	-2700.00% (-0.54)
Jul 11, 2024	2024 (Q4)	-0.20 / -1.63	0.22	-840.91% (-1.85)
Mar 07, 2024	2024 (Q3)	0.08 / -0.33	0.54	-161.11% (-0.87)
Dec 07, 2023	2024 (Q2)	0.11 / -1.55	0.75	-306.67% (-2.30)
Sep 07, 2023	2024 (Q1)	0.23 / 0.02	0.58	-96.55% (-0.56)
Jun 22, 2023	2023 (Q4)	0.38 / 0.22	0.43	-48.84% (-0.21)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

MEI Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 09, 2025	$10.18	$7.62	-25.15%
Mar 05, 2025	$9.47	$6.73	-28.93%
Dec 05, 2024	$11.07	$13.37	+20.78%
Sep 05, 2024	$9.48	$9.74	+2.74%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.