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Jul 27, 2024
Methode Q1 2025 Earnings Report
Methode reported better-than-expected adjusted pre-tax loss and a $16.5 million increase in net cash provided by operating activities.
Key Takeaways
Methode Electronics reported net sales of $258.5 million for the first quarter of fiscal 2025. The adjusted pre-tax loss was better than expected, and net cash provided by operating activities increased by $16.5 million compared to the prior year. The company affirmed its fiscal 2025 and 2026 guidance.
Net sales were $258.5 million.
Electric and hybrid vehicle applications accounted for 18% of net sales.
Pre-tax loss was $13.1 million; adjusted pre-tax loss was $9.1 million.
Net cash provided by operating activities was $10.9 million, up from ($5.6) million in the prior year.
Methode
Methode
Methode Revenue by Segment
Revenue by Segment
Automotive Revenue
CapyFin.comIndustrial Revenue
CapyFin.comInterface Revenue
CapyFin.com Forward Guidance
For fiscal 2025, the company expects net sales to be similar to fiscal 2024 and adjusted pre-tax income to be approaching breakeven. For fiscal 2026, the company expects net sales to be greater than fiscal 2025 and pre-tax income to be positive and notably greater than fiscal 2025.
Positive Outlook
- Expects net sales to be similar to fiscal 2024.
- Adjusted pre-tax income to be approaching breakeven in fiscal 2025.
- Adjusted pre-tax income for the second half of fiscal 2025 is expected to be significantly stronger than the first half.
- Expects net sales to be greater than fiscal 2025 in fiscal 2026.
- Pre-tax income to be positive and notably greater than fiscal 2025 in fiscal 2026.
Challenges Ahead
- Guidance is subject to change due to successful launch of multiple new programs.
- Guidance is subject to change due to the ultimate take rates on new EV programs.
- Guidance is subject to change due to success and timing of cost recovery actions.
- Guidance is subject to change due to inflation.
- Guidance is subject to change due to global economic instability and supply chain disruptions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income