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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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