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Aug 02, 2025
Methode Q1 2026 Earnings Report
Methode Electronics, Inc. reported its fiscal 2026 first quarter financial results, highlighting increased operating income and strong free cash flow.
Key Takeaways
Methode Electronics, Inc. delivered a solid first quarter for fiscal 2026, with a significant improvement in operating income despite a decrease in net sales. The company achieved strong free cash flow for the third consecutive quarter and reduced its net debt, demonstrating progress in its transformation journey and cost reduction initiatives.
Net sales for the quarter were $240.5 million, a decrease from $258.5 million in the prior year.
Income from operations significantly improved to $1.1 million, up from a loss of $7.5 million in the same quarter last year.
The company generated $18.0 million in free cash flow, marking the third consecutive quarter of strong free cash flow.
Net debt was reduced to $202.3 million, down from $214.0 million at the end of fiscal 2025.
Revenue by Segment
Forward Guidance
For fiscal 2026, Methode Electronics, Inc. affirmed its previous guidance, expecting net sales between $900 million and $1,000 million and EBITDA between $70 million and $80 million, with a stronger second half of the fiscal year.
Positive Outlook
- Affirmed expectation to double EBITDA for fiscal 2026 due to operational improvements.
- Anticipated stronger performance in the second half of the fiscal year.
- Guidance based on current market outlook and customer projections.
- Continued focus on cost reduction and improved execution.
- Data center business remains on pace for a strong year.
Challenges Ahead
- Expected approximately $100 million decline in sales driven by lower EV demand.
- Guidance is subject to change due to various factors including tariffs.
- Potential impact from the timing and success of new program launches.
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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