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Nov 01, 2025
Methode Q2 2026 Earnings Report
Methode Electronics, Inc. reported its financial results for the second quarter of fiscal 2026.
Key Takeaways
Methode Electronics, Inc. reported a decrease in net sales by 15.6% year-over-year to $246.9 million, resulting in a net loss of $9.9 million. Despite the decline, the company reaffirmed its fiscal 2026 guidance for net sales and adjusted EBITDA, highlighting progress in its transformation journey and expected positive free cash flow for the year.
Net sales for Q2 fiscal 2026 were $246.9 million, a 15.6% decrease year-over-year but a 2.6% increase sequentially.
The company reported a net loss of $9.9 million, or $0.28 per diluted share, compared to a net loss of $1.6 million in the prior year.
Adjusted EBITDA was $17.6 million, with an adjusted EBITDA margin of 7.1%.
Methode reaffirmed its fiscal 2026 guidance for net sales between $900 million and $1 billion and adjusted EBITDA between $70 million and $80 million.
Revenue by Segment
Forward Guidance
Methode Electronics, Inc. reaffirmed its fiscal 2026 guidance, projecting net sales between $900 million and $1 billion and adjusted EBITDA between $70 million and $80 million, despite an anticipated decline in annual net sales due to evolving EV market demand.
Positive Outlook
- Reaffirming fiscal 2026 guidance for net sales and adjusted EBITDA.
- Expectation to deliver positive free cash flow for the year.
- Strategic operational enhancements are driving the reaffirmed guidance.
- Transformation journey is making further progress and is on track.
- Tangible improvements are creating real value for customers and shareholders.
Challenges Ahead
- Anticipated approximately $100 million decline in annual net sales primarily due to evolving EV market demand.
- Guidance is subject to change due to various factors including tariffs and global economic instability.
- Uncertainty regarding the ultimate take rates on EV programs.
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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