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Feb 01, 2025
Methode Q3 2025 Earnings Report
Methode Electronics reported a net loss in Q3 2025 despite strong power product sales for data centers.
Key Takeaways
Methode Electronics posted Q3 2025 revenue of $239.9 million, down from $259.5 million in Q3 2024, mainly due to lower automotive segment sales. The company recorded a net loss of $14.4 million, impacted by a tax valuation allowance. However, free cash flow improved to $19.6 million, and operating loss narrowed due to cost control measures.
Revenue declined to $239.9 million, down 7.6% from Q3 2024.
Net loss increased to $14.4 million due to a tax valuation allowance.
Free cash flow improved to $19.6 million from $12.2 million in Q3 2024.
Automotive segment sales dropped 17.2%, while Industrial segment grew by 4.5%.
Revenue by Segment
Forward Guidance
Methode Electronics expects sales to stabilize in Q4 2025, with a focus on launching new programs and improving operational efficiency.
Positive Outlook
- Guidance reaffirmed for profitable organic sales growth in fiscal 2026.
- Industrial segment growth driven by strong demand for data center power products.
- Operational improvements lowering the company's breakeven sales point.
- Continued execution of transformation initiatives to drive cost savings.
- Successful launch of 20 new programs with 33 more expected in the next five quarters.
Challenges Ahead
- Weakness in the automotive market impacting sales.
- Slowdown in new EV program ramp-ups affecting demand.
- Foreign currency fluctuations may create headwinds.
- Potential delays in 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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