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Apr 29, 2023

Methode Q4 2023 Earnings Report

Methode reported strong Q4 sales led by lighting and power distribution solutions, with EV application sales reaching a record.

Key Takeaways

Methode Electronics reported a 4.3% increase in net sales to $301.2 million for Q4 2023. Net income was $8.1 million, or $0.22 per diluted share. The company secured program awards exceeding $250 million, with over 80% in EV applications.

Net sales reached $301.2 million.

Electric and hybrid vehicle applications accounted for 23% of net sales, marking a record.

Net income was $8.1 million, or $0.22 per diluted share.

Over $250 million in program awards were secured, with over 80% in EV applications.

Total Revenue
$301M
Previous year: $289M
+4.3%
EPS
$0.21
Previous year: $0.43
-51.2%
Adjusted EBITDA
$31.3M
Gross Profit
$63.3M
Previous year: $54.9M
+15.3%
Cash and Equivalents
$157M
Previous year: $172M
-8.7%
Free Cash Flow
$37.8M
Previous year: $33.6M
+12.5%
Total Assets
$1.58B
Previous year: $1.39B
+13.7%

Methode

Methode

Methode Revenue by Segment

Forward Guidance

For fiscal 2024, the company expects net sales to be in the range of $1,150 to $1,200 million and diluted earnings per share to be in a range of $1.55 to $1.75. For fiscal 2025, the company expects net sales to be in the range of $1,250 to $1,350 million and income from operations as a percentage of net sales to be in a range of 11% to 12%.

Positive Outlook

  • Expected positive financial impact from the recent Nordic Lights Group Corporation acquisition
  • Strong award pipeline
  • Expected rebound in the commercial vehicle market
  • Expected rebound in the data center market
  • Expected rebound in the e-bike markets

Challenges Ahead

  • Additional costs to support new program launches
  • Impact from program roll offs
  • Market headwinds in the higher margin Industrial segment
  • Supply chain disruptions
  • Inflation

Revenue & Expenses

Visualization of income flow from segment revenue to net income