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Apr 27, 2024
Methode Q4 2024 Earnings Report
Methode Electronics reported a net loss for Q4 2024, impacted by goodwill impairment and operational inefficiencies, but achieved positive free cash flow and reduced net debt.
Key Takeaways
Methode Electronics reported Q4 2024 financial results with net sales of $277.3 million and a net loss of $57.3 million, or $1.63 per diluted share. The results were impacted by a goodwill impairment in the North American Automotive reporting unit and operational inefficiencies. However, the company achieved positive free cash flow of $15.8 million and reduced net debt to $169.4 million.
Net sales were $277.3 million.
Electric and hybrid vehicle applications accounted for 14% of net sales.
Net loss was $57.3 million, or $1.63 per diluted share.
Free cash flow was $15.8 million.
Methode
Methode
Methode Revenue by Segment
Revenue by Segment
Automotive Revenue
CapyFin.comIndustrial Revenue
CapyFin.comInterface Revenue
CapyFin.com 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
- Successful launch of multiple new programs
- The ultimate take rates on new EV programs
- Success and timing of cost recovery actions
- Global economic stability
- Any acquisitions or divestitures
Challenges Ahead
- Inflation
- Supply chain disruptions
- Potential restructuring efforts
- Potential impairments
- Dependence on the automotive, commercial vehicle, and construction industries
Revenue & Expenses
Visualization of income flow from segment revenue to net income