Methode Q4 2024 Earnings Report
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
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