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May 03
Methode Q4 2025 Earnings Report
Methode Electronics, Inc. reported financial results for the fourth quarter and full year ended May 3, 2025.
Key Takeaways
Methode Electronics reported a decrease in net sales and a net loss for the fourth quarter of fiscal 2025. The loss was primarily driven by inventory adjustments and lower sales volume in the Automotive segment, partially offset by growth in the Industrial segment due to strong data center power product sales. The company generated positive free cash flow and reduced total and net debt.
Net sales for Q4 2025 were $257.1 million, a decrease from $277.3 million in the same quarter last year.
The company reported a net loss of $28.3 million, or $0.80 per diluted share, in Q4 2025.
Adjusted net loss was $27.4 million, or $0.77 per diluted share, for the fourth quarter.
Free cash flow was $26.3 million for the quarter, the highest since fiscal 2023.
Methode
Methode
Methode Revenue by Segment
Revenue by Segment
Automotive Revenue
CapyFin.comIndustrial Revenue
CapyFin.comInterface Revenue
CapyFin.com Forward Guidance
For fiscal 2026, Methode expects net sales to be between $900 million and $1,000 million and EBITDA to be between $70 million and $80 million, with a stronger second half.
Positive Outlook
- Expected doubling of EBITDA in fiscal 2026 due to operational improvements.
- Leveraging global footprint for commercial advantage.
- Plan in place to 100% mitigate tariffs enacted this year.
- Pivoting some EV assets and resources to leverage data center growth opportunity.
- Reduction in board size and relocation of headquarters as corporate actions.
Challenges Ahead
- Expected approximately $100 million decline in sales driven by lower EV demand, mainly with Stellantis.
- Guidance is subject to change due to various factors including tariffs, program launches, EV take rates, cost recovery actions, inflation, global economic instability, and supply chain disruptions.
- Fiscal 2026 is a 52-week year compared to a 53-week year in fiscal 2025.
- Challenges experienced in fiscal 2025, including significant ramp down in expected demand from a large EV customer and delays with others.
- Need to monitor the ultimate take rates on EV programs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income