CHICAGO, March 20, 2025 (GLOBE NEWSWIRE) -- Methode Electronics, Inc. (NYSE:MEI) announced today that its Grakon business unit, a global leader in advanced lighting systems, has been recognized by PACCAR, maker of Kenworth and Peterbilt trucks, as a top-performing supplier. Each year, PACCAR honors its highest-performing suppliers through its Supplier Performance Management (SPM) Program, which measures achievements in product development, operations, aftermarket support, and alignment with PACCAR's key bus ...

CHICAGO, March 20, 2025 (GLOBE NEWSWIRE) -- Methode Electronics, Inc. (NYSE: MEI) announced today that its Grakon business unit, a global leader in advanced lighting systems, has been recognized by PACCAR, maker of Kenworth and Peterbilt trucks, as a top-performing supplier. Each year, PACCAR honors its highest-performing suppliers through its Supplier Performance Management (SPM) Program, which measures achievements in product development, operations, aftermarket support, and alignment with PACCAR’s key bu ...

Conference Call Participants John Franzreb - Sidoti Luke Junk - Baird Gary Prestopino - Barrington Research Methode Electronics, Inc. (NYSE:MEI) Q3 2025 Earnings Conference Call March 6, 2025 11:00 AM ET Company Participants Robert Cherry - Investor Relations Jonathan DeGaynor - President and Chief Executive Officer Laura Kowalchik - Chief Financial Officer Thank you, operator. Good morning, and welcome to Methode Electronics fiscal 2025 third quarter earnings conference call. For this call, we have prepare ...

Methode Electronics, Inc. Earnings Presentation Third Quarter Fiscal 2025 March 6, 2025 Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect, when made, our current views with respect to current events and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to our operations and business environment, which may cause our actual re ...

Financial Performance - Net sales decreased by $19.6 million, or 7.6%, to $239.9 million in the three months ended February 1, 2025, compared to $259.5 million in the same period last year [129]. - Net sales for the nine months ended February 1, 2025, decreased by $46.2 million, or 5.5%, to $791.0 million compared to $837.2 million in the prior year [130]. - Net sales in the Automotive segment decreased by $24.0 million, or 17.2%, to $115.7 million in the three months ended February 1, 2025, compared to $139.7 million in the same period last year [145]. - Net loss was $14.4 million in the three months ended February 1, 2025, compared to $11.6 million in the same period last year [143]. - Income tax expense was $6.2 million with a -75.6% effective tax rate in the three months ended February 1, 2025, compared to $1.1 million with a -10.5% effective tax rate in the same period last year [141]. Cost and Expenses - Cost of products sold decreased by $23.9 million, or 10.7%, to $198.6 million in the three months ended February 1, 2025, representing 82.8% of net sales [131]. - Selling and administrative expenses increased by $3.8 million, or 11.2%, to $37.7 million in the three months ended February 1, 2025, representing 15.7% of net sales [134]. - Interest expense, net increased to $5.5 million in the three months ended February 1, 2025, compared to $5.0 million in the same period last year [138]. Profitability - Gross profit margin increased to 17.2% of net sales in the three months ended February 1, 2025, compared to 14.3% in the same period last year [133]. - Gross profit in the Automotive segment decreased by $1.5 million, or 33.3%, to $3.0 million in the three months ended February 1, 2025, with gross profit margins decreasing to 2.6% [149]. - Industrial segment gross profit increased by $4.9 million, or 16.2%, to $35.2 million in the three months ended February 1, 2025, with gross profit margins increasing to 31.5% [156]. - Interface segment gross profit increased by $0.7 million, or 31.8%, to $2.9 million in the three months ended February 1, 2025, with gross profit margins increasing to 23.6% [163]. - Interface segment gross profit increased by $3.0 million, or 39.0%, to $10.7 million for the nine months ended February 1, 2025, compared to $7.7 million for the same period in 2024 [164]. - Gross profit margins improved to 26.6% in the nine months ended February 1, 2025, up from 19.4% in the nine months ended January 27, 2024 [164]. Segment Performance - Automotive segment loss from operations improved to $9.0 million in the three months ended February 1, 2025, compared to $11.0 million in the same period last year [151]. - Industrial segment net sales increased by $4.8 million, or 4.5%, to $111.9 million in the three months ended February 1, 2025, compared to $107.1 million in the same period last year [154]. - Interface segment net sales decreased by $0.4 million, or 3.1%, to $12.3 million in the three months ended February 1, 2025, compared to $12.7 million in the same period last year [161]. - Income from operations for the Interface segment rose by $3.4 million, or 63.0%, to $8.8 million for the nine months ended February 1, 2025, compared to $5.4 million for the same period in 2024 [165]. Cash Flow and Financial Position - As of February 1, 2025, the company had $103.8 million in cash and cash equivalents, with $71.4 million held in subsidiaries outside the U.S. [170]. - Net cash used in operating activities was $9.0 million for the nine months ended February 1, 2025, a decrease from net cash provided of $22.6 million for the same period in 2024 [177]. - Net cash used in investing activities was $26.7 million for the nine months ended February 1, 2025, compared to $39.0 million for the same period in 2024 [178]. - The company paid cash dividends of $15.3 million in the nine months ended February 1, 2025, compared to $15.0 million in the same period in 2024 [179]. - The outstanding balance under the revolving credit facility was $285.0 million in euro-denominated borrowings and $45.0 million in U.S. denominated borrowings as of February 1, 2025 [174]. - The company anticipates compliance with financial covenants in the Amended Credit Agreement, but future compliance is uncertain due to various risk factors [175]. Challenges and Strategic Decisions - The company continues to face challenges from global supply chain disruptions, including increased material and logistics costs [126]. - The adoption of electric vehicles (EVs) has been slower than anticipated, impacting the company's financial condition and results of operations [124]. - The company is monitoring the implications of new tariffs, including 25% tariffs on products from Canada and Mexico, which could affect margins and customer demand [121]. - The company has initiated the discontinuation of the Dabir business, which accounted for all of the Medical segment's financial results [167]. - The company recognized a goodwill impairment of $56.5 million in the Automotive segment in the nine months ended January 27, 2024 [136].

Core Insights - Methode Electronics reported a net sales of $239.9 million for Q3 fiscal 2025, a decrease from $259.5 million in the same quarter of fiscal 2024, primarily due to lower automotive segment volumes [4][6] - The company experienced a net loss of $14.4 million or $0.41 per diluted share, compared to a net loss of $11.6 million or $0.33 per diluted share in the same quarter of the previous year [6][7] - Despite challenges in the automotive market, Methode reaffirmed its guidance for profitable organic sales growth in fiscal 2026 based on customer forecasts [3][11] Financial Performance - Net sales decreased by $19.6 million year-over-year, with a notable drop in the Automotive segment, which was partially offset by higher sales in the Industrial segment driven by power products for data centers [4][6] - Gross profit increased to $41.3 million from $37.0 million in the prior year, attributed to improved operational execution and product sales mix [5][25] - The adjusted loss from operations improved to $1.3 million from $2.9 million in the same quarter of fiscal 2024, excluding transformation costs [5][7] Cash Flow and Debt - The company generated positive free cash flow of $19.6 million, an increase from $12.2 million in the same quarter of fiscal 2024, due to proactive management of accounts receivable and inventory levels [10][36] - Total debt at the end of the quarter was $327.9 million, down from $330.9 million at the end of fiscal 2024, with net debt increasing to $224.1 million from $169.4 million [9][36] Segment Performance - The Automotive segment reported net sales of $115.7 million, down 17.2% from $139.7 million, primarily due to lower volumes related to EV lighting program roll-offs [13] - The Industrial segment saw an increase in net sales to $111.9 million, up 4.5% driven by demand for power distribution products for data centers [13] - The Interface segment's net sales slightly decreased to $12.3 million, with an increase in income from operations attributed to product sales mix [13] Management Strategy - The company is in the process of launching 53 new programs over two years, with 20 already launched this fiscal year and 33 more expected in the next five quarters [3][11] - Management emphasized a focus on cost control and operational metrics, alongside rebuilding the executive team with experienced leaders [3][11]

Core Insights - Methode Electronics, Inc. has appointed Brad Corrodi as Chief Strategy Officer effective March 10, 2025, bringing over 30 years of strategic, investment, and operational experience to the company [1][2][3] - The appointment is part of Methode's efforts to reshape its future, focusing on organic growth opportunities and potential M&A activities, particularly in expanding its power solutions enterprise into new markets [2][3] Company Overview - Methode Electronics, Inc. is a leading global supplier of custom-engineered solutions with operations in North America, Europe, the Middle East, and Asia, specializing in mechatronic products for OEMs [4][5] - The company serves various end markets, including transportation, cloud computing infrastructure, construction equipment, and consumer appliances, and is organized into segments: Automotive, Industrial, and Interface [5]

CHICAGO, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Methode Electronics, Inc. (NYSE: MEI), a leading global supplier of custom-engineered solutions for user interface, lighting system and power distribution applications, announced it will release its third quarter fiscal 2025 results for the period ended February 1, 2025, on Wednesday, March 5, 2025, after market close. The company will conduct a conference call and webcast the following day, Thursday, March 6, 2025, at 10:00 a.m. CST to review financial and operati ...

Core Viewpoint - Kuehn Law is investigating potential breaches of fiduciary duties by certain officers and directors of Methode Electronics, Inc. related to misrepresentation and failure to disclose critical operational issues [1][2]. Group 1: Operational Issues - Methode Electronics lost skilled employees during the COVID-19 pandemic, which hindered the company's transition to a high mix, low volume production model at its Monterrey facility [2]. - The company's efforts to diversify from General Motors center consoles to specialized EV products faced multiple challenges, including planning issues, inventory shortages, supplier problems, and poor execution [2]. - The Monterrey facility experienced logistical defects in its manufacturing systems, including coding errors, shipping mistakes, delivery delays, and quality control issues [2]. Group 2: Financial Performance - Deadlines for launching new EV programs were missed, which resulted in delayed revenue for Methode Electronics [2]. - As a consequence of the operational challenges, Methode Electronics is not on track to meet its 2023 earnings-per-share guidance or the projected 6% organic sales growth rate [2].

Core Points - Methode Electronics, Inc. has appointed Karen Keegans as the new Chief Human Resources Officer (CHRO), effective February 3, 2025, succeeding Andrea Barry who held the position since 2017 [1][3] - Karen Keegans brings over 30 years of leadership experience in human resources, having served as CHRO for several Fortune 500 companies including Rockwell Automation, Pentair, and Praxair [2][4] - The appointment is part of Methode's strategy to transform the business and align its culture and talent with business objectives, aiming to regain a leadership position in the industry [3] Company Overview - Methode Electronics, Inc. is a leading global supplier of custom-engineered solutions, with operations in North America, Europe, the Middle East, and Asia [5] - The company designs, engineers, and produces mechatronic products for original equipment manufacturers (OEMs), focusing on user interface, lighting systems, power distribution, and sensor applications [5] - Methode's solutions serve various end markets, including transportation (automotive, commercial vehicle, aerospace), cloud computing infrastructure, construction equipment, and consumer appliances, managed through segments such as Automotive, Industrial, and Interface [6]