Financial Performance - Net sales for Q2 fiscal 2026 were $246.9 million, a decrease of 15.6% year-over-year from $292.6 million in Q2 fiscal 2025[3] - Income from operations was $2.9 million, down from $9.4 million in the same quarter of fiscal 2025, representing 1.2% of net sales compared to 3.2%[4] - Net loss was $9.9 million or $0.28 per diluted share, compared to a loss of $1.6 million or $0.05 per diluted share in Q2 fiscal 2025[5] - Adjusted EBITDA was $17.6 million, down from $26.7 million in Q2 fiscal 2025, with an adjusted EBITDA margin of 7.1%[6] - Net loss for the six months ended November 1, 2025, was $20.2 million, compared to a net loss of $19.9 million for the same period in the previous year[26] - Adjusted EBITDA for the six months ended November 1, 2025, was $33.3 million, down from $36.5 million in the prior year, representing a decrease of 8.8%[28] - The net loss for the three months ended November 1, 2025, was $9.9 million, resulting in a diluted loss per share of $0.28, compared to a net loss of $1.6 million and a diluted loss per share of $0.05 in the prior year[31] - For the six months ended November 1, 2025, the company reported a net loss of $20.2 million, with a diluted loss per share of $0.57, compared to a net loss of $19.9 million and a diluted loss per share of $0.56 in the same period last year[31] Cash Flow and Debt - Free cash flow for the first half of fiscal 2026 was positive $6.4 million, compared to negative $58.4 million in the same period of fiscal 2025[8] - Free cash flow for the six months ended November 1, 2025, was $6.4 million, compared to a negative free cash flow of $61.1 million for the same period last year[29] - Debt increased to $332.5 million at the end of the quarter, up from $317.6 million at the end of fiscal 2025[7] - Long-term debt increased from $317.4 million to $332.3 million, an increase of 4.5%[24] Segment Performance - The Automotive segment reported a 24.1% decrease in net sales to $110.5 million, primarily due to the roll-off of legacy programs[10] - The Industrial segment saw a 3.4% decrease in net sales to $126.9 million, impacted by lower sales volumes for certain products[10] Operational Challenges and Restructuring - The company is focused on strategic operational enhancements despite a projected $100 million decline in annual net sales due to evolving EV market demand[2] - Transformation costs for the three months ended November 1, 2025, were $4.8 million, while for the six months, they totaled $7.0 million, indicating significant ongoing restructuring efforts[31] - The company continues to face challenges in its operational performance, as indicated by the significant losses and restructuring costs reported[31] Asset and Equity Changes - Total assets decreased from $1,305.8 million to $1,287.4 million, a decline of 1.6%[24] - Total shareholders' equity decreased from $693.3 million to $679.3 million, a decline of 2.0%[24] - Total current liabilities decreased from $233.2 million to $217.6 million, a reduction of 6.5%[24] Other Financial Metrics - Cash and cash equivalents increased to $118.5 million from $103.6 million, reflecting a rise of 14.9%[26] - Inventory obsolescence expense decreased from $5.6 million to $3.4 million, a decline of 39.3%[26] - The company reported a net cash provided by operating activities of $17.7 million, compared to a net cash used of $37.1 million in the prior year[26] - The company recognized a valuation allowance on deferred tax assets of $2.3 million for the three months ended November 1, 2025, compared to $3.2 million in the prior year[31] - The company incurred restructuring costs and asset impairment charges of $1.1 million for the three months ended November 1, 2025, compared to $0.1 million in the same period last year[31] - The net gain on the sale of non-core assets was $0 for the three months ended November 1, 2025, compared to a loss of $0.3 million in the prior year[31] - The company reported a partial write-off of unamortized debt issuance costs of $0.6 million for the six months ended November 1, 2025[31] - Adjusted non-U.S. GAAP income for the three months ended November 1, 2025, was $4.0 million, with a diluted loss per share of $0.19, compared to $14.3 million and a diluted income per share of $0.14 in the previous year[31]

Net sales of $246.9 million down 15.6% year-over-year; up 2.6% on a sequential quarter basisNet loss of $9.9 million or 4.0% of net sales; adjusted EBITDA margin of 7.1%Reaffirming fiscal 2026 guidance for net sales of $900 million to $1 billion and adjusted EBITDA of $70 to $80 million CHICAGO, Dec. 03, 2025 (GLOBE NEWSWIRE) -- Methode Electronics, Inc. (NYSE: MEI), a leading global supplier of custom-engineered solutions for user interface, lighting, and power distribution applications, today announced fi ...

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Core Points - Methode Electronics, Inc. will hold a conference call and webcast on December 4, 2025, at 10:00 a.m. CDT to discuss its second quarter fiscal 2026 results [1] - The call will be led by President and CEO Jon DeGaynor and CFO Laura Kowalchik [1] 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 [3] - The company designs, engineers, and produces mechatronic products for OEMs, focusing on user interface, lighting systems, power distribution, and sensor applications [3] - The company's solutions serve various end markets, including transportation (automotive, commercial vehicle, e-bike, aerospace, bus, and rail), cloud computing infrastructure, construction equipment, and consumer appliances [4] - Methode's business is segmented into Automotive, Industrial, and Interface [4]

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Summary of Methode Electronics Conference Call Company Overview - Methode Electronics is a leading global supplier of custom-engineered solutions, focusing on power bus bars, LED lighting, and user interfaces for various end markets. The company has been public since 1965 and reported sales of just over $1 billion last year [2][3]. Key Industry Insights - Methode operates in North America, Europe, and Asia, with a balanced portfolio across user interface, lighting, and power segments, along with smaller segments like sensors [2]. - The company is leveraging its global footprint and vertical integration capabilities in regions like China, Egypt, and Mexico to mitigate challenges posed by tariffs and political activities [3]. Financial Performance and Growth Segments - The data center segment is highlighted as a significant growth area, with revenues increasing from over $40 million in fiscal 2024 to over $80 million last year, representing a substantial growth opportunity within a $250 million segment of the company [4][5]. - The automotive segment is described as a "tale of two regions," with North American automotive operations facing challenges due to program roll-offs and execution issues, while the Chinese automotive market remains strong [12][13]. Operational Challenges and Strategic Changes - Methode has undergone a transformation over the past 18 months, focusing on stabilizing operations, improving launch execution, and revamping critical plants in Mexico and Egypt [6][7]. - The company has changed nearly all senior leadership positions to enhance operational efficiency and customer satisfaction [6]. Market Dynamics and Competitive Positioning - The automotive business is currently challenged, particularly in North America, where revenue from a plant in Mexico has dropped from over $400 million to around $200 million [13]. - Methode is restructuring its operations to improve performance and is actively negotiating with Stellantis regarding program delays [13]. EV Market and Future Opportunities - Despite underperformance in EV programs, Methode sees continued global growth in EV penetration, particularly in China and Europe, and is working to consolidate its footprint for future opportunities [9][10]. - The company is implementing data-driven approaches to capital investments and quoting processes to better manage risks associated with EV growth [23]. Supply Chain and Macro Environment - Methode's exposure to supply chain issues, such as chip shortages, has been managed through proactive engagement with customers and adjustments in supply chain organization [27][28]. - The company is leveraging the USMCA agreement to enhance its manufacturing capabilities in Mexico, creating new opportunities for revenue growth [29]. Future Outlook and Strategic Goals - Methode aims for consistent growth in both top and bottom lines, focusing on delivering value to shareholders and customers [47][48]. - The company is prioritizing free cash flow and aims for a leverage ratio in the low threes in the near term, with a long-term target of under three [46]. Conclusion - Methode Electronics is positioned to capitalize on growth opportunities in the data center and EV markets while addressing operational challenges in its automotive segment. The company's strategic focus on global capabilities, supply chain management, and leadership transformation is expected to drive future growth and shareholder value [49][50].

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 results to be materially different from any future results, expressed or implied, by such forward-looking statements. ...

CHICAGO, Nov. 06, 2025 (GLOBE NEWSWIRE) -- Methode Electronics, Inc. (NYSE: MEI), a leading global supplier of custom-engineered solutions for user interface, lighting, and power distribution applications, will participate in a fireside chat at the Baird 2025 Global Industrial Conference on Tuesday, November 11, 2025. The presentation will begin at 10:15 AM Central Time. The presentation will be webcast live on the company’s investor relations website at https://ir.methode.com. A replay of the webcast will ...

Core Viewpoint - Johnson Fistel, PLLP has initiated an investigation into the board members and executive officers of Methode Electronics, Inc. for potential breaches of fiduciary duties and violations of federal securities laws [1] Group 1: Investigation Details - The investigation is focused on allegations that Methode Electronics lost skilled employees during the COVID-19 pandemic, which impacted its transition to a new production model [2] - Issues cited include production planning deficiencies, inventory shortages, and vendor problems that hindered the company's strategic plans, particularly in the electric vehicle sector [2] - The manufacturing systems at Methode Electronics' Monterrey facility faced logistical defects, including improper system coding and quality control failures [2] - The company has fallen behind on launching new electric vehicle programs, affecting its revenue from these initiatives [2] - As a result, Methode Electronics is not on track to meet its 2023 earnings-per-share guidance or its projected organic sales growth rate [2]

Group 1 - The company is responsible for the development of transcript-related projects [1] - The company publishes thousands of quarterly earnings calls per quarter [1] - The company is continuing to grow and expand its coverage [1]