Company Overview - Methode Electronics, Inc. is a leading global supplier of custom-engineered solutions for user interface, lighting system, and power distribution applications [5] - The company operates in various end markets including transportation, cloud computing infrastructure, construction equipment, and consumer appliances [6] - Methode's business is segmented into Automotive, Industrial, and Interface [6] Financial Results Announcement - The company will release its fourth quarter and full year fiscal 2025 results for the period ended May 3, 2025, on July 9, 2025, after market close [1] - A conference call and webcast will be held on July 10, 2025, at 10:00 a.m. CDT to review financial and operational highlights [2] - The call will be led by President and CEO Jon DeGaynor and CFO Laura Kowalchik [2] Participation and Replay Information - To participate in the conference call, dial 888-506-0062 (domestic) or 973-528-0011 (international) at least five minutes prior to the start [3] - A replay of the teleconference will be available until July 24, 2025, by dialing 877-481-4010 with passcode 52484 [4] - A webcast replay will also be accessible on the company's website [4]

Core Insights - Methode Electronics, Inc.'s Grakon business unit has been recognized as a top-performing supplier by PACCAR, a manufacturer of Kenworth and Peterbilt trucks [1][4] - The recognition is part of PACCAR's Supplier Performance Management (SPM) Program, which evaluates suppliers based on product development, operations, aftermarket support, and alignment with PACCAR's business objectives [2] - Grakon has played a significant role in multiple PACCAR launches, providing advanced lighting solutions for various truck models [3] Company Overview - Grakon, LLC specializes in the design, development, and manufacture of advanced lighting systems, controls, and components for OEM manufacturers in heavy trucks, buses, rail, commercial electric vehicles, and power sports markets [5] - Grakon operates as a business unit of Methode Electronics, Inc., which is a global supplier of custom-engineered solutions with a presence in North America, Europe, the Middle East, and Asia [5]

Core Insights - Methode Electronics, Inc.'s Grakon business unit has been recognized as a top-performing supplier by PACCAR, a manufacturer of Kenworth and Peterbilt trucks [1][4] - The recognition is part of PACCAR's Supplier Performance Management (SPM) Program, which evaluates suppliers based on product development, operations, aftermarket support, and alignment with PACCAR's business objectives [2] - Grakon has played a significant role in multiple PACCAR launches, providing advanced interior and exterior lighting solutions [3] Company Overview - Grakon, LLC specializes in the design, development, and manufacture of advanced lighting systems, controls, and components for various markets, including heavy trucks, buses, and commercial electric vehicles [5] - Grakon operates as a business unit of Methode Electronics, Inc., which is a global supplier of custom-engineered solutions with a presence in North America, Europe, the Middle East, and Asia [5]

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 Conference Call Participants John Franzreb - Sidoti Luke Junk - Baird Gary Prestopino - Barrington Research Operator Good day, everyone. Welcome to the Methode Electronics Third Quarter Fiscal 2025 Results Conference Call. [Operator Instructions] I would now l ...

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].

Chicago, IL – March 5, 2025 – Methode Electronics, Inc. (NYSE: MEI), a leading global supplier of custom- engineered solutions for user interface, lighting, and power distribution applications, today announced financial results for the third quarter of fiscal 2025 ended February 1, 2025. Fiscal Third Quarter 2025 Results Management Comments President and Chief Executive Officer Jon DeGaynor said, "Our journey to transform Methode is well underway. Our actions to improve execution, while still in an early ph ...

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]

Company Overview - Methode Electronics, Inc. is a leading global supplier of custom-engineered solutions for user interface, lighting system, and power distribution applications [5] - The company operates in various end markets including transportation, cloud computing infrastructure, construction equipment, and consumer appliances [6] - Methode's business is segmented into Automotive, Industrial, and Interface [6] Upcoming Financial Results - The company will release its third quarter fiscal 2025 results for the period ended February 1, 2025, on March 5, 2025, after market close [1] - A conference call and webcast will be held on March 6, 2025, at 10:00 a.m. CST to review financial and operational highlights [2] Participation Details - To participate in the conference call, interested parties should dial 888-506-0062 (domestic) or 973-528-0011 (international) at least five minutes prior to the start [3] - A simultaneous webcast can be accessed through the company's website on the Investors page [3] Replay Information - A replay of the teleconference will be available shortly after the call through March 20, 2025, by dialing 877-481-4010 with passcode 52027 [4] - A webcast replay will also be available on the company's website on the Investors page [4]