Methode Electronics(MEI) - 2026 Q1 - Quarterly Results

Financial Performance - Methode's net sales for Q1 fiscal 2026 were $240.5 million, a decrease of 6.2% from $258.5 million in Q1 fiscal 2025[4] - Operating income increased by $8.6 million to $1.1 million, compared to a loss of $7.5 million in the same quarter last year[5][6] - The company reported a net loss of $10.3 million, or $0.29 per diluted share, an improvement from a loss of $18.3 million, or $0.52 per diluted share, in Q1 fiscal 2025[7][26] - EBITDA for the quarter was $14.7 million, representing 6.1% of net sales, compared to $5.8 million or 2.2% of net sales in the same quarter of fiscal 2025[8] - Free cash flow was $18.0 million, a significant increase from a negative $2.7 million in the same quarter of fiscal 2025[10] Segment Performance - The Automotive segment's net sales decreased by 21.3% to $106.1 million, primarily due to lower volume in North America[12] - The Industrial segment's net sales increased by 10.8% to $123.5 million, driven by higher demand for power products and lighting[11] Guidance and Expectations - For fiscal 2026, the company affirmed its guidance for net sales to be in the range of $900 to $1,000 million and EBITDA to be between $70 to $80 million[13][14] - The company expects to double EBITDA for fiscal 2026 despite an anticipated $100 million decline in sales due to lower electric vehicle demand[3] Debt and Cash Management - Methode has reduced its net debt by $41 million over the last three quarters, with net debt now at $202.3 million[3][9] - Net cash provided by operating activities increased to $25.1 million, compared to $10.9 million for the same period last year, representing a 130% increase[31] - Free cash flow improved to $18.0 million from a negative $2.7 million year-over-year[34] - Net debt decreased to $202.3 million from $214.0 million, a reduction of 5.8%[34] - Long-term debt increased to $323.2 million from $317.4 million, an increase of 1.8%[29] Asset and Liability Management - Total assets decreased to $1,291.3 million from $1,305.8 million, a decline of 1.5%[29] - Total current liabilities decreased to $219.6 million from $233.2 million, a reduction of 5.4%[29] - Total liabilities decreased to $603.2 million from $612.5 million, a decline of 1.9%[29] - Adjusted EBITDA for the three months ended August 2, 2025, was $15.7 million, up from $9.8 million in the prior year, reflecting a 60.2% increase[33] - Cash and cash equivalents at the end of the period increased to $121.1 million from $111.3 million, a rise of 8.0%[31]