Methode Electronics(US:MEI) Globenewswire·2025-07-09 20:05Core Insights - Methode Electronics reported a net loss of $28.3 million for the fourth quarter of fiscal 2025, an improvement from a loss of $57.3 million in the same quarter of fiscal 2024, primarily due to a significant goodwill impairment in the prior year [7][14]. - The company experienced a decrease in net sales to $257.1 million, down from $277.3 million in the same quarter of fiscal 2024, largely attributed to lower volume in the Automotive segment [4][12]. - Despite challenges, Methode achieved record sales in data center power products, exceeding $80 million for the fiscal year, and reported strong free cash flow of $26.3 million for the quarter [3][10]. Financial Performance - For fiscal 2025, Methode's total net sales were $1,048.1 million, a decline from $1,114.5 million in fiscal 2024, with the Automotive segment's performance negatively impacting overall sales [12]. - The loss from operations for the fourth quarter was $23.6 million, an improvement from a loss of $61.5 million in the same quarter of the previous year [5][13]. - The adjusted net loss for the fourth quarter was $27.4 million, compared to a loss of $7.9 million in the same quarter of fiscal 2024 [7][14]. Segment Performance - The Automotive segment reported net sales of $112.9 million, down 22.6% from $145.9 million, primarily due to program roll-offs and lower demand [11]. - The Industrial segment saw an increase in net sales to $132.6 million, up 13.1% from $117.2 million, driven by higher demand for power distribution products for data centers [11]. - Electric and hybrid vehicle applications accounted for 20% of net sales, indicating a significant reliance on this segment despite recent demand challenges [5]. Cash Flow and Debt Management - Net cash provided by operating activities was $35.4 million for the quarter, an increase from $24.9 million in the same quarter of fiscal 2024 [10]. - Free cash flow reached $26.3 million, marking the highest quarter since fiscal 2023, attributed to improvements in working capital [10]. - Total debt decreased to $317.6 million from $327.9 million in the previous quarter, with net debt also reduced to $214.0 million [9]. Future Outlook - For fiscal 2026, Methode expects net sales to range between $900 million and $1,000 million, with EBITDA projected between $70 million and $80 million [17]. - The company anticipates doubling its EBITDA in fiscal 2026 despite an expected decline of approximately $100 million in sales due to lower demand from electric vehicle customers [3][17].