Methode Electronics, Inc. Reports Fiscal 2026 Second Quarter Financial Results

Core Viewpoint - Methode Electronics is progressing in its transformation journey, reaffirming its fiscal 2026 guidance despite a decline in annual net sales primarily due to changes in the electric vehicle (EV) market demand [2][10]. Financial Results - Methode's net sales for the second quarter of fiscal 2026 were $246.9 million, a decrease of 15.6% compared to $292.6 million in the same quarter of fiscal 2025 [3][10]. - The company reported a net loss of $9.9 million or $0.28 per diluted share, compared to a loss of $1.6 million or $0.05 per diluted share in the same quarter of fiscal 2025 [5][10]. - Adjusted EBITDA was $17.6 million, down from $26.7 million in the same quarter of fiscal 2025, with an adjusted EBITDA margin of 7.1% [6][10]. Operational Highlights - 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% in the prior year [4][10]. - The Automotive segment saw net sales decline to $110.5 million, a drop of 24.1% from $145.5 million, attributed to the roll-off of legacy programs and lower sales volumes [9][10]. Cash Flow and Debt - Net cash used by operating activities was $7.4 million for the quarter, an improvement from $48.0 million in the same quarter of fiscal 2025 [8]. - Free cash flow was negative $11.6 million, compared to negative $58.4 million in the same quarter of fiscal 2025, with positive free cash flow of $6.4 million for the first half of fiscal 2026 [8][10]. - Total debt increased to $332.5 million from $317.6 million at the end of fiscal 2025, with net debt remaining flat at $214.0 million [7][10]. Guidance - The company reaffirmed its fiscal 2026 guidance, expecting net sales between $900 million and $1 billion and adjusted EBITDA between $70 million and $80 million [10].