Financial Data and Key Metrics Changes - The company generated $234 million in sales for the third quarter, a decrease of 3% from $239.9 million in the same quarter of fiscal 2025 [15] - Adjusted EBITDA was $7.3 million, down $5 million year-over-year [17] - The company reported a positive free cash flow of $10 million for the quarter and approximately $17 million year-to-date [5][18] Business Line Data and Key Metrics Changes - Industrial segment sales increased by 9.5% year-over-year, driven by strong performance in off-road lighting and power distribution solutions [5] - The automotive segment experienced lower sales volumes due to a reduction in North American electric vehicle volumes [15] Market Data and Key Metrics Changes - The company noted a favorable impact of approximately $12 million from foreign currency translation in the quarter [15] - The third quarter is historically the weakest for sales due to year-end holidays [15] Company Strategy and Development Direction - The company is focused on a multi-year transformation journey aimed at strengthening its foundation and optimizing its operations [6][9] - The divestiture of the dataMate business is part of the strategy to reallocate resources towards higher growth opportunities in industrial power solutions [9][10] - The company is capitalizing on megatrends in data centers and vehicle electrification [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the North American automotive market, including program delays and commercial vehicle market softness [6][12] - The company expects to see a 50% increase in the data center run rate year-over-year, indicating positive momentum [11] - Management remains committed to cash generation and balance sheet discipline despite the dynamic near-term environment [21] Other Important Information - The company narrowed its net sales guidance for fiscal 2026 to a range of $950 million to $1 billion, raising the low end by $50 million [19] - Adjusted EBITDA outlook was lowered to a range of $58 million to $62 million, primarily due to North American automotive challenges [20] Q&A Session Summary Question: Update on the Mexico facility transformation - The transformation in Mexico is about six months behind Egypt, with challenges including revenue shrinkage and program delays [25][27] Question: Impact of commercial truck orders on the P&L - The company is still seeing headwinds regarding orders, with expected volume recovery in the second half of calendar 2026 [34][36] Question: Revenue contribution from dataMate business - The dataMate business contributed approximately $18 million in revenue and was profitable with around $3 million in profitability [38][40] Question: Key products and applications for dataMate - The dataMate business was not complementary to the core power business and was deemed to have better ownership potential elsewhere [46] Question: Launch programs for FY 26 - The company planned 29 programs for FY 26, down from 56 in FY 25, with delays impacting revenue realization [83][87] Question: EV program cancellations - There have been cancellations in Stellantis programs and other delays, impacting the company's revenue expectations [62][66] Question: Take rates for EVs outside North America - Take rates outside North America are relatively on track, with growth driven by ramp-up of programs in Egypt [76] Question: Future portfolio refinement - The company is committed to ongoing portfolio review and refinement, with the dataMate divestiture being an important first step [90][92]

Financial Data and Key Metrics Changes - The company generated $234 million in sales for Q3 2026, a decrease of 3% from $239.9 million in Q3 2025 [15] - Adjusted EBITDA for Q3 2026 was $7.3 million, down $5 million from the same period last fiscal year [17] - The adjusted net loss for Q3 2026 was $13.1 million, a change of $5.9 million from Q3 2025 [17] - Free cash flow for Q3 2026 was $10 million, compared to $19.6 million in Q3 2025 [18] - Cash at the end of the quarter was $133.7 million, an increase of $30.1 million compared to the end of fiscal 2025 [18] Business Line Data and Key Metrics Changes - Industrial segment sales increased by 9.5% year-over-year, driven by off-road lighting and power distribution solutions [6] - Automotive segment sales were negatively impacted by reduced North American electric vehicle volumes [15] - The interface segment also saw lower sales volumes due to a previously announced appliance program roll-off [15] Market Data and Key Metrics Changes - The company experienced a favorable impact of approximately $12 million from foreign currency translation in Q3 2026 [15] - The North American automotive market is facing softness, particularly affecting the company's performance [7][13] Company Strategy and Development Direction - The company is focused on a multi-year transformation journey aimed at strengthening its foundation and optimizing its operations [6][7] - Key priorities include stabilizing operational execution, refining the portfolio, and aligning the cost structure [7][10] - The divestiture of the dataMate business is part of a strategy to concentrate on higher growth opportunities in industrial power solutions [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the near-term environment remains dynamic and that the improvement trajectory is not linear [21] - There are challenges related to commercial vehicle market softness and delays in electric vehicle programs [7][21] - The company expects to maintain positive free cash flow for the full year, contrasting with an outflow in the previous fiscal year [20] Other Important Information - The company has narrowed its net sales guidance for fiscal 2026 to a range of $950 million to $1 billion, primarily due to foreign currency translation benefits [19] - Adjusted EBITDA outlook has been lowered to a range of $58 million to $62 million, reflecting updated cost assumptions and program delays [20] Q&A Session Summary Question: Update on Mexico's transformation process - The transformation in Mexico is about six months behind Egypt, with challenges including revenue shrinkage and program delays [25][27] Question: Impact of commercial truck orders on P&L - The company is still seeing headwinds regarding orders, with expected volume recovery in the second half of calendar 2026 [33][35] Question: Revenue contribution from dataMate business - The dataMate business contributed approximately $18 million in revenue and was profitable with about $3 million in profitability [36][39] Question: Key products and applications for dataMate - The dataMate business was primarily a data-over-copper product, not complementary to the core power business [44][46] Question: EV program delays and cancellations - There have been outright cancellations of some EV programs, particularly from Stellantis, impacting revenue expectations [62][65] Question: Number of launches in FY 26 - The company planned 29 programs for FY 26, down from 56 in FY 25, due to delays and cancellations [84][86] Question: Future portfolio refinement - The divestiture of dataMate is the first step in an ongoing portfolio review, with more changes expected in the future [91][93]

Methode Electronics Earnings Presentation Third Quarter Fiscal 2026 March 6, 2026 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 results ...