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MEI — Methode Electronics News Story

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Brief: Methode Electronics Q4 Sales USD 257.1 Million

Overview

Methode Electronics fiscal Q4 sales beat analyst expectations, per LSEG data

Adjusted EPS and EBITDA missed analyst expectations, per LSEG data

Co reported strong free cash flow, reduced total and net debt

Outlook

Company expects fiscal 2026 net sales between $900 mln and $1,000 mln

Methode Electronics anticipates fiscal 2026 EBITDA of $70 to $80 mln

Company sees lower EV demand impacting sales by $100 mln

Methode Electronics plans to leverage data center growth opportunities

Result Drivers

DATA CENTER SALES - Record sales in power distribution products for data centers, contributing positively to Industrial segment

EV DEMAND DECLINE - Significant reduction in demand from major EV customers, leading to inventory write-downs

CASH FLOW IMPROVEMENT - Strong free cash flow achieved through working capital reduction, aiding in debt reduction

Key Details

MetricBeat/MissActualConsensus Estimate
Q4 SalesBeat$257.10 mln$232.90 mln (3 Analysts)
Q4 Adjusted EPSMiss-$0.77$0.04 (2 Analysts)
Q4 EPS-$0.8
Q4 Net Income-$28.30 mln
Q4 Adjusted EBITDAMiss-$8.90 mln$19.70 mln (2 Analysts)
Analyst Coverage The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell" The average consensus recommendation for the electronic equipment & parts peer group is "buy" Wall Street's median 12-month price target for Methode Electronics Inc is $10.50, about 1% above its July 8 closing price of $10.39 The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 12 three months ago Press Release: ID:nGNX4qXdWW (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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