Methode Electronics Q1 sales beat estimates on data-center demand; affirms outlook

Methode Electronics

02/09/2026 21:26

Overview
U.S. electronic solutions supplier's fiscal Q1 sales rose 10%, beating analyst expectations
Adjusted EBITDA fell yr/yr as lost contribution from the divested dataMate business and investments in talent and capabilities offset higher sales
Company affirmed fiscal 2027 guidance and booked new non-data-center awards representing $75 mln in peak annual revenue

Outlook
Methode affirms fiscal 2027 net sales guidance of $1.025-1.075 bln
Company expects fiscal 2027 adjusted EBITDA of $72-82 mln
Methode says fiscal 2027 outlook reflects risks from trade, geopolitical and supply chain factors

Result Drivers
INDUSTRIAL SEGMENT GROWTH - Higher sales volumes in Industrial segment, especially data center and lighting products, drove overall sales increase
DATAMATE DIVESTITURE - Sale of the dataMate business reduced Interface revenue and weighed on adjusted EBITDA comparisons
NEW AWARDS - Company booked non-data-center awards representing $75 mln in peak annual revenue and about $400 mln in lifetime revenue

Company press release: ID:nGNX6KNgFR

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$265.40 mln
$237.98 mln (3 Analysts)
Q1 Net Loss
 
$11.40 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "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 $17.00, about 7.2% below its September 1 closing price of $18.32
The stock recently traded at 222 times the next 12-month earnings vs. a P/E of 74 three months ago

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(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.)