Methode Electronics Q2 sales fall, hurt by lower volumes

Methode Electronics

03/12/2025 21:23

Corrects adjusted EBITDA to $17.6 mln, from $16.50 mln, in Key Details table

Overview

Methode fiscal Q2 net sales down 15.6% yr/yr

Company reaffirms fiscal 2026 guidance despite $100 mln decline in annual sales

Outlook

Methode Electronics reaffirms fiscal 2026 net sales guidance of $900 mln to $1 bln

Company expects fiscal 2026 adjusted EBITDA of $70 mln to $80 mln

Methode Electronics anticipates positive free cash flow for fiscal 2026

Result Drivers

OPERATIONAL ENHANCEMENTS - Co attributes performance to strategic operational enhancements despite lower sales volumes

FOREIGN CURRENCY IMPACT - Foreign currency translation increased net sales by $3.3 mln in Automotive segment

AUTOMOTIVE SEGMENT DECLINE - Lower sales volumes in Automotive segment due to roll-off of legacy programs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
$246.90 mln
$235.10 mln (2 Analysts)
Q2 EPS
-$0.28
Q2 Net Income
-$9.90 mln
Q2 Adjusted EBITDA
$17.6 mln
$14.66 mln (1 Analyst)

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 $10.25, about 23.5% above its December 2 closing price of $8.30

Press Release: ID:nGNXKGXTN

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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.)