Q3 2026 Methode Electronics Inc Earnings Call Transcript
Key Points
- Methode Electronics Inc (MEI) generated $234 million in sales and $7.3 million in adjusted EBITDA for the third quarter.
- The Industrial segment sales increased by 9.5% year-over-year, driven by strong performance in off-road lighting and power distribution solutions.
- The company achieved positive free cash flow of $10 million in the quarter and approximately $17 million year-to-date.
- Methode Electronics Inc (MEI) is actively capitalizing on data center and vehicle electrification megatrends, reallocating resources toward high-growth opportunities.
- The company completed the sale of the Dataamate business, allowing it to redeploy capital and management toward higher growth, higher return opportunities.
- Third quarter net sales decreased by 3% compared to the previous year, primarily due to lower sales volumes in the automotive segment.
- Profitability was pressured year-over-year, with adjusted EBITDA down $5 million from the same period last fiscal year.
- The transformation of the Mexico facility is behind schedule, with continued challenges in operational execution and program delays.
- The company revised its adjusted EBITDA outlook downward due to updated cost assumptions related to customer program delays and higher expenses in Mexico.
- North American automotive market softness and EV program delays are impacting the company's improvement trajectory.
Greetings, and welcome to the Methode Electronics Third Quarter Fiscal 2026 Results Conference Call. (Operator Instructions) And please note, this conference is being recorded. I will now turn the conference over to your host, Joni Konstantelos, Managing Director of Riveron. Ma'am, the floor is yours.
Good morning, and welcome to Methode Electronics Fiscal 2026 Third Quarter Earnings Conference Call. Our fiscal 2026 third quarter financial results, including a press release and presentation can be found on the Methode Investor Relations website. I'm joined today by John DeGaynor, President and Chief Executive Officer; and Laura Kawaltick, Chief Financial Officer. Please turn to Slide 2 for our safe harbor statements.
This conference call contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are subject to the safe harbor protection provided under the
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
