Methode Electronics, Inc. Reports Fiscal 2025 Fourth Quarter and Full Year Financial Results

Methode Electronics, Inc., a global supplier of custom-engineered solutions for user interface, lighting, and power distribution applications, has released its financial results for the fourth quarter and full year ending May 3, 2025. The company reported record power product sales for data centers and positive free cash flow for the quarter, marking the highest quarter since fiscal 2023. Despite facing challenges, Methode Electronics has made significant strides in reducing total and net debt and expects a substantial improvement in EBITDA for fiscal 2026.

Financial Highlights

For the fiscal fourth quarter of 2025, Methode Electronics reported net sales of $257.1 million, a decrease from $277.3 million in the same quarter of fiscal 2024. The company experienced a pre-tax loss of $30.4 million, which included $15.2 million of unplanned inventory adjustments. The net loss for the quarter was $28.3 million, or $0.80 per diluted share. However, the company generated $35.4 million in net cash from operating activities, resulting in a free cash flow of $26.3 million.

Business and Operational Highlights

The company achieved record sales for power distribution products for data center applications, contributing significantly to the Industrial segment's performance. Electric and hybrid vehicle applications accounted for 20% of net sales. The Automotive segment saw a decline in net sales due to lower volume in North America and a previously disclosed center console program roll-off.

Strategic Initiatives and Corporate Developments

Methode Electronics has taken several corporate actions, including reducing its board size from ten to seven directors, relocating its headquarters to an existing owned facility, and reducing its dividend. The company also announced a quarterly dividend of $0.07 per share, payable on August 1, 2025.

Management's Perspective

President and CEO Jon DeGaynor highlighted the company's progress in improving execution and operational performance. Despite challenges such as reduced demand from EV customers and inventory write-downs, the company delivered strong free cash flow and reduced its debt. DeGaynor emphasized the company's focus on leveraging growth opportunities in data centers while navigating the near-term decline in EV demand.

Future Outlook

Looking ahead to fiscal 2026, Methode Electronics expects net sales to range between $900 million and $1,000 million, with EBITDA projected to double to a range of $70 million to $80 million. The company anticipates higher performance in the second half of the fiscal year, driven by operational improvements and strategic initiatives.

SEC Filing: METHODE ELECTRONICS INC [ MEI ] - 8-K - Jul. 09, 2025