Gary Prestopino

John Franzreb

Luke Junk

- Methode Electronics (MEI) has **reaffirmed its fiscal 2026 guidance**, projecting to **double its EBITDA** to a range of **$70 million to $80 million** on sales of **$900 million to $1 billion**, despite an anticipated **$100 million decline in sales** primarily due to lower EV demand.  **[65270_2147548_1]** **[65270_2147548_3]** 
- The company expects its EBITDA margin to nearly double from **4.1% to 7.9%** in fiscal 2026, driven by operational improvements, including **$9 million in SG&A cost reductions** and a **3% improvement in materials efficiency**.  **[65270_2147548_1]** **[65270_2147548_3]** **[65270_2147548_7]** 
- Methode has demonstrated strong financial discipline with **three consecutive quarters of positive free cash flow**, leading to a **$41 million reduction in net debt** over the last three quarters.  **[65270_2147548_1]** **[65270_2147548_7]** 
- As part of its transformation, the company is implementing strategic changes such as **reducing its board size from 10 to 7**, relocating its headquarters, **reducing its dividend**, and optimizing its portfolio to focus on data centers, EV, and lighting.  **[65270_2147548_3]** **[65270_2147548_5]**

Methode Electronics Reaffirms Fiscal 2026 Guidance Amidst Transformation

- Methode Electronics **affirmed its Fiscal 2026 full-year guidance**, projecting net sales between **$900 million and $1,000 million** and EBITDA between **$70 million and $80 million**.  **[65270_2147730:6]** 
- The company reported **three consecutive quarters of strong free cash flow and net debt reduction**, with **Q1 income from operations increasing by $9 million** due to significant selling, general, and administrative (S&A) reductions and ongoing operational improvements.  **[65270_2147730:3]** 
- Power Solutions sales grew from **$116 million in FY22 to $252 million in FY25**, achieving a **30% compounded annual growth rate** since Fiscal 2022, driven by Electric Vehicles, Data Centers, and Mil/Aero applications.  **[65270_2147730:4]** 
- Methode's transformation is **on track**, with Fiscal 2026 priorities focused on foundational actions, organizational refinement, and aligning its portfolio with megatrends such as **Data Centers and Vehicle Electrification**.  **[65270_2147730:3]** **[65270_2147730:5]**

Methode Electronics Affirms Fiscal 2026 Guidance and Highlights Power Products Growth

- Methode Electronics reported Q1 2026 sales of **$240.5 million**, a 7% decrease year-over-year.  **[65270_2136098_4]**  Despite lower sales, adjusted income from operations increased by **$6.7 million** to **$2 million**  **[65270_2136098_4]** , and adjusted EBITDA rose by **$5.9 million** to **$15.7 million**  **[65270_2136098_4]** , primarily driven by **$9.6 million** in SG&A reductions and operational improvements.  **[65270_2136098_4]** 
- The company generated **$18 million** in free cash flow in Q1 2026  **[65270_2136098_4]** , marking its **third consecutive quarter of strong free cash flow**.  **[65270_2136098_1]** **[65270_2136098_5]**  Net debt was reduced by **$11.7 million** from the prior quarter to **$202.3 million**, contributing to a total **$41 million** reduction over the last three quarters.  **[65270_2136098_5]** 
- Methode Electronics affirmed its fiscal 2026 guidance, projecting sales between **$900 million and $1 billion** and EBITDA between **$70 million and $80 million**  **[65270_2136098_5]** , with an expectation to **double its EBITDA** for the full year.  **[65270_2136098_1]**  The company also anticipates **positive free cash flow** for fiscal 2026.  **[65270_2136098_5]** 
- The company's transformation is **firmly on track**  **[65270_2136098_1]** , with data center sales growing a solid **12% year-over-year**  **[65270_2136098_2]**  and plans to launch **over 30 new programs** this year.  **[65270_2136098_1]**  EV sales were **19% of consolidated total**  **[65270_2136098_1]** , with a soft near-term outlook in North America partially offset by strength in Europe and Asia.  **[65270_2136098_1]**

METHODE ELECTRONICS (MEI)