Gary Prestopino

John Franzreb

Luke Junk

- 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)