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Methode Electronics (MEI) investor relations material
Methode Electronics Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net sales for the quarter were $246.9 million, down 15.6% year-over-year but up 3% sequentially, with adjusted EBITDA rising 12% sequentially to $18 million.
Free cash flow improved by $47 million year-over-year, with first half cash flow in line with management estimates and positive $6.4 million.
Transformation efforts included operational improvements, especially in Egypt and Mexico, leadership upgrades, and cost reductions.
Corporate headquarters relocated to Southfield, Michigan, to enhance operational efficiency and proximity to automotive customers.
Product portfolio aligned with megatrends such as data centers and vehicle electrification, supporting long-term growth.
Financial highlights
Second quarter net sales were $246.9 million, down 15.6% year-over-year but up 3% sequentially; adjusted EBITDA was $17.6 million, down year-over-year but up sequentially.
Adjusted net loss for the quarter was $6.7 million, or $0.19 per diluted share; net loss was $9.9 million, or $0.28 per share.
Free cash flow for the quarter was negative $11.6 million, a $46.8 million improvement year-over-year; first half free cash flow was positive $6.4 million.
Net debt reduced by $29.6 million year-over-year to $214 million; cash balance at quarter end was $118.5 million.
Operating cash usage was $7.4 million in Q2, but $17.7 million was generated in the first half.
Outlook and guidance
Full year sales guidance reaffirmed at $900 million–$1 billion, with adjusted EBITDA expected between $70–$80 million.
Second half of fiscal 2026 expected to be stronger, with Q3 reflecting seasonality and Q4 showing improvement.
Fiscal 2026 free cash flow expected to be positive, compared to a $15 million outflow in the prior year.
Capital expenditures for fiscal 2026 guided at $24–$29 million, down from $42 million in fiscal 2025.
Guidance range maintained due to ongoing market volatility, tariffs, and external uncertainties.
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