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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.
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Q2 2026 earnings summary4 Dec, 2025

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.

EV demand impact on sales guidance
Actions to improve Automotive segment profitability
What drives full-year positive free cash flow?
Egypt/Mexico plant improvement impact on H2?
What specific external risks impact guidance?
Data center growth strategy beyond VMI?
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Frequently asked questions

Methode Electronics, Inc. designs, manufactures, and markets component and subsystem devices worldwide. It operates through two segments, Automotive and Interface. The Automotive segment offers electronic and electro-mechanical devices, as well as related products to automobile original equipment manufacturers directly or through their tiered suppliers. This segment provides body control modules, electronic control units, sensors, switches, hybrid high voltage distribution boxes, power distribution centers, powertrain sensing devices and wiring assemblies, powder metal components, relays and actuators controllers, flat panel display components and assemblies for automotive interior systems.

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