Methode Electronics
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Methode Electronics (MEI) investor relations material

Methode Electronics Q3 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2026 earnings summary6 Mar, 2026

Executive summary

  • Net sales for Q3 FY26 were $233.7–$234 million, down 2.6% year-over-year, with year-to-date net sales at $721 million, reflecting lower Automotive and Interface volumes, partially offset by Industrial growth and favorable FX.

  • Net loss was $15.9 million ($0.45 per diluted share), up from $14.4 million in the prior year; adjusted net loss was $13.1 million ($0.37 per share).

  • Transformation initiatives included operational improvements, Mexico operations progress, portfolio refinement, cost structure alignment, and capital reallocation toward higher-growth power solutions.

  • Completed sale of the dataMate business for $16–$16.4 million and finalized sale of the Harwood Heights facility, with proceeds used for debt reduction and working capital.

  • Headquarters relocated from Chicago to Southfield, Michigan, and facility subleased to reduce footprint.

Financial highlights

  • Adjusted EBITDA for Q3 FY26 was $7.3 million (3.1% margin), down 41% year-over-year; year-to-date Adjusted EBITDA was $40.6 million.

  • Gross profit was $38.8 million, with gross margin at 16.6% for the quarter, down from 17.2% year-over-year.

  • Net loss for Q3 FY26 was $15.9 million, with adjusted net loss of $13.1 million and adjusted EPS of $(0.37).

  • Free cash flow for Q3 FY26 was $10.1 million; year-to-date free cash flow reached $16.5–$17 million.

  • Cash balance at quarter-end was $133.7 million, up $30.1 million from fiscal 2025; net debt reduced by $16.9 million year-over-year to $207.2 million.

Outlook and guidance

  • FY26 net sales guidance narrowed to $950 million–$1 billion, with the low end raised by $50 million, mainly due to FX benefits.

  • Adjusted EBITDA guidance for FY26 is $58–$62 million, lowered from prior $70–$80 million, reflecting North American auto program delays and higher Mexico transformation costs.

  • Capital expenditures for FY26 expected at $24–$29 million, down from $42 million in FY25.

  • Guidance excludes proceeds from recent asset sales and potential customer recoveries; subject to risks including tariffs, geopolitical instability, EV adoption, and supply chain disruptions.

  • Expectation for positive free cash flow in Q4 and full year, compared to an outflow in the previous year.

Impact of EV volume drops on Automotive margins
Drivers of Industrial segment sales growth
Challenges impacting Mexico operations
Factors causing the Mexico transformation lag
Drivers of the 50% data center run rate growth
Recovery claims status for canceled EV programs
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Q4 20269 Jul, 2026
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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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