Methode Electronics Inc. (NYSE: MEI) reported fiscal 2026 third‑quarter results for the quarter ended January 31, 2026. Net sales fell 2.4% to $233.7 million from $239.9 million a year earlier, while the company posted a net loss of $15.9 million, or $0.45 per diluted share, compared with a $14.4 million loss ($0.41 per share) in the same quarter last year.
Revenue decline was driven by lower volumes in the Automotive and Interface segments. The Automotive segment’s net sales dropped 8.2% due to reduced electric‑vehicle orders, partially offset by new program launches and a foreign‑currency benefit. The Interface segment saw a sharp drop in demand for appliance touch panels. In contrast, the Industrial segment grew 9.5% to $X million, driven by lighting and power products, helping to cushion the overall decline.
Operating loss widened to $6.1 million, or 2.6% of sales, from a 0.9% loss a year earlier. Adjusted operating loss was $5.7 million after excluding $0.4 million in restructuring costs and asset impairment charges. EBITDA fell to $6.9 million (3.0% of sales) from $11.4 million (4.8%) a year earlier, reflecting the lower volumes and unfavorable product mix. Adjusted EBITDA was $7.3 million, down from $8.5 million a year earlier.
Management revised its fiscal 2026 full‑year outlook, raising the sales guidance to $950 million–$1 billion from $900 million–$1 billion and maintaining adjusted EBITDA guidance at $58 million–$62 million. The upward revision in sales reflects confidence in the Industrial segment and the company’s focus on power solutions, while the unchanged EBITDA guidance signals caution amid ongoing automotive headwinds and the costs of the transformation program.
The quarter also marked the completion of the sale of the dataMate copper transceiver business to Bel Fuse for $16 million. The divestiture is part of a broader strategy to sharpen the company’s focus on high‑density power delivery products and reduce debt, freeing resources for growth in data‑center and AI‑computing markets.
Jon DeGaynor, President and CEO, said, "We continue to make progress in our transformation journey, a multi‑year effort to align our portfolio, refine our organization, optimize our footprint, and strengthen operational discipline. During the quarter, we finalized an agreement for the sale of our Harwood Heights facility and subsequent to the quarter‑end, we completed the sale of dataMate, our copper transceiver business. These actions are tangible proof points of our commitment to simplify the organization, improve our cost structure, and sharpen our focus on key growth strategies, particularly in the area of power solutions." He added, "Third quarter results were impacted by industry‑wide disruptions within our Automotive segment, near‑term effects from structural transformation actions, and continued challenges in our Mexico operations. These impacts were partially offset by favorable foreign exchange and strong Industrial segment performance. While market conditions remain dynamic and there is more work ahead, we are committed to executing deliberate, disciplined actions to strengthen Methode and position the Company for improved long‑term performance."
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