Methode Electronics Q3 FY2026 Results: Sales Dip 2.6% to $233.7M

Methode Electronics, Inc. presents its fiscal third quarter 2026 earnings presentation, highlighting progress in its transformation efforts despite challenges in the automotive sector. For the quarter ended January 31, 2026, the company reports net sales of $233.7 million, down 2.6% from $239.9 million in the prior-year period.4750

Financial Highlights

The firm records a net loss of $15.9 million, or $0.45 per diluted share, compared to a $14.4 million loss, or $0.41 per share, last year. Gross profit stands at $38.8 million, down from $41.3 million. Adjusted EBITDA reaches $7.3 million, or 3.1% of sales, versus $12.3 million previously.47

Operating cash flow generates $15.4 million, yielding free cash flow of $10.1 million. Net debt decreases to $207.2 million from $214.0 million at fiscal year-end 2025.50

Segment Performance

The Automotive segment sees net sales of $106.2 million, a 8.2% decline due to lower electric vehicle volumes, offset partly by new launches and favorable foreign exchange. It reports an operating loss of $12.7 million.47

Industrial segment sales rise 9.5% to $122.5 million, driven by off-road lighting and power products, with operating income up to $25.2 million.46

Interface segment sales drop to $5.0 million from $12.3 million, mainly lower touch panel volumes, yielding $0.1 million in operating income.47

Strategic Transformation Updates

Methode advances its multi-year transformation, including the sale of its dataMate copper transceiver business to Bel Fuse Inc. for $16 million, closed post-quarter. It also finalizes the Harwood Heights facility sale and relocates headquarters to Southfield, Michigan. Efforts focus on portfolio alignment, operational discipline, and growth in power solutions for data centers and EVs.50

Power solutions sales project around $280 million for FY2026, reflecting 25% CAGR since FY2022, targeting EV, data center, and mil/aero markets.50

Fiscal 2026 Guidance

Company narrows full-year net sales outlook to $950 million to $1 billion. Adjusted EBITDA guidance adjusts to $58 million to $62 million. Capital expenditures target $24 million to $29 million, with positive free cash flow anticipated.4750

Leadership Perspective

President and CEO Jon DeGaynor states, “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.” He notes impacts from automotive disruptions and Mexico operations, offset by foreign exchange gains and strong industrial performance.47