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Jan 31
Methode Q3 2026 Earnings Report
Methode Electronics, Inc. reported third quarter fiscal 2026 results including a net loss and lowered adjusted EBITDA guidance despite progress in its transformation journey.
Key Takeaways
Methode reported a 2.6% decline in net sales to $233.7 million and a net loss of $15.9 million. Results were weighed down by industry-wide Automotive disruptions and operational challenges in Mexico, though partially offset by strong Industrial segment performance and favorable foreign exchange. The company narrowed its full-year sales guidance and lowered its adjusted EBITDA outlook.
Net sales decreased 2.6% year-over-year to $233.7 million, primarily due to lower EV volumes in the Automotive segment.
Adjusted EBITDA declined to $7.3 million from $12.3 million in the prior year, with margin contracting to 3.1%.
The company finalized the sale of its Harwood Heights facility and closed the dataMate business sale for $16 million post-quarter.
Fiscal 2026 full-year Adjusted EBITDA guidance was lowered to a range of $58 million to $62 million.
Revenue by Segment
Forward Guidance
Methode narrowed its FY26 sales outlook and lowered its Adjusted EBITDA guidance due to market dynamics and foreign exchange tailwinds.
Positive Outlook
- Narrowed full-year net sales guidance to $950 million - $1 billion.
- Expected $30 million foreign currency tailwind relative to prior assumptions.
- Improved visibility as the company approaches fiscal year-end.
- Successful launch of multiple new programs.
- Commitment to cost recovery actions and transformation efforts.
Challenges Ahead
- Lowered full-year Adjusted EBITDA guidance to $58 - $62 million.
- Ongoing industry-wide disruptions within the Automotive segment.
- Uncertainty regarding take rates on EV programs.
- Continued challenges in Mexico operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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