Methode Electronics, Inc. Reports Fiscal 2026 Third Quarter Financial Results (Form 8-K)

Methode Electronics, Inc. Reports Fiscal 2026 Third Quarter Financial Results

Progress on transformation amid mixed market conditions

Southfield, MI - March 5, 2026 - Methode Electronics, Inc. (NYSE: MEI), a leading global supplier of custom-engineered solutions for user interface, lighting, and power distribution applications, today announced financial results for the third quarter of fiscal 2026 ended January 31, 2026.

President and Chief Executive Officer Jon DeGaynor 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."

Mr. DeGaynor continued, "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."

Consolidated Fiscal Third Quarter 2026 Financial Results

Methode's net sales were $233.7 million, compared to $239.9 million in the same quarter of fiscal 2025. The decrease reflected lower sales volumes in the Automotive segment and Interface segment, partially offset by positive foreign currency impacts and higher sales volumes in the Industrial segment.

Gross profit was $38.8 million, down from $41.3 million in the prior-year quarter, primarily a result of lower sales volume and product mix in the Automotive segment and Interface segment. Loss from operations was $6.1 million, compared to a loss of $2.2 million in the same quarter of fiscal 2025. Loss from operations as a percentage of net sales was 2.6%, compared to 0.9% in the same quarter of fiscal 2025. Adjusted loss from operations, a non-GAAP financial measure, was $5.7 million, compared to $1.3 million in the same quarter of fiscal 2025. The adjusted loss from operations excluded expenses of $0.4 million for restructuring costs and asset impairment charges.

Net loss was $15.9 million or $0.45 per diluted share, compared to a loss of $14.4 million or $0.41 per diluted share in the same quarter of fiscal 2025. Adjusted net loss, a non-GAAP financial measure, was $13.1 million or $0.37 per diluted share, compared to a loss of $7.2 million or $0.21 per diluted share in the same quarter of fiscal

2025. The adjusted net loss excluded $0.4 million for restructuring costs and asset impairment charges and $2.4 million for valuation allowance for deferred tax assets.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization of Intangibles), a non-GAAP financial measure, was $6.9 million or 3.0% of net sales, compared to $11.4 million or 4.8% of net sales in the same quarter of fiscal 2025. Adjusted EBITDA, a non-GAAP financial measure, was $7.3 million, compared to $12.3 million in the same quarter of fiscal 2025. Adjusted EBITDA excluded $0.4 million for restructuring costs and asset impairment charges.

Debt was $340.9 million at the end of the quarter, up from $317.6 million at the end of fiscal 2025. Increased borrowings and foreign currency translation drove the increase. Net debt, a non-GAAP financial measure defined as debt less cash and cash equivalents, was $207.2 million, which was down from $214.0 million when compared to fiscal year-end 2025.

Net cash provided by operating activities was $15.4 million for the quarter, compared to $28.1 million in the same quarter of fiscal 2025. Free cash flow, a non-GAAP financial measure defined as net cash provided by operating activities less purchases of property, plant, and equipment, was $10.1 million, compared to $19.6 million in the same quarter of fiscal 2025. Net cash provided by operating activities and free cash flow through the first nine months of fiscal 2026 were $33.1 million and $16.5 million, respectively.

Segment Fiscal Third Quarter 2026 Financial Results

Comparing the Automotive segment's quarter to the same quarter of fiscal 2025:

Comparing the Industrial segment's quarter to the same quarter of fiscal 2025:

Comparing the Interface segment's quarter to the same quarter of fiscal 2025:

Guidance

The Company revised its fiscal 2026 full year guidance and now expects full-year fiscal 2026 net sales to be in the range of $950 million to $1 billion, narrowing its prior outlook of $900 million to $1 billion. The revised range reflects improved visibility as the Company approaches fiscal year-end. Based on current exchange rates, foreign currency is expected to provide an approximate $30 million tailwind relative to the Company's prior assumptions. In addition, the Company lowered its fiscal 2026 full year Adjusted EBITDA guidance and now expects Adjusted EBITDA to be in the range of $58 to $62 million.

This guidance is based on the current market outlook based on third party forecasts and customer projections and the current U.S. tariff policy. The guidance is subject to change due to a variety of factors including tariffs, geopolitical instability such as conflicts in the Middle East, the successful launch of multiple new programs, the ultimate take rates on EV programs, success and timing of cost recovery actions, inflation, global economic instability, supply chain disruptions, transformation and restructuring efforts, potential impairments, any acquisitions or divestitures, and legal matters.

Due to the inherent difficulty of forecasting the timing and amount of certain items that would impact net loss, we are unable to reasonably estimate net income, the GAAP financial measure most directly comparable to Adjusted EBITDA. Accordingly, we are unable to provide a reconciliation of Adjusted EBITDA to net income with respect to the guidance provided.

Conference Call

The company will conduct a conference call and webcast tomorrow, March 6, 2026, at 11:00 a.m. Eastern Time to review financial and operational highlights led by its President and Chief Executive Officer, Jon DeGaynor, and Chief Financial Officer, Laura Kowalchik.

To participate in the conference call, please dial 888-506-0062 (domestic) or 973-528-0011 (international) and provide participant code 901289, at least ten minutes prior to the start of the event. A simultaneous webcast can be accessed through the company's website, www.methode.com, on the Investors page.

A webcast replay will also be available on the company's website, www.methode.com, on the Investors page.

About Methode Electronics, Inc.

Methode Electronics, Inc. (NYSE: MEI) is a leading global supplier of custom-engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East and Asia. We design, engineer, and produce mechatronic products for OEMs utilizing our broad range of technologies for user interface, lighting system, power distribution and sensor applications.

Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus, and rail), cloud computing infrastructure, construction equipment, and consumer appliances. Our business is managed on a segment basis, with those segments being Automotive, Industrial, and Interface.

Non-GAAP Financial Measures

To supplement the company's financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), Methode uses Adjusted Net Income (Loss), Adjusted Earnings (Loss) Per Diluted Share, Adjusted Pre-Tax Income (Loss), Adjusted Income (Loss) from Operations, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt and Free Cash Flow as non-GAAP measures. Reconciliation to the nearest GAAP measures of all non-GAAP measures included in this press release can be found at the end of this release. Methode's definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information

prepared in accordance with GAAP. The company believes that these non-GAAP measures are useful because they (i) provide both management and investors meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results, (ii) permit investors to view Methode's performance using the same tools that management uses to evaluate its past performance, reportable business segments and prospects for future performance, (iii) are commonly used by other companies in our industry and provide a comparison for investors to the company's performance versus its competitors and (iv) otherwise provide supplemental information that may be useful to investors in evaluating Methode.