Methode Electronics, Inc. reported its financial results for the first quarter of fiscal 2026 ended on August 2, 2025.
The company saw growth in Power Product Sales and an increase in Income from Operations.
They achieved their third consecutive quarter of strong Free Cash Flow and Net Debt Reduction.
The company affirmed its Fiscal 2026 Guidance despite challenges in the EV market.
Income from Operations Increase
Income from operations was up by $8.6 million compared to the previous quarter.
Net Debt Reduction
Methode Electronics reduced its net debt by $11.7 million in the quarter.
Strong Free Cash Flow
The company generated $18.0 million in free cash flow, marking the third consecutive quarter of strong performance.
Affirmed Fiscal Guidance
Despite a decline in sales due to lower EV demand, Methode Electronics affirmed its fiscal year 2026 guidance.
- Methode's net sales for the first quarter of fiscal 2026 were $240.5 million, a decrease from the same quarter in fiscal 2025.
- The decrease in sales was mainly attributed to lower volume in the Automotive segment, offset by growth in the Industrial segment.
- Income from operations improved to $1.1 million, compared to a loss in the same quarter of fiscal 2025, driven by cost reductions and improved execution.
- The company's focus on reducing costs and improving operational efficiency contributed to the positive results.
Methode Electronics showed resilience in the face of market challenges, demonstrating progress in their transformation journey and commitment to financial stability and growth.