Methode Electronics, Inc. reported a 15.6% year-over-year decrease in net sales for the second quarter of fiscal 2026, amounting to $246.9 million.
The company experienced a net loss of $9.9 million, representing 4.0% of net sales, with an adjusted EBITDA margin of 7.1%.
Despite challenges in the EV market and lower sales volumes, Methode Electronics, Inc. remains focused on strategic operational enhancements and reaffirms its fiscal 2026 guidance.
Net Sales Decline
Net sales decreased by 15.6% year-over-year, primarily attributed to lower sales volumes across all segments.
Adjusted EBITDA Margin
The adjusted EBITDA margin stood at 7.1% for the second quarter of fiscal 2026, reflecting the company's operational performance.
Guidance Reaffirmation
Methode Electronics, Inc. reaffirmed its fiscal 2026 guidance for net sales of $900 million to $1 billion and adjusted EBITDA of $70 to $80 million.
- The decline in net sales was influenced by lower sales volumes and product mix in the Automotive segment, which recorded a loss from operations of $10.9 million compared to income in the previous year.
- While facing challenges such as a $100 million annual net sales decline due to evolving EV market demand, the company's focus on transformation and operational improvements remains key to its performance.
Despite the decrease in net sales and challenges in the automotive industry, Methode Electronics, Inc. continues its transformation journey and strategic enhancements, aiming to improve execution and resilience. The company's reaffirmation of guidance showcases its commitment to long-term growth and value creation for stakeholders.