Overview

* The custom-engineered electronic and mechatronic products maker's Q1 sales beat analyst expectations, per LSEG data

* Adjusted EPS for fiscal Q1 2026 beats estimates, reflecting cost reductions

* Company affirms fiscal 2026 guidance to double EBITDA despite sales decline

Outlook

* Methode affirms fiscal 2026 net sales of $900 mln to $1 bln

* Methode expects fiscal 2026 EBITDA to double despite $100 mln sales decline

* Methode's fiscal 2026 guidance relies on current market and tariff conditions

Result Drivers

* AUTOMOTIVE DECLINE - Lower sales in the Automotive segment, driven by weaker activity in North America, led to a 21.3% decrease in net sales

* INDUSTRIAL GROWTH - Higher demand for power products and lighting for off-road equipment boosted Industrial segment sales by 10.8%

* COST REDUCTIONS - Improved income from operations due to $9.6 mln reduction in selling and administrative expenses

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales Beat $240.50 $233.40

mln mln (3

Analysts

)

Q1 Beat -$0.22 -$0.25

Adjusted (2

EPS Analysts

)

Q1 EPS -$0.29

Q1 Net -$10.30

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the electronic equipment & parts peer group is "buy"

* Wall Street's median 12-month price target for Methode Electronics Inc ( MEI ) is $9.50, about 23.7% above its September 8 closing price of $7.25

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)