Overview

* Methode Electronics ( MEI ) fiscal Q4 sales beat analyst expectations, per LSEG data

* Adjusted EPS and EBITDA missed analyst expectations, per LSEG data

* Co reported strong free cash flow, reduced total and net debt

Outlook

* Company expects fiscal 2026 net sales between $900 mln and $1,000 mln

* Methode Electronics ( MEI ) anticipates fiscal 2026 EBITDA of $70 to $80 mln

* Company sees lower EV demand impacting sales by $100 mln

* Methode Electronics ( MEI ) plans to leverage data center growth opportunities

Result Drivers

* DATA CENTER SALES - Record sales in power distribution products for data centers, contributing positively to Industrial segment

* EV DEMAND DECLINE - Significant reduction in demand from major EV customers, leading to inventory write-downs

* CASH FLOW IMPROVEMENT - Strong free cash flow achieved through working capital reduction, aiding in debt reduction

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Sales Beat $257.10 $232.90

mln mln (3

Analysts

)

Q4 Miss -$0.77 $0.04 (2

Adjusted Analysts

EPS )

Q4 EPS -$0.8

Q4 Net -$28.30

Income mln

Q4 Miss -$8.90 $19.70

Adjusted mln mln (2

EBITDA Analysts

)

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 $10.50, about 1% above its July 8 closing price of $10.39

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 12 three months ago

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.)