Methode Electronics Q3 Revenue Drops 3% to $234M, EBITDA Dips to $7.3M
Methode Electronics’ fiscal Q3 sales fell 3% to $234M with adjusted EBITDA down $5M to $7.3M and a $13.1M net loss, and it narrowed fiscal 2026 sales guidance to $950M–$1.0B and EBITDA to $58M–$62M. It generated $10M free cash flow, lifted cash to $133.7M and sold dataMate for $18M.
1. Q3 Results and Profitability
Methode Electronics reported fiscal third-quarter sales of $233.7M, down 3% from $239.9M a year ago. Gross profit decreased to $38.8M from $41.3M, adjusted EBITDA fell to $7.3M from $12.3M, and the company posted a $13.1M adjusted net loss versus a $7.2M loss in the prior-year quarter.
2. Cash Flow and Balance Sheet
The company generated $15.4M of operating cash and $10.1M of free cash flow, down from $19.6M last year. Cash on hand rose by $30.1M to $133.7M, net debt declined by $16.9M, and management completed the sale of dataMate for approximately $18M in revenue and $3M in profit, while its data-center power business targets a $120M annualized run rate.
3. Guidance Narrowing
Management narrowed full-year fiscal 2026 sales guidance to a range of $950M–$1.0B and lowered adjusted EBITDA guidance to $58M–$62M. Executives cited ongoing operational transformation and portfolio alignment actions as key drivers of the updated outlook.
4. Operational Headwinds
North American automotive segment sales were pressured by EV program delays and cancellations, contributing to lower volumes. Industrial segment sales grew 9.5% year over year, driven by off-road lighting and power distribution products, while Mexico site productivity remains about six months behind improvements achieved in Egypt.