MEI Reports Q4
Methode Electronics' fiscal 2026 net sales were approximately $1 billion, down 3% year-over-year, but adjusted EBITDA increased 60% to $68 million
On Thursday, Methode Electronics (NYSE: MEI ) discussed fourth-quarter financial results during its earnings call.
The full transcript is provided below.
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The full earnings call is available at Summary Methode Electronics' fiscal 2026 net sales were approximately $1 billion, down 3% year-over-year, due to automotive program roll-offs and market challenges, but adjusted EBITDA increased 60% to $68 million.
Strategic initiatives included simplifying the portfolio, divesting Datamate for an $11 million gain, and relocating headquarters to improve operational efficiency and leadership.
The company expects fiscal 2027 net sales between $1.025 to $1.075 billion and adjusted EBITDA of $72 to $82 million, driven by a 60% anticipated growth in data center-related sales and operational improvements.
Operational highlights include a strong financial recovery through customer recoveries totaling $45 million, enhanced manufacturing execution, and significant restructuring efforts in Egypt and Mexico.
Management emphasized ongoing transformation efforts focusing on sustainable growth, with significant investments in leadership and strategic shifts towards high-growth areas like data centers and commercial vehicles.
Full Transcript OPERATOR Greetings.
Welcome to the Methode Electronics fourth quarter and fiscal year 2026 results.
At this time, all participants are in a listen-only mode.
A question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference, please press Star 0 on your telephone keypad.
Please note this conference is being recorded.
I will now like to turn the conference over to your host, Joni Konstantelos, Managing Director.
You may begin.
Joni Konstantelos, Managing Director Good morning and welcome to Methode Electronics fiscal 2026, fourth quarter and full year earnings conference call.
Our fiscal 2026 financial results, including a press release and presentation, can be found on the Methode Investor Relations website.
I am joined today by John De Gaynor, President and Chief Executive Officer, and Laura Kowalchik, Chief Financial Officer.
Please turn to slide two for our safe harbor statements.
This conference call contains certain forward-looking statements which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof.
These forward-looking statements are subject to the safe harbor protection provided under the securities laws.
Methode undertakes no duty to update any forward-looking statements to conform the statements to actual results or changes in Methode's expectations on a quarterly basis or otherwise.
The forward-looking statements in this conference call involve a number of risks and uncertainties.
We will also be discussing non-GAAP information and performance measures which we believe are useful in evaluating the Company's operating performance.
Reconciliations for these non-GAAP measures can be found in the conference call materials.
The factors that could cause actual results to differ materially from our expectations are detailed in Methode's filings with the Securities and Exchange Commission, such as our 10-K and 10-Q.
Please turn to slide 3 and I will now turn the call over to John De Gaynor.
Jon DeGaynor, President And CEO Thank you, Joni, and good morning everyone.
Thank you for joining us for Methode's fourth quarter and fiscal 2026 earnings call.
I'd like to begin by thanking our global team for their dedication, resilience, and commitment to serving our customers throughout another dynamic year.
Turning to slide 3.
Fiscal 2026 was an important year for Methode.
While we continue to operate in a challenging environment, including EV program delays and cancellations, customer production volatility, commercial vehicle end market softness, and ongoing supply chain and tariff-related complexities, we remain focused on the areas within our control.
Our priorities were clear: improve operational execution, strengthen financial performance, simplify the portfolio, generate cash, reduce leverage, and position the company for sustainable long-term value creation.