Methode Electronics 2026 Q1 Earnings Net Loss Narrows by 43.7%

Methode Electronics (MEI) reported its fiscal 2026 Q1 earnings on September 9, 2025. The company posted a 7.0% revenue decline year-over-year but significantly reduced its net loss. It reaffirmed its fiscal 2026 guidance, signaling operational improvements ahead.

Despite a 7.0% year-over-year drop in total revenue to $240.50 million, Methode managed to narrow its net loss by 43.7%, a strong indicator of cost control and operational efficiency. The company affirmed its guidance for the year, projecting doubled EBITDA despite challenging market conditions.

Revenue
Revenue across Methode’s business segments reflected a mix of performance amid overall headwinds. The Automotive segment reported $106.10 million, while the Industrial segment accounted for the largest share at $123.50 million. The Interface segment contributed $10.90 million, bringing the consolidated total to $240.50 million.

Earnings/Net Income
Methode’s net loss improved significantly, declining to $-10.30 million in 2026 Q1 compared to $-18.30 million in the prior year period, representing a 43.7% reduction. On a per-share basis, the company narrowed losses to $0.29 from $0.52, a 44.2% improvement. These results underscore the company’s ongoing efforts to streamline operations and enhance profitability.

Price Action
The stock of Methode Electronics recorded a 2.49% rise on the latest trading day, though it fell 4.88% over the past full trading week. Encouragingly, the stock surged 16.35% month-to-date, suggesting investor optimism amid post-earnings performance.

Post Earnings Price Action Review
Following the earnings release, Methode’s stock showed mixed performance, with a positive month-to-date gain despite a weekly decline. The price action reflects investor reaction to the company’s strong cost-cutting and operational improvements, especially against a backdrop of reduced sales. The market appears to be factoring in the company’s long-term transformation and improved EBITDA guidance.

CEO Commentary
Jon DeGaynor, President and CEO of Methode Electronics, highlighted significant progress in the company’s transformation. Noting an $9 million increase in operating income despite $18 million lower sales, DeGaynor emphasized improved execution, cost reductions, and strong free cash flow generation. The company has reduced net debt by $41 million over the past three quarters. DeGaynor also expressed optimism about the data center business and reaffirmed that Methode’s transformation is "firmly on track."

Guidance
The company reiterated its full-year 2026 guidance, projecting a doubling of EBITDA despite an expected $100 million drop in sales, primarily due to reduced demand for electric vehicles. This outlook reflects Methode’s confidence in its ongoing operational improvements and strategic focus.

Additional News
Nigeria’s Federal Government announced that contracts below N20 billion would be reserved for local firms, aiming to boost domestic participation in large projects. Additionally, the Minister for Industry, Trade, and Investment stated that raw shea exports would be suspended to strengthen the country’s global competitiveness. Meanwhile, the Nigerian Army reported the successful dismantling of a terrorist logistics network and the rescue of nine hostages in an ongoing operation.