Methode Electronics Reports Q3 2025 Financial Results

Methode Electronics ( (MEI) ) has released its Q3 earnings. Here is a breakdown of the information Methode Electronics presented to its investors.

Methode Electronics, Inc. is a global supplier of custom-engineered solutions for user interface, lighting, and power distribution applications, serving a variety of markets including automotive, industrial, and consumer appliances.

In its fiscal 2025 third quarter earnings report, Methode Electronics highlighted strong power product sales for data centers and positive free cash flow, despite facing challenges in the automotive market. The company also reaffirmed its guidance for fiscal 2026, signaling confidence in future growth.

The company’s net sales for the quarter were $239.9 million, with electric and hybrid vehicle applications accounting for 24% of these sales. Methode Electronics reported a net loss of $14.4 million, or $0.41 per diluted share, primarily due to a $6.5 million valuation allowance for U.S. deferred tax assets. However, the company achieved positive free cash flow of $19.6 million, attributed to improved operational execution and cost management.

Segment-wise, the Automotive segment experienced a decline in net sales due to lower volumes in Asia and North America, while the Industrial segment saw an increase in net sales driven by demand for power distribution products. The Interface segment reported a slight decrease in net sales but improved income from operations due to favorable product sales mix.

Looking ahead, Methode Electronics remains focused on its transformation journey and cost control measures. The company is optimistic about launching 33 new programs in the next five quarters and anticipates profitable organic sales growth in fiscal 2026, despite ongoing market risks in the automotive and EV sectors.