Methode Electronics Reports Q1 2027 Earnings with Mixed Financial Results
Methode Electronics (MEI) reported mixed financial results for its first quarter of fiscal 2027. Net sales reached $265.4 million, up 10.4% year-over-year due to increased volumes in the industrial segment and data center-related sales. However, adjusted EBITDA declined to $13.7 million from $15.7 million, primarily impacted by one-time expenses of $6.7 million related to portfolio refinements and premium freight costs. The company secured new business awards valued at approximately $400 million in lifetime revenue for USMCA-compliant components used in commercial vehicle and automotive power applications. The industrial segment saw strong growth with a 27% increase, while the automotive segment experienced only minor declines due to lower volumes outside North America. Despite operational improvements in Mexico (500 basis points margin improvement) and Egypt (700 basis points), Methode faced challenges including an interface segment revenue drop of 73%, driven by a business divestiture. Free cash flow turned negative at $10.9 million due to inventory builds supporting production transfers from Asia to Mexico.
Tickers: $MEI
Topics: adjusted_ebitda debt margin_improvement net_sales segment_revenue