Methode Reports 10.4% Sales Growth but Posts Operating Loss Amid Rising Costs
Methode Electronics (MEI) posted a 10.4% year-over-year increase in fiscal first-quarter sales to $265.4 million, driven by higher volumes and mix across its Industrial segment as well as customer recoveries in lighting applications. Despite the revenue growth, the company reported an operating loss of $3.9 million compared to a prior-year profit of $1.1 million due to rising selling and administrative expenses, which climbed 25.4% year-over-year. The firm also announced new program awards with estimated lifetime revenues totaling $400 million, though these are not recognized as revenue yet. Industrial segment sales rose sharply by 27%, while operating income increased 19.2%. However, gross margins remained flat at 18.0% and adjusted EBITDA fell to $13.7 million from $15.7 million in the prior year. Methode reduced its outstanding borrowings by $10.1 million during the quarter but extended loan maturities through October 29, 2028. The company reaffirmed full-year sales guidance of $1.025 billion to $1.075 billion and non-GAAP adjusted EBITDA between $72 million and $82 million.
Tickers: $MEI