Methode Electronics Reports Decline in Financial Performance for Third Quarter and Nine Months Ended January 31, 2026

Methode Electronics, Inc. reported a decline in financial performance for the three and nine months ended January 31, 2026, as detailed in its latest 10-Q filing. The company recorded net sales of $233.7 million for the third quarter, a decrease of 2.6% from $239.9 million in the same period last year. For the nine-month period, net sales fell 8.8% to $721.1 million from $791.0 million. The decline in revenue was attributed primarily to lower sales volumes in the Automotive and Interface segments, despite a positive impact from foreign currency translation, which added $11.7 million and $25.0 million to the respective periods.

The company's gross profit also decreased, with a gross margin of 16.6% for the third quarter compared to 17.2% a year earlier. The gross profit for the quarter was $38.8 million, down from $41.3 million, while for the nine months, gross profit fell to $130.0 million from $143.8 million. Selling and administrative expenses increased to $39.1 million in the third quarter, up from $37.7 million, reflecting higher costs associated with restructuring and asset impairment charges. The net loss for the third quarter was $15.9 million, compared to a loss of $14.4 million in the prior year, while the nine-month net loss widened to $36.1 million from $34.3 million.

In terms of strategic developments, Methode Electronics completed the sale of its dataMate business on March 5, 2026, for approximately $16.4 million, which is expected to generate a gain of between $9.0 million and $10.5 million. The proceeds from this transaction are intended for general corporate purposes, including debt reduction. Additionally, the company finalized a purchase and sale agreement to sell one of its locations for $4.7 million, further indicating a focus on optimizing its asset portfolio.

Operationally, Methode Electronics faced challenges in its Automotive segment, where net sales decreased by 8.2% to $106.2 million in the third quarter, primarily due to reduced electric vehicle volumes. Conversely, the Industrial segment saw a 9.5% increase in net sales to $122.5 million, driven by higher demand for lighting products in off-road equipment markets. The Interface segment, however, experienced a significant decline, with net sales dropping 59.3% to $5.0 million, attributed to lower sales volumes of touch panels for appliances.

Looking ahead, Methode Electronics remains cautious about its financial outlook, citing ongoing supply chain disruptions, inflationary pressures, and geopolitical risks that could impact operations. The company emphasized its commitment to managing costs and optimizing its operations to navigate these challenges effectively. As of January 31, 2026, Methode reported cash and cash equivalents of $133.7 million, indicating a solid liquidity position to support its ongoing operations and strategic initiatives.