Methode Electronics Reports Decline in Sales and Increased Net Loss for Three and Six Months Ended November 1, 2025

Methode Electronics, Inc. reported a decline in financial performance for the three and six months ended November 1, 2025, compared to the same periods in the previous fiscal year. For the three months, net sales decreased by 15.6% to $246.9 million, down from $292.6 million, while for the six months, sales fell 11.6% to $487.4 million from $551.1 million. The company attributed this decline primarily to lower sales volumes across all segments, particularly in the Automotive segment, which saw a significant drop in sales due to the roll-off of legacy programs. The gross profit for the three months was $47.7 million, down from $57.9 million, and for the six months, it decreased to $91.2 million from $102.5 million.

The company's net loss for the three months ended November 1, 2025, was $9.9 million, compared to a loss of $1.6 million in the prior year. For the six-month period, the net loss was $20.2 million, slightly higher than the $19.9 million loss reported in the same period last year. The increase in net loss was influenced by lower gross profit margins, which were 19.3% for the three months and 18.7% for the six months, compared to 19.8% and 18.6%, respectively, in the previous year. Selling and administrative expenses also decreased, reflecting cost-cutting measures, but were not sufficient to offset the decline in revenue.

In terms of operational developments, Methode Electronics has been actively managing its restructuring efforts, which included $1.1 million in restructuring and asset impairment charges in the most recent quarter. The company continues to face challenges related to supply chain disruptions, particularly in procuring automotive-grade semiconductors, which have impacted production and sales. Despite these challenges, the Industrial segment reported a slight increase in sales for the six months, driven by higher demand for power products and lighting solutions for off-road equipment.

Looking ahead, Methode Electronics remains cautious about its financial outlook, citing ongoing uncertainties in the global economy, including inflation and geopolitical risks that could affect supply chains and customer demand. The company has a cash position of $118.5 million as of November 1, 2025, which it believes will be sufficient to fund operations and commitments in the near term. However, it acknowledges that continued economic pressures could impact its liquidity and operational performance. The company is also focused on maintaining compliance with its debt covenants under its amended credit agreement, which has been adjusted to provide more flexibility in light of recent financial performance.