Methode Electronics, Inc. Reports Fiscal 2025 Second Quarter Financial Results
Methode Electronics (NYSE: MEI) reported fiscal Q2 2025 results with net sales of $292.6 million, showing a slight increase from $288.0 million in Q2 2024. The company posted a net loss of $1.6 million ($0.05 per share), improving from a $55.3 million loss in the prior year. Electric and hybrid vehicle applications represented 20% of net sales.
Key financial metrics include adjusted pre-tax income of $6.2 million and adjusted net income of $5.2 million ($0.14 per share). The company maintained full compliance with debt covenants, though net debt increased to $243.6 million. Management raised fiscal 2025 adjusted pre-tax income guidance to approximately breakeven and reaffirmed fiscal 2026 expectations for higher sales and notably greater pre-tax income.
Methode Electronics (NYSE: MEI) ha riportato i risultati del secondo trimestre fiscale 2025 con vendite nette di $292,6 milioni, mostrando un leggero aumento rispetto ai $288,0 milioni del secondo trimestre 2024. L'azienda ha registrato una perdita netta di $1,6 milioni ($0,05 per azione), in miglioramento rispetto a una perdita di $55,3 milioni nell'anno precedente. Le applicazioni per veicoli elettrici e ibridi hanno rappresentato il 20% delle vendite nette.
I principali indicatori finanziari includono un reddito ante imposte rettificato di $6,2 milioni e un reddito netto rettificato di $5,2 milioni ($0,14 per azione). L'azienda ha mantenuto la piena conformità ai contratti di debito, sebbene il debito netto sia aumentato a $243,6 milioni. La direzione ha alzato le previsioni per il reddito ante imposte rettificato del 2025, portandole a circa il pareggio e ha confermato le aspettative per il 2026 di vendite più elevate e un reddito ante imposte notevolmente maggiore.
Methode Electronics (NYSE: MEI) reportó resultados del segundo trimestre fiscal 2025 con ventas netas de $292.6 millones, mostrando un ligero aumento respecto a los $288.0 millones en el segundo trimestre de 2024. La compañía registró una pérdida neta de $1.6 millones ($0.05 por acción), mejorando desde una pérdida de $55.3 millones en el año anterior. Las aplicaciones para vehículos eléctricos e híbridos representaron el 20% de las ventas netas.
Los principales indicadores financieros incluyen un ingreso ajustado antes de impuestos de $6.2 millones y un ingreso neto ajustado de $5.2 millones ($0.14 por acción). La compañía mantuvo el cumplimiento total de los convenios de deuda, aunque la deuda neta aumentó a $243.6 millones. La dirección elevó las expectativas de ingreso ajustado antes de impuestos para fiscal 2025 a aproximadamente el punto de equilibrio y reafirmó las expectativas para 2026 de mayores ventas y un ingreso antes de impuestos notablemente mayor.
Methode Electronics (NYSE: MEI)는 2025 회계년도 2분기 실적을 발표하며 순매출 $292.6 백만 달러를 기록했다고 밝혔으며, 이는 2024년 2분기 $288.0 백만 달러에 비해 소폭 증가한 수치입니다. 회사는 순손실이 $1.6 백만 달러($0.05 per share)로, 지난해 $55.3 백만 달러 손실에서 개선되었다고 보고했습니다. 전기 및 하이브리드 차량 응용 프로그램은 총 순매출의 20%를 차지했습니다.
주요 재무 지표로는 조정된 세전 소득이 $6.2 백만 달러, 조정된 순소득이 $5.2 백만 달러($0.14 per share)임을 포함합니다. 회사는 부채 계약을 완전히 준수했으며, 순부채는 $243.6 백만 달러로 증가하였습니다. 경영진은 2025 회계연도 조정된 세전 소득 가이드를 약 손익 분기점으로 상향 조정하였으며, 2026 회계연도에는 더 높은 판매 및 현저하게 증가한 세전 소득을 다시 한번 확인하였습니다.
Methode Electronics (NYSE: MEI) a annoncé ses résultats du deuxième trimestre fiscal 2025 avec des ventes nettes de $292,6 millions, montrant une légère augmentation par rapport à $288,0 millions au deuxième trimestre 2024. L'entreprise a affiché une perte nette de $1,6 millions ($0,05 par action), s'améliorant par rapport à une perte de $55,3 millions l'année précédente. Les applications de véhicules électriques et hybrides ont représenté 20 % des ventes nettes.
Les principaux indicateurs financiers incluent un revenu avant impôts ajusté de $6,2 millions et un revenu net ajusté de $5,2 millions ($0,14 par action). L'entreprise a maintenu une conformité totale avec les clauses de la dette, bien que la dette nette ait augmenté à $243,6 millions. La direction a relevé les prévisions de revenu avant impôts ajusté pour 2025 à environ l'équilibre et a confirmé les attentes pour 2026 d'un chiffre d'affaires plus élevé et d'un revenu avant impôts nettement supérieur.
Methode Electronics (NYSE: MEI) berichtete über die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025 mit einem Nettoumsatz von $292,6 Millionen, was einen leichten Anstieg gegenüber $288,0 Millionen im zweiten Quartal 2024 darstellt. Das Unternehmen verzeichnete einen Nettoverlust von $1,6 Millionen ($0,05 je Aktie), was eine Verbesserung gegenüber einem Verlust von $55,3 Millionen im Vorjahr darstellt. Die Anwendungen für Elektro- und Hybridfahrzeuge machten 20% des Nettoumsatzes aus.
Wichtige finanzielle Kennzahlen sind ein angepasster Ertrag vor Steuern von $6,2 Millionen und ein angepasster Nettogewinn von $5,2 Millionen ($0,14 je Aktie). Das Unternehmen hielt die volle Einhaltung der Schuldenverträge aufrecht, obwohl die Nettoverschuldung auf $243,6 Millionen gestiegen ist. Das Management hat die Prognose für den angepassten Ertrag vor Steuern für das Geschäftsjahr 2025 auf ungefähr den Break-Even-Punkt angehoben und die Erwartungen für 2026 bezüglich höherer Umsätze und deutlich höherer Erträge vor Steuern bekräftigt.
- Net sales increased to $292.6 million from $288.0 million year-over-year
- Adjusted pre-tax income improved to $6.2 million
- Adjusted EBITDA increased to $26.7 million from $21.2 million
- Management raised fiscal 2025 adjusted pre-tax income guidance
- Net loss of $1.6 million ($0.05 per share)
- Negative operating cash flow of $48.0 million
- Net debt increased to $243.6 million from $169.4 million
- Automotive segment sales declined 5.7% to $145.5 million
Insights
The Q2 FY2025 results show mixed performance with some concerning indicators. While net sales increased slightly to
Key financial metrics show operational challenges: negative operating cash flow of
The raised guidance for adjusted pre-tax income and reaffirmed sales expectations suggest management's confidence in recovery, though the projected Q3 potential loss indicates continued near-term challenges.
MEI's strategic transition from user interface products to power and lighting solutions presents both opportunities and risks. The
The data center market appears to be a bright spot, driving growth in power distribution products. However, market headwinds in automotive and commercial vehicles sectors, particularly in Asia, continue to pressure performance. The company's 50+ new program launches represent significant operational execution risk but also potential for revenue diversification.
The guidance suggests a back-loaded recovery with Q4 expected to be significantly stronger than Q3, indicating potential volatility in near-term performance.
- Solid Net Sales
- Positive Pre-tax Income
- Over
$50 Million in Program Awards - Guidance Raised for Fiscal 2025 Adjusted Pre-tax Income
- Guidance Reaffirmed for Fiscal 2026
CHICAGO, Dec. 05, 2024 (GLOBE NEWSWIRE) -- Methode Electronics, Inc. (NYSE: MEI), a leading global supplier of custom-engineered solutions for user interface, lighting and power distribution applications, today announced financial results for the second quarter of fiscal 2025 ended November 2, 2024.
Fiscal Second Quarter 2025 Highlights
- Net sales were
$292.6 million - Electric and hybrid vehicle applications were
20% of net sales - Pre-tax income was
$1.6 million ; Adjusted pre-tax income was$6.2 million - Tax expense of
$3.2 million primarily due to an increase in valuation allowance for U.S deferred tax assets - Net loss was
$1.6 million , or$0.05 per diluted share - Adjusted net income was
$5.2 million , or$0.14 per diluted share - Company was in full compliance with all debt covenants
Management Comments
President and Chief Executive Officer Jon DeGaynor said, “The team is energized, and these results demonstrate that we are heading in the right direction. Our sales in the quarter were the highest that we have reported since fiscal 2023, and our pre-tax income returned to positive territory. Our bookings remained solid, and our EV sales activity is steadily growing.”
Mr. DeGaynor added, “We continue to navigate the challenging transition from a portfolio that is primarily user interface products to one that is more balanced with the growth of power and lighting solutions, which is driving our 50 plus new program launches. In addition, our key markets of automotive and commercial vehicles continue to experience well-known headwinds. Despite these challenges and this environment, we are maintaining our previous sales guidance and raising our adjusted pre-tax income guidance for fiscal 2025.”
Mr. DeGaynor concluded, “This guidance is based on the current forecasts from our customers and other third-party sources, both of which have seen recent volatility. Our immediate focus remains on executing program launches and taking decisive actions to control costs; while continuing to build the executive team such as we did with the recent appointment of the Senior Vice President of our Global Automotive Business.”
Consolidated Fiscal Second Quarter 2025 Financial Results
The Company’s typical fiscal year is 52 weeks but occasionally requires an additional week in order for the fiscal year to end on the Saturday closest to April 30. The current fiscal year ending May 3, 2025, is a 53-week fiscal year with the additional week being included in this fiscal quarter making it a 14-week period. In the prior fiscal year, the second quarter was a 13-week period.
Methode's net sales were
Income from operations was
Net loss was
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization of Intangibles), a non-GAAP financial measure, was
Debt was
Net cash provided by operating activities was a negative
Segment Fiscal Second Quarter 2025 Financial Results
Comparing the Automotive segment’s quarter to the same quarter of fiscal 2024,
- Net sales were
$145.5 million , down from$154.3 million . Net sales decreased by$8.8 million or5.7% primarily due to lower volume in Asia mainly related to a previously disclosed EV lighting program roll-off. The lower sales were partially offset by higher volume in Europe driven by program launches. Sales in North America were flat as new program launches were offset by legacy program roll-offs. Partially offsetting the net sales decrease was favorable foreign currency translation of$2.1 million . - Income from operations was
$0.7 million , or0.5% of net sales, compared to a loss of$61.5 million or39.9% of net sales in the prior year. The increase was mainly due to a$56.5 million goodwill impairment charge in the prior year. There was no goodwill impairment in the second quarter of fiscal 2025. The increase was also driven by lower premium freight and lower selling and administrative expense.
Comparing the Industrial segment’s quarter to the same quarter of fiscal 2024,
- Net sales were
$131.4 million , up from$120.4 million . Net sales increased by$11.0 million or9.1% driven primarily by higher demand for power distribution products for data centers, which was partially offset by lower demand for lighting products in the commercial vehicle and off-road equipment markets. Also contributing to the net sales increase was favorable foreign currency translation of$2.2 million . - Income from operations was
$24.3 million , down from$25.7 million . Income from operations was18.5% of net sales, down from21.3% primarily due to lower gross margin driven primarily by product sales mix and higher selling and administrative expense.
Comparing the Interface segment’s quarter to the same quarter of fiscal 2024,
- Net sales were
$15.7 million , up from$11.7 million . The increase was mainly due to higher volume of transceivers for servers and touch panels for appliances. - Income from operations was
$4.7 million , up from$1.0 million . Income from operations was29.9% of net sales, up from8.5% . Both increases were mainly due to the higher sales volume and an inventory reserve reduction.
Guidance
For fiscal 2025, the company reaffirmed its expectation for net sales to be similar to fiscal 2024 but raised its adjusted pre-tax income expectation from approaching breakeven to approximately breakeven. The company expects net sales for the third quarter of fiscal 2025 to be similar to the prior year. For adjusted pre-tax income, the company expects the fourth quarter of fiscal 2025 to be significantly stronger than the third quarter of fiscal 2025, with the third quarter potentially having a pre-tax loss. For fiscal 2026, the company reaffirmed its expectation for net sales to be greater than fiscal 2025 and pre-tax income to be positive and notably greater than fiscal 2025.
The guidance is subject to change due to a variety of factors including the successful launch of multiple new programs, the ultimate take rates on new EV programs, success and timing of cost recovery actions, inflation, global economic instability, supply chain disruptions, transformation and restructuring efforts, potential impairments, any acquisitions or divestitures, and legal matters.
Conference Call
The company will conduct a conference call and webcast to review financial and operational highlights led by its President and Chief Executive Officer, Jon DeGaynor, and Chief Financial Officer, Laura Kowalchik, today at 10:00 a.m. CST.
To participate in the conference call, please dial 888-506-0062 (domestic) or 973-528-0011 (international) at least five minutes prior to the start of the event. A simultaneous webcast can be accessed through the company’s website, www.methode.com, on the Investors page.
A replay of the teleconference will be available shortly after the call through December 19, 2024, by dialing 877-481-4010 and providing passcode 51622. A webcast replay will also be available on the company’s website, www.methode.com, on the Investors page.
About Methode Electronics, Inc.
Methode Electronics, Inc. (NYSE: MEI) is a leading global supplier of custom-engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East and Asia. We design, engineer, and produce mechatronic products for OEMs utilizing our broad range of technologies for user interface, LED lighting system, power distribution and sensor applications.
Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus, and rail), cloud computing infrastructure, construction equipment, and consumer appliances. Our business is managed on a segment basis, with those segments being Automotive, Industrial, and Interface.
Non-GAAP Financial Measures
To supplement the company's financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Methode uses Adjusted Net Income (Loss), Adjusted Earnings (Loss) Per Share, Adjusted Pre-Tax Income (Loss), Adjusted Income (Loss) from Operations, EBITDA, Adjusted EBITDA, Net Debt and Free Cash Flow as non-GAAP measures. Reconciliation to the nearest GAAP measures of all non-GAAP measures included in this press release can be found at the end of this release. Methode's definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. The company believes that these non-GAAP measures are useful because they (i) provide both management and investors meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results, (ii) permit investors to view Methode's performance using the same tools that management uses to evaluate its past performance, reportable business segments and prospects for future performance, (iii) are commonly used by other companies in our industry and provide a comparison for investors to the company’s performance versus its competitors and (iv) otherwise provide supplemental information that may be useful to investors in evaluating Methode.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect, when made, our current views with respect to current events and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to our operations and business environment, which may cause our actual results to be materially different from any future results, expressed or implied, by such forward-looking statements. All statements that address future operating, financial or business performance or our strategies or expectations are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “outlook” or “continue,” and other comparable terminology. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following:
- Dependence on the automotive, commercial vehicle, and construction industries;
- Timing, quality and cost of new program launches;
- Changes in electric vehicle (“EV”) demand;
- Investment in programs prior to the recognition of revenue;
- Failure to attract and retain qualified personnel;
- Impact from production delays or cancelled orders;
- Impact from inflation;
- Dependence on the availability and price of materials;
- Dependence on a small number of large customers, including one large automotive customer;
- Dependence on our supply chain;
- Risks related to conducting global operations;
- Effects of potential catastrophic events or other business interruptions;
- Ability to withstand pricing pressures, including price reductions;
- Potential impact of securities class action, other litigation, and government investigations and inquiries;
- Ability to compete effectively;
- Our lengthy sales cycle;
- Risks relating to our use of requirements contracts;
- Potential work stoppages;
- Ability to successfully benefit from acquisitions and divestitures;
- Ability to manage our debt levels and comply with restrictions and covenants under our credit agreement;
- Interest rate changes and variable rate instruments;
- Timing and magnitude of costs associated with restructuring activities;
- Recognition of goodwill and other intangible asset impairment charges;
- Ability to remediate material weaknesses in our internal control over financial reporting;
- Currency fluctuations;
- Income tax rate fluctuations;
- Judgments related to accounting for tax positions;
- Ability to withstand business interruptions;
- Potential IT security threats or breaches;
- Ability to protect our intellectual property;
- Costs associated with environmental, health and safety regulations;
- International trade disputes resulting in tariffs and our ability to mitigate tariffs;
- Impact from climate change and related regulations; and
- Ability to avoid design or manufacturing defects.
Additional details and factors are discussed under the caption “Risk Factors” in our periodic reports filed with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. Any forward-looking statements made by us speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, subsequent events or otherwise.
For Methode Electronics, Inc.
Robert K. Cherry
Vice President, Investor Relations
rcherry@methode.com
+1-708-457-4030
| METHODE ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in millions, except per-share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| November 2, 2024 | October 28, 2023 | November 2, 2024 | October 28, 2023 | |||||||||||||
| (14 Weeks) | (13 Weeks) | (27 Weeks) | (26 Weeks) | |||||||||||||
| Net sales | $ | 292.6 | $ | 288.0 | $ | 551.1 | $ | 577.7 | ||||||||
| Cost of products sold | 234.7 | 235.7 | 448.6 | 471.4 | ||||||||||||
| Gross profit | 57.9 | 52.3 | 102.5 | 106.3 | ||||||||||||
| Selling and administrative expenses | 42.6 | 40.9 | 88.8 | 85.4 | ||||||||||||
| Goodwill impairment | — | 56.5 | — | 56.5 | ||||||||||||
| Amortization of intangibles | 5.9 | 6.2 | 11.8 | 11.9 | ||||||||||||
| Income (loss) from operations | 9.4 | (51.3 | ) | 1.9 | (47.5 | ) | ||||||||||
| Interest expense, net | 6.2 | 4.4 | 11.0 | 7.2 | ||||||||||||
| Other expense (income), net | 1.6 | (0.2 | ) | 2.4 | (0.2 | ) | ||||||||||
| Pre-tax income (loss) | 1.6 | (55.5 | ) | (11.5 | ) | (54.5 | ) | |||||||||
| Income tax expense (benefit) | 3.2 | (0.2 | ) | 8.4 | (0.1 | ) | ||||||||||
| Net loss | $ | (1.6 | ) | $ | (55.3 | ) | $ | (19.9 | ) | $ | (54.4 | ) | ||||
| Loss per share: | ||||||||||||||||
| Basic | $ | (0.05 | ) | $ | (1.55 | ) | $ | (0.56 | ) | $ | (1.52 | ) | ||||
| Diluted | $ | (0.05 | ) | $ | (1.55 | ) | $ | (0.56 | ) | $ | (1.52 | ) | ||||
| Cash dividends per share | $ | 0.14 | $ | 0.14 | $ | 0.28 | $ | 0.28 | ||||||||
| METHODE ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions, except share and per-share data) | ||||||||
| November 2, 2024 | April 27, 2024 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 97.0 | $ | 161.5 | ||||
| Accounts receivable, net | 255.9 | 262.6 | ||||||
| Inventories | 228.2 | 186.2 | ||||||
| Income tax receivable | 4.9 | 4.0 | ||||||
| Prepaid expenses and other current assets | 24.2 | 18.7 | ||||||
| Assets held for sale | 2.7 | 4.7 | ||||||
| Total current assets | 612.9 | 637.7 | ||||||
| Long-term assets: | ||||||||
| Property, plant and equipment, net | 217.2 | 212.1 | ||||||
| Goodwill | 170.4 | 169.9 | ||||||
| Other intangible assets, net | 246.0 | 256.7 | ||||||
| Operating lease right-of-use assets, net | 27.2 | 26.7 | ||||||
| Deferred tax assets | 35.7 | 34.7 | ||||||
| Pre-production costs | 43.8 | 44.1 | ||||||
| Other long-term assets | 21.9 | 21.6 | ||||||
| Total long-term assets | 762.2 | 765.8 | ||||||
| Total assets | $ | 1,375.1 | $ | 1,403.5 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 129.8 | $ | 132.4 | ||||
| Accrued employee liabilities | 31.5 | 38.0 | ||||||
| Other accrued liabilities | 45.4 | 46.0 | ||||||
| Short-term operating lease liabilities | 7.6 | 6.7 | ||||||
| Short-term debt | 0.2 | 0.2 | ||||||
| Income tax payable | 8.1 | 8.1 | ||||||
| Total current liabilities | 222.6 | 231.4 | ||||||
| Long-term liabilities: | ||||||||
| Long-term debt | 340.4 | 330.7 | ||||||
| Long-term operating lease liabilities | 21.5 | 20.6 | ||||||
| Long-term income tax payable | — | 9.3 | ||||||
| Other long-term liabilities | 21.4 | 16.8 | ||||||
| Deferred tax liabilities | 30.9 | 28.7 | ||||||
| Total long-term liabilities | 414.2 | 406.1 | ||||||
| Total liabilities | 636.8 | 637.5 | ||||||
| Shareholders' equity: | ||||||||
| Common stock, | 18.3 | 18.3 | ||||||
| Additional paid-in capital | 188.6 | 183.6 | ||||||
| Accumulated other comprehensive loss | (37.7 | ) | (36.7 | ) | ||||
| Treasury stock, 1,346,624 shares as of November 2, 2024 and April 27, 2024 | (11.5 | ) | (11.5 | ) | ||||
| Retained earnings | 580.6 | 612.3 | ||||||
| Total shareholders' equity | 738.3 | 766.0 | ||||||
| Total liabilities and shareholders' equity | $ | 1,375.1 | $ | 1,403.5 | ||||
| METHODE ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in millions) | ||||||||
| Six Months Ended | ||||||||
| November 2, 2024 | October 28, 2023 | |||||||
| (27 Weeks) | (26 Weeks) | |||||||
| Operating activities: | ||||||||
| Net loss | $ | (19.9 | ) | $ | (54.4 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 28.4 | 28.4 | ||||||
| Stock-based compensation expense | 3.7 | 3.9 | ||||||
| Amortization of debt issuance costs | 0.5 | 0.4 | ||||||
| Partial write-off of unamortized debt issuance costs | 1.2 | — | ||||||
| (Gain) loss on sale of assets | (0.3 | ) | 0.5 | |||||
| Impairment of long-lived assets | 0.4 | 0.6 | ||||||
| Goodwill impairment | — | 56.5 | ||||||
| Change in deferred income taxes | 2.5 | (1.0 | ) | |||||
| Other | 1.1 | 0.6 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 5.2 | 12.5 | ||||||
| Inventories | (41.3 | ) | (29.1 | ) | ||||
| Prepaid expenses and other assets | (6.9 | ) | (10.8 | ) | ||||
| Accounts payable | (2.0 | ) | (1.8 | ) | ||||
| Other liabilities | (9.7 | ) | (12.5 | ) | ||||
| Net cash used in operating activities | (37.1 | ) | (6.2 | ) | ||||
| Investing activities: | ||||||||
| Purchases of property, plant and equipment | (24.0 | ) | (24.5 | ) | ||||
| Proceeds from settlement of net investment hedge | — | 0.6 | ||||||
| Proceeds from disposition of assets | 3.0 | 1.6 | ||||||
| Net cash used in investing activities | (21.0 | ) | (22.3 | ) | ||||
| Financing activities: | ||||||||
| Taxes paid related to net share settlement of equity awards | (0.5 | ) | (3.8 | ) | ||||
| Repayments of finance leases | (0.1 | ) | (0.1 | ) | ||||
| Debt issuance costs | (1.8 | ) | — | |||||
| Purchases of common stock | (1.6 | ) | (7.8 | ) | ||||
| Cash dividends | (10.0 | ) | (10.1 | ) | ||||
| Purchase of redeemable noncontrolling interest | — | (10.9 | ) | |||||
| Proceeds from borrowings | 45.0 | 213.9 | ||||||
| Repayments of borrowings | (39.1 | ) | (179.3 | ) | ||||
| Net cash (used in) provided by financing activities | (8.1 | ) | 1.9 | |||||
| Effect of foreign currency exchange rate changes on cash and cash equivalents | 1.7 | (7.9 | ) | |||||
| Decrease in cash and cash equivalents | (64.5 | ) | (34.5 | ) | ||||
| Cash and cash equivalents at beginning of the period | 161.5 | 157.0 | ||||||
| Cash and cash equivalents at end of the period | $ | 97.0 | $ | 122.5 | ||||
| Supplemental cash flow information: | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 10.3 | $ | 6.7 | ||||
| Income taxes, net of refunds | $ | 15.5 | $ | 14.5 | ||||
| Operating lease obligations | $ | 4.6 | $ | 4.5 | ||||
| METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (unaudited) (in millions) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| November 2, 2024 | October 28, 2023 | November 2, 2024 | October 28, 2023 | |||||||||||||
| (14 Weeks) | (13 Weeks) | (27 Weeks) | (26 Weeks) | |||||||||||||
| EBITDA: | ||||||||||||||||
| Net loss | $ | (1.6 | ) | $ | (55.3 | ) | $ | (19.9 | ) | $ | (54.4 | ) | ||||
| Income tax expense (benefit) | 3.2 | (0.2 | ) | 8.4 | (0.1 | ) | ||||||||||
| Interest expense, net | 6.2 | 4.4 | 11.0 | 7.2 | ||||||||||||
| Amortization of intangibles | 5.9 | 6.2 | 11.8 | 11.9 | ||||||||||||
| Depreciation | 8.4 | 8.2 | 16.6 | 16.5 | ||||||||||||
| EBITDA | 22.1 | (36.7 | ) | 27.9 | (18.9 | ) | ||||||||||
| Goodwill impairment | — | 56.5 | — | 56.5 | ||||||||||||
| Acquisition costs | — | — | — | 0.5 | ||||||||||||
| Acquisition-related costs - purchase accounting adjustments related to inventory | — | 0.2 | — | 0.5 | ||||||||||||
| Transformation costs * | 4.8 | — | 7.0 | — | ||||||||||||
| Partial write-off of unamortized debt issuance costs | — | — | 1.2 | — | ||||||||||||
| Restructuring costs and asset impairment charges | 0.1 | 0.6 | 0.7 | 1.3 | ||||||||||||
| Net (gain) loss on sale of non-core assets | (0.3 | ) | 0.6 | (0.3 | ) | 0.6 | ||||||||||
| Adjusted EBITDA | $ | 26.7 | $ | 21.2 | $ | 36.5 | $ | 40.5 | ||||||||
| * Represents professional fees related to the Company's cost reduction initiative. | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| November 2, 2024 | October 28, 2023 | November 2, 2024 | October 28, 2023 | |||||||||||||
| (14 Weeks) | (13 Weeks) | (27 Weeks) | (26 Weeks) | |||||||||||||
| Free Cash Flow: | ||||||||||||||||
| Net cash used in operating activities | $ | (48.0 | ) | $ | (0.6 | ) | $ | (37.1 | ) | $ | (6.2 | ) | ||||
| Purchases of property, plant and equipment | (10.4 | ) | (10.7 | ) | (24.0 | ) | (24.5 | ) | ||||||||
| Free cash flow | $ | (58.4 | ) | $ | (11.3 | ) | $ | (61.1 | ) | $ | (30.7 | ) | ||||
| November 2, 2024 | April 27, 2024 | |||||||
| Net Debt: | ||||||||
| Short-term debt | $ | 0.2 | $ | 0.2 | ||||
| Long-term debt | 340.4 | 330.7 | ||||||
| Total debt | 340.6 | 330.9 | ||||||
| Less: cash and cash equivalents | (97.0 | ) | (161.5 | ) | ||||
| Net debt | $ | 243.6 | $ | 169.4 | ||||
| METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (unaudited) (in millions, except per share data) | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| November 2, 2024 | October 28, 2023 | |||||||||||||||||||||||||||||||
| Income from operations | Pre-tax income (loss) | Net (loss) income | Diluted (loss) income per share | (Loss) income from operations | Pre-tax (loss) income | Net (loss) income | Diluted (loss) income per share | |||||||||||||||||||||||||
| U.S. GAAP (as reported) | $ | 9.4 | $ | 1.6 | $ | (1.6 | ) | $ | (0.05 | ) | $ | (51.3 | ) | $ | (55.5 | ) | $ | (55.3 | ) | $ | (1.55 | ) | ||||||||||
| Goodwill impairment | — | — | — | $ | — | 56.5 | 56.5 | 56.5 | $ | 1.58 | ||||||||||||||||||||||
| Acquisition-related costs - purchase accounting adjustments related to inventory | — | — | — | $ | — | 0.2 | 0.2 | 0.2 | $ | 0.01 | ||||||||||||||||||||||
| Transformation costs | 4.8 | 4.8 | 3.7 | $ | 0.10 | — | — | — | $ | — | ||||||||||||||||||||||
| Restructuring costs and asset impairment charges | 0.1 | 0.1 | 0.1 | $ | 0.01 | 0.6 | 0.6 | 0.5 | $ | 0.01 | ||||||||||||||||||||||
| Net (gain) loss on sale of non-core assets | — | (0.3 | ) | (0.2 | ) | $ | (0.01 | ) | — | 0.6 | 0.5 | $ | 0.01 | |||||||||||||||||||
| Valuation allowance on deferred tax assets | — | — | 3.2 | $ | 0.09 | — | — | — | $ | — | ||||||||||||||||||||||
| Non-U.S. GAAP (adjusted) | $ | 14.3 | $ | 6.2 | $ | 5.2 | $ | 0.14 | $ | 6.0 | $ | 2.4 | $ | 2.4 | $ | 0.06 | ||||||||||||||||
| Six Months Ended | ||||||||||||||||||||||||||||||||
| November 2, 2024 | October 28, 2023 | |||||||||||||||||||||||||||||||
| Income from operations | Pre-tax (loss) income | Net (loss) income | Diluted (loss) income per share | (Loss) income from operations | Pre-tax (loss) income | Net (loss) income | Diluted (loss) income per share | |||||||||||||||||||||||||
| U.S. GAAP (as reported) | $ | 1.9 | $ | (11.5 | ) | $ | (19.9 | ) | $ | (0.56 | ) | $ | (47.5 | ) | $ | (54.5 | ) | $ | (54.4 | ) | $ | (1.52 | ) | |||||||||
| Goodwill impairment | — | — | — | $ | — | 56.5 | 56.5 | 56.5 | $ | 1.58 | ||||||||||||||||||||||
| Acquisition costs | — | — | — | $ | — | 0.5 | 0.5 | 0.4 | $ | 0.01 | ||||||||||||||||||||||
| Acquisition-related costs - purchase accounting adjustments related to inventory | — | — | — | $ | — | 0.5 | 0.5 | 0.4 | $ | 0.01 | ||||||||||||||||||||||
| Transformation costs | 7.0 | 7.0 | 5.4 | $ | 0.15 | — | — | — | $ | — | ||||||||||||||||||||||
| Partial write-off of unamortized debt issuance costs | — | 1.2 | 0.9 | $ | 0.03 | — | — | — | $ | — | ||||||||||||||||||||||
| Restructuring costs and asset impairment charges | 0.7 | 0.7 | 0.6 | $ | 0.02 | 1.3 | 1.3 | 1.0 | $ | 0.03 | ||||||||||||||||||||||
| Net (gain) loss on sale of non-core assets | — | (0.3 | ) | (0.2 | ) | $ | (0.01 | ) | — | 0.6 | 0.5 | $ | 0.01 | |||||||||||||||||||
| Valuation allowance on deferred tax assets | — | — | 7.5 | $ | 0.21 | — | — | — | $ | — | ||||||||||||||||||||||
| Non-U.S. GAAP (adjusted) | $ | 9.6 | $ | (2.9 | ) | $ | (5.7 | ) | $ | (0.16 | ) | $ | 11.3 | $ | 4.9 | $ | 4.4 | $ | 0.12 | |||||||||||||
FAQ
What was Methode Electronics (MEI) Q2 2025 revenue?
What was MEI's earnings per share in Q2 2025?
What percentage of MEI's Q2 2025 sales came from EV applications?
What is Methode Electronics' guidance for fiscal 2025?
