Methode Electronics Q3 sales fall 2.6%, narrows FY26 guidance

Overview

• Custom-engineered solutions provider's Q3 net sales fell 2.6% yr/yr

• Company narrowed FY26 sales guidance and lowered adjusted EBITDA guidance

• Company finalized sale of Harwood Heights facility and closed on sale of dataMate business

Outlook

• Methode Electronics narrows FY26 sales guidance to $950 mln-$1 bln

• Company lowers FY26 adjusted EBITDA guidance to $58 mln-$62 mln

• Foreign currency expected to provide $30 mln tailwind for FY26

Result Drivers

• AUTOMOTIVE DISRUPTIONS - Industry-wide disruptions and challenges in Mexico impacted Automotive segment sales

• INDUSTRIAL SEGMENT GROWTH - Higher sales volumes for lighting and power products boosted Industrial segment

Company press release: ID:nGNX8XfNnl

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy"

• Wall Street's median 12-month price target for Methode Electronics Inc is $9.25, about 10.4% above its March 4 closing price of $8.38

• The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 50 three months ago

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