Methode Electronics reported Q4 FY2025 net sales of $257.1 million (down 7.3% YoY), posting a GAAP net loss of $0.80 per share and an adjusted loss of $0.77 per share, massively missing estimates of +$0.01–$0.03. Revenue beat expectations by ~9.4% at $257.1M vs. estimated ~$235M. The stock plunged 22.45% to $8.23 in after-hours trading following the July 2025 announcement, reflecting investor shock at the EPS miss despite the revenue beat.
About Methode Electronics
Methode Electronics, Inc. (NYSE: MEI) is a leading global supplier of custom-engineered solutions for user interface, lighting, and power distribution applications. Founded in 1946 by William J. McGinley in Chicago, Illinois, the company has grown from a $2,500 initial investment into a global OEM solutions provider. The company recently relocated its headquarters to Southfield, Michigan as part of corporate cost-reduction initiatives.
Methode serves end markets including transportation (automotive, commercial vehicle, e-bike, aerospace, bus, and rail), cloud computing infrastructure, construction equipment, and consumer appliances. The business operates through three segments: Automotive, Industrial, and Interface.
| Metric | Value |
| Ticker | NYSE: MEI |
| Market Cap (Mar 2026) | ~$225–297 million |
| Revenue (TTM) | ~$984 million |
| P/E Ratio (TTM) | N/A (net loss) |
| Forward P/E | 35.61 |
| P/B Ratio | 0.40 |
| Dividend Yield | ~3.3% ($0.05/quarter, reduced from $0.14) |
| Employees | ~6,500 |
| 52-Week Range | $5.08 – $10.78 |
Top Financial Highlights
- Q4 FY2025 net sales were $257.1 million, down from $277.3 million in Q4 FY2024, a 7.3% year-over-year decline.
- Full-year FY2025 net sales totaled $1,048.1 million, down from $1,114.5 million in FY2024 (a 6.0% decline). FY2025 was a 53-week year vs. 52 weeks in FY2024.
- Q4 net loss was $28.3 million or $(0.80) per diluted share, compared to a loss of $57.3 million or $(1.63) in Q4 FY2024.
- Q4 adjusted net loss was $27.4 million or $(0.77) per diluted share, vs. a loss of $7.9 million or $(0.23) per share a year ago.
- Q4 gross profit fell sharply to $19.6 million from $35.5 million, impacted by $15.2 million in unplanned inventory adjustments.
- Automotive segment sales plunged 22.6% to $112.9 million, driven by center console program roll-offs and lower EV demand.
- Industrial segment sales rose 13.1% to $132.6 million, with record power distribution product sales for data centers exceeding $80 million for the full year.
- Interface segment sales declined to $11.6 million from $14.2 million, though operating margin improved to 12.9% from 10.6%.
- Free cash flow was $26.3 million in Q4, the highest quarter since FY2023, up from $15.8 million a year ago.
- Total debt reduced to $317.6 million from $327.9 million in Q3 FY2025; net debt fell to $214.0 million from $224.1 million.
- Cash and cash equivalents stood at $103.6 million at fiscal year-end.
- Q4 operating cash flow was $35.4 million, up from $24.9 million in Q4 FY2024.
- Full-year EBITDA was $30.4 million (positive), a massive swing from negative $53.5 million in FY2024.
- Full-year adjusted EBITDA was $42.5 million, down from $55.3 million in FY2024.
- FY2026 guidance (initial): Net sales of $900M-$1,000M and EBITDA of $70M-$80M (100%+ improvement expected). Later revised in March 2026 to $950M-$1B in sales and $58-$62M adjusted EBITDA (lowered).
Beat or Miss?
| Metric | Reported | Estimated | Difference/Analysis |
| Q4 Revenue | $257.1M | ~$235M | Beat by ~9.4% – strong Industrial segment drove upside |
| Q4 GAAP EPS | ($0.80) | N/A | Deep loss driven by $15.2M inventory write-downs |
| Q4 Adjusted EPS | ($0.77) | $0.01–$0.03 | Massive miss – 7,600% negative surprise vs. consensus |
| Q4 Free Cash Flow | $26.3M | N/A | Strong quarter; highest since FY2023 |
| Q4 Adjusted EBITDA | $(7.1M) | N/A | Negative; down from +$5.3M in Q4 FY2024 |
| FY2025 Revenue | $1,048.1M | N/A | Down 6% YoY; 53-week vs. 52-week year |
| FY2025 Adjusted EPS | ($1.12) | N/A | Significant deterioration from $(0.43) in FY2024 |
The Q4 results presented a paradox: revenue significantly beat estimates by ~9.4%, but earnings missed catastrophically due to $15.2 million in unplanned inventory adjustments and $13.0 million in excess/obsolete inventory charges in the Automotive segment.
What Leadership Is Saying?
CEO Jon DeGaynor – Strategic Vision (Q4 FY2025)
“The Methode transformation journey made further progress in the quarter, as we focused on improving execution to drive long-term value. We have built a new management team and set records for the quarter and the year in data center power product sales, with the year finishing at over $80 million. The year also provided a series of challenges both exogenous and endogenous. We experienced a significant ramp down in expected demand from one of our largest EV customers and delays with other EV customers.”
“As we look to fiscal 2026, the company expects to double its EBITDA as a result of our operational improvements even in the face of an approximately $100 million decline in sales driven by lower EV demand, mainly with Stellantis. We still firmly believe in the EV megatrend. However, in the near term some of our EV assets and resources will be pivoted to leverage the growth opportunity that we have in data centers.”
CEO Jon DeGaynor – Operational Discipline (Q3 FY2026 Update, March 2026)
“We continue to make progress in our transformation journey, a multi-year effort to align our portfolio, refine our organization, optimize our footprint, and strengthen operational discipline. During the quarter, we finalized an agreement for the sale of our Harwood Heights facility and subsequent to the quarter-end, we completed the sale of dataMate, our copper transceiver business.”
Historical Performance
Q4 FY2025 vs. Q4 FY2024
| Category | Q4 FY2025 (May 3, 2025) | Q4 FY2024 (Apr 27, 2024) | Change (%) |
| Net Sales | $257.1M | $277.3M | -7.3% |
| Gross Profit | $19.6M | $35.5M | -44.8% |
| Operating Loss | $(23.6M) | $(61.5M) | +61.6% improvement* |
| Net Loss | $(28.3M) | $(57.3M) | +50.6% improvement* |
| Diluted EPS | ($0.80) | ($1.63) | +50.9% improvement* |
| EBITDA | $(8.9M) | $(44.0M) | +79.8% improvement* |
| Adjusted EBITDA | $(7.1M) | $5.3M | -233.9% |
| Operating Cash Flow | $35.4M | $24.9M | +42.2% |
| Free Cash Flow | $26.3M | $15.8M | +66.5% |
| S&A Expenses | $37.4M | $41.6M | -10.1% |
Full Year FY2025 vs. FY2024
| Category | FY2025 (53 weeks) | FY2024 (52 weeks) | Change (%) |
| Net Sales | $1,048.1M | $1,114.5M | -6.0% |
| Gross Profit | $163.4M | $178.8M | -8.6% |
| Operating Loss | $(23.9M) | $(112.0M) | +78.7% improvement* |
| Net Loss | $(62.6M) | $(123.3M) | +49.2% improvement* |
| Adjusted Net Loss | $(39.7M) | $(15.0M) | -164.7% |
| EBITDA | $30.4M | $(53.5M) | Swing to positive |
| Adjusted EBITDA | $42.5M | $55.3M | -23.1% |
Competitor Comparison
YoY Performance
| Metric | Methode Electronics (MEI) Q4 FY25 (May 2025) | Sensata Technologies (ST) Q4 CY2025 (Dec 2025) | TE Connectivity (TEL) Q4 FY25 (Sep 2025) | Amphenol (APH) Q4 CY2025 (Dec 2025) |
| Revenue | $257.1M | $917.9M | $4,750M | $6,400M |
| Revenue YoY Change | -7.3% | +1.1% | +17.0% | +49.0% |
| Operating Income | $(23.6M) loss | $100.1M | ~$902M (19% margin) | ~$1,700M (26.5% GAAP margin) |
| Adjusted EPS | $(0.77) | $0.88 | $2.44 | $0.97 |
| Free Cash Flow | $26.3M | N/A | $1,200M | $1,500M |
| Adj. Operating Margin | Negative | 19.6% | 20.0% | 27.5% |
Competitor YoY Comparison
| Category | TE Connectivity Q4 FY25 | TE Connectivity Q4 FY24 | Change (%) |
| Revenue | $4,750M | $4,058M | +17.0% |
| Adj. EPS | $2.44 | $1.95 | +25.1% |
| Free Cash Flow | $1,200M | N/A | Record quarter |
| Category | Sensata Q4 CY2025 | Sensata Q4 CY2024 | Change (%) |
| Revenue | $917.9M | $907.7M | +1.1% |
| Operating Income | $100.1M | $73.8M | +35.6% |
| Adj. Operating Margin | 19.60% | 19.30% | +30 bps |
| Category | Amphenol Q4 CY2025 | Amphenol Q4 CY2024 | Change (%) |
| Revenue | $6,400M | $4,294M | +49.0% |
| Adj. EPS | $0.97 | $0.55 | +76.4% |
| Adj. Operating Margin | 27.50% | 22.40% | +510 bps |
How the Market Reacted?
The market reaction to Methode Electronics’ Q4 FY2025 results was strongly negative. Despite revenue exceeding expectations, the company reported a significant earnings shortfall, which weighed heavily on investor sentiment. Shares declined 22.45% to $8.23 in premarket trading on July 10, 2025, following the announcement. The sharp decline was mainly linked to the adjusted loss of $0.77 per share, compared with the consensus expectation of roughly breakeven. Prior to the announcement, the stock had already been trading near the lower end of its 52-week range, reflecting ongoing concerns about profitability.
The pressure on the share price continued in later quarters. After the Q3 FY2026 earnings release on March 5, 2026, Methode reported another earnings shortfall, posting an adjusted loss of $0.37 per share, compared with market expectations of $0.20 to $0.24 loss per share. The company also lowered its full-year EBITDA guidance to $58-$62 million, down from the earlier outlook of $70-$80 million. Following the announcement, shares declined 9.9% to $7.55 on March 5 and continued to fall to about $6.15 on March 6, 2026, representing an additional 18.5% decline.
Over the trailing 12 months, the stock has lost more than 60% of its value. As of early March 2026, the company’s market capitalization stands near $225 million. Investor sentiment remains weak, largely due to ongoing operating losses, reduced guidance, and uncertainty regarding the company’s multi-year operational restructuring.
