Open report — full analysis, no account required.
Sign up to generate reports and read filings that aren't on the open list.
Get notified when MEI files again. Create a free account and we'll email you the moment its next filing is analyzed.
Get filing alertsMethode Electronics reports Q4 sales up 15.9% to $298.1M on $22.5M customer recoveries
Filed June 24, 2026 · Period ending June 24, 2026 · ~2 min read
Key Changes
-
high
Q4 net sales rose 15.9% YoY to $298.1M, driven by $22.5M in Automotive customer recoveries and higher Industrial volume; net income turned positive at $0.4M vs. $28.3M loss prior year.
Exhibit 99.1 view on EDGAR → -
high
FY2026 net sales declined 2.8% to $1,019.2M on program roll-offs, but net loss narrowed to $35.7M from $62.6M and adjusted EBITDA jumped 60.5% to $68.2M; free cash flow reached $15.6M.
Exhibit 99.1 view on EDGAR → -
high
FY2027 guidance: net sales $1.025B–$1.075B (modest growth), adjusted EBITDA $72M–$82M (up from $68.2M), and free cash flow expected consistent with FY2026's $15.6M.
Exhibit 99.1 view on EDGAR → -
high
Automotive segment sales surged 28.3% to $144.9M on customer recoveries, swinging to $6.0M operating income from $33.7M loss; recoveries were the primary driver of Q4 profitability.
Exhibit 99.1 view on EDGAR → -
medium
Interface segment sales fell to $1.8M from $11.6M after selling the dataMate business in Q4 and completing a major appliance touch-panel program, part of portfolio simplification.
Exhibit 99.1 view on EDGAR →
Summary
Methode Electronics reported fourth-quarter fiscal 2026 results that showed a sharp turnaround driven by one-time customer recoveries in its Automotive segment. Net sales climbed 15.9% year-over-year to $298.1 million, with $22.5 million of that increase attributable to customer recoveries—payments that compensated the company for prior cost overruns or program adjustments.
The Automotive segment alone saw sales jump 28.3% to $144.9 million and swung from a $33.7 million operating loss a year earlier to a $6.0 million profit. Excluding the recoveries, underlying revenue trends were mixed: Industrial volume grew, but the full fiscal year saw net sales decline 2.8% to $1,019.2 million as legacy programs rolled off and the company divested its dataMate business in the Interface segment.
The profitability picture improved materially. Full-year net loss narrowed to $35.7 million from $62.6 million, and adjusted EBITDA surged 60.5% to $68.2 million, reflecting operational improvements and the benefit of the customer recoveries. Free cash flow turned positive at $15.6 million after $22.4 million in capital expenditures. Management's fiscal 2027 guidance calls for net sales of $1.025 billion to $1.075 billion—modest top-line growth—but adjusted EBITDA of $72 million to $82 million, suggesting profitability is improving faster than revenue as the company executes its turnaround. Retail investors should note that the Q4 beat was heavily dependent on the non-recurring customer recoveries; the guidance implies the company expects to sustain improved margins through operational execution rather than one-time payments.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Net sales of $298.1 million, up 15.9% year-over-year, including $22.5 million of customer recoveries realized during the quarter
Fourth quarter fiscal 2026 net sales reached $298.1 million, a 15.9% increase from the prior-year quarter's $257.1 million. The increase was primarily driven by $22.5 million of customer recoveries in the Automotive segment, along with higher Industrial segment volume and favorable foreign exchange. Net income was $0.4 million or $0.01 per diluted share, compared to a net loss of $28.3 million in the prior year period.
Added in current filing · view on EDGAR →
Net sales of $1,019.2 million, down 2.8% year-over-year ... Net loss of $35.7 million or 3.5% of net sales, compared to a net loss of $62.6 million in fiscal 2025 ... Adjusted EBITDA of $68.2 million or 6.7% of net sales, up 60.5% year-over-year ... Cash from operations totaled $38.0 million, capital expenditures totaled $22.4 million, resulting in $15.6 million of free cash flow
For the full fiscal year 2026, net sales were $1,019.2 million, down 2.8% from fiscal 2025's $1,048.1 million, primarily due to program roll-offs in Automotive and portfolio refinements in Interface, partially offset by customer recoveries and higher Industrial sales. Net loss narrowed to $35.7 million from $68.2 million in fiscal 2025. Adjusted EBITDA improved 60.5% to $68.2 million. The company generated $38.0 million in operating cash flow and $15.6 million in free cash flow after $22.4 million in capital expenditures.
Added in current filing · view on EDGAR →
Net sales expected to be in the range of $1.025 billion to $1.075 billion ... Adjusted EBITDA expected to be in the range of $72 million to $82 million ... Capital expenditures expected to be in the range of $25 million to $30 million ... Free cash flow expected to remain generally consistent with fiscal 2026
Management provided fiscal 2027 guidance expecting net sales of $1.025 billion to $1.075 billion, representing modest growth from fiscal 2026's $1,019.2 million. Adjusted EBITDA is expected to range from $72 million to $82 million, up from fiscal 2026's $68.2 million, reflecting profitability improving faster than revenue as operational improvements take hold. Capital expenditures are expected to be $25 million to $30 million, and free cash flow is expected to remain generally consistent with fiscal 2026's $15.6 million.
Added in current filing · view on EDGAR →
Net sales were $144.9 million, up from $112.9 million. Net sales increased $32.0 million or 28.3% largely due to customer recoveries.
The Automotive segment's fourth quarter net sales increased 28.3% to $144.9 million from $112.9 million in the prior-year quarter, largely driven by customer recoveries. The segment swung to income from operations of $6.0 million (4.1% of segment sales) from a loss of $33.7 million in the prior year, primarily due to these customer recoveries and improved operating performance. These recoveries were a significant driver of the company's overall profitability improvement in the quarter.
Thanks — your feedback helps us improve report quality.
Figures/quotes linked to EDGAR · Narrative written by AI · Jun 26, 2026 · How we verify