"We expect the EV percentage to grow even further and should be over 20% for our fiscal 2025." - Jon DeGaynor
— Jon DeGaynor
03Detailed Report
MEI
Methode Electronics Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
Methode Electronics Inc (MEI) reported its Q1 2025 financial results, revealing a significant decline in revenue primarily attributed to the phase-out of specific EV lighting programs and challenges faced in key markets such as automotive and commercial vehicles. Revenue for the quarter was $258.5 million, reflecting an 11% decrease year-over-year (YoY) and a 7% decrease quarter-over-quarter (QoQ). Although the company registered a pre-tax loss of $9 million, management noted a sequential improvement, demonstrating an ability to control costs despite negative revenue pressures. The transition towards EV product launches remains crucial, as Methode anticipates an increase in EV sales participation to over 20%, which is predicted to bolster revenue in fiscal 2026. Management emphasized their commitment to operational improvement and transformation efforts, which they believe are essential to achieving stable growth moving forward.
Key Performance Indicators
Revenue
Decreasing
258.50M
QoQ: -6.78% | YoY: -10.77%
Gross Profit
Decreasing
44.60M
17.25% margin
QoQ: 43.87% | YoY: -17.41%
Operating Income
Decreasing
-7.50M
QoQ: 7.41% | YoY: -297.37%
Net Income
Decreasing
-18.30M
QoQ: 68.06% | YoY: -2 133.33%
EPS
Decreasing
-0.52
QoQ: 67.90% | YoY: -2 163.49%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance: $258.5 million, down 11% YoY and 7% QoQ. Gross Profit: $44.6 million, with a gross profit margin of 17.25%. Notable increase from previous quarter due to operational improvements and price management strategies. Net Income: Reported a net loss of $18.3 million, or EPS of -$0.52. Cash Flow: Generated $10.9 million from operations, with a capital expenditure of $13.6 million and free cash flow at -$2.7 million, representing significant year-over-year improvement in cash performance. Balance Sheet Health: Maintained $111.3 million in cash, with a reduction in total debt, highlighting effective cash management amidst a challenging revenue environment.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
258.50M
-10.77%
-6.78%
Gross Profit
44.60M
-17.41%
43.87%
Operating Income
-7.50M
-297.37%
7.41%
Net Income
-18.30M
-2 133.33%
68.06%
EPS
-0.52
-2 163.49%
67.90%
Key Financial Ratios
Gross Profit Margin
Weak
17.30%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-0.03%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.07%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.01%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.02%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
2.35
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.43
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Negative
-6.23x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.61x
Trading below book value, potential value opportunity or distressed
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.
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