Methode Electronics Inc (MEI) Q2 2026 Earnings Report

Methode Electronics reported QQ2 2026 revenue of $246.9 million, down 4.49% year-over-year and up 2.66% quarter-over-quarter. The quarter delivered gross profit of $47.7 million, producing a gross margin of 19.32%, with operating income of $2.9 million and EBITDA of $2.9 million (margin ~1.17%). Net income remained negative at $9.9 million, translating to an earnings per share of -$0.28, though the year-over-year improvement in net income (about +45.9%) suggests the company is progressing toward better profitability even as profitability remains constrained in QQ2 2026. Free cash flow was negative at -$11.6 million, and operating cash flow was also negative (-$7.4 million) amid sizable working capital movements. The company ended the period with cash and equivalents of $118.5 million and net debt of approximately $236.9 million (total debt $355.4 million). Liquidity remains modest, with a material working capital drag ($-23.9 million) contributing to negative cash from operations. A notable feature of the balance sheet in the data is a large level of intangible assets ( goodwill $173.4 million and intangible assets $228.6 million, total $402.0 million) relative to total assets of $732.1 million, indicating substantial non-cash asset bases and potential impairment considerations in longer-term reviews. Management commentary on QQ2 2026 is not included in the provided transcript data, so quotes and themes from the earnings call could not be directly incorporated. Overall, the quarterly results reflect a mixed beat on margin and expense control but ongoing profitability pressures and a levered balance sheet that require improved cash generation to sustain earnings growth.