"Despite the lower sales volume, we were able to deliver $4 million in higher gross profit than last year due to product mix and improved operational execution."
— Jonathan DeGaynor
03Detailed Report
MEI
Methode Electronics Inc
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 15, 2026
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Executive Summary
In Q3 2025, Methode Electronics Inc (MEI) reported revenues of $239.9 million, marking an 8% decline year-over-year and an 18% decrease sequentially. The decline was primarily attributed to the completion of significant automotive program roll-offs, compounded by a slowdown in electric vehicle (EV) demand and overall weakness in the auto market. Despite revenue reductions, the company managed to improve gross profit by $4 million, showing resilience in operational execution through cost efficiencies. Management heralded an effective turnaround in operational metrics and reaffirmed guidance for organic sales growth exceeding fiscal 2025 levels and targeting profitable growth in fiscal 2026, driven by a mix of new program launches and strategic focus in emerging markets like data centers.
Key Performance Indicators
Revenue
Decreasing
239.90M
QoQ: -18.01% | YoY: -7.55%
Gross Profit
Increasing
41.30M
17.22% margin
QoQ: -28.67% | YoY: 11.62%
Operating Income
Increasing
-2.20M
QoQ: -123.40% | YoY: 26.67%
Net Income
Decreasing
-14.40M
QoQ: -800.00% | YoY: -24.14%
EPS
Decreasing
-0.41
QoQ: -809.09% | YoY: -24.24%
Revenue Trend
Margin Analysis
Financial Highlights
### Key Financial Metrics for Q3 2025
- Revenue: $239.9 million (YoY: -8%, QoQ: -18%)
- Gross Profit: $41.3 million (YoY: +11.6%, QoQ: -28.7%)
- Operating Income: -$2.2 million (YoY: +26.7%)
- Net Income: -$14.4 million (YoY: -24.1%, QoQ: -800%)
- Earnings Per Share (EPS): -$0.41 (YoY: -24.2%, QoQ: -809%)
- Free Cash Flow: $19.6 million (YoY increase: +60.7%)
- Cash Position (End of Quarter): $103.8 million
- Debt: $355.2 million
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
239.90M
-7.55%
-18.01%
Gross Profit
41.30M
11.62%
-28.67%
Operating Income
-2.20M
26.67%
-123.40%
Net Income
-14.40M
-24.14%
-800.00%
EPS
-0.41
-24.24%
-809.09%
Key Financial Ratios
Gross Profit Margin
Weak
17.20%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-0.01%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.06%
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
Strong
2.84
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Moderate
0.50
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Negative
-6.98x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.57x
Trading below book value, potential value opportunity or distressed
Management Insights Available for Members
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Methode Electronics Inc (MEI) QQ2 2026 Results – Revenue Decline Mitigated by Margin Expansion and Narrow Net Loss in a Cyclical Hardware OEM Market...