# Methode Electronics, Inc. (NYSE: MEI) Q4 Fiscal 2025 Financial Recap
## Summary:
– **Release Date:** July 9, 2025
– **Quarterly Dividend:** Methode Electronics, Inc. declared a quarterly dividend of $0.07 per share.
– **Recorded Sales:**
– Net sales for the fourth quarter of fiscal 2025 were $257.1 million, down from $277.3 million in the same quarter a year ago.
– Record sales were noted for power distribution products for data center applications.
– Electric and hybrid vehicle applications accounted for 20% of net sales.
– **Financial Performance:**
– Pre-tax loss was $30.4 million, with adjusted pre-tax loss at $28.6 million.
– Net loss was $28.3 million, or a loss of $0.80 per diluted share.
– Adjusted net loss was $27.4 million, or a loss of $0.77 per diluted share.
– Free cash flow was $26.3 million for the quarter, the highest since fiscal 2023.
– **Debt and Cash Flow:**
– Total debt decreased from $327.9 million in the previous quarter to $317.6 million.
– Net debt also decreased from $224.1 million to $214.0 million.
– Net cash provided by operating activities was $35.4 million, compared to $24.9 million in the same quarter of fiscal 2024.
– **Corporate Actions:**
– The company reduced the board size from ten to seven directors and relocated its headquarters to an owned facility.
– Methode reduced its dividend.
– **Outlook for Fiscal 2026:**
– Methode Electronics expects EBITDA to improve over 100% in fiscal 2026.
– Forecasted net sales for fiscal 2026 are in the range of $900 to $1,000 million, with EBITDA projected to be between $70 to $80 million.
## Key Financial Metrics:
– **Changes in Key Metrics (Q4 Fiscal 2025 vs. Q4 Fiscal 2024):**
– **Net Sales:** Decreased from $277.3 million to $257.1 million.
– **Loss from Operations:** Improved from $61.5 million to $23.6 million.
– **Net Loss:** Decreased from $57.3 million to $28.3 million.
– **Adjusted EBITDA:** Changed from $5.3 million to negative $7.1 million.
– **Free Cash Flow:** Increased from $15.8 million to $26.3 million.
– **Debt:** Decreased total debt from $327.9 million to $317.6 million.
– **Net Debt:** Decreased from $224.1 million to $214.0 million.
For more detailed financial information, refer to the company’s official statements and disclosures. Do note, the provided metrics are unaudited and based on the company’s own declarations. It’s advisable to conduct further research and analysis before making any financial decisions based on this information.
### METHODE ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in millions)
| Three Months Ended May 3, 2025 | Three Months Ended April 27, 2024 | Fiscal Year Ended May 3, 2025 | Fiscal Year Ended April 27, 2024 | |
|---|---|---|---|---|
| Net sales | $257.1 | $277.3 | $1,048.1 | $1,114.5 |
| Cost of products sold | $237.5 | $241.8 | $884.7 | $935.7 |
| Gross profit | $19.6 | $35.5 | $163.4 | $178.8 |
| Selling and administrative expenses | $37.4 | $41.6 | $163.9 | $160.9 |
| Goodwill impairment | – | $49.4 | – | $105.9 |
| Amortization of intangibles | $5.8 | $6.0 | $23.4 | $24.0 |
| Loss from operations | ($23.6) | ($61.5) | ($23.9) | ($112.0) |
| Interest expense, net | $5.5 | $4.5 | $22.0 | $16.7 |
| Other expense (income), net | $1.3 | ($2.9) | $4.2 | ($0.6) |
| Pre-tax loss | ($30.4) | ($63.1) | ($50.1) | ($128.1) |
| Income tax expense (benefit) | ($2.1) | ($5.8) | $12.5 | ($4.8) |
| Net loss | ($28.3) | ($57.3) | ($62.6) | ($123.3) |
| Loss per share: | ||||
| – Basic | ($0.80) | ($1.63) | ($1.77) | ($3.48) |
| – Diluted | ($0.80) | ($1.63) | ($1.77) | ($3.48) |
| Cash dividends per share | $0.14 | $0.14 | $0.56 | $0.56 |
### METHODE ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions)
| May 3, 2025 | April 27, 2024 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| – Cash and cash equivalents | $103.6 | $161.5 |
| – Accounts receivable, net | $241.0 | $262.6 |
| – Inventories | $194.1 | $186.2 |
| – Income tax receivable | $4.1 | $4.0 |
| – Prepaid expenses and other current assets | $17.1 | $18.7 |
| – Assets held for sale | – | $4.7 |
| Total current assets | $559.9 | $637.7 |
| Long-term assets: | ||
| – Property, plant and equipment, net | $221.6 | $212.1 |
| – Goodwill | $172.7 | $169.9 |
| – Other intangible assets, net | $238.4 | $256.7 |
| – Operating lease right-of-use assets, net | $23.7 | $26.7 |
| – Deferred tax assets | $37.8 | $34.7 |
| – Pre-production costs | $31.7 | $44.1 |
| – Other long-term assets | $20.0 | $21.6 |
| Total long-term assets | $745.9 | $765.8 |
| Total assets | $1,305.8 | $1,403.5 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| – Accounts payable | $125.9 | $132.4 |
| – Accrued employee liabilities | $32.0 | $38.0 |
| – Other accrued liabilities | $50.2 | $46.0 |
| – Short-term operating lease liabilities | $7.4 | $6.7 |
| – Short-term debt | $0.2 | $0.2 |
| – Income tax payable | $17.5 | $8.1 |
| Total current liabilities | $233.2 | $231.4 |
| Long-term liabilities: | ||
| – Long-term debt | $317.4 | $330.7 |
| – Long-term operating lease liabilities | $18.2 | $20.6 |
| – Long-term income tax payable | – | $9.3 |
| – Other long-term liabilities | $16.9 | $16.8 |
| – Deferred tax liabilities | $26.8 | $28.7 |
| Total long-term liabilities | $379.3 | $406.1 |
| Total liabilities | $612.5 | $637.5 |
| Shareholders’ equity: | ||
| – Common stock | $18.6 | $18.3 |
| – Additional paid-in capital | $191.8 | $183.6 |
| – Accumulated other comprehensive loss | ($29.8) | ($36.7) |
| – Treasury stock | ($11.5) | ($11.5) |
| – Retained earnings | $524.2 | $612.3 |
| Total shareholders’ equity | $693.3 | $766.0 |
| Total liabilities and shareholders’ equity | $1,305.8 | $1,403.5 |
