The Q4 revenue beat and swing to GAAP profitability are positive, but the adjusted EPS miss and continued Interface segment decline temper enthusiasm. Watch the FY2027 guidance execution — if revenue lands near the $1.075B high end and Adjusted EBITDA near $82M, the transformation thesis gains credibility. Monitor Automotive segment sustainability without customer recoveries and Interface segment stabilization.
Price Chart
Executive Summary
Methode Electronics reported Q4 FY2026 adjusted EPS of -$0.30, a 42.9% miss vs consensus of -$0.21, though revenue of $298.1M surged 15.9% YoY (including $22.5M in customer recoveries). The company swung to a GAAP net profit of $0.4M from a -$28.3M loss a year ago, and guided FY2027 revenue of $1.025B-$1.075B and Adjusted EBITDA of $72M-$82M, signaling continued transformation progress.
Key Financial Metrics
Key Facts
- Q4 FY2026 net sales of $298.1M, up 15.9% YoY, including $22.5M customer recoveries
- GAAP net income of $0.4M vs net loss of $28.3M in prior-year period
- Adjusted EPS of -$0.30 missed consensus of -$0.21 by 42.9%
- Adjusted EBITDA of $26.9M vs Adjusted EBITDA loss of $7.1M in prior-year period
- FY2026 full-year net sales of $1,019.2M, down 2.8% YoY (52 vs 53 weeks)
- FY2027 guidance: net sales $1.025B-$1.075B, Adjusted EBITDA $72M-$82M
- Net debt reduced to $185.4M from $214.0M at FY2025 year-end
- Automotive segment revenue up 28.3% to $144.9M driven by customer recoveries
- Industrial segment revenue up 14.2% to $151.4M on higher lighting and power product volumes
- Interface segment revenue collapsed to $1.8M from $11.6M due to program roll-offs and dataMate sale
Financial Impact
Q4 revenue beat consensus by ~25% ($298.1M vs $238.5M est), but adjusted EPS missed by 42.9% (-$0.30 vs -$0.21 est). FY2027 guidance implies ~3-5% revenue growth and ~12-20% Adjusted EBITDA growth vs FY2026.
Risk Factors
- Customer recoveries in Automotive ($22.5M) are non-recurring — underlying segment profitability may be weaker
- Interface segment revenue collapsed 84% YoY to $1.8M with ongoing program roll-offs
- FY2026 full-year revenue still declined 2.8% YoY despite Q4 strength
- Guidance assumes current tariff policies — changes could materially impact results
- Debt of $325M remains elevated relative to market cap of $464M
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000065270-26-000030 |
| Document: mei-20260624.htm | 0000065270-26-000030 |
| Document: 0000065270-26-000030-index-headers.html | 0000065270-26-000030 |
| Document: 0000065270-26-000030-index.html | 0000065270-26-000030 |
| Document: 0000065270-26-000030.txt | 0000065270-26-000030 |
| 8-K Data (Synthetic) | 0000065270-26-000030 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 2, 2026 29d ago | Press Release | $15.32 $14.65 | ▲ +4.37% | ▲ +3.22% | $15.28 (+0.23%) |
Aug 26, 2026 5w ago | Press Release | $17.78 $18.10 | ▼ −1.80% | ▼ −2.57% | $15.28 (+14.03%) |
Jul 31, 2026 9w ago | DEFA14A | $13.99 $16.67 | ▲ +19.16% | ▲ +15.65% | $15.28 (+9.26%) |
Jun 24, 2026 14w ago | 8-K | $18.00 $18.41 | ▲ +2.28% | ▲ +0.72% | $15.28 (−15.08%) |
Mar 18, 2026 28w ago | Press Release | $5.27 $5.70 | ▲ +8.10% | ▲ +10.31% | $15.28 (+189.91%) |
Mar 5, 2026 30w ago | 8-K | $6.61 $5.09 | ▲ +22.97% | ▲ +21.44% | $15.28 (−131.14%) |
Mar 5, 2026 30w ago | Press Release | $6.61 $5.09 | ▲ +22.97% | ▲ +21.44% | $15.28 (−131.14%) |
US Market Status
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