Methode Electronics, Inc. (MEI)

Methode Electronics' stock price has significantly declined over the past year. Key events impacting the stock include Q3 CY2025 earnings, where revenue beat estimates but sales declined year-over-year, and Q2 FY2026 earnings, where net sales decreased but adjusted EBITDA rose sequentially. The company is undergoing a strategic shift towards high-growth areas, but faces automotive headwinds. Methode generated positive free cash flow in the first six months of fiscal 2026, but has high net debt and dividend cuts.

Methode Electronics' Automotive and Industrial segments are subject to seasonal fluctuations, influenced by customer sales and production schedules. The company's financial reporting indicates that it is a seasonal business that needs to build up inventory during certain quarters. Management expects Q3 results to reflect traditional seasonality, with an anticipated improvement in Q4.

Methode Electronics, Inc., founded in 1946, is a global supplier of custom-engineered solutions for OEMs, operating in the Electronics and Computer and Technology sectors. The company designs, engineers, and produces mechatronic products for user interface, LED lighting systems, power distribution, and sensor applications. Its business is managed across four segments: Automotive, which supplies electronic and electro-mechanical devices to automobile OEMs; Industrial, which manufactures lighting solutions, industrial safety radio remote controls, and custom power-product assemblies; Interface, which provides high-speed digital communication solutions; and Medical, which focuses on medical devices like its Dabir Surfaces technology.

Methode Electronics has a global presence with sales, engineering, and manufacturing locations across North America, Europe, the Middle East, and Asia. The company has manufacturing facilities in the US, China, Belgium, Egypt, Malta, Canada, and Mexico.

Methode Electronics generally maintains a reputation as a global supplier of high-quality, reliable custom-engineered solutions. The company emphasizes its commitment to delivering products that meet the rigorous demands of its diverse customer base and its ability to develop innovative solutions. Financial underperformance and the ongoing transformation journey to pivot towards higher-growth sectors like data centers and EV power solutions suggest a period of adjustment and re-evaluation for the company.

Methode Electronics, Inc. has a mixed ownership structure comprising institutional, retail, and individual investors. Institutional investors hold a significant portion of the company's stock. Individual investors and the public hold a notable portion. Insiders own approximately 3.50% of the company's stock.