Company Lowers FY26 Adjusted EBITDA Outlook to $58M-$62M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 05 2026
0mins
Should l Buy MEI?
Consensus $989.7M. Lowers FY26 adjusted EBITDA view to $58M-$62M from $70M-$80M. The company said, "The Company revised its fiscal 2026 full year guidance and now expects full-year fiscal 2026 net sales to be in the range of $950 million to $1 billion, narrowing its prior outlook of $900 million to $1 billion. The revised range reflects improved visibility as the Company approaches fiscal year-end. Based on current exchange rates, foreign currency is expected to provide an approximate $30 million tailwind relative to the Company's prior assumptions. In addition, the Company lowered its fiscal 2026 full year Adjusted EBITDA guidance and now expects Adjusted EBITDA to be in the range of $58 to $62 million."
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Analyst Views on MEI
Wall Street analysts forecast MEI stock price to rise
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 5.130
Low
9.00
Averages
9.50
High
10.00
Current: 5.130
Low
9.00
Averages
9.50
High
10.00
About MEI
Methode Electronics, Inc. is a supplier of custom-engineered solutions. It designs, engineers and produces mechatronic products for original equipment manufacturers (OEMs) utilizing its range of technologies for user interface, light-emitting diode lighting system, power distribution and sensor applications. Its Automotive segment supplies electronic and electro-mechanical devices and related products to automobile OEMs, either directly or through their tiered suppliers. Its Industrial segment manufactures exterior and interior lighting solutions, industrial safety radio remote controls, braided flexible cables, current-carrying laminated busbars and devices, custom power-product assemblies, such as its PowerRail solution, high-current high-voltage flexible power cabling systems and powder-coated busbars. Its Interface segment offers high-speed digital communication over copper media solutions for data center and broadband markets and interface panel solutions for the appliance market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Methode Electronics Q3 2026 Earnings Call Insights
- Sales Performance Overview: Methode Electronics reported net sales of $233.7 million for Q3, a 3% decline year-over-year primarily due to softness in the North American automotive market, although growth in the industrial power sector provided some support.
- Adjusted EBITDA Decline: Adjusted EBITDA stood at $7.3 million, down $5 million from the previous year, reflecting high costs and customer program delays during the transformation process, which pressured profitability.
- Strong Cash Flow: Despite challenges, Methode generated $10 million in free cash flow for the quarter, with year-to-date free cash flow reaching $16.5 million, demonstrating robust cash management capabilities.
- Outlook Adjustment: The company raised its fiscal 2026 net sales guidance to a range of $950 million to $1 billion, primarily benefiting from favorable foreign currency translation, but lowered adjusted EBITDA guidance to $58 million to $62 million, reflecting delays and higher expenses associated with the transformation.
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Methode (MEI) Q3 2026 Earnings Call Transcript
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Methode Electronics Q3 Earnings Report Analysis
- Earnings Performance: Methode Electronics reported a Q3 Non-GAAP EPS of -$0.37 with revenue of $233.7 million, reflecting a 2.6% year-over-year decline, indicating pressure in market competition that could undermine investor confidence.
- Guidance Revision: The company revised its fiscal 2026 full-year guidance, now expecting net sales between $950 million and $1 billion, narrowing from the previous outlook of $900 million to $1 billion, which reflects a cautious stance on market demand.
- EBITDA Guidance Downgrade: Methode lowered its fiscal 2026 Adjusted EBITDA guidance to a range of $58 million to $62 million, which may negatively impact the company's profitability and exacerbate market concerns regarding its financial health.
- Business Sale Update: Methode Electronics is selling its dataMate copper transceiver business to Bel Fuse, a move that may allow the company to focus resources on its core operations while potentially affecting its short-term revenue structure.
See More
Methode Electronics Reports Q3 Loss
- Financial Performance Decline: Methode Electronics reported a Q3 loss of $15.90 million, translating to a loss of $0.45 per share, which reflects a deterioration in profitability compared to last year's loss of $14.40 million and $0.41 per share.
- Revenue Decrease: The company's revenue for the third quarter fell to $233.70 million, down 2.6% from $239.90 million last year, indicating weakened market demand and increased competition negatively impacting sales.
- Fiscal Year Guidance Revision: Methode revised its FY26 revenue guidance to between $950 million and $1 billion, narrowing from the previous outlook of $900 million to $1 billion, signaling a cautious outlook on future performance.
- Uncertain Market Outlook: Ongoing losses and declining revenues raise investor concerns regarding the company's future profitability and market competitiveness, which may adversely affect its stock performance and market confidence.
See More
Methode Electronics Reports Q3 FY2026 Results with Sales Decline and Strategic Divestitures
- Sales Decline: Methode Electronics reported net sales of $233.7 million for Q3, down 2.6% year-over-year, primarily due to reduced sales volumes in the Automotive and Interface segments, indicating potential challenges in market demand that could hinder future revenue growth.
- Widened Net Loss: The company recorded a net loss of $15.9 million, compared to a loss of $14.4 million in the same quarter last year, reflecting increased operational costs and declining sales volumes, which may negatively impact investor confidence.
- Strategic Asset Sales: Methode finalized the sale of its Harwood Heights facility and closed the sale of its dataMate business for $16 million, actions aimed at simplifying the organizational structure and focusing on core growth areas, which are expected to enhance future financial performance.
- Adjusted EBITDA Guidance Downgrade: The company lowered its fiscal 2026 adjusted EBITDA guidance to a range of $58 to $62 million, reflecting uncertainties in the market environment and challenges from internal transformations, which could affect investor expectations regarding the company's long-term growth prospects.
See More
Methode Electronics Set to Announce Q3 Earnings on March 6
- Earnings Announcement Date: Methode Electronics is set to release its Q3 earnings on March 6 before market open, with a consensus EPS estimate of -$0.20, reflecting a 4.8% year-over-year decline, indicating potential profitability challenges for the company.
- Revenue Expectations Decline: The anticipated revenue for Q3 is $219.47 million, down 8.5% year-over-year, which highlights weak market demand and potential challenges the company may face, impacting future growth prospects.
- Historical Performance Review: Over the past two years, Methode Electronics has only beaten EPS estimates 38% of the time and revenue estimates 63% of the time, indicating volatility in the company's earnings forecasts that could affect investor confidence.
- Estimate Revision Trends: In the last three months, there have been no upward revisions to EPS estimates and two downward revisions, while revenue estimates saw one upward revision and two downward revisions, suggesting a cautious outlook from analysts regarding the company's future performance.
See More
Methode Electronics Q3 2026 Earnings Call Insights
- Sales Performance Overview: Methode Electronics reported net sales of $233.7 million for Q3, a 3% decline year-over-year primarily due to softness in the North American automotive market, although growth in the industrial power sector provided some support.
- Adjusted EBITDA Decline: Adjusted EBITDA stood at $7.3 million, down $5 million from the previous year, reflecting high costs and customer program delays during the transformation process, which pressured profitability.
- Strong Cash Flow: Despite challenges, Methode generated $10 million in free cash flow for the quarter, with year-to-date free cash flow reaching $16.5 million, demonstrating robust cash management capabilities.
- Outlook Adjustment: The company raised its fiscal 2026 net sales guidance to a range of $950 million to $1 billion, primarily benefiting from favorable foreign currency translation, but lowered adjusted EBITDA guidance to $58 million to $62 million, reflecting delays and higher expenses associated with the transformation.
See More
Methode (MEI) Q3 2026 Earnings Call Transcript
See More
Methode Electronics Q3 Earnings Report Analysis
- Earnings Performance: Methode Electronics reported a Q3 Non-GAAP EPS of -$0.37 with revenue of $233.7 million, reflecting a 2.6% year-over-year decline, indicating pressure in market competition that could undermine investor confidence.
- Guidance Revision: The company revised its fiscal 2026 full-year guidance, now expecting net sales between $950 million and $1 billion, narrowing from the previous outlook of $900 million to $1 billion, which reflects a cautious stance on market demand.
- EBITDA Guidance Downgrade: Methode lowered its fiscal 2026 Adjusted EBITDA guidance to a range of $58 million to $62 million, which may negatively impact the company's profitability and exacerbate market concerns regarding its financial health.
- Business Sale Update: Methode Electronics is selling its dataMate copper transceiver business to Bel Fuse, a move that may allow the company to focus resources on its core operations while potentially affecting its short-term revenue structure.
See More
Methode Electronics Reports Q3 Loss
- Financial Performance Decline: Methode Electronics reported a Q3 loss of $15.90 million, translating to a loss of $0.45 per share, which reflects a deterioration in profitability compared to last year's loss of $14.40 million and $0.41 per share.
- Revenue Decrease: The company's revenue for the third quarter fell to $233.70 million, down 2.6% from $239.90 million last year, indicating weakened market demand and increased competition negatively impacting sales.
- Fiscal Year Guidance Revision: Methode revised its FY26 revenue guidance to between $950 million and $1 billion, narrowing from the previous outlook of $900 million to $1 billion, signaling a cautious outlook on future performance.
- Uncertain Market Outlook: Ongoing losses and declining revenues raise investor concerns regarding the company's future profitability and market competitiveness, which may adversely affect its stock performance and market confidence.
See More
Methode Electronics Reports Q3 FY2026 Results with Sales Decline and Strategic Divestitures
- Sales Decline: Methode Electronics reported net sales of $233.7 million for Q3, down 2.6% year-over-year, primarily due to reduced sales volumes in the Automotive and Interface segments, indicating potential challenges in market demand that could hinder future revenue growth.
- Widened Net Loss: The company recorded a net loss of $15.9 million, compared to a loss of $14.4 million in the same quarter last year, reflecting increased operational costs and declining sales volumes, which may negatively impact investor confidence.
- Strategic Asset Sales: Methode finalized the sale of its Harwood Heights facility and closed the sale of its dataMate business for $16 million, actions aimed at simplifying the organizational structure and focusing on core growth areas, which are expected to enhance future financial performance.
- Adjusted EBITDA Guidance Downgrade: The company lowered its fiscal 2026 adjusted EBITDA guidance to a range of $58 to $62 million, reflecting uncertainties in the market environment and challenges from internal transformations, which could affect investor expectations regarding the company's long-term growth prospects.
See More
Methode Electronics Set to Announce Q3 Earnings on March 6
- Earnings Announcement Date: Methode Electronics is set to release its Q3 earnings on March 6 before market open, with a consensus EPS estimate of -$0.20, reflecting a 4.8% year-over-year decline, indicating potential profitability challenges for the company.
- Revenue Expectations Decline: The anticipated revenue for Q3 is $219.47 million, down 8.5% year-over-year, which highlights weak market demand and potential challenges the company may face, impacting future growth prospects.
- Historical Performance Review: Over the past two years, Methode Electronics has only beaten EPS estimates 38% of the time and revenue estimates 63% of the time, indicating volatility in the company's earnings forecasts that could affect investor confidence.
- Estimate Revision Trends: In the last three months, there have been no upward revisions to EPS estimates and two downward revisions, while revenue estimates saw one upward revision and two downward revisions, suggesting a cautious outlook from analysts regarding the company's future performance.
See More
