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NEW YORK - Methode Electronics, Inc. (NYSE:MEI) saw its shares surge 9.4% after reporting first quarter fiscal 2026 results that exceeded analyst expectations, driven by strong performance in its Industrial segment and continued progress in the company’s transformation efforts.
The global supplier of custom-engineered solutions reported Q1 revenue of $240.5 million, surpassing the analyst consensus of $232.55 million, though down from $258.5 million in the same quarter last year. The company posted an adjusted loss of $0.22 per share, slightly worse than the analyst estimate of a $0.20 loss per share.
Despite the year-over-year revenue decline, investors were encouraged by Methode’s improved operational performance, with income from operations increasing by $8.6 million to $1.1 million compared to a loss of $7.5 million in the prior-year quarter. The company’s Industrial segment was particularly strong, with sales rising 10.8% YoY to $123.5 million, driven by higher demand for power products, including data center applications.
"The Methode transformation journey made further progress in the quarter and is firmly on track, as we continued to reduce costs and improve execution," said President and CEO Jon DeGaynor. "A $9 million increase in operating income on $18 million in lower sales is clear evidence of that progress."
The company generated $25.1 million in operating cash flow and $18 million in free cash flow during the quarter, marking its third consecutive quarter of strong cash generation. Net debt decreased to $202.3 million from $214 million at the end of fiscal 2025.
Methode affirmed its fiscal 2026 guidance, projecting revenue between $900 million and $1 billion, in line with the analyst consensus of $925.9 million, and EBITDA between $70 million and $80 million.
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