CHICAGO - Methode Electronics, Inc. (NYSE: NYSE:MEI), a global provider of custom-engineered electronics, has appointed Mark Schwabero as its new chairman of the board, following the retirement of Walter Aspatore. The transition was announced today as part of a planned succession.
Schwabero, who has been serving as Methode's Vice Chairman since May 2024, joined the company's board in 2019. His previous experience includes a tenure as Chairman, CEO, and Director of Brunswick (NYSE:BC) Corporation, a company specializing in recreational marine products, from 2016 to 2018.
"I am privileged to have the opportunity to serve Methode as chairman," said Schwabero, acknowledging the contributions of his predecessor, "We thank Walter for his 16 years of service to the company and wish him all the best in his retirement."
Methode Electronics specializes in user interface, LED lighting systems, and power distribution applications, with sales and manufacturing across North America, Europe, the Middle East, and Asia. The company operates in the automotive, industrial, and interface segments, providing solutions for transportation, cloud computing infrastructure, construction equipment, and consumer appliances.
This leadership change is based on a press release statement from Methode Electronics and reflects the company's ongoing management evolution.
In other recent news, Methode Electronics reported a challenging first quarter for fiscal 2025, with sales totaling $259 million and an adjusted pre-tax loss of $9 million. Despite a decrease in sales, the company remains committed to its transformation strategy, focusing on the electric vehicle (EV) sector which contributed 18% to the quarter's revenue. The company is in the process of launching over 30 programs in the next two fiscal years, aiming for long-term value creation.
Methode Electronics expects net sales in fiscal 2025 to be similar to the previous year and anticipates a return to profitable organic sales growth in fiscal 2026. The company's focus on operational improvements and financial discipline is evident in its efforts to optimize its supply chain and expand its EV programs, particularly outside North America.
Recent developments include addressing operational issues in its Mexican facilities and planning for an increase in net sales and pre-tax income in fiscal 2026. However, the company experienced a negative free cash flow of $2.7 million and delays in program launches which impacted inventory levels. Despite these challenges, Methode Electronics remains optimistic about its growth, especially in the EV market.
InvestingPro Insights
As Methode Electronics (NYSE: MEI) ushers in a new era of leadership with Mark Schwabero at the helm, investors and analysts are closely monitoring the company's financial health and market position. According to InvestingPro data, Methode Electronics currently holds a market capitalization of $352.8 million, which gives a sense of the company's size in the competitive electronics sector.
One significant InvestingPro Tip is that Methode Electronics has been aggressively buying back shares, a move that often reflects management's belief in the company's value and future prospects. Additionally, the company has a notable track record of rewarding shareholders, as indicated by its high shareholder yield and a history of maintaining dividend payments for 43 consecutive years. With a dividend yield of 5.65% as of the previous year, the company stands out for its commitment to returning value to its investors.
In terms of financial metrics, Methode Electronics trades at a low Price / Book multiple of 0.47, suggesting that the company's market value is less than its book value, which can be an indicator of undervaluation. Despite a challenging environment indicated by a revenue decline of 8.73% in the last twelve months as of Q1 2025, the company's liquid assets exceed its short-term obligations, providing some financial stability.
Investors interested in Methode Electronics can find additional insights and tips on InvestingPro, with a total of 12 InvestingPro Tips currently available, including further earnings revisions and valuation multiples. For more detailed analysis and metrics, visit https://www.investing.com/pro/MEI.
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