Methode Electronics Posts Strong Q2 Results

By Tamara Parker • Thursday, December 05 17:46 • Permanent Link

Methode Electronics, Inc. has released its fiscal 2025 second-quarter financial results, showcasing solid net sales and positive pre-tax income. The company reported net sales of $292.6 million, up from $288.0 million in the same quarter of fiscal 2024, with electric and hybrid vehicle applications accounting for 20% of net sales.

The company's pre-tax income was $1.6 million, with adjusted pre-tax income at $6.2 million. The net loss was $1.6 million, or $0.05 per diluted share, compared to a net loss of $55.3 million, or $1.55 per diluted share in the same quarter of fiscal 2024. Adjusted net income was $5.2 million, or $0.14 per diluted share, up from $2.4 million, or $0.06 per diluted share in the same quarter of fiscal 2024.

Methode Electronics also revealed that income from operations was $9.4 million, compared to a loss of $51.3 million in the same quarter of fiscal 2024, mainly due to a $56.5 million goodwill impairment charge recognized in the prior year. Adjusted income from operations, a non-GAAP financial measure, was $14.3 million, up from $6.0 million in the same quarter of fiscal 2024.

Moreover, the company's EBITDA was $22.1 million, compared to a negative $36.7 million in the same quarter of fiscal 2024, while adjusted EBITDA was $26.7 million, up from $21.2 million in the same quarter of fiscal 2024.

Looking at the segment results, the automotive segment reported a decrease in net sales to $145.5 million from $154.3 million, while the industrial segment saw an increase in net sales to $131.4 million from $120.4 million. The interface segment also experienced an increase in net sales to $15.7 million from $11.7 million.

Methode Electronics reaffirmed its expectation for net sales to be similar to fiscal 2024 but raised its adjusted pre-tax income expectation from approaching breakeven to approximately breakeven for fiscal 2025. The company expects net sales for the third quarter of fiscal 2025 to be similar to the prior year.

Today the company's shares have moved 20.8% to a price of $14.02. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.