Скачать или смотреть Methode Electronics Q1 2026: Margin Surge & $41M Debt Cut Boost Stock 12%

Methode Electronics reported Q1 fiscal 2026 earnings with a 7% revenue decline to $240.5M but beat analyst revenue estimates, driving a sharp 12% stock rise. Despite a slight EPS miss at -$0.22, the company showcased strong operational execution with adjusted operating income up by $6.7M and EBITDA surging $5.9M YoY to $15.7M, fueled by a $9.6M SG&A cost reduction. Free cash flow remained robust at $18M, supporting a $41M net debt reduction over three quarters, underpinning investor confidence and balance sheet repair.

Industrial power products, especially high-density bus bars for data centers powering AI infrastructure, led growth amid North American auto and EV softness. Methode leveraged its six-decade heritage, including supplying Apollo lunar missions and IBM mainframes, to assert its strength in complex power distribution. EV sales represent 19% of total revenue, with near-term softness in North America offset by gains in Europe and Asia. The company affirmed FY26 guidance of $900M$1.0B sales and $70M$80M EBITDA, targeting margin expansion from 4.1% to 7.9% and a stronger H2 backed by 30+ program launches.

Investors cheered the margin recovery narrative and operational discipline over headline sales decline. The companys transformation story, focusing on cost control, cash flow, and deleveraging, sets up a potential re-rating. Key catalysts include quarterly EBITDA and free cash flow milestones, data center power wins, and macro trends in North American EV demand. Methode's space-age tech legacy combined with AI-driven power demand signals compelling growth prospects worth monitoring.

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