Methode Q1 Loss Widens to $0.32/Share; Credit Facility Amended with Reduced Commitments
MEI has more than doubled off its 52-week low of $4.88.
Summary
Methode Electronics reported a wider Q1 loss of $0.32/share on 10.4% revenue growth, with Industrial segment sales surging 27% on data center demand, while amending its credit facility to reduce commitments from $400M to $375M.
Key Events · Earnings and Guidance · MEI
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Q1 Net Loss Widens to $11.4M
Net loss of $11.4 million ($0.32/share) vs $10.3 million ($0.29/share) prior-year, despite revenue growth of 10.4% to $265.4 million.
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Industrial Segment Sales Surge 27%
Industrial net sales rose $33.3 million to $156.8 million, driven by higher data center, on-highway, and off-highway lighting volumes; segment operating income increased 19.2% to $31.6 million.
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Credit Facility Amended
Fourth Amendment extends certain maturities to October 29, 2028, reduces revolving commitments from $400 million to $375 million, and adds a $75 million automatic reduction upon >$50 million in certain disposition proceeds.
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Operating Cash Flow Turns Negative
Net cash used by operating activities was $7.8 million in Q1 fiscal 2027, compared to $25.1 million provided in the prior-year quarter, driven by higher working capital investment.
Analysis · MEI · Manufacturing
Methode Electronics posted a wider Q1 net loss of $11.4 million ($0.32/share) despite 10.4% revenue growth to $265.4 million, driven by a 27% surge in Industrial segment sales to $156.8 million on data center demand. The company also amended its credit facility, reducing revolving commitments from $400 million to $375 million while extending certain maturities to October 2028 — a move that preserves liquidity runway but signals tighter lender terms. The Automotive segment remains a drag with an $11.7 million operating loss, and operating cash flow swung to a $7.8 million use from a $25.1 million source a year ago.
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At the time of this filing, MEI was trading at $13.99 on NYSE in the Manufacturing sector, with a market capitalization of approximately $642.5M. The 52-week trading range was $4.88 to $20.38. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.