Methode Electronics Swings to $15.9M Net Loss in Q3 FY2026

Methode Electronics, Inc. (NYSE: MEI), an electronic components manufacturer, reported a net loss of $15.9 million for the three months ending January 31, 2026, compared to a net loss of $14.4 million in the same quarter of the prior year. Read more earnings reports.

Revenue for the quarter declined 2.6% to $233.7 million from $239.9 million in the year-earlier period. Cost of goods sold decreased to $194.9 million from $198.6 million, resulting in a gross profit of $38.8 million versus $41.3 million a year earlier.

Operating loss widened to $6.1 million from $2.2 million in the prior-year quarter. Selling, general, and administrative expenses rose to $39.1 million from $37.7 million. The company recorded $2.8 million in income tax expense despite the loss, compared to $6.2 million in the same quarter last year.

Nine-Month Results

For the nine months ending January 31, 2026, Methode Electronics reported a net loss of $36.1 million, compared to a net loss of $34.3 million in the comparable period of fiscal 2025. Revenue for the nine-month period fell 8.8% to $721.1 million from $791.0 million.

Operating loss for the nine months was $2.1 million, compared to an operating loss of $300,000 in the prior-year period. Cash from operations improved significantly to $33.1 million from a cash outflow of $9.0 million in the year-earlier period.

Balance Sheet Position

As of January 31, 2026, total assets stood at $1.31 billion, essentially flat from $1.31 billion at the fiscal year-end on May 3, 2025. Cash and cash equivalents increased to $133.7 million from $103.6 million.

Long-term debt grew to $340.7 million from $317.4 million. Total stockholders' equity declined to $675.0 million from $693.3 million at the beginning of the fiscal year. The company paid $6.0 million in dividends during the nine-month period, down from $14.7 million in the prior-year period.

Per-Share Data

The company reported a loss of $0.45 per diluted share for the third quarter, compared to a loss of $0.41 per share in the prior-year quarter. For the nine months, the loss per diluted share was $1.02 versus $0.97 in the year-earlier period. The weighted average diluted share count was 35.6 million shares for the quarter and 35.5 million shares for the nine-month period.