Methode Electronics, Inc. (NYSE: MEI): Corporate Profile & Financials

Source: Methode Electronics, Inc. Form 10-K Annual Report for the Fiscal Year Ended May 2, 2026

Quick Facts / Company Snapshot

Company Overview

Methode Electronics, Inc. (“Methode” or the “Company”) is a leading global supplier of custom engineered solutions. Incorporating sales, engineering, and manufacturing capabilities across North America, Europe, the Middle East, and Asia, Methode designs, engineers, and manufactures mechatronic products for Original Equipment Manufacturers (“OEMs”) and tiered suppliers in mobility, industrial, and commercial end markets. The Company operates primarily as a custom engineering partner, delivering highly integrated components and subsystem assemblies. Methode’s technical capabilities encompass four core product technology pillars:

• Power Distribution: Laminated and powder-coated busbars, smart connect systems, battery disconnect units, integrated circuit boards, PowerRail® assemblies, braided flexible cables, and high-current/high-voltage flexible power cabling systems.
• User Interface Components: Custom electromechanical switches, control panels, and solid-state field-effect touch panels.
• Specialized LED Lighting: Custom exterior and interior light-emitting diode (“LED”) lighting solutions for vehicles and industrial equipment.
• Sensor Applications: Advanced magneto-elastic torque and force sensing, current sensing, and position sensor applications.

Methode serves diverse end markets, including automotive transportation (passenger cars, commercial trucks, buses, e-bikes, aerospace, and rail), cloud computing and data center infrastructure, construction equipment, and consumer appliances. The parent entity, Methode Electronics, Inc., is incorporated in Delaware and manages its global operations through three active reportable segments: Automotive, Industrial, and Interface. The Company previously operated a fourth segment, Medical, which was discontinued following asset sales in fiscal 2024.

Business Segments

Methode manages and reports its financial results through three active operating segments: Automotive, Industrial, and Interface (with Medical reported historically through fiscal 2024).

Automotive Segment

The Automotive segment supplies electronic and electro-mechanical devices and related systems to automotive OEMs and their tiered suppliers across various vehicle platforms and powertrains (including internal combustion engine, hybrid, and electric vehicles). Product offerings range from power distribution solutions—such as busbars, smart connect systems, battery disconnect units, and integrated circuit boards—to user interface components, specialized LED lighting solutions, and advanced sensor applications.

• FY 2026 Net Sales: $467.7 million (45.9% of consolidated net sales), compared to $508.9 million (48.6%) in FY 2025 and $598.2 million (53.7%) in FY 2024.
• FY 2026 Segment Performance: Gross profit of $27.8 million (5.9% margin) and an operating loss of $(30.1) million, affected by program roll-offs, partially offset by $22.5 million in commercial recoveries from customers and operational efficiency improvements.
• Geographic Footprint: Net sales in FY 2026 comprised $188.1 million from North America, $246.5 million from Europe, the Middle East & Africa (“EMEA”), and $33.1 million from Asia.

Industrial Segment

The Industrial segment manufactures exterior and interior lighting solutions, industrial safety radio remote controls, braided flexible cables, current-carrying laminated busbars and devices, custom power-product assemblies (such as PowerRail®), high-current high-voltage flexible power cabling systems, and powder-coated busbars. These solutions serve customers in aerospace, commercial vehicles, cloud computing/data centers, industrial equipment, military, power conversion, telecommunications, and transportation markets.

• FY 2026 Net Sales: $524.3 million (51.4% of consolidated net sales), compared to $487.4 million (46.5%) in FY 2025 and $460.1 million (41.3%) in FY 2024.
• FY 2026 Segment Performance: Gross profit of $167.4 million (31.9% margin) and operating income of $114.6 million (21.9% margin), driven by higher sales volumes for power distribution products and off-highway lighting.

Interface Segment

The Interface segment delivers high-speed digital communication over copper media solutions for data networking and broadband markets, alongside user interface panel solutions for the appliance market. Offerings include copper transceivers, distribution point units, and solid-state field-effect touch panels.

• FY 2026 Net Sales: $27.2 million (2.7% of consolidated net sales), compared to $51.8 million (4.9%) in FY 2025 and $53.8 million (4.8%) in FY 2024.
• Segment Developments: In the fourth quarter of fiscal 2026, Methode divested its dataMate business (included in Interface). Additionally, its consumer appliance touch panel business is winding down as existing programs roll off.
• FY 2026 Segment Performance: Gross profit of $6.5 million (23.9% margin) and operating income of $5.0 million.

Medical Segment (Historical)

The Medical segment comprised the former Dabir Surfaces business, which developed surface support technology aimed at pressure injury prevention in healthcare environments. Methode initiated the discontinuation of Dabir Surfaces in the first quarter of fiscal 2024 and sold certain business assets in October 2023. Net sales were $2.4 million in FY 2024 and $0 in FY 2025 and FY 2026.

History and Evolution

Methode Electronics has evolved from a conventional component manufacturer into a global developer of custom mechatronic and power distribution systems. In recent years, the Company has undertaken significant portfolio optimization, operational restructurings, and geographic realignments:

• Medical Business Exit (FY 2024): In the first quarter of fiscal 2024, Methode initiated the shutdown of Dabir Surfaces and completed the sale of certain assets and contracts in October 2023 for $1.5 million in cash consideration.
• Non-Core Asset Dispositions: During fiscal 2024, the Company sold its corporate aircraft for $19.4 million, generating a net gain of $2.4 million. In fiscal 2026, Methode completed the sale of a warehouse facility for $1.3 million (gain of $0.5 million) and an operating location for $4.7 million (gain of $1.0 million).
• dataMate Divestiture (FY 2026): In the fourth quarter of fiscal 2026, Methode divested substantially all assets of its dataMate business within the Interface segment for $16.4 million in aggregate purchase price (subject to working capital adjustments), recognizing an $11.2 million pre-tax gain.
• Headquarters Relocation (FY 2026): Methode relocated its corporate headquarters from Chicago, Illinois, to Southfield, Michigan, entering into a sublease for the Chicago facility and incurring $1.1 million in asset impairment charges.
• Credit Facility Modifications: Following amendments in fiscal 2025 and fiscal 2026, Methode adjusted its credit facility size to $400 million, secured obligations with personal property liens, and established modified covenant compliance tracks.

Products and Services

Methode’s engineered solutions are categorized into four major product and technology families:

• Power Distribution Systems: Laminated and powder-coated busbars, flexible power cables, smart connect assemblies, battery disconnect units, PowerRail® modular power distribution systems, and custom power distribution boards designed for electric vehicle battery packs, commercial vehicles, aerospace, and data center power distribution units.
• User Interface & Control Systems: Integrated center consoles, overhead consoles, electromechanical switches, hidden-until-lit touch panels, and solid-state field-effect touch interface panels.
• Lighting Solutions: Specialized interior and exterior LED lighting modules, work lamps, signal lighting, and custom illumination systems marketed primarily under the Grakon and Nordic Lights brands for heavy-duty trucks, construction, agricultural, and automotive applications.
• Sensors & Transceivers: Magneto-elastic torque and force sensors, current sensors, position sensors, and high-speed copper transceivers for data networking infrastructure.

Brand Portfolio

Methode owns and operates several specialized brands and product trademarks across its business units:

• PowerRail®: Proprietary custom power-product assembly solution utilized in heavy industrial, power conversion, and data center environments.
• Grakon: Recognized brand for customized exterior and interior lighting systems and control electronics serving commercial vehicles and specialty markets.
• Nordic Lights: Established brand name for high-durability LED work lights and specialty lighting solutions engineered for heavy-duty off-highway equipment in construction, mining, and agriculture.
• dataMate (Divested): Former brand for high-speed copper transceiver and data networking solutions sold in Q4 FY 2026.
• Dabir Surfaces (Discontinued): Former brand for medical pressure-injury prevention technology sold in FY 2024.

Geographical Presence

Methode operates sales, engineering, and manufacturing locations across North America, Europe, the Middle East, and Asia. As of May 2, 2026, the Company operated 30 owned or leased facilities. The primary manufacturing and corporate facility locations as disclosed in the annual report include: As of May 2, 2026, Methode employed approximately 6,650 full-time employees and engaged 263 contractors worldwide, with 93.9% located outside the United States.

Competitor Analysis

The markets for electronic components, mechatronics, and power distribution systems are highly competitive and subject to continuous technological change. Methode competes with numerous international, regional, and specialized manufacturers across its product segments. Primary competitive factors include product performance, pricing, quality, technical innovation, customer service, and global execution capability. While Methode does not specify individual market-share competitors by product line in its operational disclosures, the Company’s Board of Directors benchmarks executive compensation against a peer group of fifteen publicly traded electronics and industrial manufacturing companies:

• Belden Inc.
• Benchmark Electronics, Inc.
• Cooper-Standard Holdings Inc.
• CTS Corporation
• Fabrinet
• Franklin Electric Co., Inc.
• Gentherm Incorporated
• Kimball Electronics, Inc.
• Knowles Corporation
• Littelfuse, Inc.
• Modine Manufacturing Company
• OSI Systems, Inc.
• Rogers Corporation
• Stoneridge, Inc.
• TTM Technologies, Inc.

Operating Performance and Business Drivers

In fiscal 2026 (a 52-week year ended May 2, 2026), Methode generated consolidated net sales of $1,019.2 million, representing a 2.8% decrease from $1,048.1 million in fiscal 2025 (a 53-week year ended May 3, 2025). Foreign currency translation favorable impacts increased sales by $36.3 million; on a constant-currency basis, net sales declined by $65.2 million due to automotive program roll-offs, one fewer operational week, and the wind-down of the consumer appliance touch panel business, partially offset by $22.5 million in commercial recoveries from automotive customers and volume expansion in industrial power distribution products. Cost of products sold declined 7.7% to $817.0 million (80.2% of sales) in FY 2026 from $884.7 million (84.4% of sales) in FY 2025, driven by lower volume, favorable mix, improved material and freight efficiencies, lower scrap, and reduced inventory obsolescence charges ($8.0 million in FY 2026 vs. $20.4 million in FY 2025). Consequently, gross profit margin rose to 19.8% in FY 2026 from 15.6% in FY 2025. Selling and administrative expenses increased to $170.3 million (16.7% of sales) in FY 2026 from $163.9 million (15.6% of sales) in FY 2025, reflecting higher employee compensation and restructuring charges ($4.2 million in FY 2026 vs. $1.6 million in FY 2025), offset by a reduction in professional consulting fees (which included $9.8 million for AlixPartners in FY 2025). Operating income recovered to $8.8 million in FY 2026 compared to an operating loss of $(23.9) million in FY 2025. Other income included an $11.2 million pre-tax gain on the sale of the dataMate business, offset by $7.7 million in net foreign exchange losses. Net loss for FY 2026 was $(35.7) million, an improvement from net losses of $(62.6) million in FY 2025 and $(123.3) million in FY 2024.

Board of Directors and Leadership Team

Methode’s executive officers and board leadership as of the Form 10-K filing date include:

Executive Officers

• Jonathan B. DeGaynor (60): President and Chief Executive Officer (since July 2024). Previously served as President and CEO of Stoneridge, Inc. from 2015 to 2023.
• Laura Kowalchik (57): Chief Financial Officer (since October 2024). Previously served as CFO of Communications & Power Industries (2023–2024) and CFO of Dayco Products, LLC (2019–2023).
• John T. Erwin (58): Chief Procurement and EHS Officer (since March 2025; previously Chief Procurement Officer from July 2024). Formerly Global Vice President of Strategic Sourcing & Procurement at Guardian Industries.
• Lars Ullrich (55): Senior Vice President, Global Automotive Business (since December 2024). Previously Head of Region Americas and Chief Business Officer for Larsen & Toubro Semiconductor Technologies.
• Kerry A. Vyverberg (57): General Counsel (since June 2022; previously Vice President Legal Affairs from February 2021). Formerly Of Counsel at Locke Lord LLP.
• Stacie Schulz: Chief Accounting Officer.

Board of Directors

• Mark D. Schwabero: Chairman of the Board
• Jonathan B. DeGaynor: Director
• David P. Blom: Director
• Therese M. Bobek: Director
• Brian J. Cadwallader: Director
• Bruce K. Crowther: Director
• Mary A. Lindsey: Director

Future Strategy and Business Priorities

Methode’s strategic roadmap centers on four key priorities:

• Operational Excellence & Margin Expansion: Optimizing scrap rates, labor efficiency, material procurement, and manufacturing logistics across key assembly plants in Mexico, Egypt, Malta, and China.
• Commercial Alignment & Cost Recoveries: Pursuing price adjustments and customer recoveries to offset upfront pre-production, engineering, and tooling expenses incurred on delayed, deferred, or lower-volume electric vehicle programs.
• Portfolio Pruning & Core Focus: Reallocating capital away from non-core or declining applications (e.g., divestiture of dataMate and exit of medical/consumer appliance touch panels) toward high-growth industrial power distribution, data center infrastructure, and specialty LED lighting.
• Capital Structure Management: Maintaining compliance with credit facility financial covenants and managing debt balances ahead of the revolving credit facility maturity on October 31, 2027.

Key Strengths

• Global Manufacturing and Engineering Scale: Established operating footprint with 30 facilities across North America, Europe, the Middle East, and Asia, enabling localized delivery to multinational OEMs.
• Broad Mechatronic & Power Technologies: Proprietary engineering capabilities in high-current laminated busbars, smart connect systems, LED lighting, and magneto-elastic sensors.
• Strong Industrial Segment Profitability: High-margin Industrial business generating segment operating margins above 20% ($114.6 million operating income on $524.3 million sales in FY 2026).
• Long-Term OEM Supply Relationships: Deeply embedded positions on major commercial vehicle, transportation, and industrial platform architectures.

Key Challenges and Risks

• Automotive Customer & Program Concentration: Dependence on vehicle production volumes and program launch schedules; top five customers accounted for approximately 41% of FY 2026 sales, with Customer B representing 10.9%.
• EV Adoption Rate & Demand Volatility: Deferrals, volume reductions, or cancellations of EV programs by major OEMs affect revenue realization on upfront investments.
• Debt Covenants & Refinancing Exposure: $400 million revolving credit facility matures on October 31, 2027, and contains restrictive financial covenants, interest rate add-ons, and an anti-cash hoarding requirement requiring prepayments if U.S. cash exceeds $65 million for 10 consecutive business days.
• Global Trade Policies & Tariffs: Exposure to changing tariff regimes and trade regulations affecting cross-border supply chains between the U.S., Mexico, Canada, China, Egypt, and Europe.
• Pending Stockholder Litigation: Defense of consolidated securities class action and derivative lawsuits pending in the U.S. District Court for the Northern District of Illinois regarding prior public disclosures.

Conclusion and Strategic Outlook

Methode Electronics remains a critical engineering partner to global transportation, industrial, and technology OEMs. While recent financial performance has been affected by automotive program transitions and EV market realignments, the Company has taken proactive measures to streamline its portfolio, eliminate non-core assets, secure commercial cost recoveries, and expand its industrial power distribution footprint. Management’s forward strategy emphasizes operational execution, strict capital allocation, and debt management to navigate industry shifts and restore profitable growth.

Official Site

The official corporate website of Methode Electronics, Inc. can be accessed at: www.methode.com.

Financial Statements

Currency: USD, Scale: in millions, except per share data. Reporting periods: Fiscal years ended May 2, 2026 (52 Weeks), May 3, 2025 (53 Weeks), and April 27, 2024 (52 Weeks).

Summary Consolidated Statements of Operations

Balance Sheet

Cash Flow Statement

Subsidiaries & Joint Ventures

The filing lists subsidiaries of Methode Electronics, Inc. in Exhibit 21, but does not provide an itemized tabular breakdown of individual legal entities, their ownership percentages, or jurisdictions within the body of the report other than noting operations and personnel in countries including Belgium, Canada, China, Egypt, Finland, India, Malta, Mexico, and the United Kingdom.

Other Investments & Holdings

No material associate investments, minority interests, or strategic equity holdings are explicitly disclosed as separate investments in the financial statements.

Physical Properties

Investments and Capital Expenditure

Share Capital and Outstanding Shares

Frequently Asked Questions

What are Methode Electronics’ primary business segments?

Methode operates three primary business segments: Automotive (supplying power distribution, user interfaces, lighting, and sensors to automotive OEMs), Industrial (manufacturing power distribution busbars, industrial lighting, flexible cables, and safety controls), and Interface (providing copper transceivers and appliance touch panels). The Company previously reported a Medical segment, which was discontinued in fiscal 2024.

What was Methode’s total revenue and net income in fiscal 2026?

In fiscal 2026 (ended May 2, 2026), Methode reported consolidated net sales of $1,019.2 million and a net loss of $(35.7) million, compared to net sales of $1,048.1 million and a net loss of $(62.6) million in fiscal 2025.

Where is Methode Electronics headquartered and where does it operate?

Methode is headquartered in Southfield, Michigan, United States. It operates 30 manufacturing, engineering, and administrative facilities across North America, Europe, the Middle East, and Asia, including major plants in Belgium, China, Egypt, Malta, Mexico, and the United States.

What recent divestitures has Methode completed?

In the fourth quarter of fiscal 2026, Methode divested its dataMate business within the Interface segment for $16.4 million, recognizing an $11.2 million pre-tax gain. Additionally, Methode sold its Dabir Surfaces medical business assets in fiscal 2024, its corporate aircraft in fiscal 2024, and two non-core real estate facilities during fiscal 2026.

Who serves as the CEO and CFO of Methode Electronics?

Jonathan B. DeGaynor serves as President and Chief Executive Officer (appointed in July 2024), and Laura Kowalchik serves as Chief Financial Officer (appointed in October 2024).