Short answer
METHODE ELECTRONICS INC (MEI) filed its fiscal 2026 10-K annual report with the SEC on Jun 24, 2026. It reported revenue of $1.0B (−2.8% year over year) and net income of −$36M.
- Top risk flagged: SEC investigations concluded with no enforcement action, pending dismissal motion in related securities class action (filed Aug–Oct 2024)
FY2026 key financial metrics · XBRL
- Revenue
- $1.0B
- −2.8% YoY
- Net income
- −$36M
- +43.0% YoY
- Operating margin
- 0.9%
- +3.1 pp YoY
- Gross margin
- 19.8%
- +4.2 pp YoY
- EPS (diluted)
- −$1.01
- +42.9% YoY
- ROE
- -5.3%
- +3.8 pp YoY
- Operating cash flow
- $38M
- +43.9% YoY
Source: XBRL data from the METHODE ELECTRONICS INC (MEI) FY2026 10-K on SEC EDGAR. USD.
METHODE ELECTRONICS INC FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Global supplier of custom-engineered mechatronic solutions, focusing on power distribution, LED lighting, sensor applications primarily for Automotive, Industrial, and Interface markets
- New/changed segments: Divested dataMate business in Interface segment Q4 FY 2026; Medical segment discontinued as of FY 2025
- Strategic shift: Increased emphasis on mitigating tariff impacts via price adjustments, supply chain optimization due to new 2025 tariffs; winding down consumer appliance business in Interface segment
- Quantitative metric: Workforce approximately 6,650 employees with 93.9% outside U.S.; Automotive sales share decreased to 45.9% of net sales FY 2026 from 53.7% FY 2024, Industrial segment grew to 51.4%
- Noteworthy fact: FY 2026 marked by significant legal and regulatory investigations including SEC inquiry concluded May 2026 with no enforcement, plus ongoing securities class action litigation
Management Discussion & Analysis
- Revenue $1,019.2M, down 2.8% YoY from $1,048.1M; excluding FX translation, sales declined $65.2M; Industrial segment up $36.9M, Automotive down $41.2M
- Gross margin 19.8% vs 15.6%; Industrial margin 31.9% vs 29.6%, Automotive margin 5.9% vs 0.9%, Interface margin 23.9% vs 24.5%
- Industrial segment best performer: income $114.6M (21.9% margin); Automotive worst performer: loss $30.1M (-6.4% margin) with sales $467.7M
- Cash flow from operations $38.0M vs $26.4M; Capex $22.4M vs $41.6M; dividends paid $8.3M down from $20.4M; $15.2M proceeds from dataMate divestiture; $20M credit facility prepayment
- Management highlights ongoing risks from tariffs, inflation, supply chain, geopolitical conflicts, and evolving EV demand; anticipates continued margin pressure and cautious liquidity management
Risk Factors
- SEC investigations concluded with no enforcement action, pending dismissal motion in related securities class action (filed Aug–Oct 2024)
- Geopolitical tensions including U.S.–Israel–Iran conflict risk raising fuel and energy costs, increasing production and logistics expenses globally
- Significant dependence on global supply chain vulnerable to tariffs, trade policy changes, and disruptions in Canada, China, Egypt, Europe, Mexico
- Competitive risk from OEM customers’ lengthy sales cycles and potential loss of supply contracts amid intense competition and innovation pressures
- $400M revolving credit facility maturing Oct 2027 with covenants; refinancing risks amid volatile credit markets and rising interest rates
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