METHODE ELECTRONICS INC (MEI) FY2026 10-K Annual Report

Filed: Jun 24, 2026
Information Technology
Electronic ConnectorsSEC EDGAR

METHODE ELECTRONICS INC (MEI) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Jun 24, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

METHODE ELECTRONICS INC FY2026 10-K Analysis

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

METHODE ELECTRONICS INC FY2026 Key Financial Metrics
XBRL

Revenue

$1.0B

-2.8% YoY

Net Income

-$36M

+43.0% YoY

Gross Margin

19.8%

+425bp YoY

Operating Margin

0.9%

+314bp YoY

Net Margin

-3.5%

+247bp YoY

ROE

-5.3%

+376bp YoY

Total Assets

$1.3B

+0.0% YoY

EPS (Diluted)

$-1.01

+42.9% YoY

Operating Cash Flow

$38M

+43.9% YoY

Source: XBRL data from METHODE ELECTRONICS INC FY2026 10-K filing on SEC EDGAR. All figures in USD.

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