Methode Electronics Earnings Presentation

Third Quarter Fiscal 2026

March 6, 2026

Fiscal

YTD'26

**





$16.5M

Free Cash Flow*

$40.6M

Adjusted EBITDA*

$721M

Net Sales

Financial Summary

Fiscal

3Q'26

$234M

Net Sales

$7.3M

Adjusted EBITDA*

$10.1M

Free Cash Flow*



Progressing transformation initiatives while managing near-term volatility



•

•

Industrial sales up 9.5% for the quarter, driven by off-road lighting and data

center applications

Continued our transformation journey as we:

  • Made additional progress in Mexico operations transformation

  • Subsequent to quarter end, closed on sale of dataMate, purchase

    price of $16M

  • Finalized sale agreement for Harwood Heights, IL facility





Highlights

3 *Refer to the appendix for GAAP to non-GAAP reconciliation

**Fiscal nine months ended January 31, 2026 contained 39 weeks compared to 40 weeks in fiscal nine months ended February 1, 2025

Transformation Update

Where We Are

- Utilize Core Competencies for Growth

  • Capitalize on Data Center and Global Vehicle Electrification Megatrends

  • Consolidate Footprint

  • Review Portfolio

  • Address Inventory Management

  • Focus on Working Capital

  • Globalize Engineering, Product Management and Supply Chain

  • Diagnose Operations and Supply Chain

  • Apply Global Approach

  • Rebuild Next Level Organizational Talent

  • Drive Launch Execution

  • Revamp Mexico and Egypt Plants

  • Build Executive Team



0-6 Months 6-12 Months 12-18 Months+

Stabilize the Base

Install New Team

Remediate Practices

Leverage Synergies

Building a solid foundation to drive consistent execution

Furthering our

transformation journey

as we:

-

-

-

Refine our organization Align our portfolio Improve our business structure Portfolio Optimization: Sale of dataMate business

Business

Overview

  • Supplier of copper transceivers to enterprise networking and telecom customers within the Interface segment

  • Focused on data-over-copper and single pair powered ethernet solutions

Strategic

Rationale

  • Aligns resources with data center and AI infrastructure demand

  • Sharpens emphasis on power solutions platform

  • Prioritizes high-density power delivery and distribution products

Deal Terms / Timing

  • Sold to Bel Fuse Inc.

  • Closed on March 5, 2026

  • $16M purchase price

Use of Proceeds

  • Supports ongoing debt reduction and working capital needs

25% CAGR

Power Solutions Offerings

Highlights

Net Sales ($ Millions)

Experience

Leveraging 60+ years of power distribution engineering expertise

~$280

$252

$189

$153

$116



End Markets

Recent results driven by EVs, data centers

and mil/aero applications

Products

Expect growth in 800-volt busbars, interconnects, and advanced power products

Selectively investing in the data center business for long-term growth

Customers

Partnering with customers to speed up delivery of product with programs such as vendor managed inventory (VMI)

FY22A FY23A FY24A FY25A FY26E

EV Data Center Mil/Aero Other



Operational and Strategic Priorities

Foundational Actions

  • Harmonizing operating practices and processes across businesses and geographies with

    intensive business reviews at our manufacturing facilities

  • Driving operating excellence and continuous improvement with 11 manufacturing site visits to Egypt, Malta, and Mexico conducted in the first nine months of fiscal 2026

    Refine Organization

  • Topgrading of leadership substantially completed across the organization

  • Working as "One Methode" by aligning leadership and strengthening the execution focus within the company culture

    Align Portfolio

  • Completed sale of dataMate after quarter-end refining focus on key growth areas

  • Aligning portfolio with megatrends, including data centers and vehicle electrification

  • Driving a disciplined approach to long-term growth investments, particularly power solutions offerings

    Business

    Structure

  • Relocated corporate headquarters to Southfield, Michigan

  • Finalized agreement for the sale of Harwood Heights, IL facility

Site visit to Methode Malta facility



Increased intensity and urgency to drive financial and operational improvement

Company owned headquarters in Michigan

Fiscal 3Q 2026 Financial Review

Net Sales

Reported Financials

($15.9)

($14.4)

$233.7

$239.9

EPS

Adj. EPS

($0.37)

($0.21)

Adjusted Net Loss increased Y/Y due

to lower sales volumes and mix

Reflecting lower adjustments compared to the prior fiscal year period

•

•

Commentary

  • Adjusted EBITDA down Y/Y due to

lower sales volumes and mix

Adjusted Financials*

($M, except EPS)

Adjusted EBITDA

3Q'25

3Q'26

Adjusted Net Income

(Loss) and Adjusted EPS

3Q'25

($5.9)

3Q'26

($13.1)

($7.2)

($M, except EPS)

Commentary

(3%)

3Q'25 3Q'26

Net Income (Loss) and EPS

  • Lower volumes Y/Y in Automotive

    $12.3

    5.1%

$7.3

3.1%

(41%)

segment due to reduction in Electric

Vehicle volumes

  • Higher industrial sales volumes for off-road equipment lighting and power products

  • Lower sales volumes of touch panels for appliances in Interface segment

  • Positively impacted by positive foreign

    currency translation

  • Net Loss increased Y/Y due to lower sales volumes and mix

    ($1.5)

    3Q'25 3Q'26

    ($0.41) ($0.45)

    Executing transformation strategy while managing near-term volatility; long-term vision intact

Disciplined Capital Allocation Strategy

Net Debt ($M)*(1)

$28.1

Operating Cash Flow ($M)

$15.4

$207.2

$224.1

3Q'25 4Q'25 1Q'26 2Q'26 3Q'26

Free Cash Flow ($M)*

$10.1

$19.6

3Q'25 4Q'25 1Q'26 2Q'26 3Q'26 3Q'25 4Q'25 1Q'26 2Q'26 3Q'26

Reduced net debt by $16.9M or 8% year-over-year

Generated +$16.5M of free cash flow in YTD'26

Focused on robust free cash flow generation to support further net leverage reduction



  1. *Refer to the appendix for GAAP to non-GAAP reconciliation

    (1) Does not include the proceeds related to sale of Harwood Heights, IL and dataMate

    Fiscal 2026 Guidance

    FY26 Guidance Commentary

$ Millions

Fiscal 2025 Actuals

Fiscal 2026 Current Guidance

Net sales

$1,048

$950-1,000

Interest expense

$22

$21-23

Tax expense

$13

$17-21

D&A

$59

$58-63

Adjusted EBITDA*

$43

$58-62

Capital expenditures

$42

$24-29

  • Dynamic operating environment could impact results

  • Does not include sale proceeds from dataMate or Harwood

    Heights

  • Does not include potential customer recoveries

  • Net sales reflects ~$30M FX favorable impact

  • Interest expense reflects borrowings at similar levels and rates

  • Tax expense includes $10 to $15M for valuation allowance on deferred tax assets

  • Continue to tightly manage capital expenditures

  • Continue to expect positive free cash flow

* Refer to the appendix for GAAP to non-GAAP reconciliation

** Fiscal 2026 contains 52 weeks; Fiscal 2025 contained 53 weeks



***Guidance is subject to change due to a variety of factors including tariffs, geopolitical instability such as conflicts in the Middle East, the successful launch of multiple new programs, the ultimate take rates on EV programs, success and timing of cost recovery actions, inflation, global economic instability, supply chain disruptions, transformation and restructuring efforts, potential impairments, any acquisitions or

  1. divestitures, and legal matters.

****Due to the inherent difficulty of forecasting the timing and amount of certain items that would impact net income, such as foreign currency gains and losses, we are unable to reasonably estimate net income, the GAAP financial measure most directly comparable to Adjusted EBITDA. Accordingly, we are unable to provide a reconciliation of Adjusted EBITDA to net income with respect to the guidance provided.

Key Takeaways

✓

Continued progress on strategic transformation while managing near-term volatility

✓

Industrial segment momentum, especially data center power solutions

✓

Automotive segment pressured in North American market; EMEA remains steady

✓

Aggressively driving free cash flow and net debt reduction for fiscal 2026

Steadily advancing our transformation journey, while executing value-creating actions to drive longterm shareholder returns



11

Thank You

Non-GAAP Financial Measures

To supplement the company's financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), Methode uses Adjusted Net Income (Loss), Adjusted Diluted Earnings (Loss) Per Share, Adjusted Pre-Tax Income (Loss), Adjusted Income (Loss) from Operations, EBITDA, Adjusted EBITDA, Net Debt and Free Cash Flow as non-GAAP measures. Reconciliation to the nearest GAAP measures of all non-GAAP measures included in this presentation can be found at the end of this presentation. Methode's definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. The company believes that these non-GAAP measures are useful because they (i) provide both management and investors meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results, (ii) permit investors to view Methode's performance using the same tools that management uses to evaluate its past performance, reportable business segments and prospects for future performance, (iii) are commonly used by other companies in our industry and provide a comparison for investors to the company's performance versus its competitors and (iv) otherwise provide supplemental information that may be useful to investors in evaluating Methode.

Appendix

METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (unaudited)

* Represents professional fees related to the Company's cost reduction initiative.

(in millions)

Three Months Ended Nine Months Ended

January 31,

February 1,

January 31,

February 1,

2026

2025

2026

2025

(13 Weeks)

(13 Weeks)

(39 Weeks)

(40 Weeks)

EBITDA:

Net loss

$ (15.9 )

$ (14.4 )

$ (36.1 )

$ (34.3 )

Income tax expense

2.8

6.2

12.7

14.6

Interest expense, net

5.4

5.5

17.0

16.5

Amortization of intangibles

5.8

5.8

17.4

17.6

Depreciation

8.8

8.3

27.1

24.9

EBITDA

6.9

11.4

38.1

39.3

Transformation costs *

-

0.9

-

7.9

Partial write-off of unamortized debt issuance costs

-

-

0.6

1.2

Restructuring costs and asset impairment charges

0.4

-

2.4

0.7

Net gain on sale of non-core assets

-

-

(0.5 )

(0.3)

Adjusted EBITDA

$ 7.3

$ 12.3

$ 40.6

$ 48.8

Adjusted EBITDA as a % of net sales

3.1%

5.1%

5.6%

6.2%

Three Months Ended Nine Months Ended

January 31,

February 1,

January 31,

February 1,

2026

2025

2026

2025

(13 Weeks)

(13 Weeks)

(39 Weeks)

(40 Weeks)

Free Cash Flow:

Net cash provided (used) by operating activities

$ 15.4

$ 28.1

$ 33.1

$ (9.0 )

Purchases of property, plant and equipment

(5.3 )

(8.5 )

(16.6 )

(32.5 )

Free cash flow

$ 10.1

$ 19.6

$ 16.5

$ (41.5 )

January 31, 2026

May 3, 2025

Net Debt:

Short-term debt

$

0.2

$

0.2

Long-term debt

340.7

317.4

Total debt

340.9

317.6

Less: cash and cash equivalents

(133.7)

(103.6)

Net debt

$ 207.2

$ 214.0

Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (unaudited)

(in millions, except per share data)

Three Months Ended

January 31, 2026 (13 Weeks) February 1, 2025 (13 Weeks)

Income (loss) from operations

Pre-tax income (loss)

Net income (loss)

Diluted income (loss) per share

Income (loss) from operations

Pre-tax income (loss)

Net income (loss)

Diluted income (loss) per share

U.S. GAAP (as reported) $ (6.1)

$ (13.1)

$ (15.9)

$ (0.45)

$ (2.2)

$ (8.2)

$ (14.4)

$ (0.41)

Transformation costs -

-

-

$ -

0.9

0.9

0.7

$ 0.02

Restructuring costs and asset

impairment charges 0.4

0.4

0.4

$ 0.01

-

-

-

$ -

Net gain on sale of non-core assets -

-

-

$ -

-

-

-

$ -

Valuation allowance on deferred tax

assets -

-

2.4

$ 0.07

-

-

6.5

$ 0.18

Non-U.S. GAAP (adjusted)

$ (5.7)

$ (12.7)

$ (13.1)

$ (0.37)

$ (1.3)

$ (7.3)

$ (7.2)

$ (0.21)

Nine Months Ended

January 31, 2026 (39 Weeks) February 1, 2025 (40 Weeks)

Income (loss) from operations

Pre-tax income (loss)

Net income (loss)

Diluted income (loss) per share

Income (loss) from operations

Pre-tax income (loss)



Net income (loss)

Diluted income (loss) per share

U.S. GAAP (as reported) $ (2.1)

$ (23.4)

$ (36.1)

$ (1.02)

$ (0.3)

$ (19.7)

$ (34.3)

$ (0.97)

Transformation costs -

-

-

$ -

7.9

7.9

6.1

$ 0.17

Partial write-off of unamortized debt

issuance costs -

0.6

0.5

$ 0.01

-

1.2

0.9

$ 0.03

Restructuring costs and asset

impairment charges 2.4

2.4

2.0

$ 0.06

0.7

0.7

0.6

$ 0.02

Net gain on sale of non-core assets -

(0.5)

(0.4)

$ (0.01)

-

(0.3)

(0.2)

$ (0.01)

Valuation allowance on deferred tax

assets -

-

6.4

$ 0.18

-

-

14.0

$ 0.39

Non-U.S. GAAP (adjusted)

$ 0.3

$ (20.9)

$ (27.6)

$ (0.78)

$ 8.3

$ (10.2)

$ (12.9)

$ (0.37)

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Methode Electronics Inc. published this content on March 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on March 05, 2026 at 21:39 UTC.