Methode Electronics reported first-quarter fiscal 2027 revenue of $265.4 million, a 10.4% increase from the same period last year and exceeding analyst expectations of $231.57 million. The company’s adjusted loss per diluted share narrowed to $0.22, outperforming the forecasted loss of $0.24.
Adjusted net loss for the quarter totaled $7.7 million, compared with a loss of $7.8 million in the prior-year period. Gross profit rose to $47.7 million from $43.5 million, while adjusted EBITDA declined to $13.7 million from $15.7 million. Selling and administrative expenses increased to $45.9 million, reflecting higher spending on talent and professional services.
Free cash flow turned negative at $10.9 million, down from positive $18 million in the year-earlier quarter. Cash and cash equivalents stood at $116.2 million, down from $139 million at the end of fiscal 2026, while total debt decreased to $310.5 million from $325 million.
Industrial segment sales surged 27% to $156.8 million, driven by data center power distribution and off-road lighting, while automotive segment sales fell 0.4% to $105.7 million. The interface segment experienced a sharp decline following portfolio adjustments.
New business bookings reached $75 million in peak annual revenue, equating to roughly $400 million in lifetime revenue, primarily tied to hybrid vehicle programs and power products. Management reaffirmed full-year fiscal 2027 guidance, projecting revenue between $1.025 billion and $1.075 billion, adjusted EBITDA between $72 million and $82 million, and free cash flow comparable to fiscal 2026.
EBITDA was pressured by $6.7 million in headwinds, including $3.8 million from portfolio refinements and $2.3 million in premium freight costs related to shifting production from Asia to Mexico. Underlying operational drivers, such as volume and mix, provided a net positive impact of $4.7 million.
Geographic restructuring efforts showed progress, with Mexico and Egypt delivering margin improvements of more than 500 and 700 basis points, respectively. Malta’s restructuring is expected to generate $5 million in annualized savings. The company also extended certain revolving loans to October 2028.
Shares of Methode Electronics fell 15.75% in premarket trading to $15.25, following a prior close of $18.10. The stock has traded between $4.88 and $20.38 over the past 52 weeks.
