Methode Electronics Inc. shares tumbled 23% in after-hours trading after the company reported first-quarter results that topped revenue forecasts but provided cautious full-year guidance.
The electronics manufacturer posted adjusted losses of $0.22 per share, beating the consensus estimate of $0.24, while revenue rose 10.4% year-over-year to $265.4 million, exceeding expectations of $231.57 million. Net loss totaled $11.4 million, or $0.32 per diluted share, compared with a $10.3 million net loss in the prior-year period. Adjusted EBITDA declined to $13.7 million from $15.7 million.
First-quarter performance reflected strong growth in the industrial segment, where net sales surged 27% to $156.8 million, driven by higher volumes in data center, on-highway, and off-highway lighting products. The automotive segment remained flat at $105.7 million, nearly unchanged from $106.1 million a year earlier.
Chief Executive Jon DeGaynor noted that while net sales rose 10%, one-time costs—including the impact of last year’s dataMate divestiture and investments in talent and capabilities—offset gains. The company also booked $75 million in new non-data center awards, representing roughly $400 million in lifetime revenue.
For the full fiscal year, Methode guided revenue between $1.025 billion and $1.075 billion, with a midpoint of $1.05 billion, matching analyst estimates. The company repaid $10.1 million in debt during the quarter and amended its revolving credit facility to extend certain maturities to October 2028.
