Methode Electronics reported fiscal first-quarter 2027 net sales of $265.4 million, up 10.4% year over year, driven primarily by higher Industrial segment volumes and mix, including strength in data center applications.
The company reported a net loss of $11.4 million, compared with a $10.3 million loss a year earlier. Adjusted EBITDA was $13.7 million, compared with $15.7 million, while free cash flow was negative $10.9 million. Methode repaid a net $10.1 million of debt during the quarter.
Methode booked new non-data center awards representing $75 million of peak annual revenue and approximately $400 million of lifetime revenue. The company also amended its revolving credit facility after quarter-end to extend certain maturities to October 2028.
Methode affirmed its fiscal 2027 guidance for net sales of $1.025 billion to $1.075 billion, adjusted EBITDA of $72 million to $82 million and capital expenditures of $25 million to $30 million.
KEY QUOTE:
“We delivered a strong start to fiscal 2027, with net sales up 10%, driven primarily by higher volumes across our industrial portfolio, led by data centers. However, one-time costs, including the impact of last year’s dataMate divestiture and our investments in talent and capabilities, more than offset the higher sales and operational improvements. Absent the impact of the divestiture, Adjusted EBITDA would have increased year-over-year.”
“We booked new non-data center awards representing $75 million of peak annual revenue, or approximately $400 million of lifetime revenue – proof of the commercial momentum we are building as our execution improvements continue to translate into results with customers. Our transformation is a multi-year effort, and progress won’t always be linear, but I’m confident we have the right strategy and the right team in place to deliver sustainable, profitable growth and long-term value for our shareholders.”
Jon DeGaynor, President and Chief Executive Officer of Methode Electronics
