Methode Electronics Inc Q1 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Luke Junk - Robert W. Baird & Co., Inc. - Analyst : Good morning. Thanks for taking the questions. John, maybe starting with, automotive, clearly most challenging results relative to method overall still. I know there's a lot of countervailing factors there. Just hoping to better understand relative to the overall look for EBITDA to double. This year, how you see the automotive segment contributing to that incrementally, especially beyond some of the non-repeing operating items that were in the P&L last year and then, even beyond this year if we zoom out maybe a couple of years just kind of what you envision for that business at a high level on the operating side of the house. Thank you.

Question: Luke Junk - Robert W. Baird & Co., Inc. - Analyst : Thanks so much John and maybe a related question just in terms of Asia so I know there's been. Program roll off impacting that business and automotive as well. If we look at the sales base following that roll off fairly limited on a quarterly basis right now, just maybe at a high level strategically how you're thinking about Asia and clearly relative to EV is one of the trends that you're most focused on, probably the most opportunity rich region in China, especially. Thank You. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 3:00PM, MEI.N - Q1 2026 Methode Electronics Inc Earnings Call

Question: Luke Junk - Robert W. Baird & Co., Inc. - Analyst : Got it. And then maybe just a quick one on the interface business I know that in the bridge you've given us for the current fiscal year there was an appliance program roll off reflected in that bridge are we seeing that in the first quarter results yet and to what extent there might be any offsets from the transce business that we're seeing the P&L right now? Thank you.

Question: Luke Junk - Robert W. Baird & Co., Inc. - Analyst : Understood, I'll I'll leave it there for now thank you.

Question: John Franzreb - Sidoti & Company, LLC - Analyst : Good morning, everyone. Thanks for taking the questions. I'm curious [Les Coy] provided a slide that kind of really took a deep dive into the tariff outlook. Has there been any change in your tariff expectations, be it positive or negative?

Question: John Franzreb - Sidoti & Company, LLC - Analyst : That's good to hear. And in terms of restructuring actions, can you talk a little bit about how far along are you in this process, John? You just got the low-hanging fruit at this point and, maybe some more colorful kind of, we should expect maybe in fiscal, 2026.

Question: John Franzreb - Sidoti & Company, LLC - Analyst : Got it. And just, I guess, when you look at the end markets, the Class A truck, the A and construction haven't been particularly favorable. I'm just curious about about your thoughts on how those end markets play out in the year ahead, based on what your customers are telling you.

Question: John Franzreb - Sidoti & Company, LLC - Analyst : Got it. With that, I'll get back to you. Thank you for taking questions. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 3:00PM, MEI.N - Q1 2026 Methode Electronics Inc Earnings Call

Question: Gary Prestopino - Barrington Research Associates Inc - Analyst : Thank you, John, Laura, Rob, how are you?

Question: Gary Prestopino - Barrington Research Associates Inc - Analyst : Yes, I am. Okay, a couple of questions here. First of all, When you reported Q4, you gave us a sales bridge, for, sales guidance for this year. Has anything changed dramatically in that bridge? I mean, we're still looking at a 40 million reduction in Stellais programs, and then about 48 million of other program launches positive on the sales side.

Question: Gary Prestopino - Barrington Research Associates Inc - Analyst : Okay. And just want to make sure there couple of questions here surrounding bus bars for data centers, okay. Is this mostly a new construction market what you guys are supplying or is there a, repair and replace component of this market, for these bus bars for data centers?

Question: Gary Prestopino - Barrington Research Associates Inc - Analyst : Right, because the gist of my question is that yeah, it's new construction. I mean, who knows how long this is going to go on with growth of data centers, but I guess I'm getting, what I'm leading to is, are the plans can this business get to be fairly substantial relative to the whole pie? It looks like from the chart on page 7. Looks like EB is maybe about 60% of the sales, data centers maybe about 35% of the fiscal '25 sales. I mean, is there a way you can make it bigger or are you just range bound by the fact that it's a new construction market? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 3:00PM, MEI.N - Q1 2026 Methode Electronics Inc Earnings Call

Question: Gary Prestopino - Barrington Research Associates Inc - Analyst : Okay, and then I want to also ask about the E side of the business here. Can you give us an idea of The percentage of your EB sales that are, or products for EVs I should say, that are outside the US, which would be mainly China and Europe, I suppose.

Question: Gary Prestopino - Barrington Research Associates Inc - Analyst : Okay. So in terms of what you're looking for this year, just particularly with the bus bars to the EV market, I it's safe to assume the majority of any growth is going to be coming from outside the US just because of, the [Sellais] program reductions and then just okay. All right thank you.