Q1 2025 Methode Electronics Inc Earnings Call Transcript
Key Points
- Methode Electronics Inc (MEI) reported better-than-expected performance on pretax income and cash flow for the first quarter of fiscal 2025.
- The company successfully reduced working capital by $9 million and improved cash from operations by over $16 million.
- EV activity rebounded, accounting for 18% of sales in the quarter, with expectations to exceed 20% for fiscal 2025.
- Methode Electronics Inc (MEI) secured over $80 million in annual program awards, indicating strong booking momentum.
- The company is actively building its executive team, including the appointment of a new CFO and CPO, to support future challenges and transformations.
- Methode Electronics Inc (MEI) reported a pretax loss of $9 million for the first quarter, driven by lower sales volume and elevated costs from ongoing program launches.
- Sales decreased by 11% compared to the same period last year, primarily due to the roll-off of an EV lighting program in Asia.
- The company faces headwinds in several key end markets, including automotive, commercial vehicles, construction, and agriculture.
- Customer program delays contributed to absorption challenges, impacting the company's financial performance.
- Despite some operational improvements, Methode Electronics Inc (MEI) continues to face high launch costs and market weakness for its lighting products.
Good morning, everyone, and welcome to the Methode Electronics first-quarter fiscal 2025 results. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to your host, Robert Cherry, Vice President of Investor Relations. Robert, the floor is yours.
Thank you, operator. Good morning, and welcome to Methode Electronics' fiscal 2025 first-quarter earnings conference call. For this call, we have prepared a presentation entitled fiscal 2025 first-quarter financial results, which can be viewed on the webcast of this call or found at methode.com on the investors page.
This conference call contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are subject to the Safe Harbor protection provided under the securities laws. Methode undertakes no duty to update any forward-looking statement
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