MEI - Earnings call transcript Q1 2025 | Methode Electronics, Inc.

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Operator

Good morning, everyone, and welcome to the Methode Electronics First Quarter Fiscal 2025 Results. [Operator Instructions] I will now turn the conference over to your host, Robert Cherry, Vice President of Investor Relations. Robert, the floor is yours.

Robert Cherry

Thank you, operator. Good morning, and welcome to Methode Electronics Fiscal 2025 First Quarter Earnings Conference Call.

found have Results, presentation on which of call we First Fiscal the call, the this Financial on Quarter can or this prepared entitled, a XXXX webcast Investors For page. methode.com at be viewed which contains events regarding performance, speak statements, operating the of management's only expectations This conference as forward-looking date reflects call and certain future and hereof. to provided under laws. These protection forward-looking the harbor statements the safe are subject securities or duty to forward-looking statement update any in to a statement on the results conference statements call otherwise. The no forward-looking to involve of conform quarterly actual a undertakes uncertainties. changes this or expectations Methode's number Methode basis and risks in Exchange could reports. our actual in with detailed Commission, The to differ our and filings cause XX-K and such expectations factors as XX-Q are materially from Methode's that Securities results the On see please call agenda our for Slide X, today. an

of We Slide Mr. like and a new the to Methode's Jon CEO. will Move update provide call and Executive to session. DeGaynor, financial turn Officer. an followed Q&A with our then time, Chief business over I'd messages At a this Please begin and introduction turn key President to X. by to

Jonathan DeGaynor

Rob, and us our I'm everyone. quarter Thank good you for Interim call. Dave for joined Officer. earnings joining conference Rawden, by morning, first today our you, Financial Thank Chief

messages like from key Before found the so have I take this we what why a think call the to quarter, are Methode, what to to I far discuss you I'd minute came take today. and share I for and away

my deliver of I've alongside to forward and in time this the long honored I companies working look Methode new our at in team the pivotal as adjacent First, of the be CEO all to the roles industry, I'm for stakeholders. company. Methode to admired for truly

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in relying over organization execution a we to Any business At XX And However, whole. must we launches, for must intensity all the companies be it are capabilities a execute fiscal must X business launched the have Methode, next XXXX, Changing at consequently, that we to. and we launch challenges. long-term costs forward. move so, which customers, a its that priority focus level successfully for where tested. as pipeline collaboration solutions are first our way actions And produces develops programs forward fiscal is position will immediate in those the this have of to faces to address the efficiency. chain years. In evolve creation. works the fiscal organization global XXXX, and total way launches with in surmount that we of Methode a have the programs to which beginning the it to on supply point. our To on the these new of history on Simultaneous eventually go such transform another be are must XX customers program large through solutions, journey to and in value periods our to do it looking launch.

With a set are help for approach we foundation the outside to of multifaceted a pursuing resources, success. future

team. to Laura note, the CFO team, that and week that transition. an within we Laura challenges. welcome executive drive including track delivering support the partnering and I'd On at Communication the new impressive Methode our I building actively of successful also improvement CPO with Power X. Industries announced to regarding October has these transformations of Kowalchik, to been news business the to reiterate like look appointed CFO effective Methode industry. the Methode of brings and our current CFO last CFO forward are her record We to She

in affirm we headwinds sales some followed markets, position growth a despite 'XX. XXXX, to our profitable our in guidance sales in fiscal by Lastly, organic are in for fiscal flat

is standardization building reinvigorate improving capabilities. But growing and best to our and Our and Methode's elaborate. To organization. to to the transform practices, means It cost and foundation strong improving across transform global includes in focus Please That structure. performance. X, does leverage and metrics, what includes Slide plan with, order business. start let systems mean? and me turn utilizing transform operational cost That also driving tools the resetting means

resources, with Methode's culture. history. includes needs and that. to right our urgency That that earn next I rewarding of will sense to short, Lastly, leveraging performance. the of In organization confident the just am acting Returning do to it our it a chapter quarter. the shifting write global means the

on begin Let's Slide X.

$X and sales $XXX Our pretax were million. million, adjusted loss our was

program on were our in prior down the from end-of-life the ongoing launches drove due program gone most has absorption track lower elevated That expectations. sales the pretax continued the disclosed delays also for contributed Our sales impact 'XX. prior to fiscal previously The challenges. quarter. with volume, in from program a costs quarter our were the but segment. sales our our auto year Customer year, loss Overall, in comparisons the along roll-off with mainly to will of lighting sales program EV of

is profit gross loss one, sequential result. improvement. A improve contributed was we celebrate see the to it to to efforts good the loss, and a never better-than-expected but our However, will

our sales the increase Their in quarter. activity. consolidated fourth XX% EV from and to of quarter total, in the sequential a XX% were Turning

toward now the the of new fiscal a program wave of applications. As of we beginning at previously EV program communicated, power launches for we roll sizable are lighting had XXXX, and end a off EV

to grow further we our even for EV be should 'XX. such, percentage expect XX% As the over and fiscal

year, markets. construction While of several end automotive, markets currently there our key track the are and include headwinds sales commercial clearly for are our on Those in vehicles, agriculture.

America, in and team, its near-term addition, has is particularly EV North clearly market outlook softened. In the awesome

are conditions. market keenly year, are affirming So, while for we our monitoring guidance the we

market. had $XX we the are front, with quarter OEMs over order EV the rate reevaluating the in solid another program million for annual awards. On adoption clearly

subject the potential to of is due decisions delay to customer bookings pipeline market and/or As such, conditions. and/or reduction

balance the to sheet. Turning

We and are generating acute on it cash. an maintaining managing focus

As operations over reduced by million capital we from $XX in working cash by quarter. the million evidence, improved $X and

Lastly, cash was booking our performance also year covenants income complete better-than-expected were to the debt encouraging our the and in at stabilizing of the to It full quarter it see compliance start pretax was momentum with In on and flow. continue. have short, the end attention. a

million in we consoles run Motors. data I from a large a has from legacy This consecutive was for here to at sales the provide quarter annual production. our in key activity, Turning to the are of to on of details that now on navigating quarter rebound color Slide full of defense awards and X. supplying XX, second had center After Slide wins some identified a few represent are The launches $XX and data multitude The in All programs products General programs of X awards distribution we a anywhere there. in applications for power could awards. want EV, the to were the most timing solid center tremendous integrated centers. launch new from transition seeing a X are orders On lull in some more of programs. years range to for these now. be Methode and

in years, slowly one models over fiscal As that program, communicating go 'XX. we and the been another to fiscal has platforms The off. expected life It's 'XX few for past have lesser end significant various in and result in is rolling of a fiscal been now headwind 'XX.

lighting program. other The in a programs launching legacy sales went with net previously a program major market for end program us expect an other That and for That Methode off fiscal of in in for we 'XX in life is 'XX leads have thus fiscal positive roll launches, communicated fiscal for 'XX. us 'XX. Stellantis roll-offs EV are we headwind 'XX. versus activity, to several flat conditions EV impact and from Conversely, along is

Looking headwind offs Stellantis. a conditions and than along launches of impact in for fiscal final end even is from GM is That sales the more as overall market net net from programs organic positive we will other result expect EV more fiscal from further off out major roll launches, well program headwind the life The activity, of 'XX. to a going growth in significant 'XX. that expectation a with roll fiscal of the more as offset 'XX, appliance

As product transition, trends our we product adoption conditions, we navigate this remain to EV subject of and success launches. market the customers'

have line However, base. today, based on the is our this as and we projections our forecast customer sight of of of the

commercial of vehicles Turning than sales. auto were while headwinds, a expected. our was and quarter, concern. was in and particularly the XX. Key pretax at activity rebounded EV to market In for on XX% better loss track Slide our summary, are sales

the awards program consecutive quarter. for However, second were solid

balance and generating $X an delivering from maintained capital Lastly, and cash over million in million we the cash on $XX flow, sheet acute working reduction operations. focus in a

Going XX on to over simply to while execution long-term strategy. move and we We business program a return immediate journey launches with blocking we on it better executing tackling, creation. to beginning then we costs. address and forward, for while value the discussion can positioning focusing transform are are need intensely taking a actions Meanwhile, and forward to

including We team, also challenges. CFO these our and executive support are to building new CPO the

with results. 'XX 'XX, followed fiscal 'XX. sales for in be 'XX. on in who this organic a affirming At are our fiscal point, fiscal to financial goal year guidance I'll more To to in the transforming will growth call fiscal David, will be of turn a business provide of first and quarter we detail returning Lastly, succinct, our the flat sales by growth profitable profitability the over company the

David Rawden

everyone. Slide Thank XX. I'd to you, Jon, and turn please morning, you ask to good

this toward to ended by decreased in impact sales fourth program That market had sales the Also On and was the our partially roll-off $XXX.X in applications. basis, quarter. lighting for EV in vehicle, a The previously no in disclosed from in weakness an That was million products on year net sequential of XX%. X% of 'XX, quarter. this main and First were lighting quarter of compared sales last quarter in quarter sales Europe. offset weakness the construction agricultural commercial fiscal program decrease our growth $XXX.X was impacting Asia. end sales auto fiscal the a million 'XX fiscal

a the GAAP. On basis, from 'XX. $X.X operations reconciliation negatively fiscal due appendix measures First million, to lower a quarter and improved all million from adjusted was volume. loss million impacted for Please loss sales year-over-year to adjusted operations $X.X see adjusted quarter. sequentially was 'XX sequential fourth $XX of Income down the fiscal from from both

to program support Jon described. addition, In costs to launch the that have we launches numerous new continue high

to in track related had with first Hetronic also litigation. were full sales the We Overall, on the a legal our quarter year the discrete fee quarter expectations.

EBITDA and to Shifting XX. non-GAAP financial Slide measure. to Turning

the $X.X last First quarter same year. was gross profit. a The adjusted gross fourth lower a from in $X.X quarter. million by sequential profit. On On sequential by the 'XX warranty EBITDA a to negatively basis, EBITDA sales period the prior basis, $X.X adjusted improved EBITDA lower was million increases and result sales and improved as costs. million, price the the higher despite Compared year, of part was fiscal adjusted gross from higher EBITDA down impacted profit driven adjusted lower

Slide to Turning XX.

$X.X sales loss gross pretax lower recent impacted loss adjusted negatively $X.X similar loss On of a adjusted pretax $XX.X pretax by loss guidance quarter. basis, fourth 'XX. improved was this a million performance. basis, sales. from mainly exceeded of improved from our despite adjusted The a loss to 'XX quarter higher the fourth million the year, prior the quarter fiscal Compared lower adjusted First fiscal the down to On quarter million, was pretax profit. as sequential sequential result

share expense, from adjusted diluted basis, impacted was fiscal per quarter. period a loss $X.XX both First the 'XX earnings negatively per in both lower the interest adjusted from positive sequentially. a On $X.XX decreased loss the a fourth fiscal quarter higher year-over-year share same by The negative adjusted year. and and $X.XX share to last per sequential declined sales

foreign GILTI the year was tax compared to quarter loss impacted track treatment higher on prior expectations. This our earnings. adjusted was but quarter expense pretax due Overall, negatively the our first tax with to also on year full

activities pay ended the Turning was We use million. of was The $XXX.X to XX. in down $XXX.X debt, Net cash, to to was non-GAAP cash cash million debt. with our to million. activities. cash million $XX.X of year-end. Slide down Debt by financing financial due $XX.X primary use other increase The down quarter a by operating million the increased exceeded prior from measure $XX.X for that provided

of the our the end in We are debt first with compliance covenants quarter. all at of

Turning to XX. Slide

activities operating million in of was to net $XX.X The was quarter's negative million first 'XX. due working primarily $XX.X as million capital. a from $X.X The cash improvements in compared increase to fiscal

million. million as expenditures quarter a capital decrease to 'XX, slight fiscal were $XX.X million First $XX.X compared $X.X of in

a This good increase to First cash quarter reduced as $XX.X a flow, start financial million a million free non-GAAP on improvement an cash negative 'XX, to $XX.X which compared million. to fiscal negative historical year in free for was a measure, capital a was flow. fiscal working is primarily due the of basis, $X.X

Turning to Slide XX.

it is bottom guidance, best is change factors of forward-looking due to the Regarding on a as slide. variety estimates this subject based to management's and noted of at

than million; million $XX deferred $XX is and pretax $XX income and still depreciation first be recorded and 'XX, expense 'XX guidance fiscal GILTI mainly year fiscal a $XX the income net sales to treatment of be assets be expense for that the the of full of CapEx fiscal breakeven. the a significantly tax half we million valuation are million $XX in expected million, stronger adjusted is The fiscal $X.X the The tax million. 'XX for second pretax quarter $X This to first million 'XX For expected to of the of tax adjusted affirming expected to allowance amortization assumes similar and on year. to fiscal we half. to function tax of to approaching

'XX. ahead pretax my greater affirming This sales we be be fiscal net fiscal comments, can to and greater expected Looking concludes to up XXXX, further and year notably fiscal questions. are 'XX than positive go we than and income to to

Operator

question Baird. first Junk coming [Operator Your from Instructions] is Luke of

Luke Junk

on could with start especially I margin, automotive Hoping the and specifically. gross within

mentioned costs, I unpack quarters, absorption. last pressure just how has a quarter. You under especially Can know we cost of the quarters? improvement went about in you gross Hoping auto the being launch think margin Clearly, sustainable could margin, in the on in just that that. look as this that sequentially especially, the unpack been saw we overhead auto going there. couple there's you quarter at in what and lot gross of next right terms we as should few

Jonathan DeGaynor

question. for Thanks your

understand on operational hard, the the I driving only been team but think it's important to has not launches, working improvements. that on

on base, been of on So, is in seeing and increases of what America that's the in that price talked reductions particularly and supply improvement, reductions been previous our the work you're of regions, to in about that operations the then with of quarters. both North impact some cost EMEA have impact some our passed customers, price done impact of the we've

here. these improvements So, we continue gain feel will talked why to progress about in ongoing that quarter-over-quarter confident the basis and are a we on that momentum

Luke Junk

forward specific and the My earnings headwind are sales you're going your relevance that of a of off? little terms strategic fiscal to just second managing would of in that business? then the roll down seem from in like a the It in off roll that going interface lot question, the appliance there, how come that impact business 'XX, terms bigger at looking does just and picture view

Jonathan DeGaynor

Yes.

lighting as the we was the learn our you're interface seeing value create So, between And business I'm was us business how segments? we coming PaaS as for areas. the industrial launched critical controls some launched interface business the synergistic we the other and other GM our do -- business between for on of do look different automotive in some is side. how What business synergies to starting find to and us

that last this and bad space. perspective series new we here. as sales news mentioned about We this multiple it's we we whole talk launches with in being again side. is of So, year have the aligned from appliance next times, when XX filled programs, really The call some talked earnings trough XX the we in that seeing of megatrends that so a that appliance when are from see programs we're the year. over a we what the exciting all by But not mentioned have, do new an just you

industries going I'm the quite which are for and to well. where So, going as aligned we where different about confident be we're us in with opportunity the play

Luke Junk

question. And perspective. get then my your just to great last Jon,

here outlined you came your how just understand plans It you're focus Some been CEO job, improvement seat. for the maybe time, the some coming first the kind of structures was already had to with organization focus the on any of some into as great XX initial the in prioritizing team. would is your for days of that your place that that team you kind put and Obviously, be still leadership worth highlighting? to on folks other

Jonathan DeGaynor

Yes.

making our as sure multiple get that call, first right. is these during So, the priority said we times we launches

it's make make of are last then major the point to to sure get it a it weeks, I of challenges that to here region to also China that in I'll why made regions. couple I've to regions and So, be understand to customers. the a the talking the facing

So, first the is launches. regions and priority we're about making talking our that sure the

to make had is sure customer Secondly, and specific first some meetings. supporting customers launches of that we're appropriately in our rounds those

if number three number integrated that's two. Number really one driving will, priorities, financial and you improvement approach. So is an

be to and to do inventory as opportunities regard our in thing internal just it's holistic as cut reduction, what with headcount that to outside the facilities, entire we do supply reduction driving resources a are at driving holistically. us scrap perspective reduction do with well the plants, as use on the we in working what but customers have teams be we it's pricing the looking not at to looking well total doing costs, as additional to how be the the So, chain we with

be CPO and we're of capability, day every transition, that and to an me drive we Laura confident add building will a numerously allow the we I as that feel all the the I more build stage continuous really and the that leadership areas in will. the as The history. that approach. Dave like you if phase organization Erwin more is next that then As Methode making improvement us thinking out guess with for priority for the next and of of sure holistic, phase And John Methode, sets the last that team

of And we what XX-year-old the front say front and in and that the front when So, organization leadership. earn in stage phase ahead. set our the the to the and right down write in we shareholders history, need to of with customers decades next person our to our of of and months, the history we for comes organization a do X,XXX-plus take do next years, to

Operator

Your next question coming & is of Sidoti Company. John from Franzreb

John Franzreb

for guidance. for like lower I'd I'm and versus the past the outlook if with and in Despite any revenue change year-end? suggests curious you operating in profit maintained higher you're of sequentially, that looking to the the sequentially at market X start kind pretax what conditions months year.

David Rawden

taking play Not still, I how really. at mean, out. on a being to actually we we're this. the forecast still cautious We're year has look But things.

to good. have good I year. start the say a We shouldn't

we record it until but to the As loss, get was were guidance we is forward keep bit better go a it hoping we were a what we than we're John how quarters. the never But expecting. says, in little just going celebrate to track want of better we still where or

Jonathan DeGaynor

what credibility that doing to let make and to back had we sure said John, achieving historically. is, some me opposed of just And what our say we as credible. to comes build forth it's we're what And that down responsibility above we've and the on Dave say

we our the to was of any with in guidance of different quarter, the the go couple we that in I've and what us revenue the Dave further has and it been affirm X for turbulence. role last months look we but affirm challenges regard at until some thought when launches recognizing at We months. markets, here exogenous with so, our as And his And a the fact in well. that said not prudent been look for to end the headwinds just

is that sure we to explain prudent lay approached in in and which making So, our it way investors this why the out way. we've we're this

John Franzreb

Fair enough.

sure. we actually make remarks. things. margin Pricing gains I'm price issue left gross And did much the X, go-forward do price curious a impact One, on increases that referenced an much some profile you QX have how on your the for QX? run about Just prepared rate how on has price curious X wanted versus basis? you getting to I'm in time. do been quite in more

Jonathan DeGaynor

Yes.

on sort us in as some go to So, But of us we is our new have give to typically, basis. don't situations more customers. program and programs in what back to programs we of have a go we our the have put to customers you can as some I of some impact John, things, to exact rigorously a we it capital little and And order the that looked inventory quarter-by-quarter well have detail even you in to forced at say because it's longer support have running back as new where we place ramp-up. delay, requires on a

very numerous the customers think long-term be how and saying, new about what earlier what that of with it responded our performance businesses. is responsibility, programs, and going those conversations customer's I and is clear, our financial we at the when these of go the in looking programs, programs about each have responsibility things, transparent or we're and how our do is a they of and back So, all programs we

John Franzreb

worthy a certainly endeavor. It's

your certainly, the the Lastly, successful you opportunity is programs. launch comments chain? your chain what in in better mentioned on in supply handle after supply costs, But that's going you new after the procurement

Jonathan DeGaynor

Yes.

our eyes we've as Erwin, as the new John of looking both at fresh we help Officer, Chief Procurement So, had outside buy. really how well

material. might where we do structured, and places, order do schedule where, we thing but at same be the purchased there with multiple was how how also from the Looking organization how

at as be as can not to we say we are inventory our like that certainly look You and from an optimal standpoint. inventory

how It's of It's the comparison John, with us the structure. costs, allow chain on What we with solely. And on it cost. chain those. the not outside total of how regard do sitting it's team price, operations if a not we ship floors? support think as do those to, leading a you how about So, material, will. that's supply our just areas much supply I plant the inventory regions material, much is John, price-to-price about well as cost is in the way and is help the All thinking as to each to optimize procurement

Operator

next Your from Prestopino is Instructions] Research. [Operator question coming Gary Barrington of

Gary Prestopino

questions of couple A here.

First let talking a me little or bit a of all, year, guidance jump here. GAAP next your and you're pretax on basis When about is around an income for adjusted year this on basis? that

David Rawden

on an would That basis. be adjusted

Gary Prestopino

I that make Okay. clear. to just want

I'm So, increase sheet, inventories. balance in looking And at your okay? pretty a seeing I'm dramatic

sales I got a clocked and this a is decline the I on sequential at basis. it quarter, in on think XX%

So inventories the up sales to that you're as the due as being high to maybe, those explain relative with going to are why program down. could Is undertake? launches you growth these that

Jonathan DeGaynor

Yes.

if any color. let take I'll this, additional got he's So, add Dave Gary, and I'll

particularly things -- time the with long lead based to volumes have ramp best and regard customer on to put have pipeline We we up. in to assumption for materials, our

have you've in a that's started delay to launch, when a a so, filled at certainty. already be And you pipeline or filled a got

to it of mean some happening. on what's what to use ramp-up this you, plan plant when it actually and a sitting cost floors. the we means of there is So, doesn't It we just It those mismatch our I won't from material. are inventories say a between that that perspective

back what and said customers having those holding sort earlier, go we're goes all it to to I and to talk things. costs of so, back And about

chain are is about working on. an So, his just what much there opportunities is be and stumble, you're that execution it of certainly optimization delays John But team launches. and as that's here optimization. And the inventory seeing supply for as key one not will things in

Gary Prestopino

Okay.

Stellantis next when that got don't your me be mean gets bridge to I but putting you're So program launches. Jon. sales nitpicky, here, out question, to my you've

You've got $XX $XXX next for year, for year. million million this

to products First liberty And are that on? ICE? discuss hybrid going or you're you of the all, at they to launching just models be are

Jonathan DeGaynor

how not fiscal XX% programs. to EV and they're from what to these program, So talked But But about in about over talked EV going EV about upgrading that, talk it's programs, the we we're being quarter of XX% the that rest platforms. specific we the it up in end to and year. specific EV the XX% are forward going you

Gary Prestopino

Okay.

just that going be? difficult -- Stellantis to is to around, with an this trying has Or I'm on So, get on get is models now, what this right are number. idea that handle a to with this how based on from take I'm trying is their and said are you be they number you Stellantis guys? have, what having is getting of -- I'm you're what their projecting Jon, to trying get lots. problems really just Because inventories to I'm how their sizing rate And

Jonathan DeGaynor

as Gary, smart previous see releases lives, do be in what about And perspective. about but we also are, from about think certainly, things. look IHS we have we we these what to at talked we do So, customer how an then

also confidence how with the have depending waiting is And goes. so, understand the take this on actions some economic other that but against we we may that ramp-up it,

may for with So, revenue a not ramp correlation their part-to-part our be us up.

that world. So, we have detail. watch are we Remember in this launches that around also the

hybrids sales, providing So, bigger easy regions we're the more a but power of it's in in well. we're and China spread get and actually the a to world, as those distracted from Europe. EVs of on EVs, rest It's America North of the products in with world, and penetration percentage around the advanced perspective to all news in and regard

Gary Prestopino

plants Mexico, your addressing the said with of I'm I comment, there's dwell dealing can on, with personnel your in happening areas in So, then think various scrappage? of rectified has some detail. of I these too. the too of obviously, wanted in you And plants? improvement be much worldwide. without other things you've throughput, touch what guess, current areas thing opening Particularly, the you Is this been your Jon, that I to been is just said And one improvement, to at

Jonathan DeGaynor

had confident lot Farrugia understand lot down There's them. of of I of challenges front the them very and and not have and ability important those productivity very in a them, be the the proud team absolutely clearly in we take much Philip yes, of done. a of XXXX. are leadership are progress activities customer, Mexico. guys remarks plants. mean Not fairly not take is the would and does in scrap a Let and The premium that to me couple are year-over-year mentioned the it's Mexico we that facilities in that better. is And that And improvement. we that basis to give am only outside a they've in significant a has our I've the world-class, that make only the help Mexican what are given there, those facilities. the portion there to I be operational in from that giving company, a of on shout my It happened a done Part Mexican But facilities freight feedback really out plants are of team that progress I issues much, to There actually they to made, their too. improvement fiscal there. the

Operator

of Franzreb John from coming is Sidoti question & next Company. Your

John Franzreb

a number? a this is that of question that that Just the on numbers the you have compared to $XX adjusted as million. a expense line tax And Is number non-GAAP you some $X really have quick guidance. other million the GAAP to

David Rawden

year. the tax be That the would what for would an of estimate be GAAP

John Franzreb

All right.

and out, to a the will some on happened out balance have should that about basis of in go-forward think adjust make right? assumptions kind we two quarter first So, we it? That's how those what

David Rawden

for expect we we quarter, $X it and as $X the in would be $XX million, that year, what first to I we million. it would recorded million think -- the about about recorded the the

John Franzreb

another start of just should automotive thinking what new out, programs recent you've business? thought we be on the the side the EV as And roll the about in getting programs relative -- margin to to been how the on EV contribution

Jonathan DeGaynor

lot if about seeing reviewed we a sure a the think is I'm that and contribution from appropriately. I feel minimum initial John, execution But based margin not driving standpoint. I got where we at actually where are it a performance programs accretive make financials on margin that yesterday, par, on actually, good what programs need to on some I the We've a we're perspective. gross are, based challenges, and of from from really I

Operator

reached closing session. we have end back will question-and-answer over to Thank of I our much. hand Jon for Well, any to you very now appear the remarks.

Jonathan DeGaynor

Yes. Thank want time for interest to all your in today for who your us I people And you, Methode. of operator. thank joined the and

again and the team, committed will, next of we if the organization, leadership a building to earning you and talking quarter. this very your much. As Thanks you forward we're look to in trust capability to,

Operator

you much. very conclude This conference. does today's Thank

your disconnect have phone may at Thank wonderful lines You for you this your participation. and a time, day.

Methode Electronics (MEI) 5 Sep 242025 Q1 Earnings call transcript