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Methode Electronics, Inc. 2025 Sidoti Small Cap Conference Jon DeGaynor, President and CEO September 18, 2025
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2 Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect, when made, our current views with respect to current events and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to our operations and business environment, which may cause our actual results to be materially different from any future results, expressed or implied, by such forward-looking statements. All statements that address future operating, financial or business performance or our strategies or expectations are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “outlook” or “continue,” and other comparable terminology. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: • Dependence on the automotive, commercial vehicle, and construction industries; • Timing, quality and cost of new program launches; • Changes in electric vehicle (“EV”) demand; • Investment in programs prior to the recognition of revenue; • Impact from production delays or cancelled orders; • Changes in global trade policies, including tariffs; • Failure to attract and retain qualified personnel; • Impact from inflation; • Dependence on the availability and price of materials; • Dependence on a small number of large customers; • Dependence on our supply chain; • Risks related to conducting global operations; • Effects of potential catastrophic events or other business interruptions; • Ability to withstand pricing pressures, including price reductions; • Ability to compete effectively; • Our lengthy sales cycle; • Potential work stoppages; • Ability to successfully benefit from acquisitions and divestitures; • Ability to manage our debt levels; • Ability to comply with restrictions and covenants under our credit agreement; • Interest rate changes and variable rate instruments; • Timing and magnitude of costs associated with restructuring activities; • Recognition of goodwill and other intangible asset impairment charges; • Risks associated with inventory; • Ability to remediate a material weakness in our internal control over financial reporting; • Currency fluctuations; • Income tax rate fluctuations; • Judgments related to accounting for tax positions; • Risks associated with litigation and government inquiries; • Risks associated with warranty claims; • Impact of changing government regulations; • Changing requirements by stakeholders on environmental or social matters; • Effects of IT disruptions or cybersecurity incidents; • Ability to innovate and keep pace with technological changes; and • Ability to protect our intellectual property. Additional details and factors are discussed under the caption “Risk Factors” in our periodic reports filed with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. Any forward-looking statements made by us speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward- looking statements, whether as a result of new information, subsequent events or otherwise.
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To supplement the company's financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Methode uses Adjusted Net Income (Loss), Adjusted Diluted Earnings (Loss) Per Share, Adjusted Pre-Tax Income (Loss), Adjusted Income (Loss) from Operations, EBITDA, Adjusted EBITDA, Net Debt and Free Cash Flow as non-GAAP measures. Reconciliation to the nearest GAAP measures of all non-GAAP measures included in this presentation can be found at the end of this presentation. Methode's definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP . The company believes that these non-GAAP measures are useful because they (i) provide both management and investors meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results, (ii) permit investors to view Methode's performance using the same tools that management uses to evaluate its past performance, reportable business segments and prospects for future performance, (iii) are commonly used by other companies in our industry and provide a comparison for investors to the company’s performance versus its competitors and (iv) otherwise provide supplemental information that may be useful to investors in evaluating Methode. 3 Non-GAAP Financial Measures
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Continued Growth in Power Products Sales including Data Centers Three Straight Quarters of Strong Free Cash Flow and Net Debt Reduction 4 Key Messages Transformation is On Track Income from Operations up $9M in Q1, Driven by Significant S&A Reductions and Ongoing Operational Improvements Fiscal 2026 Guidance Affirmed Outstanding Methode Team Effort
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Established 1946 Headquartered in Chicago, IL NYSE: MEI ~6,500 Employees A leading global supplier of custom-engineered solutions for user interface, lighting system, and power distribution applications in the transportation, construction equipment, and cloud computing end markets. 5 Methode at a Glance 49% 46% 5% 45% 40% 15% 45% 27% 24% BY REPORTING SEGMENTS BY SOLUTIONSBY GEOGRAPHY FY 2025 SALES $1.05B Asia Europe & Africa North America Automotive Industrial Interface Lighting User Interface Power Sensors 2% Other 2% Tier 1 Technology Supplier
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Global Manufacturing Footprint 6 Cost-Efficient Global Footprint – “Make Where We Sell” Suzhou, China
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Methode Leveraging 60+ Years of Power Distribution Expertise and Experience Recent Growth Driven by Electric Vehicles (EVs), Data Centers and Mil/Aero Supplied Busbars on EV for the Past 10+ Years Supplied Busbars for Data Centers for the Past 15+ Years Supplied Busbars for Mil/Aero for Past 25+ Years Sales CAGR of 30% since Fiscal 2022 Products Expected to Drive Further Growth: High-Voltage Busbars for Data Centers Interconnect Boards for EVs Advanced Power Products for Mil/Aero Applications 7 Power Solutions Enterprise $116 $153 $189 $252 FY22 FY23 FY24 FY25 * Compounded Annual Growth Rate Power Solutions Sales ($ millions) EV Data Center Mil/Aero Investing in Power Solutions Growth Engine Other
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8 Transformation Update Continuing to Build Foundation to Drive Consistent Execution Stabilize the Base - Drive Launch Execution - Revamp Mexico and Egypt Plants - Build Executive Team Install New Team - Diagnose Operations and Supply Chain - Apply Global Approach - Rebuild Next Level Organizational Talent Remediate Practices - Address Inventory Management - Focus on Working Capital - Globalize Engineering, Product Management and Supply Chain Leverage Synergies - Utilize Core Competencies for Growth - Capitalize on Data Center and EV Megatrends - Consolidate Footprint - Review Portfolio 0-6 Months 6-12 Months 12-18 Months Where We Are
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9 How We Continue to “Earn the Right” Fiscal 2026 Improvement Priorities Continue Foundational Actions Execute Program Launches Drive Operational Execution Accelerate Lower-Level Team Rebuilding Refine Organization to Harmonize with Market Opportunities Plant and SG&A Rightsizing Footprint Consolidation Address Business Structure and Capital Discipline Board Size Reduction Headquarters Relocation Dividend Adjustment Portfolio Review Align Portfolio & Product Development with Megatrends to Drive Growth Data Centers Vehicle Electrification Industrial Lighting Foundational Actions of FY25 Position FY26 for Success
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10 Fiscal 2026 Full Year Guidance Affirmed • Net sales range of $900 million to $1,000 million • FY25 was a 53-week fiscal year, and FY26 is a 52-week fiscal year • EBITDA range of $70 million to $80 million • Second half of fiscal year expected to be higher than the first half • Free cash flow expected to be positive for FY26 Fiscal 2026 Guidance Assumptions • Current market outlook based on third party forecasts & customer projections • Current U.S. tariff policy • Depreciation and Amortization of $58 - $63 million • CapEx of $24 - $29 million • Interest Expense $21 - $23 million • Tax Expense of $17 - $21 million, of which $10 - $15 million is for valuation allowance on deferred tax assets Guidance is subject to change due to a variety of factors including tariffs, the successful launch of multiple new programs, the ultimate take rates on EV programs, success and timing of cost recovery actions, inflation, global economic instability, supply chain disruptions, transformation and restructuring efforts, potentia l impairments, any acquisitions or divestitures, and legal matters. Guidance $1,115 $1,048 $950 FY24 FY25 FY26 Guidance Midpoint $55 $43 $75 FY24 FY25 FY26 Guidance Midpoint Sales Adj. EBITDA* * See Appendix for reconciliation to GAAP ($ in millions) ($ in millions) As % of Sales 5.0% 4.1% 7.9%
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Thank You
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Appendix 12