Methode Electronics, Inc. (MEI) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

positioned us for future growth and operational efficiency. We look forward to being closer to our automotive customers and to having almost all of our functions under one roof. Please turn to slide five. Methods power solutions offerings actually go back more than 60 years, and we are using this history and our expertise to bring solutions to our customers. Our data center activity was just over $40 million in fiscal 2024, and last year generated over $80 million in annual sales. We continue to expect to see long-term growth in this area. One of the most exciting aspects for me in this business is the ability to apply core competencies that have been built over decades to current and future products in different end markets. These capabilities can be brought to bear to better address the megatrend-fueled opportunities in the EV and data center spaces. Looking ahead, as we implement more customer-focused solutions like vendor-managed inventory, utilize our global footprint more aggressively, and develop solutions for problems like high voltage and data centers, it provides us with opportunities to differentiate method in ways that we have not in the past. We continue to expect our fiscal 2026 power sales to be in line with fiscal 2025. We also expect a sales acceleration in the future as our data center growth strategy positions us to take a larger share of customer demand. Our power solution offerings are clearly a long-term growth engine for Method. Please turn to slide six. As you think about the transformation of Method, it has been a journey, and the starting point for that 18-month journey was to stabilize the base. It started by fixing launch execution, and we had 50-plus launches between fiscal 2025 and fiscal 2026 to deliver, while improving customer satisfa...