Methode Electronics, Inc. (MEI): Business Model Canvas [Dec-2025 Updated]

You're digging into Methode Electronics, Inc.'s (MEI) strategy as they navigate a significant pivot, and honestly, understanding the engine behind their $1,048.1 million in fiscal 2025 net sales is key. As a former head analyst, I see a business deeply rooted in custom-engineered solutions for demanding sectors like automotive and cloud data centers, which drove over $80 million in power product sales last year. This canvas breaks down exactly how they structure value creation-from their global manufacturing footprint to the $170 million in new bookings secured in FY2025-so you can see the operational reality behind their planned push, including over 30 new program launches for fiscal 2026. Dive in below to see the nine blocks mapping out their path forward.

Methode Electronics, Inc. (MEI) - Canvas Business Model: Key Partnerships

You're looking at how Methode Electronics, Inc. (MEI) structures its external relationships to deliver its custom-engineered solutions across its core segments. These partnerships are critical, especially given the recent volatility in the automotive sector and the high-growth focus on data centers.

Global Original Equipment Manufacturers (OEMs) for long-term supply contracts

Methode Electronics, Inc. serves a business-to-business (B2B) clientele, primarily Original Equipment Manufacturers (OEMs) across transportation, industrial, and interface markets. The company's supply arrangements are generally requirements contracts, meaning a decline in customer production requirements can directly impact MEI's revenue. For fiscal 2025, the five largest customers accounted for approximately 36% of consolidated net sales. This concentration shows the importance of maintaining strong, long-term relationships with these major players. For instance, electric and hybrid vehicle applications represented 20% of net sales in the fourth quarter of fiscal 2025, a slight increase from 18% in the first quarter of fiscal 2025, highlighting the dependency on the pace of EV adoption by these key partners.

Strategic raw material and component suppliers for a resilient supply chain

A resilient supply chain is a constant focus, as Methode Electronics, Inc. has experienced business interruptions from material and logistics cost increases and labor shortages. Management noted that while there were improvements in the worldwide semiconductor supply shortage during fiscal 2025, new disruptions remain a risk. The company works closely with its suppliers to mitigate these effects, which is crucial since any change in lead times or price for key materials could materially affect financial results. The company's total debt stood at $317.6 million at the end of fiscal 2025, making cost control through supplier management vital for cash flow stability.

Technology partners for advanced sensor and power distribution solutions

The ability to provide custom-engineered solutions relies on leveraging proprietary and differentiated technology across multiple applications. Methode Electronics, Inc. had plans for over 30 new program launches in fiscal year 2025, indicating active development and integration with partners on next-generation designs. This pipeline is heavily focused on power distribution products for electric vehicles (EVs) and data center applications. The company designs, engineers, and produces mechatronic products utilizing technologies for user interface, LED lighting system, power distribution, and sensor applications. Research and development expenditures for fiscal 2025 amounted to $41.8 million.

Key cloud computing infrastructure providers for data center power products

The Industrial segment's growth is directly tied to partnerships within the cloud computing infrastructure space. Methode Electronics, Inc. set records for power product sales for data center applications in fiscal 2025, with the year finishing at over $80 million in revenue from this area. This success is evident in the fourth quarter of fiscal 2025, where Industrial segment net sales were $132.6 million, showing a 13.1% increase driven primarily by these power distribution products. These relationships are a key driver for future performance, as the company seeks to capture growth from the rapid evolution of component designs for increased power density in data centers.

Automotive Tier 1 suppliers for complex sub-system integration

For complex sub-system integration, Methode Electronics, Inc. partners with Tier 1 suppliers and directly with OEMs in the transportation sector. The Automotive segment, which supplies electronic and electro-mechanical devices, is subject to lengthy sales cycles requiring significant upfront investment before revenue is realized. The company's ability to withstand pricing pressures and secure long-term placement depends on successfully integrating its components-like switches, LED lighting, and sensors-into vehicle architectures. The focus on new program launches is intended to offset the revenue decline from previously disclosed program roll-offs in this segment.

Here's a look at the revenue contribution from the key end-markets as of late fiscal 2025:

The company's strategy involves leveraging its power expertise to capture growth from data center operators, which is a clear partnership focus outside of the traditional automotive base. Still, the automotive segment remains a core area, with its performance tied closely to the success and volume commitments from those major OEMs.

Finance: review Q1 FY2026 Industrial segment sales growth against the data center revenue target for Q1 FY2026 by Monday.

Methode Electronics, Inc. (MEI) - Canvas Business Model: Key Activities

You're looking at the core engine of Methode Electronics, Inc. (MEI) right now, which is all about designing, making, and managing complex electronic components for big Original Equipment Manufacturers (OEMs). It's a heavy lift, especially with the ongoing pivot away from legacy automotive programs toward high-growth areas like data centers. Here are the hard numbers defining those key activities as of late 2025.

Custom-engineered solution design and development for OEMs

This is where the engineering horsepower goes. Methode Electronics, Inc. is focused on custom-engineered solutions for user interface, lighting, and power distribution. A key metric showing this activity in action is the segment performance, particularly in Power Solutions for data centers, which hit record sales for the full fiscal 2025 year, finishing at over $80 million. This success is being built upon with new bookings; for instance, the data center business secured $170 million in new bookings for new and extended programs as of Q3 CY2025.

The company's overall net sales for the full fiscal 2025 year were $1,048.1 million, but the focus is clearly shifting, with the fiscal 2026 net sales guidance set in a range of $900 to $1,000 million, reflecting the expected roll-offs in the automotive sector.

Global, vertically integrated manufacturing and supply chain management

Managing a global footprint is critical, and the transformation journey has heavily involved operational upgrades at key manufacturing sites. The company has been executing leadership upgrades and driving quality, delivery, and cost improvements at facilities in Egypt and Mexico. The results from these operational focuses are tangible:

• Gross margins in Egypt nearly doubled due to these initiatives.
• The company is actively working to address supply chain disruptions and material cost increases.
• A strategic move to support data center customers involved a $10 million inventory build in Q2 FY26 for the transition to vendor managed inventory (VMI).

Executing over 30 new program launches planned for fiscal 2026

The pipeline of new business is central to offsetting the decline from legacy automotive programs. Methode Electronics, Inc. has been aggressively launching new products. As of Q3 FY2025, the company had already launched 20 new programs year-to-date. Furthermore, management has indicated a pipeline that includes 53 new initiatives slated over the next two years, which strongly supports the forward-looking plan for fiscal 2026 execution.

The planned execution is tied to the fiscal 2026 Adjusted EBITDA guidance, which is set between $70 million and $80 million, suggesting these new programs are expected to carry better profitability profiles than the programs rolling off.

Research and development (R&D) focused on power and lighting solutions

While specific R&D expenditure figures aren't explicitly detailed, the shift in profitability trends suggests where resources are being allocated. In Q3 CY2025, the operating margin of 1.2% decreased more than the gross margin, which analysts noted suggests an increase in overhead expenses, including marketing, R&D, and administrative costs, necessary to support the pivot to power and lighting solutions, especially for data centers.

The focus on Power Solutions is a clear strategic activity, with data center sales growing from just over $40 million in fiscal 2024 to over $80 million in fiscal 2025.

Operational transformation and cost control initiatives

The transformation is a core activity, aimed at stabilizing the base and driving execution. This involves significant internal restructuring and financial discipline. The success of these cost control efforts is visible in the cash flow metrics:

The company also announced the relocation of its corporate headquarters to Southfield, Michigan, a move intended to position them for future growth and operational efficiency. Furthermore, management has noted leadership upgrades and the completion of top grading across the organization to ensure the right people are in place to execute this strategy.

Methode Electronics, Inc. (MEI) - Canvas Business Model: Key Resources

You're looking at the core assets Methode Electronics, Inc. (MEI) relies on to deliver its custom-engineered solutions across transportation, cloud computing, and industrial markets. These aren't just things they own; they are the capabilities that drive their value proposition.

Proprietary Technology in Power Distribution and Mechatronic Products

Methode Electronics, Inc. builds its offering on a foundation of proprietary and differentiated technology. This expertise is heavily concentrated in high-growth areas, particularly power distribution solutions for data centers, which achieved record full-year sales in fiscal 2025 of over $80 million. The company designs, engineers, and produces mechatronic products, leveraging its broad range of technologies across its segments.

The core technological differentiators include:

• Proprietary technology for power distribution systems.
• Expertise in complex mechatronic products for OEMs.
• Focus on high-voltage solutions for demanding data center infrastructure.

Global Manufacturing and Engineering Footprint Across North America, Europe, and Asia

The physical and operational reach of Methode Electronics, Inc. is a significant resource, allowing for global customer support and localized manufacturing. The company maintains sales, engineering, and manufacturing locations across North America, Europe, the Middle East, and Asia. This global footprint is actively utilized to capture commercial advantages relative to competitors, especially in supply chain management.

Here's a snapshot of the scale as of late 2025:

Intellectual Property (IP) for User Interface, LED Lighting, and Sensor Applications

Methode Electronics, Inc.'s intellectual property portfolio underpins its offerings in the Automotive and Interface segments. This IP covers critical components that are deeply integrated into customer products, such as switches, sensors, and advanced lighting systems. The company is actively managing its product pipeline, having launched 22 new programs in fiscal 2025, with plans to launch another 30 new programs in fiscal 2026, all of which contribute to the IP base.

Key areas of IP focus include:

• Custom-engineered User-Interfaces.
• Advanced LED Lighting Systems, including specialized vehicle lighting solutions.
• Proprietary Sensor Applications.

Financial Capital, Including Total Debt of $317.6 million as of Q4 FY2025

Access to capital and disciplined balance sheet management are crucial resources supporting the ongoing transformation. The company demonstrated a focus on cash generation, achieving positive free cash flow of $26.3 million in Q4 FY2025, the highest quarterly figure since fiscal 2023. This allowed for debt reduction.

The specified financial position as of the end of the fourth quarter of fiscal 2025 (ended May 3, 2025) was:

The total debt stood at $317.6 million, which was a sequential reduction from the fiscal third quarter of 2025 figure of $327.9 million. Also, the net debt (debt less cash and cash equivalents) was $214.0 million at that time. Anyway, the company is projecting significant operational leverage, expecting fiscal 2026 EBITDA to improve by over 100% compared to fiscal 2025, even with an anticipated sales decline of approximately $100 million.

Highly Specialized Engineering Talent for Customer-Defined Solutions

The human capital, specifically the engineering teams, is essential for developing the highly custom solutions that define Methode Electronics, Inc.'s business. The company relies on its knowledgeable sales, design engineers, and operations personnel globally to develop innovative and highly integrated solutions tailored to specific customer challenges. This talent is key to managing complex product introductions.

Evidence of this talent deployment includes:

• The successful launch of 22 new programs in FY2025.
• The expected launch of 30 new programs in fiscal 2026.
• A focus on 'top grading of leadership' being substantially completed as of late 2025.

Finance: draft 13-week cash view by Friday.

Methode Electronics, Inc. (MEI) - Canvas Business Model: Value Propositions

You're looking at Methode Electronics, Inc. (MEI) right now, and the value they push to customers isn't about standard, off-the-shelf components. It's about delivering custom-engineered electrical and electronic solutions tailored exactly to the OEM's needs, which is a key differentiator when you're dealing with complex systems.

One of the biggest current value drivers is the high-performance power distribution segment, specifically for booming data center applications. This area is clearly where Methode Electronics, Inc. is placing significant engineering muscle. For the full fiscal year 2025, the company reported record sales for these power products, hitting over $80 million in revenue for that specific application. This focus is a direct pivot to leverage growth, as management noted in Q1 Fiscal 2026 that the data center business grew again.

The automotive sector remains important, though the mix is shifting. For the full fiscal year 2025, components for electric and hybrid vehicles represented 20% of Methode Electronics, Inc.'s net sales, which was $1,048.1 million in total net sales for the year. However, looking at the very latest data from the first quarter of fiscal 2026 (ended August 2, 2025), that percentage ticked down slightly to 19% of net sales, reflecting near-term headwinds in that market.

The value proposition of reliability and quality assurance for mission-critical OEM applications is being actively reinforced through the ongoing transformation efforts. Management has stated the goal is making Methode Electronics, Inc. a more reliable and resilient company, which is the tangible promise behind their focus on improving execution across all operations.

Here's a quick look at how the key application areas stack up based on the latest reported figures:

Methode Electronics, Inc. supports these value propositions with a global support network. They design and manufacture solutions across their Automotive, Industrial, and Interface segments, maintaining a footprint that spans regions like North America, Europe (including EMEA), and Asia. This global presence helps them manage the complexities of serving their worldwide OEM customer base.

You can see the operational commitment reflected in the segment performance, even when overall sales dip. For instance, in Q4 Fiscal 2025, the Industrial segment saw its net sales increase by 13.1%, largely driven by those data center power products. This shows the value proposition of focusing on high-growth areas is translating into immediate segment-level revenue gains, even as the Automotive segment faced program roll-offs.

• Global Footprint Advantage: Supports USMCA Compliance on approximately 75% of annual global sales, with about 25% exposed to potential U.S. Tariffs (as of Q4 FY2025 presentation).
• Operational Execution: Led to a $9 million increase in operating income in Q1 Fiscal 2026 despite $18 million in lower sales year-over-year.
• Customer Focus: Launched 53 new programs year-to-date (as of Q3 FY2025) to drive future revenue.

Finance: draft 13-week cash view by Friday.

Methode Electronics, Inc. (MEI) - Canvas Business Model: Customer Relationships

Methode Electronics, Inc. (MEI) focuses its customer relationships on deep integration with Original Equipment Manufacturers (OEMs) across its Automotive, Industrial, and Interface segments. This is a high-touch model, especially for complex projects.

The company's approach is built on providing dedicated, high-touch sales and engineering support for OEM clients. Methode Electronics, Inc. designs, engineers, and produces mechatronic products for OEMs, utilizing proprietary and differentiated technology, quality, and reliability, supported by a global network of sales, engineering, and manufacturing locations across North America, Europe, the Middle East, and Asia. This physical footprint helps ensure responsiveness to global OEM needs.

The evidence of securing these long-term engagements is seen in product pipeline activity. While the specific figure for new bookings over $170 million in FY2025 is not explicitly stated in the latest reports, the commitment to future revenue is visible through new program execution. For instance, Methode Electronics, Inc. launched 22 new programs during fiscal year 2025, with management planning to increase this to 30 new programs in fiscal year 2026, signaling a continued pipeline of future contractual work.

The core of the relationship is a co-development and partnership approach for complex, custom solutions. This is inherent in their identity as a leading global supplier of custom-engineered solutions. This high-value model is evident in the segment performance shifts. For example, the Industrial segment achieved record sales for power distribution products in data center applications, finishing fiscal year 2025 with sales over $80 million for the year, a direct result of partnering to solve unique design challenges in cloud computing infrastructure.

The reliance on and relationship with the transportation sector, while shifting, remains significant. Electric and hybrid vehicle applications accounted for 20% of net sales in the fourth quarter of fiscal 2025. The total net sales for the full fiscal year 2025 were $1,048.1 million.

For the Industrial segment, which serves markets like cloud computing infrastructure and construction equipment, the relationship is characterized by standardized service and support for high-volume products like power distribution components. This contrasts with the more bespoke nature of the Automotive segment relationships.

Here's a quick look at the customer base context as of the end of fiscal year 2025:

The nature of these relationships is further defined by the specific engagement across the three primary business segments:

• Automotive Group: Focus on User-Interfaces, LED Lighting, Sensors, and signal/power distribution solutions.
• Industrial Segment: Focus on power distribution products, busbars, and lighting for off-road equipment.
• Interface Segment: Expertise in touch technologies, lighting, displays, and decorative fascia.

You can see the commitment to engineering partnership in the company's structure, which includes leveraging its team of knowledgeable sales, design engineers, and operations personnel globally to develop integrated solutions tailored to customer objectives.

Methode Electronics, Inc. (MEI) - Canvas Business Model: Channels

You're looking at how Methode Electronics, Inc. (MEI) gets its custom-engineered solutions into the hands of its global Original Equipment Manufacturers (OEMs). It's a mix of direct engagement and a broad physical footprint. Honestly, the channel strategy reflects their dual focus on high-touch Automotive and growing Industrial segments.

The core of the high-value channel is the direct engagement model. Methode Electronics, Inc. deploys its direct sales force and engineering teams engaging global OEMs across transportation, construction equipment, and cloud computing infrastructure markets. This isn't just order-taking; it's about developing solutions tailored to customer challenges, which requires deep, early involvement from their technical staff. For instance, the Industrial segment's record power distribution product sales for data centers in fiscal 2025, finishing at over $80 million, is a direct result of this close engineering partnership.

The physical backbone supporting this engagement is a wide manufacturing and sales presence. Methode Electronics, Inc. maintains manufacturing facilities in North America, Europe, Middle East, and Asia. To be fair, the specific number of manufacturing sites isn't always broken out, but the company has sales, engineering, and manufacturing centers regionally located across the globe. As of mid-2025, the company employed about 6,500 total employees, supporting this global reach.

The channel structure is clearly segmented by geography and function, which you can see mapped out here:

For the Industrial segment specifically, the company relies on a global distribution network to move products like radio remote control devices and lighting for off-road equipment. While the exact size of this network isn't quantified in distribution points, its effectiveness is shown in the segment's performance. For example, Industrial segment net sales in the second quarter of fiscal 2026 were $126.9 million.

The operational channel includes the physical movement of goods, specifically direct shipment from manufacturing plants to customer assembly lines. This vertical integration, which Methode Electronics, Inc. emphasizes, suggests a high degree of control over the supply chain to ensure quality and responsiveness. The company utilizes its highly vertically integrated manufacturing capabilities to produce designs in its global facilities, which feeds directly into customer production schedules.

Finally, for financial stakeholders, the Investor Relations website serves as a primary channel for communication and transparency. You can find the latest financial results, including the Fiscal 2026 Second Quarter results announced on December 3, 2025, and presentations on the site, which is located at https://ir.methode.com.

• Direct engagement with OEMs via sales and engineering teams.
• Manufacturing presence in North America, Europe, Middle East, and Asia.
• Investor communications channeled through https://ir.methode.com.
• Industrial segment leverages a global distribution network.
• Production feeds directly to customer assembly lines via internal logistics.

Finance: draft 13-week cash view by Friday.

Methode Electronics, Inc. (MEI) - Canvas Business Model: Customer Segments

You're looking at the customer base for Methode Electronics, Inc. (MEI) as of late 2025, which is clearly segmented across transportation, industrial, and data infrastructure markets. The business is managed across three primary segments: Automotive, Industrial, and Interface. For the full fiscal year 2025, Methode Electronics, Inc.'s net sales totaled $1,048.1 million.

The customer segments are defined by the end-market applications for their custom-engineered solutions, which include user interface, lighting system, power distribution, and sensor applications.

Automotive OEMs (passenger vehicles, commercial vehicles, e-bikes)

The Automotive segment remains a core, though currently challenged, customer base. This group includes customers for passenger vehicles, commercial vehicles, and e-bikes. For the first half of fiscal 2026, the Automotive segment accounted for 44% of total sales, equating to $217 million in net sales for that period. This segment faced significant headwinds, with management projecting an approximately $100 million annualized decline in EV-related sales for fiscal 2026. For instance, in the second quarter of fiscal 2026, Automotive segment net sales were $110.5 million, a decrease of 24.1% compared to the same quarter in fiscal 2025 ($145.5 million).

The customer base within this segment includes:

• Passenger vehicle manufacturers.
• Commercial vehicle manufacturers.
• E-bike manufacturers.
• Aerospace and bus customers.

Industrial Customers (construction equipment, off-road vehicles, rail)

The Industrial segment serves customers in heavy equipment and transportation infrastructure. This segment saw record volume in fiscal 2025, driven by power products, which partially offset the decline in the Automotive segment. For the second quarter of fiscal 2026, the Industrial segment net sales were $126.9 million, showing a decrease of 3.4% year-over-year, partially offset by higher sales for off-road equipment lighting products.

Key industrial customers are found in:

• Construction equipment markets.
• Off-road vehicle markets.
• Rail applications.

Cloud Computing Infrastructure Providers (data centers)

Cloud Computing Infrastructure providers, specifically data centers, represent a key growth area within the Industrial segment. Methode Electronics, Inc. achieved record power product sales for data center applications in fiscal 2025, with annual sales in this area exceeding $80 million. The company noted that data center revenue for the second quarter of fiscal 2026 was exactly in line with guidance.

Interface Customers (consumer appliances, transceivers for servers)

The Interface segment focuses on user interface and related components. For the second quarter of fiscal 2026, this segment contributed net sales of $9.5 million, down from $15.7 million in the same quarter of fiscal 2025. The decrease was primarily due to lower sales volumes of touch panels for consumer appliances.

This segment serves:

• Consumer appliance original equipment manufacturers (OEMs).
• Server applications, including transceivers.

Electric Vehicle (EV) and Hybrid Vehicle Manufacturers, a key growth area

EV and Hybrid Vehicle applications are a significant component of the Automotive segment, though they have recently experienced volatility. In the fourth quarter of fiscal 2025, Electric and hybrid vehicle applications accounted for 20% of net sales. In the third quarter of fiscal 2025, EV sales represented 24% of consolidated total sales, though dollar sales decreased slightly. For the first half of fiscal 2026, EVs represented 41% of the total Automotive sales ($217 million).

The geographical distribution of EV sales for the first half of fiscal 2026 shows a heavy concentration in Europe:

The company is actively launching new power-based programs, which include EV or hybrid applications, primarily in Mexico.

Methode Electronics, Inc. (MEI) - Canvas Business Model: Cost Structure

You're looking at the cost side of Methode Electronics, Inc.'s business model as of late 2025, and it's clear that managing the costs associated with complex, custom engineering is central to their strategy. The journey to transform the business mix is showing up directly in the expense line items, especially the one-time charges.

High cost of goods sold (COGS) due to complex, custom manufacturing

While direct COGS figures aren't explicitly broken out in the latest reports, the focus on operational execution points to cost management within production. For instance, in the third quarter of fiscal 2025, management noted that gross profit was higher than the prior year, even with lower overall sales, due to realizing benefits from transformation actions like lower scrap and premium freight costs. This suggests that the high inherent cost of custom manufacturing is being actively addressed through process improvements.

Significant capital expenditure (CapEx) for global manufacturing and equipment

Capital spending, which is CapEx (purchases of property, plant, and equipment), directly impacts free cash flow. Looking at the first quarter of fiscal 2026, the company achieved positive free cash flow of $18.0 million. This was partially due to a reduction in purchases of property, plant, and equipment compared to the prior year's quarter, which was negative $2.7 million. For the first half of fiscal 2026, free cash flow was positive $6.4 million.

Research and development (R&D) investment for new program launches

Specific R&D dollar amounts are not detailed in the readily available summaries, but the strategic focus on future revenue streams dictates this cost. Methode Electronics, Inc. is navigating the transition from legacy programs to new ones, with management noting they are launching a multitude of new programs. The company mentioned being optimistic about launching 33 new programs in the next five quarters as of the Q3 FY2025 report.

Selling, General, and Administrative (SG&A) expenses for global operations

SG&A costs reflect the overhead of running global operations. In the first quarter of fiscal 2026, the loss from operations improved, partly driven by lower selling and administrative expenses compared to the prior year's quarter.

Restructuring and transformation costs to pivot the business mix

Costs associated with the transformation journey are explicitly called out as adjustments to reported earnings. These are significant, non-recurring expenses impacting the reported loss:

• In the first quarter of fiscal 2025, $2.2 million for transformation costs and $0.6 million for restructuring costs and asset impairment charges were excluded from adjusted loss from operations.
• In the third quarter of fiscal 2025, $0.7 million in transformation costs were excluded from the adjusted net loss.
• The fourth quarter of fiscal 2025 included $15.2 million of unplanned inventory adjustments within the pre-tax loss.
• In the first quarter of fiscal 2026, $0.7 million for restructuring costs and asset impairment charges was excluded from the adjusted net loss.

Here's a look at some of the key financial metrics that define the cost environment for Methode Electronics, Inc. during this period:

The focus on cost control is evident in the positive free cash flow generation in Q1 Fiscal 2026, which was achieved partly through a reduction in CapEx, as free cash flow was $18.0 million versus a negative $2.7 million in the same quarter of fiscal 2024. Finance: draft 13-week cash view by Friday.

Methode Electronics, Inc. (MEI) - Canvas Business Model: Revenue Streams

You're looking at how Methode Electronics, Inc. (MEI) actually brought in the money in the last full fiscal year. The top-line number for the full fiscal year 2025 was $1,048.1 million in net sales. That's the total pot, though the mix across the segments tells a more interesting story about where the growth-and the pressure-was coming from.

Here's a quick look at the key revenue markers we have for the period ending May 3, 2025, keeping in mind that some of these are quarterly snapshots used to illustrate the revenue stream composition:

The Automotive segment, which covers switches, sensors, and lighting, definitely saw headwinds. You saw a significant ramp down from one of their largest electric vehicle (EV) customers. To give you a sense of the revenue mix within that segment during the tough spots, electric and hybrid vehicle applications accounted for 20% of net sales in the fourth quarter of fiscal 2025. The overall decrease in full-year sales was mainly driven by lower volume here, despite the company launching new programs.

The Industrial segment was the bright spot, offsetting some of the Automotive softness with record volume, primarily from power products for data center applications. Management noted that these data center power product sales finished the year at over $80 million, which is a key growth driver they are pivoting toward. For context on the segment size, the Industrial segment posted net sales of $132.6 million in the fourth quarter of fiscal 2025.

Revenue from the Interface segment, which includes transceivers and touch panels, represents a smaller portion of the total revenue base. For instance, in the fourth quarter of fiscal 2025, net sales for this segment were $11.6 million. It's a steady stream, but not the primary driver of year-over-year change.

Methode Electronics, Inc. also relies on recurring revenue streams generated from long-term supply agreements with Original Equipment Manufacturers (OEMs). While this provides a degree of revenue predictability, the specific dollar amount or percentage of total revenue attributed to these agreements for the full fiscal year 2025 was not explicitly detailed in the public filings reviewed. You should check the specific contract disclosures for a more granular look at that stability.

Finance: draft 13-week cash view by Friday.