Free cash flow remains highly unstable, characterized by extreme quarterly variance ranging from a peak of $52.1 million in 2025Q3 to a trough of -$58.4 million in 2025Q2, largely driven by unpredictable working capital swings.
| Metric | May'26 | May'25 | Apr'24 | Apr'23 | Apr'22 | May'21 | May'20 | Apr'19 | Apr'18 | Apr'17 | Apr'16 | Apr'15 | Apr'14 | Apr'13 | Apr'12 | Apr'11 | Apr'10 | Apr'09 | Apr'08 | Apr'07 | Apr'06 | Apr'05 | Apr'04 | Apr'03 | Apr'02 | Apr'01 | Apr'00 | Apr'99 | Apr'98 | Apr'97 |
|---|
| Cash from Operations | 38M | 26.4M | 47.5M | 132.8M | 98.8M | 179.8M | 140.6M | 102M | 117.8M | 145.2M | 110.7M | 122.9M | 72.4M | 33.24M | 24.82M | 17.04M | 27.37M | 43.17M | 79M | 56.37M | 29.65M | 44.95M | 44.13M | 52.73M | 40.85M | 32.5M | 56.77M | 32.3M | 38.3M | 44.9M |
| Operating CF Margin % | 3.73% | 2.52% | 4.26% | 11.26% | 8.49% | 16.53% | 13.73% | 10.2% | 12.97% | 17.78% | 13.68% | 13.95% | 9.37% | 6.4% | 5.34% | 3.98% | 7.25% | 10.07% | 14.29% | 12.53% | 7.01% | 11.4% | 12.22% | 14.48% | 12.7% | 8.97% | 13.45% | 8% | 10.1% | 13.09% |
| Operating CF Growth % | 43.94% | -44.42% | -64.23% | 34.41% | -45.05% | 27.88% | 37.84% | -13.41% | -18.87% | 31.17% | -9.93% | 69.75% | 117.78% | 33.92% | 45.69% | -37.73% | -36.61% | -45.36% | 40.14% | 90.14% | -34.05% | 1.88% | -16.32% | 29.09% | 25.68% | -42.75% | 75.77% | -15.67% | -14.7% | 3.46% |
| Net Income | -35.7M | -62.6M | -123.3M | 77.1M | 102.2M | 122.3M | 123.4M | 91.6M | 57.2M | 92.9M | 84.6M | 101M | 96.2M | 40.44M | 8.14M | 19.19M | 13.78M | -112.48M | 39.75M | 26.08M | 17.05M | 25.53M | 19.68M | 21.87M | 3.81M | 12.76M | 30.89M | 32.8M | 35.3M | 37.2M |
| Depreciation & Amortization | 58.8M | 58.5M | 57.9M | 49.5M | 52.6M | 51.5M | 48.3M | 43.3M | 28.1M | 24.3M | 23.9M | 23.4M | 23.9M | 18.81M | 16.16M | 15.76M | 19.41M | 37.04M | 28.16M | 24M | 22.85M | 21.43M | 20.78M | 16.62M | 16.26M | 16.7M | 20.71M | 19.9M | 19.9M | 16.7M |
| Stock-Based Compensation | 8.5M | 7.4M | 3.6M | 11.5M | 11.8M | 6.8M | 300K | 14M | 4M | 12.4M | 7.4M | 4.3M | 3.3M | 3.25M | 3.98M | 3.01M | 871K | -553K | 3.36M | 2.9M | 2.05M | 1.36M | 52K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 1.7M | -5.8M | -20.8M | -4.6M | -2.1M | -9.6M | 8M | -4.4M | -12.7M | -3.9M | 8.2M | -300K | -29.2M | -7.21M | -1.94M | -5.21M | 3.99M | 8.08M | -2.95M | -1.01M | -2.87M | 633K | 572K | 504K | -5.3M | -794K | -770K | -1.2M | -1M | 500K |
| Other Non-Cash Items | -1.1M | 25.2M | 106.3M | 2.8M | 4.1M | 2M | 100K | -300K | -1.6M | 4.1M | -700K | 3.4M | 1.9M | 4.43M | 358K | -2.69M | 852K | 104.74M | 1.88M | 881K | 2.86M | -661K | 140K | 1M | 12.88M | 4.01M | -1K | 1.7M | -100K | -100K |
| Working Capital Changes | 5.8M | 3.7M | 23.8M | -3.5M | -69.8M | 6.8M | -39.5M | -42.2M | 42.8M | 15.4M | -12.7M | -8.9M | -23.7M | -26.48M | -1.87M | -13.02M | -11.54M | 6.35M | 8.8M | 3.52M | -12.28M | -3.35M | 2.9M | 12.73M | 13.2M | -182K | -51K | -20.9M | -15.8M | -9.1M |
| Change in Receivables | -12.3M | 22.7M | 48M | -21M | -2M | -81.9M | 27.4M | 1.5M | 2.8M | 5.6M | -6M | -8.6M | -49.7M | -21.2M | -13.53M | -17.85M | -12.44M | 33.35M | -793K | 372K | 2.11M | 1.64M | 140K | 518K | 1.18M | 3.02M | 0 | 0 | 0 | 0 |
| Change in Inventory | 7.9M | -25.7M | -30.7M | 8.9M | -39.3M | 11.3M | -15.8M | -3.9M | -7.2M | 7.4M | 4.5M | -1.6M | -11M | -16.14M | -3.28M | -8.71M | 645K | 19.92M | -482K | 3M | -4.32M | -10.88M | 3.11M | 5.79M | 13.86M | -3.61M | -10.48M | 1.6M | -7.5M | -3M |
| Change in Payables | 7.4M | -5.4M | -4.7M | 19.8M | -8.7M | 59.5M | -47.5M | -35.4M | 39.8M | 11.1M | -11.3M | 2.9M | 36.8M | 1.68M | 25.19M | -301K | 291K | -30.83B | 1.26M | -5.68M | 11.34M | 5.5M | 4.47M | -2.87M | -4.53M | 2.1M | 0 | 0 | 0 | 0 |
| Cash from Investing | 1.3M | -32.9M | -17.5M | -153.1M | -37.4M | -24.8M | -44.5M | -470.8M | -179M | -21.7M | -21.6M | -11.3M | -22.9M | -39.99M | -32.1M | -16.18M | -7.77M | -76.12M | -30.56M | -74.5M | -25.82M | -21.05M | -16.85M | -35.3M | -28.64M | -13M | -41.24M | -25.1M | -31.8M | -63.4M |
| Capital Expenditures | -22.4M | -41.6M | -50.2M | -42M | -38M | -24.9M | -45.1M | -49.8M | -48.4M | -22.4M | -23.2M | -22.5M | -29M | -38.55M | -25.74M | -15.22M | -9.91M | -18.64M | -20.02M | -10.78M | -20.76M | -18.98M | -19.3M | -23.17M | -16.3M | -15.58M | -24.67M | -26M | -27.1M | -61.2M |
| CapEx % of Revenue | 2.2% | 3.97% | 4.5% | 3.56% | 3.27% | 2.29% | 4.4% | 4.98% | 5.33% | 2.74% | 2.87% | 2.55% | 3.75% | 7.42% | 5.54% | 3.55% | 2.62% | 4.35% | 3.62% | 2.4% | 4.91% | 4.81% | 5.35% | 6.36% | 5.07% | 4.3% | 5.84% | 6.44% | 7.14% | 17.84% |
| Acquisitions | 15.2M | 0 | 10.4M | -114.6M | 600K | 100K | 600K | -421M | -130.6M | 700K | 1.6M | 11.2M | 0 | -1.43M | -6.35M | -2.47M | -325K | -57.47M | -9.65M | -63.17M | -5.34M | -4.37M | -3.64M | -12.46M | 0 | 0 | -13.97M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 8.5M | 5.6M | 21.7M | 3.5M | 300K | -1.3M | 0 | -1.1M | -400K | -700K | -1.6M | -11.2M | 6.1M | 0 | 0 | 1.51M | -530K | -14K | -892K | -556K | 285K | 2.3M | 6.09M | 321K | -12.34M | 2.58M | -2.6M | 900K | -4.7M | -2.2M |
| Cash from Financing | -14.2M | -58.9M | -18.9M | 3.2M | -114.6M | -142.9M | 41.7M | 217.4M | -12.7M | -47M | -28.7M | -48.5M | -1.4M | -14.27M | 37.9M | -9.3M | -10.26M | -15.13M | -7.14M | -2.69M | -8.56M | -790K | -31.59M | -6.72M | -5.09M | -5.61M | -8.88M | -8.6M | -5.4M | -8.5M |
| Debt Issued (Net) | -2.9M | -30.8M | 30.5M | 73.3M | -29.9M | -115.7M | 58.4M | 238.5M | 2M | -30M | 52M | -43M | 4.5M | -4.5M | 48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -25.79M | 0 | 0 | -1.17M | -3.58M | 1.63M | 0 | -1.4M |
| Equity Issued (Net) | 0 | -1.6M | -17.5M | -46.6M | -64.8M | -5.9M | 0 | 0 | -300K | -7.1M | -61.7M | 0 | 0 | 0 | 263K | 0 | 0 | -5.25M | 49K | 3.61M | -1.09M | 6.46M | 2.77M | 521K | 2.09M | 2.7M | 1.81M | -3.08M | 1.7M | 0 |
| Dividends Paid | -8.3M | -20.4M | -19.9M | -19.8M | -20.4M | -17.4M | -16.3M | -16.3M | -14.7M | -13.7M | -13.5M | -13.8M | -11.3M | -10.38M | -10.36M | -10.33M | -10.41M | -9.78M | -7.58M | -7.47M | -7.46M | -7.25M | -8.57M | -7.24M | -7.19M | -7.14M | -7.11M | -7.1M | -7.1M | -7.1M |
| Share Repurchases | 0 | -1.6M | -13.7M | -48.1M | -64.5M | -6.7M | -400K | -1.7M | -300K | -9.8M | -62.3M | 0 | 0 | 0 | 0 | 0 | 0 | -5.25M | -1.25M | -3.6M | -1.78M | 0 | 0 | 0 | 0 | 0 | 0 | -3.08M | 0 | 0 |
| Other Financing | -3M | -6.1M | -12M | -3.7M | 500K | -3.9M | -400K | -4.8M | 300K | 3.8M | -5.5M | 8.3M | 5.4M | 608K | 0 | 1.03M | 154K | -96K | 383K | 1.18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 36M | -57.9M | 4.5M | -15M | -61.2M | 15.9M | 134.1M | -162.9M | -47.9M | 66.2M | 59.7M | 51.7M | 50.6M | -20.99M | 29.35M | -6.38M | 9.79M | -50.27M | 44.63M | -21.55M | -5.5M | 25.39M | -2.5M | 14.36M | 7.11M | 13.9M | 6.66M | -8.6M | -5.4M | -8.5M |
| Free Cash Flow | 15.6M | -15.2M | -2.7M | 90.8M | 60.8M | 154.9M | 95.5M | 52.2M | 69.4M | 122.8M | 87.5M | 100.4M | 43.4M | -5.31M | -919K | 1.82M | 17.46M | 24.53M | 58.98M | 45.59M | 8.89M | 25.97M | 24.82M | 29.56M | 24.54M | 16.92M | 32.11M | 6.3M | 11.2M | -16.3M |
| FCF Margin % | 1.53% | -1.45% | -0.24% | 7.7% | 5.23% | 14.24% | 9.33% | 5.22% | 7.64% | 15.04% | 10.81% | 11.39% | 5.62% | -1.02% | -0.2% | 0.42% | 4.62% | 5.72% | 10.67% | 10.13% | 2.1% | 6.58% | 6.88% | 8.12% | 7.63% | 4.67% | 7.61% | 1.56% | 2.95% | -4.75% |
| FCF Growth % | 202.63% | -462.96% | -102.97% | 49.34% | -60.75% | 62.2% | 82.95% | -24.78% | -43.49% | 40.34% | -12.85% | 131.34% | 917.33% | -477.8% | -150.58% | -89.59% | -28.83% | -58.41% | 29.37% | 412.75% | -65.76% | 4.63% | -16.03% | 20.44% | 45.03% | -47.29% | 409.62% | -43.75% | 168.71% | -176.53% |
| FCF per Share | 0.44 | -0.43 | -0.08 | 2.47 | 1.61 | 4.04 | 2.52 | 1.39 | 1.85 | 3.28 | 2.27 | 2.56 | 1.14 | -0.14 | -0.02 | 0.05 | 0.47 | 0.67 | 1.57 | 1.24 | 0.25 | 0.72 | 0.69 | 0.81 | 0.71 | 0.47 | 0.90 | 0.18 | 0.32 | -0.46 |
| FCF Conversion (FCF/Net Income) | -1.06x | -0.42x | -0.39x | 1.72x | 0.97x | 1.47x | 1.14x | 1.11x | 2.06x | 1.56x | 1.31x | 1.22x | 0.75x | 0.82x | 2.96x | 0.87x | 2.00x | -0.38x | 1.99x | 2.16x | 1.74x | 1.76x | 2.24x | 2.41x | 10.74x | 1.68x | 1.84x | 0.98x | 1.08x | 1.21x |
| Interest Paid | 0 | 23.4M | 17M | 5.6M | 3.6M | 5.3M | 9.9M | 8.8M | 2.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 22.3M | 15M | 25.6M | 32.3M | 16M | 21.1M | 27.8M | 20.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical Automotive Demand Sensitivity
As reported in quarterly filings, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from 30.00 in 2025Q2 to -2.44 in 2026Q1, indicating that accounting earnings are currently poor proxies for the company's actual cash-generating capacity.
The persistent divergence between net losses and positive operating cash flow suggests that non-cash charges and working capital adjustments are the primary drivers of reported cash movements. Investors should monitor whether this disconnect reflects genuine operational efficiency or merely the timing of large, lumpy accruals that mask underlying earnings weakness.
Based on the provided financial statements, free cash flow trajectory is characterized by extreme quarterly variance, ranging from a peak of $52.1 million in 2025Q3 to a trough of -$58.4 million in 2025Q2, highlighting the company's vulnerability to sudden shifts in production cycles.
The lack of a consistent FCF generation trend suggests that the company's business model is currently unable to produce reliable surplus cash to fund its strategic pivot. This volatility warrants further investigation into whether the recent negative FCF quarters are structural or temporary consequences of program launch costs.
According to recent SEC filings, working capital changes have been the dominant influence on cash flow, with a massive $69.7 million outflow in 2025Q2 followed by a $29.4 million inflow in 2025Q4, illustrating the high sensitivity of cash balances to inventory and receivable management.
These significant fluctuations suggest that the company's cash position is heavily dependent on the timing of OEM payments and inventory build-ups for new platform launches. Such reliance on working capital management to bridge cash gaps may indicate limited operational control over the cash conversion cycle.
As reported in financial statements, capital expenditures have remained relatively consistent, averaging roughly 3.5% of revenue over the observed period, which suggests that the company is prioritizing essential maintenance and tooling over aggressive capacity expansion in the current, uncertain demand environment.
The stability of these expenditures relative to revenue implies that the company is locked into a fixed-asset-heavy model that requires constant reinvestment to maintain its 'design-in' status with OEMs. This capital intensity appears to be a structural constraint that limits the company's ability to preserve cash during cyclical downturns.
Quick answers to the most common questions about buying MEI stock.
Methode Electronics, Inc. (MEI) generated $38.0M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Methode Electronics, Inc. (MEI) generated $15.6M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Methode Electronics, Inc. (MEI) spent $22.4M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Methode Electronics, Inc. (MEI) returned $8.3M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.