Latest news with #DataCenters
Yahoo
6 days ago
- Business
- Yahoo
Why the Energy Sector Needs a Smarter AI Strategy
Artificial intelligence is rapidly changing the world around us as our systems get smarter, and the resource and energy use of large language models grow ever larger. In the energy sector, artificial intelligence represents a double-edged sword: AI could help the sector overcome some of the hurdles involved in maintaining global energy security while we transition to cleaner alternatives, but it could also pose an existential threat to vulnerable power grids if used indiscriminately. Artificial intelligence requires a staggering amount of energy to train and power its complex computations. Energy demand from data centers is on track to double by just 2030 as the sector explodes in growth. As a result, many world leaders are starting to see AI energy demand as an imminent threat to energy security, and are beginning to prioritize AI regulation and increasing energy production capacity. 'In the past few years, AI has gone from an academic pursuit to an industry with trillions of dollars of market capitalisation and venture capital at stake,' according to the International Energy Agency. The vast amount of energy needed to power this growth trajectory means that 'the energy sector is therefore at the heart of one of the most important technological revolutions today.' However, it's not entirely clear exactly how much energy AI is consuming – we just know that it's a lot. The sector is extremely opaque, and governing AI is therefore a tricky situation at present. As of May 2025, a whopping 84 percent of global large language model traffic took place using AI models operating with zero environmental disclosure. And that doesn't just include energy use – AI also has a major impact on water sources, as water is used in cooling systems for data centers as well as thermoelectric plants. But while policy, regulation, and transparency measures remain fuzzy, global industry leaders are already busily integrating machine learning into a broad range of sectors. In the energy sector, it is being used for automation of systems for nuclear plants, and in renewables for more accurate forecasting of energy supply and demand, which will help stabilize grids as variable renewable energy sources like wind and solar become more prevalent in global energy mixes. It's also enhancing energy storage through improved battery design, safety, and management strategies, and even futuristic innovations to give new life to dead batteries. AI is even being used to making coal mining more profitable in China. Clearly, global industry is off to the races to find out how AI can make their business more efficient, lest they be left behind. But a more methodical and structured approach – not to mention clearer policy and regulations – will be necessary to ensure that the technology is being used efficiently and responsibly. 'It is not uncommon for business units to get ahead of the curve by piloting or initiating proof of concepts on their own to keep up with AI advancements, states a recent Forbes report. 'But, when it comes to technology and transformation, rash, siloed decision making rarely produces the intended business outcomes and is often counterproductive.' Instead, more transparency and standardization will be critical to make sure that industry leaders aren't wasting money and resources chasing down the same pathways – or exposing our energy systems to cyberattack. Smart tech needs to work hand-in-hand with IT to make sure that AI innovations are based in good data management and cybersecurity. 'The investments needed to build that IT foundation, and ultimately to scale the [operational technology] and analytics that sit on top of it, will likely transcend business units and functional silos—and because of that, companies could need a structured way to think about them,' the Forbes report went on to say. On the energy-production side of the equation, the public sector is facing similar challenges. The United States Department of Energy (DoE) has acknowledged that AI could be invaluable in managing smart grids capable of handling increased flows of variable energies like wind and solar, but introduces significant risks if deployed 'naïvely. By Haley Zaremba for More Top Reads From this article on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
7 days ago
- Business
- Yahoo
Methode Electronics, Inc. Reports Fiscal 2025 Fourth Quarter and Full Year Financial Results; Board Approves Dividend
Record Power Product Sales for Data Centers for Quarter and Full Year Positive Free Cash Flow for Quarter; Highest Quarter Since Fiscal 2023 Total and Net Debt Reduced from Fiscal 2025 Third Quarter Fiscal 2026 EBITDA Expected to Improve Over 100% Corporate Actions Announced Board of Directors Declares Quarterly Dividend of $0.07 CHICAGO, July 09, 2025 (GLOBE NEWSWIRE) -- Methode Electronics, Inc. (NYSE: MEI), a leading global supplier of custom-engineered solutions for user interface, lighting, and power distribution applications, today announced financial results for the fourth quarter and full year ended May 3, 2025. Fiscal Fourth Quarter 2025 Results Net sales were $257.1 million Record sales for power distribution products for data center applications Electric and hybrid vehicle applications were 20% of net sales Pre-tax loss was $30.4 million; adjusted pre-tax loss was $28.6 million Pre-tax loss included $15.2 million of unplanned inventory adjustments Net loss was $28.3 million, or a loss of $0.80 per diluted share Adjusted net loss was $27.4 million, or a loss of $0.77 per diluted share Net cash provided by operating activities was $35.4 million; free cash flow was $26.3 million Total debt of $317.6 million, down from $327.9 million in fiscal third quarter 2025 Net debt of $214.0 million, down from $224.1 million in fiscal third quarter 2025 Management CommentsPresident and Chief Executive Officer Jon DeGaynor said, 'The Methode transformation journey made further progress in the quarter, as we focused on improving execution to drive long-term value. We have built a new management team and set records for the quarter and the year in data center power product sales, with the year finishing at over $80 million. The year also provided a series of challenges both exogenous and endogenous. We experienced a significant ramp down in expected demand from one of our largest EV customers and delays with other EV customers. In fact, we finished the year with a challenging exercise to write down inventory primarily related to materials for reduced, delayed or canceled programs. While the team made clear strides in improving operational execution, the results were masked by factors that were either outside our immediate control or residual in nature which led to a larger than expected net loss for the quarter.' Mr. DeGaynor added, 'Despite the challenges, the business delivered strong free cash flow for the second quarter in a row resulting from a relentless drive to reduce working capital, and we in turn reduced our debt. We also had de minimis new tariffs in the quarter, have a plan in place to 100% mitigate the tariffs enacted this year, and have used the disruption to cement our teams' collaboration and to leverage our global footprint to our commercial advantage. Simply put, this team faced challenges and took significant operational actions in fiscal 2025 to rebuild the foundation of the company and position it for success in fiscal 2026. This also included corporate actions such as reducing our board size from ten to seven directors, relocating our headquarters to an existing owned facility, reducing our dividend, and continuing the review of our portfolio.' Mr. DeGaynor concluded, 'As we look to fiscal 2026, the company expects to double its EBITDA as a result of our operational improvements even in the face of an approximately $100 million decline in sales driven by lower EV demand, mainly with Stellantis. We still firmly believe in the EV megatrend. However, in the near term some of our EV assets and resources will be pivoted to leverage the growth opportunity that we have in data centers.' Consolidated Fiscal Fourth Quarter 2025 Financial ResultsMethode's net sales were $257.1 million, compared to $277.3 million in the same quarter of fiscal 2024. The decrease was mainly due to lower volume in the Automotive segment driven by previously disclosed program roll-offs, which was partially offset by higher volume in the Industrial segment driven by power products in data center applications. Foreign currency translation was minimal as compared to the same quarter of fiscal 2024. Loss from operations was $23.6 million, compared to a loss of $61.5 million in the same quarter of fiscal 2024. The improvement was primarily due to a $49.4 million goodwill impairment in the prior-year quarter. The quarter included an increase in excess and obsolete inventory expense of $13.0 million, mainly in the Automotive segment, and a discrete inventory revaluation of $2.2 million, as compared to an increase in excess and obsolete inventory expense of $5.1 million and no similar discrete inventory revaluation in the prior year quarter. The loss in the quarter was also impacted by the lower sales volume, partially offset by a reduction of $4.2 million in selling and administrative expense from the prior year quarter. Adjusted loss from operations, a non-GAAP financial measure, was $21.6 million, compared to a loss of $9.8 million in the same quarter of fiscal 2024. The adjusted loss from operations excluded expenses of $2.0 million for restructuring costs and asset impairment charges. Net loss was $28.3 million or $0.80 per diluted share, compared to a loss of $57.3 million or $1.63 per diluted share in the same quarter of fiscal 2024. The lower net loss was mainly driven by the $49.4 million goodwill impairment in the prior year quarter. Adjusted net loss, a non-GAAP financial measure, was $27.4 million, or $0.77 per diluted share, compared to a loss of $7.9 million or $0.23 per diluted share in the same quarter of fiscal 2024. The adjusted net loss excluded $1.6 million for restructuring costs and asset impairment charges, a $0.5 million benefit for the valuation allowance on deferred tax assets, and a $0.2 million gain on the sale of non-core assets. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization of Intangibles), a non-GAAP financial measure, was negative $8.9 million, compared to negative $44.0 million in the same quarter of fiscal 2024. Adjusted EBITDA, a non-GAAP financial measure, was negative $7.1 million, compared to positive $5.3 million in the same quarter of fiscal 2024. The adjusted EBITDA excluded $2.0 million for restructuring costs and asset impairment charges and a $0.2 million gain on the sale of non-core assets. Debt was $317.6 million at the end of the quarter, down from $327.9 million at the end of the fiscal 2025 third quarter. Net debt, a non-GAAP financial measure defined as debt less cash and cash equivalents, was $214.0 million, down from $224.1 million at the end of the fiscal 2025 third quarter. After the end of the quarter, the company entered into an amendment to its credit agreement. Following the amendment, the company was in compliance with all debt covenants for the fiscal fourth quarter. Net cash provided by operating activities was $35.4 million for the quarter, compared to $24.9 million in the same quarter of fiscal 2024. Free cash flow, a non-GAAP financial measure defined as net cash provided by operating activities less purchases of property, plant, and equipment, was $26.3 million, the highest quarter since fiscal 2023, compared to $15.8 million in the same quarter of fiscal 2024. The increase in free cash flow was primarily due to improvements in working capital. Segment Fiscal Fourth Quarter 2025 Financial ResultsComparing the Automotive segment's quarter to the same quarter of fiscal 2024, Net sales were $112.9 million, down from $145.9 million. Net sales decreased by $33.0 million or 22.6% mainly due to lower volume in North America primarily related to a previously disclosed center console program roll-off and lower volume of exterior lighting products. Foreign currency translation was minimal as compared to the same quarter of fiscal 2024. Loss from operations was $33.7 million, compared to a loss of $64.9 million in the prior year. The improvement was mainly driven by the $49.4 million goodwill impairment in the prior year quarter. The loss was primarily driven by the inventory adjustments and lower sales volume, which were partially offset a reduction in selling and administrative expense. Comparing the Industrial segment's quarter to the same quarter of fiscal 2024, Net sales were $132.6 million, up from $117.2 million. Net sales increased by $15.4 million or 13.1% driven primarily by higher demand for power distribution products for data centers, which was partially offset by lower demand for lighting products in the commercial vehicle market. Foreign currency translation was minimal as compared to the same quarter of fiscal 2024. Income from operations was $26.2 million, up from $20.0 million. Income from operations was 19.8% of net sales, up from 17.1%. The improvement was driven by higher gross profit primarily from the increased sales as well as lower selling and administrative expense. Comparing the Interface segment's quarter to the same quarter of fiscal 2024, Net sales were $11.6 million, down from $14.2 million. Income from operations was $1.5 million, unchanged from the prior year. Income from operations was 12.9% of net sales, up from 10.6%. Consolidated Fiscal 2025 Financial ResultsMethode's net sales in fiscal 2025 were $1,048.1 million, compared to $1,114.5 million in fiscal 2024. The decrease was mainly due to lower volume in the Automotive segment driven by previously disclosed program roll-offs, which was partially offset by record volume in the Industrial segment driven by power products in data center applications. Foreign currency translation was minimal as compared to fiscal 2024. Fiscal 2025 was a 53-week fiscal year, while fiscal 2024 was a 52-week fiscal year. Loss from operations was $23.9 million, compared to a loss of $112.0 million in fiscal 2024. The improvement was primarily due to a $105.9 million goodwill impairment in the prior year. The gross profit in the year included an increase in excess and obsolete inventory expense of $20.4 million and a discrete inventory revaluation of $2.2 million, as compared to an increase in excess and obsolete inventory expense of $10.4 million and no similar discrete inventory revaluation in the prior year. The loss in the year was also impacted by the lower sales volume. Adjusted loss from operations, a non-GAAP financial measure, was $12.5 million, as compared to a loss of $1.4 million in fiscal 2024. Net loss was $62.6 million or $1.77 per diluted share, compared to a loss of $123.3 million or $3.48 per diluted share in fiscal 2024. Adjusted net loss, a non-GAAP financial measure, was $39.7 million, or $1.12 per diluted share, compared to a loss of $15.0 million or $0.43 per diluted share in fiscal 2024. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization of Intangibles), a non-GAAP financial measure, was $30.4 million, compared to negative $53.5 million in fiscal 2024. Adjusted EBITDA, a non-GAAP financial measure, was $42.5 million, compared to $55.3 million in fiscal 2024. Board Approves DividendThe Methode Electronics, Inc. board of directors has declared a quarterly dividend of $0.07 per share to be paid on August 1, 2025, to common stockholders of record at the close of business on July 21, 2025. GuidanceFor fiscal 2026, the company expects net sales to be in a range of $900 to $1,000 million and EBITDA to be in a range of $70 to $80 million with the second half of fiscal year expected to be higher than the first half. Fiscal 2025 was a 53-week fiscal year, while fiscal 2026 is a 52-week fiscal year. This guidance is based on the current market outlook based on third party forecasts and customer projections and the current U.S. tariff policy. The 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, potential impairments, any acquisitions or divestitures, and legal matters. Conference CallThe company will conduct a conference call and webcast tomorrow, July 10, 2025, at 10:00 a.m. CST to review financial and operational highlights led by its President and Chief Executive Officer, Jon DeGaynor, and Chief Financial Officer, Laura Kowalchik. To participate in the conference call, please dial 888-506-0062 (domestic) or 973-528-0011 (international) at least five minutes prior to the start of the event. A simultaneous webcast can be accessed through the company's website, on the Investors page. A replay of the teleconference will be available shortly after the call through July 24, 2025, by dialing 877-481-4010 and providing passcode 52484. A webcast replay will also be available on the company's website, on the Investors page. About Methode Electronics, Electronics, Inc. (NYSE: MEI) is a leading global supplier of custom-engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East and Asia. We design, engineer, and produce mechatronic products for OEMs utilizing our broad range of technologies for user interface, lighting system, power distribution and sensor applications. Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus, and rail), cloud computing infrastructure, construction equipment, and consumer appliances. Our business is managed on a segment basis, with those segments being Automotive, Industrial, and Interface. Non-GAAP Financial MeasuresTo 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 Earnings (Loss) Per Diluted 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 press release can be found at the end of this release. 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. Forward-Looking StatementsThis press release contains 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; Risks relating to our use of requirements contracts; 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. For Methode Electronics, K. CherryVice President, Investor Relationsrcherry@ METHODE ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)(in millions, except per-share data) Three Months Ended Fiscal Year Ended May 3, 2025 April 27, 2024 May 3, 2025 April 27, 2024 (13 Weeks) (13 Weeks) (53 Weeks) (52 Weeks) Net sales $ 257.1 $ 277.3 $ 1,048.1 $ 1,114.5 Cost of products sold 237.5 241.8 884.7 935.7 Gross profit 19.6 35.5 163.4 178.8 Selling and administrative expenses 37.4 41.6 163.9 160.9 Goodwill impairment — 49.4 — 105.9 Amortization of intangibles 5.8 6.0 23.4 24.0 Loss from operations (23.6 ) (61.5 ) (23.9 ) (112.0 ) Interest expense, net 5.5 4.5 22.0 16.7 Other expense (income), net 1.3 (2.9 ) 4.2 (0.6 ) Pre-tax loss (30.4 ) (63.1 ) (50.1 ) (128.1 ) Income tax expense (benefit) (2.1 ) (5.8 ) 12.5 (4.8 ) Net loss $ (28.3 ) $ (57.3 ) $ (62.6 ) $ (123.3 ) Loss per share: Basic $ (0.80 ) $ (1.63 ) $ (1.77 ) $ (3.48 ) Diluted $ (0.80 ) $ (1.63 ) $ (1.77 ) $ (3.48 ) Cash dividends per share $ 0.14 $ 0.14 $ 0.56 $ 0.56 METHODE ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS (in millions, except share and per-share data) May 3, 2025 April 27, 2024 ASSETS Current assets: Cash and cash equivalents $ 103.6 $ 161.5 Accounts receivable, net 241.0 262.6 Inventories 194.1 186.2 Income tax receivable 4.1 4.0 Prepaid expenses and other current assets 17.1 18.7 Assets held for sale — 4.7 Total current assets 559.9 637.7 Long-term assets: Property, plant and equipment, net 221.6 212.1 Goodwill 172.7 169.9 Other intangible assets, net 238.4 256.7 Operating lease right-of-use assets, net 23.7 26.7 Deferred tax assets 37.8 34.7 Pre-production costs 31.7 44.1 Other long-term assets 20.0 21.6 Total long-term assets 745.9 765.8 Total assets $ 1,305.8 $ 1,403.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 125.9 $ 132.4 Accrued employee liabilities 32.0 38.0 Other accrued liabilities 50.2 46.0 Short-term operating lease liabilities 7.4 6.7 Short-term debt 0.2 0.2 Income tax payable 17.5 8.1 Total current liabilities 233.2 231.4 Long-term liabilities: Long-term debt 317.4 330.7 Long-term operating lease liabilities 18.2 20.6 Long-term income tax payable — 9.3 Other long-term liabilities 16.9 16.8 Deferred tax liabilities 26.8 28.7 Total long-term liabilities 379.3 406.1 Total liabilities 612.5 637.5 Shareholders' equity: Common stock, $0.50 par value, 100,000,000 shares authorized, 37,151,365 shares and 36,650,909 shares issued as of May 3, 2025 and April 27, 2024, respectively 18.6 18.3 Additional paid-in capital 191.8 183.6 Accumulated other comprehensive loss (29.8 ) (36.7 ) Treasury stock, 1,346,624 shares as of May 3, 2025 and April 27, 2024 (11.5 ) (11.5 ) Retained earnings 524.2 612.3 Total shareholders' equity 693.3 766.0 Total liabilities and shareholders' equity $ 1,305.8 $ 1,403.5 METHODE ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(in millions) Fiscal Year Ended May 3, 2025 April 27, 2024 (53 Weeks) (52 Weeks) Operating activities: Net loss $ (62.6 ) $ (123.3 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 58.5 57.9 Stock-based compensation expense 7.4 3.6 Amortization of debt issuance costs 1.1 0.8 Partial write-off of unamortized debt issuance costs 1.2 — (Gain) loss on sale of assets (0.5 ) (1.9 ) Impairment of long-lived assets 1.1 2.3 Inventory obsolescence 20.4 10.4 Goodwill impairment — 105.9 Change in deferred income taxes (5.8 ) (20.8 ) Other 1.9 (0.8 ) Changes in operating assets and liabilities: Accounts receivable 22.7 48.0 Inventories (25.7 ) (41.1 ) Prepaid expenses and other assets 17.3 6.9 Accounts payable (5.4 ) (4.7 ) Other liabilities (5.2 ) 4.3 Net cash provided by operating activities 26.4 47.5 Investing activities: Purchases of property, plant and equipment (41.6 ) (50.2 ) Proceeds from settlement of net investment hedge 3.1 0.6 Proceeds from disposition of assets 5.6 21.3 Proceeds from redemption of life insurance — 10.8 Net cash used in investing activities (32.9 ) (17.5 ) Financing activities: Taxes paid related to net share settlement of equity awards (4.3 ) (3.8 ) Repayments of finance leases (0.2 ) (0.2 ) Debt issuance costs (1.8 ) (1.1 ) Purchases of common stock (1.6 ) (13.7 ) Cash dividends (20.4 ) (19.9 ) Purchase of redeemable noncontrolling interest — (10.9 ) Proceeds from borrowings 138.0 237.9 Repayments of borrowings (168.6 ) (207.2 ) Net cash used in financing activities (58.9 ) (18.9 ) Effect of foreign currency exchange rate changes on cash and cash equivalents 7.5 (6.6 ) (Decrease) increase in cash and cash equivalents (57.9 ) 4.5 Cash and cash equivalents at beginning of the period 161.5 157.0 Cash and cash equivalents at end of the period $ 103.6 $ 161.5 Supplemental cash flow information: Cash paid during the period for: Interest $ 23.4 $ 17.0 Income taxes, net of refunds $ 22.3 $ 15.0 Operating lease obligations $ 9.3 $ 9.6 METHODE ELECTRONICS, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP MEASURES (unaudited)(in millions) Three Months Ended Fiscal Year Ended May 3, 2025 April 27, 2024 May 3, 2025 April 27, 2024 (13 Weeks) (13 Weeks) (53 Weeks) (52 Weeks) EBITDA: Net loss $ (28.3 ) $ (57.3 ) $ (62.6 ) $ (123.3 ) Income tax expense (benefit) (2.1 ) (5.8 ) 12.5 (4.8 ) Interest expense, net 5.5 4.5 22.0 16.7 Amortization of intangibles 5.8 6.0 23.4 24.0 Depreciation 10.2 8.6 35.1 33.9 EBITDA (8.9 ) (44.0 ) 30.4 (53.5 ) Goodwill impairment — 49.4 — 105.9 Acquisition costs — — — 0.5 Acquisition-related costs - purchase accounting adjustments related to inventory — — — 0.5 Transformation costs * — — 8.7 — Partial write-off of unamortized debt issuance costs — — 1.2 — Restructuring costs and asset impairment charges 2.0 2.3 2.7 3.7 Net gain on sale of non-core assets (0.2 ) (2.4 ) (0.5 ) (1.8 ) Adjusted EBITDA $ (7.1 ) $ 5.3 $ 42.5 $ 55.3 * Represents professional fees related to the Company's cost reduction initiative. Three Months Ended Fiscal Year Ended May 3, 2025 April 27, 2024 May 3, 2025 April 27, 2024 (13 Weeks) (13 Weeks) (53 Weeks) (52 Weeks) Free Cash Flow: Net cash provided by operating activities $ 35.4 $ 24.9 $ 26.4 $ 47.5 Purchases of property, plant and equipment (9.1 ) (9.1 ) (41.6 ) (50.2 ) Free cash flow $ 26.3 $ 15.8 $ (15.2 ) $ (2.7 ) May 3, 2025 February 1, 2025 April 27, 2024 Net Debt: Short-term debt $ 0.2 $ 0.2 $ 0.2 Long-term debt 317.4 327.7 330.7 Total debt 317.6 327.9 330.9 Less: cash and cash equivalents (103.6 ) (103.8 ) (161.5 ) Net debt $ 214.0 $ 224.1 $ 169.4 METHODE ELECTRONICS, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP MEASURES (unaudited)(in millions, except per share data) Three Months Ended May 3, 2025 (13 Weeks) April 27, 2024 (13 Weeks) Loss from operations Pre-tax loss Net loss Diluted (loss) income per share Loss from operations Pre-tax loss Net loss Diluted (loss) income per share U.S. GAAP (as reported) $ (23.6 ) $ (30.4 ) $ (28.3 ) $ (0.80 ) $ (61.5 ) $ (63.1 ) $ (57.3 ) $ (1.63 ) Goodwill impairment — — — $ — 49.4 49.4 49.4 $ 1.40 Acquisition-related costs - purchase accounting adjustments related to inventory — — — $ — — — — $ — Transformation costs — — — $ — — — — $ — Restructuring costs and asset impairment charges 2.0 2.0 1.6 $ 0.05 2.3 2.3 1.9 $ 0.05 Net gain on sale of non-core assets — (0.2 ) (0.2 ) $ (0.01 ) — (2.4 ) (1.9 ) $ (0.05 ) Valuation allowance on deferred tax assets — — (0.5 ) $ (0.01 ) — — — $ — Non-U.S. GAAP (adjusted) $ (21.6 ) $ (28.6 ) $ (27.4 ) $ (0.77 ) $ (9.8 ) $ (13.8 ) $ (7.9 ) $ (0.23 ) Fiscal Year Ended May 3, 2025 (53 Weeks) April 27, 2024 (52 Weeks) Loss from operations Pre-tax loss Net loss Diluted (loss) income per share Loss from operations Pre-tax loss Net loss Diluted (loss) income per share U.S. GAAP (as reported) $ (23.9 ) $ (50.1 ) $ (62.6 ) $ (1.77 ) $ (112.0 ) $ (128.1 ) $ (123.3 ) $ (3.48 ) Goodwill impairment — — — $ — 105.9 105.9 105.9 $ 2.99 Acquisition costs — — — $ — 0.5 0.5 0.4 $ 0.01 Acquisition-related costs - purchase accounting adjustments related to inventory — — — $ — 0.5 0.5 0.4 $ 0.01 Transformation costs 8.7 8.7 6.7 $ 0.19 — — — $ — Partial write-off of unamortized debt issuance costs — 1.2 0.9 $ 0.03 — — — $ — Restructuring costs and asset impairment charges 2.7 2.7 2.2 $ 0.06 3.7 3.7 3.0 $ 0.08 Net gain on sale of non-core assets — (0.5 ) (0.4 ) $ (0.01 ) — (1.8 ) (1.4 ) $ (0.04 ) Valuation allowance on deferred tax assets — — 13.5 $ 0.38 — — — $ — Non-U.S. GAAP (adjusted) $ (12.5 ) $ (38.0 ) $ (39.7 ) $ (1.12 ) $ (1.4 ) $ (19.3 ) $ (15.0 ) $ (0.43 ) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
09-07-2025
- Business
- Reuters
Exclusive: Arm estimates a 14-fold increase in data center customers since 2021, company says
SAN FRANCISCO, July 9 (Reuters) - The number of customers that use Arm-based (O9Ty.F), opens new tab chips in data centers has grown to 70,000, a 14-fold increase since 2021, the company told Reuters. Under the guidance of Chief Executive Rene Haas, chip technology maker Arm has been working to expand its business into the PC market and has made substantial gains selling its architecture for data center chips as well. Like other chip companies, Arm has benefitted from the frenzy around generative artificial intelligence computing and said a significant portion of its data center growth is due to AI. The company said it had seen a 12-fold spike in startups that are using Arm chips from 2021. Arm's strong outlook arrives as the chip industry faces near term challenges. While chips related to building AI data centers have boomed, other large swaths of the semiconductor market such as PC and mobile sales have remained slow. The company declined to provide annual financial guidance due to trade uncertainty when it released results in May. Chips based on the Arm architecture are known for delivering high performance with low energy consumption, which is one of the reasons it powers just about every mobile phone on the planet. Such performance has been adapted by chip designs for data center processors, which typically consume substantially more energy. The data center market earlier proved difficult for Arm to break into, but the company has more recently been aided by cloud computing giants such as Amazon (AMZN.O), opens new tab, Alphabet's Google (GOOGL.O), opens new tab and Microsoft (MSFT.O), opens new tab developing home-grown Arm chips for use in their sprawling infrastructure. Customers often rent Arm-based chips through a cloud computing company such as Amazon's AWS. Amazon has rolled out several generations of its data center processor (CPU) since 2018, including artificial intelligence versions, and added millions Arm-based chips to its cloud computing platform. But SoftBank-owned Arm has made big gains in other areas as well, as it seeks to erode the computing dominance of designs from Advanced Micro Devices (AMD.O), opens new tab and Intel (INTC.O), opens new tab, based on the x86 architecture. The group of developers worldwide working to make apps that run its tech is crucial to a chip company's success. According to the company, Arm has roughly doubled the number of applications since 2021 running on Arm-based machines to 9 million. The developer base working with the company's computing architecture has increased by 1.5 times to 22 million since 2021.
Yahoo
04-07-2025
- Business
- Yahoo
Top analyst revamps Nvidia price target for one surprising reason
Top analyst revamps Nvidia price target for one surprising reason originally appeared on TheStreet. Nvidia () has shrugged off broader market jitters and become one of this year's biggest stock market winners. Its ubiquitous GPUs have been the gold standard in powering AI breakthroughs, making it a must-have for chip stock investors. 💵💰💰💵 Moreover, despite hitting record highs this year, Nvidia still has plenty of gas left in the tank. As we look ahead, it's gearing up to roll out its next-gen GPU system, separating itself further in the data-center space. If all goes to plan, the chip king's grip on AI could tighten, and with fresh nods of approval, the runway's looking long. It's fair to call Nvidia's GPU lineup a string of mini revolutions, with each chip line outdoing the last by a country mile. It started with Ampere, a massive step-up in performance-per-watt lift and beefed-up Tensor cores. Ampere was a smash hit with the hyperscalers, who looked to power everything from recommendation engines to early AI proofs of concept. Then we had Hopper. Nvidia packed in a special Transformer Engine, boosted NVLink speed, and tweaked its chips so LLMs could train quicker without blowing the budget. Hopper cemented Nvidia's spot as the top dog, both in research labs and mega-scale data centers. Next came Blackwell Ultra, which turned the game around with smarter data handling, faster memory, and techniques to cut we saw generative AI come into its own with real-time video, big simulations, and instant data crunching. Now, there's Rubin, Blackwell's successor, which claims to be 3.3× faster. That leap isn't the usual clock-speed bump, but it means you can cram way more AI workloads into the same rack. Its next-generation Tensor cores, high-bandwidth memory interface, and liquid-cooled design let companies run multiple models simultaneously. More Tech Stock News: Veteran Tesla bull drops surprising 3-word verdict on robotaxi ride Apple could make big change to Siri, delight fans Veteran analyst issues big Broadcom call, shakes up AI stock race Rubin seamlessly ties in with Nvidia's mature CUDA ecosystem, with every library, toolchain, and optimization getting a lift. For AI teams, that means shorter training cycles, denser inference deployments, and the freedom to experiment with more complex models simultaneously. If it all lives up to the hype, Nvidia will prove yet again why it's the indispensable engine behind the AI revolution. Nvidia stock just scored another stamp of approval from Wall Street. Mizuho's top chip analyst, Vijay Rakesh, doubled down on his bullish take on the AI bellwether, with his eyes on the future. Rakesh expects Nvidia to ship north of 5.3 million AI accelerators this year, jumping to 6 million by 2026. However, he feels the real hype is around Rubin, the next-gen server that Nvidia claims will be 3.3 times faster than Blackwell Ultra. In addition, if Rubin can shift to an air-cooled option instead of liquid cooling, we could see a lot more data centers adopting Nvidia's gear. That tweak alone could lead to an explosion in demand for Nvidia GPUs, as companies look to build their AI muscle without massive infrastructure Mizuho is keeping an Outperform rating on Nvidia stock with a $170 price target (an 8% jump from July 2's close). Cantor Fitzgerald, in a recent note, is even more upbeat, keeping its Overweight rating and setting the bar even higher at $200 (27.2% higher than July 2's close). Nvidia continues riding high on the tailwind of a blowout second quarter, its 10th consecutive quarter of top- and bottom-line beats. It delivered nearly 60% top-line growth, while its earnings per share of 81 cents beat estimates by six cents. However, it hasn't all been smooth sailing for the AI titan. Two Chinese AI startups, one led by a former Nvidia executive, just filed to go public, stirring up fresh competition. Also, the looming U.S. ban on H20 chip sales to China and Huawei's rumored H100 challenger have kept the pressure on. Nevertheless, Nvidia's pushing hard on new fronts. It's been going all-in on sovereign AI projects in Europe and Saudi Arabia, while building colossal U.S. production hubs for Blackwell to hedge against tariffs. It's important to note that on June 25, NVDA spiked 4% to a record $154.10, briefly overtaking Microsoft as the world's most valuable company, So it's clear Nvidia's still the king of AI chips, and the Street's betting there's still plenty of room to analyst revamps Nvidia price target for one surprising reason first appeared on TheStreet on Jul 4, 2025 This story was originally reported by TheStreet on Jul 4, 2025, where it first appeared.
Yahoo
25-06-2025
- Business
- Yahoo
The Inaugural NatGas to Power Forum Takes Place Nov. 17-19, 2025, in San Antonio, TX, by the Producers of the Long-Successful LDC Gas Forum Series
HOUSTON, TX / / June 25, 2025 / Development of new Data Centers to house computer processing to support Artificial Intelligence (AI) technology is a remarkable phenomenon that has recently burst onto the scene. This development brings with it massive growth in forecasted demand for electricity to operate these facilities. In many instances, many existing electric utility grids are incapable of serving the incremental electric demand, at least not in the near term. As a result, many AI Data Centers are actively exploring alternatives for electricity supply that do not rely on the existing electric utility grids. Utilizing natural gas to generate electricity has quickly emerged as the optimal alternative, where power from existing electric utility grids is unavailable. Stakeholders across the value chain are scrambling to learn about opportunities, requirements, configuration intricacies, and supply chain alternatives to secure electricity for AI Data Centers. In response to this requirement, the NatGas to Power Forum has been created as a unique, purpose-built event dedicated to this industry segment. The NatGas to Power Forum provides an efficient backdrop for stakeholders to obtain knowledge, and take away actionable insight and analysis from subject matter experts, while also developing valuable business contacts. In designing new AI Data Centers, developers and operators face the challenge of optimizing critical criteria, including: speed-to-market, 99.99% electric supply reliability, source of electric supply, facility location siting, and overall project economics. While natural gas has emerged as the ideal fuel for power generation, the natural gas or power value chain is a complex industry segment. There is a steep learning curve for stakeholders new to the segment that necessitates an efficient method to get up to speed. The NatGas to Power Forum offers the ideal format, content, speakers and participants to deliver on this challenge. The Format for the NatGas to Power Forum consists of 2 ½ days of Presentations and moderated Panels providing topical content and insight from industry leaders and subject matter experts. In addition, The Program also allocates multiple sessions of dedicated time for networking, to facilitate discussion, including with speakers, and to meet and connect with existing and prospective customers and key product/service suppliers. The NatGas to Power Forum Agenda is structured to explore market opportunities, understand requirements, and configure solutions. Topics include all aspects of monetizing transactions to develop and sustain the capability to utilize natural gas to generate electricity to serve AI data centers. Key topics include: Requirements For AI Data Centers Alternatives For Acquiring Electric Supply For AI Data Centers Natural Gas As The Optimal Electric Generation Fuel For AI Data Centers Generating Electricity From Natural Gas (Natural Gas 101) Considerations For Siting AI Data Centers Commercial Deal Structuring For Natural Gas Fueled Power Generation Natural Gas Market Fundamentals Identifying key stakeholders across the value chain (nat gas producers, marketers, pipelines, utilities, grid operators, power generators, major technology firms, data center owner/operators, developers, policymakers, etc.) Additional (Policy/Regulatory; Clean Energy options; Technology Innovations) Registration for the NatGas To Power Forum is now open. Register at Sponsorships and Speaking opportunities are also available - contact Christy Coleman ccolemen@ for more information. This Forum focuses on NatGas to Power, while five other LDC Gas Forums throughout the year address other key regions and market segments across the continent. Even in today's digital age, natural gas market participants appreciate events that facilitate face-to-face interaction. The LDC Gas Forum is uniquely structured to meet this expectation. The Forums have been the venue of choice for thousands of participants for decades. Registration is still available at The NatGas to Power Forum, LDC Gas Forums (4), Gulf Coast Energy Forum, and US-Mexico Natural Gas Forum series consists of seven annual events, each focused on a key natural gas market region across North America. This is where buyers and sellers meet to do business. Much more than simply conferences, the Forums are a well-structured event that delivers insights into critical issues affecting natural gas, LNG, natural gas power generation, and emerging energy markets, but in addition, provide participants opportunities to meet with industry counterparts to complete commercial business transactions. Timely panel discussions featuring key industry experts focus on important questions facing buyers, sellers, transportation operators, service/product suppliers, and other market stakeholders in competitive energy markets. Topics addressed include: natural gas market fundamentals (supply/demand) and price forecasting; LNG exports; natural gas power generation demand (incl. AI Data Centers); gas/electric coordination; natural gas infrastructure additions; energy policy, regulation and legal; Mexico natural gas exports; natural gas end user perspectives; virtual pipeline solutions; technology innovations for energy; energy evolution/additions providing supply security, affordability, and lower carbon alternatives (incl. certified gas, RNG, CCS). Participants at the Forums include C-Suite market leaders, decision makers and subject matter experts, representing all segments of the commercial natural gas value chain including utilities, industrial gas consumers, producers, pipelines, marketers, key service/product providers, as well as policy makers, regulators and market analysts. Multiple dedicated networking sessions give you access to your clients, prospects, and peers to pursue opportunities in the market. The LDC Gas Forums: Southeast, Northeast, Energy Innovations: Rockies & West, Mid-Continent, Gulf Coast Energy Forum, NatGas to Power Forum, and the US-Mexico Natural Gas Forum. Where the Natural Gas Industry Gathers: Networking - Insights - Deal-Making Media Contact InformationMolly MissimerLDC Gas Forumsmmissimer@ SOURCE: LDC Gas Forums View the original press release on ACCESS Newswire Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
