What Methode Electronics, Inc. told the SEC could break it.

With sizable manufacturing in Mexico, China, Europe and Canada, Methode is exposed to recently implemented U.S. tariffs — 25% on autos/parts, 50% on steel, 25% on aluminum, plus a 20% incremental China tariff and reciprocal tariffs.

“Since February 1, 2025 and up to the date of this Annual Report, the U.S. has announced and implemented various tariffs, including: 25% tariff on imports of automobiles and certain automobile parts into the U.S. from all countries.”

Gross margins are exposed to commodity price risk on raw material purchases — copper, plastic resins, and other commodities such as fuel and energy — which have fluctuated with global supply and demand.

“We are exposed to commodity price risk primarily on our raw material purchases. These raw materials are not rare or unique to our industry. The cost of copper, resins, and other commodities, such as fuel and energy, has fluctuated in recent years due to changes in global supply and demand.”

Roughly 95% of employees and significant property/operations sit outside the U.S. across Belgium, Canada, China, Egypt, Finland, India, Malta, Mexico and the UK, exposing the company to international political, economic and labor risks.

“we have significant personnel, property, equipment and operations in a number of countries outside of the U.S., including Belgium, Canada, China, Egypt, Finland, India, Malta, Mexico and the United Kingdom. As of May 3, 2025, approximately 95% of our employees were located outside of the U.S.”