Mayville Engineering Company
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Mayville Engineering Company (MEC) investor relations material

Mayville Engineering Company Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary4 Mar, 2026

Executive summary

  • Fourth quarter 2025 net sales rose 10.7% year-over-year to $134.3 million, driven by Data Center & Critical Power growth and the Accu-Fab acquisition, offset by softness in legacy markets.

  • Organic net sales declined 5.3% year-over-year, reflecting muted demand in legacy end markets.

  • Adjusted EBITDA for Q4 was $6.3 million (4.7% margin), down from $9.2 million (7.6%) in the prior year, with margin pressure from launch costs and inefficiencies.

  • Free cash flow in Q4 was $10.2 million, flat year-over-year when excluding a prior-year legal settlement.

  • $15 million in new project awards in Q4, with a qualified Data Center & Critical Power pipeline exceeding $125 million.

Financial highlights

  • Full-year 2025 net sales declined 6.0% to $546.5 million, primarily due to Commercial Vehicle and Agriculture market weakness.

  • Adjusted EBITDA for FY25 was $47.1 million (8.6% margin), down from $64.4 million (11.1%) in FY24.

  • Adjusted diluted EPS for FY25 was $0.31, down from $0.86 in FY24; Q4 Adjusted Diluted EPS was $(0.08).

  • Free cash flow for FY25 was $26.9 million, compared to $77.7 million in FY24.

  • Net debt at year-end was $205.3 million, with a net leverage ratio of 3.7x.

Outlook and guidance

  • Full-year 2026 net sales guidance: $580–$620 million; Adjusted EBITDA: $50–$60 million; free cash flow: $25–$35 million.

  • Q1 2026 net sales forecast: $137–$143 million; Adjusted EBITDA: $5–$7 million, reflecting continued margin pressure from project launches.

  • Data Center & Critical Power expected to exceed 20% of 2026 revenues, with $40–$50 million in cross-selling synergies, mostly back-half loaded.

  • Free cash flow conversion targeted at 50–60% of Adjusted EBITDA; capital expenditures planned at $15–$20 million for 2026.

  • Net leverage ratio expected to fall to 3x or lower by year-end 2026.

How will DC&CP growth affect 2026 revenue mix?
When will current margin pressures subside?
What is the debt reduction strategy for 2026?
Visibility into large '1 or 0' project wins
Margin recovery timeline for launch-related costs
Shift schedule changes to increase run capacity
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Q1 20266 May, 2026
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Frequently asked questions

Mayville Engineering Company Inc. is a provider of custom metal fabrication and manufacturing services. The company specializes in offering a range of products and services, including metal stamping, machining, welding, and assembly for industrial, agricultural, and commercial applications. MEC serves industries such as construction, agriculture, and transportation, providing solutions tailored to meet specific customer needs. The company is headquartered in Mayville, Wisconsin, and its shares are listed on the NYSE.

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