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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.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.
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