Mayville Engineering Company (MEC) Q2 2026 earnings summary

Executive summary

• Net sales rose 23.2% year-over-year to $163 million in Q2 2026, driven by strong organic growth in Datacenter & Critical Power, Commercial Vehicle, and Construction & Access markets, as well as the Accu-Fab acquisition.

• Adjusted EBITDA was $13.2 million (8.1% margin), down from $13.7 million (10.3% margin) in Q2 2025, with net loss widening to $2.1 million due to higher interest and amortization.

• Free cash flow was negative at ($6.6) million, reflecting increased capital expenditures and investments.

• $94 million equity offering completed, proceeds used to reduce debt, enhance liquidity, and fund growth investments.

• Secured $40 million in new Datacenter & Critical Power project awards, supporting future growth.

Financial highlights

• Q2 2026 net sales: $163 million (+23.2% YoY); organic net sales up 9.2% excluding Accu-Fab.

• Manufacturing margin improved to 10.9% from 10.3% year-over-year.

• Adjusted EBITDA margin was 8.1%, down from 10.3% due to project launch costs and higher gain sharing accruals.

• Interest expense increased to $3.5 million from $1.4 million, reflecting higher borrowings and rates.

• Free cash flow was a use of $6.6 million for the quarter; six months ended June 30, 2026 was ($13.59M).

Outlook and guidance

• Q3 2026 net sales expected between $160 million–$170 million; adjusted EBITDA between $15.5 million–$18.5 million.

• Full-year 2026 net sales guidance raised to $620 million–$650 million; adjusted EBITDA expected at $52 million–$60 million; free cash flow guidance $7 million–$15 million.

• Capital expenditures for FY 2026 projected at $25 million–$35 million, focused on Datacenter & Critical Power demand.

• Guidance includes $50–$60 million incremental cross-selling and continued end market improvement.

• Management expects to remain in compliance with financial covenants and has sufficient liquidity for operations.