Mayville Engineering Company (MEC) Q2 2026 earnings summary

Executive summary

• Q2 net sales rose 23.2% YoY to $162.98 million, driven by organic growth and the Accu-Fab acquisition.

• Net loss was $2.10 million versus $1.10 million in Q2 2025; Adjusted Diluted EPS was $0.07 and Adjusted EBITDA was $13.17 million, at an 8.1% margin.

• Free cash flow was a use of $6.6 million, reflecting higher capital investment to support demand.

• A $93.88 million net stock offering enhanced liquidity and supported debt reduction and growth investment.

• DCP organic growth was 172.8%, with ~$40 million in Q2 awards and a qualified pipeline exceeding $125 million.

Financial highlights

• Organic net sales increased 9.2% YoY to $144.5 million; six-month net sales rose 14.9% to $307.76 million.

• Manufacturing margin increased to $17.70 million, or 10.9% of sales, from $13.6 million, or 10.3%, YoY.

• Interest expense rose to $3.48 million from $1.4 million YoY, reflecting higher borrowings and rates.

• Adjusted Net Income was $1.6 million, down from $3.4 million YoY.

• Cash and equivalents were $2.2 million at quarter-end; total liquidity exceeded $100 million.

Outlook and guidance

• Q3 2026 net sales guidance is $160–$170 million and Adjusted EBITDA guidance is $15.5–$18.5 million.

• FY 2026 guidance is net sales of $620–$650 million, Adjusted EBITDA of $52–$60 million, and free cash flow of $7–$15 million; sales guidance was raised.

• FY guidance includes $5–$6 million of launch costs and $2–$3 million of outsourcing costs; $50–$60 million of incremental cross-selling revenue is expected.

• FY 2026 capital expenditures are projected at $25–$35 million, primarily supporting DCP demand.

• DCP organic growth is expected in the low teens; FY bookings across end markets are expected to exceed $150 million.