Mayville Engineering Company, Inc.

What they do

MEC provides manufacturing from concept to production, including design, prototyping and tooling, fabrication, metal stamping, aluminum extrusion, tube bending and forming, robotic welding, laser cutting, coating, assembly and aftermarket components. It serves OEM customers from 27 U.S. facilities across nine states, 25 of which are in operation, with roughly 3.5 million square feet of manufacturing capacity and approximately 2,400 employees. The 10-K states it has been ranked the largest fabricator in the United States by The Fabricator magazine for 15 consecutive years (2011-2025). The company reports a single operating segment.

Revenue drivers

• Commercial vehicle and construction & access equipment — Heavy- and medium-duty commercial vehicles and construction & access equipment are named end markets; management said Q2 2026 net sales growth came partly from organic growth in Commercial Vehicle and Construction & Access and that commercial vehicle demand trends improved during the quarter.
• Datacenter & Critical Power — Management said it secured approximately $40 million of new Datacenter & Critical Power project awards in Q2 2026 and that its qualified opportunity pipeline exceeds $125 million; the company is absorbing project launch costs for ramping programs in this market.
• Agriculture (John Deere) — The 10-K states the more than 40-year Deere & Company relationship represented 2025 sales in excess of $54 million across five market segments and over 65 model platforms; Q2 2026 net sales were partly offset by lower Agriculture demand.
• Powersports, military and other end markets — Powersports and Military are named end markets, with the 10-K describing a powersports relationship of less than ten years expanded from suspension components into tubes, fabrications and finished goods assemblies; both Powersports and Military contributed to lower demand in Q2 2026.

Recent performance

Q2 2026 net sales were $163.0 million, up 23.2% year over year, with organic net sales up 9.2%, and the company reported a net loss of $2.1 million, or $0.09 per diluted share, versus non-GAAP adjusted diluted EPS of $0.07. Adjusted EBITDA was $13.2 million, or 8.1% of net sales, and quarterly free cash flow was negative $6.6 million. Manufacturing margin was $17.7 million, or 10.9% of net sales, versus $13.6 million, or 10.3%, a year earlier, helped by Accu-Fab contribution and better capacity utilization but reduced by $2.1 million of project launch costs. Interest expense rose to $3.5 million from $1.4 million due to higher average borrowings and rates, and bonuses and deferred compensation expense rose to $4.8 million from $1.5 million. Full-year 2025 revenue was $546.5 million with a net loss of $8.1 million, after 2024 revenue of $581.6 million and net income of $26.0 million.

Strategy

Management said it raised full-year 2026 net sales guidance by approximately 5% and expects continued commercial vehicle recovery through the remainder of the year with steady Construction & Access activity. The company completed a common stock offering in Q2 2026 that generated approximately $94 million of net proceeds, which were immediately used to reduce debt and increase available liquidity to more than $100 million. MEC intends to invest an incremental $50 million in organic growth initiatives across 2026 and 2027 to expand capacity for higher-value programs, particularly in the datacenter and critical power infrastructure market. Management also said it is making selective decisions to prioritize capacity for higher-value, higher-margin programs.

Risks

• Macroeconomic and demand volatility — The 10-K states inflation, elevated interest rates, labor availability, material cost pressures, trade policy uncertainty and inconsistent customer demand have had and may continue to have a negative impact, and that 2025 was hurt by customer channel inventory destocking.
• Tariffs and trade policy — The 10-K cites 2025 and early 2026 U.S. tariff actions and a Supreme Court decision striking down certain IEEPA tariffs, creating uncertainty over input costs, supply chain disruption and pricing volatility.
• Input cost inflation — The 10-K states MEC was negatively impacted in 2025 by inflationary pressures on wages, benefits, materials, manufacturing supplies and logistics, and expects material cost inflation and wage and benefit pressures to continue in 2026; cost of sales is directly affected by sheet steel and aluminum prices, largely mitigated by customer pass-through agreements.
• New program launch and capacity investment costs — Q2 2026 results included $2.1 million of project launch costs and higher costs from workforce expansion to support demand, and the company plans an incremental $50 million of organic growth investment across 2026-2027.

Outlook

Management raised full-year 2026 net sales guidance by approximately 5%, citing stronger-than-expected commercial vehicle order activity and momentum in Datacenter & Critical Power. It expects continued commercial vehicle recovery through the remainder of the year, complemented by steady Construction & Access activity, and describes a qualified opportunity pipeline above $125 million. It also said it expects some macroeconomic dynamics to continue in 2026 and could affect demand, material costs and labor, and noted it will keep absorbing launch costs as new datacenter and critical power programs ramp.