Mayville Engineering Company Stock Earnings Reports

Mayville Engineering Company (MEC) reported Q1 2026 revenue of $144.8M, up 6.8% year-over-year including the AccuFab acquisition, while organic sales declined ~8.2%. The quarter was marked by strong demand and bookings in the data center & critical power end market (organic growth ~71% YoY), a qualified pipeline >$125M, and $50M–$60M of projects scheduled to launch in 2026. The company secured roughly $50M of data center/critical power awards in Q1 and expects full-year bookings to exceed $150M. Legacy end markets were mixed: commercial vehicles and some powersports segments remain soft, construction/access and ag are roughly flat, and management expects legacy recovery to be gradual and second-half weighted. Gross/manufacturing margin was pressured to 7% (vs. 11.3% prior year) due to $1.2M of launch costs, restructuring items, and lower legacy volumes; adjusted EBITDA margin fell to 4.5% (from 9%). Q2 guidance: revenue $145M–$155M and adjusted EBITDA $10M–$13M. Full-year 2026 guidance was narrowed/raised at the low end to revenue $590M–$620M, adjusted EBITDA $52M–$60M, and free cash flow $25M–$35M (includes full year of AccuFab and incremental cross-sell revenue). Net debt rose to $219.2M (net leverage 4.4x at March 31); management targets long-term net leverage ~2.5x and expects deleveraging over time with second-half weighted cash flow. Capex will increase above historical $5M–$10M to support data center program launches and selective capacity expansion; Hazel Park is highlighted as a strategic facility with ~$55M of data center work already being ramped and additional capacity available. Management sees current footprint capacity up to roughly $850M of revenue without new major investments and is evaluating organic expansion on the East Coast to meet data center demand that is time/region sensitive. Near-term margin pressure is attributed to program launch costs and lower legacy volumes, but management expects sequential margin and cash-flow improvement as programs move to full production in Q2 and into the second half.