Mayville Engineering Q3 2026: Datacenter Surge Ends Earnings Drought

Mayville Engineering delivered its first earnings beat since mid-2025, posting adjusted EPS of $0.15 against a consensus estimate of roughly $0.12, a 28% beat. Revenue came in at $170.4 million, topping estimates of $165.1 million by 3.2% and representing 18% growth year over year. The results snapped a two-quarter losing streak for the $411 million fabricator.

The clearest engine behind the outperformance was the Datacenter and Critical Power segment, where net sales surged 64.9% year over year on accelerating demand from legacy customers and new project launches. CEO Jag Reddy noted the company secured approximately $45 million of new Datacenter and Critical Power project awards during the quarter alone, with the qualified opportunity pipeline now exceeding $200 million. Commercial Vehicle also contributed, with sales up 34.7%, while Powersports and Agriculture moved in the opposite direction, falling 26.9% and 9.9% respectively.

GAAP net income swung to $424,000 from a loss of $2.67 million a year earlier, and adjusted EBITDA climbed to $16.96 million at a 10% margin. The improvement came despite $3.0 million in Datacenter and Critical Power launch costs, outsourcing costs, and premium labor that partially offset margin gains. Reddy acknowledged that operational efficiency across the company's footprint remained uneven as teams responded to rapidly evolving customer requirements.

On October 1, 2026, Mayville closed the acquisition of a facility in Thomson, Georgia, which together with planned equipment investment is expected to add approximately $50 million of annual revenue capacity by 2028 and push total revenue capacity beyond the roughly $850 million previously disclosed. Management expects to reach full capacity within 18 months. Capital expenditures of $7.68 million in the quarter, up 154% year over year, reflect the investment pace required to meet that build-out.

For the full year, management set net sales guidance of $630 million to $640 million and adjusted EBITDA of $48 million to $52 million. Free cash flow guidance runs negative, from $(16) million to $(6) million, reflecting elevated capital spending and working capital investment. Risks flagged by the company include trade policy uncertainty, tariff exposure, raw material volatility, and a net leverage ratio of 2.9 times trailing twelve-month adjusted EBITDA.