Mayville Engineering Company Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.89%.
Did MEC Beat Earnings? Q3 2025 Results
Mayville Engineering Company delivered a decisive beat in Q3 2025, with adjusted EPS of $0.10 clearing the $0.01 consensus estimate by more than 1,000% and revenue of $144.31 million topping forecasts by 2.68%, rising 6.6% year-over-year. The headline driver was MEC's July 1 acquisition of Accu-Fab LLC, which fueled a surge in the Data Center and Critical Power segment to $22.57 million from $4.66 million a year ago, more than offsetting a 24.0% collapse in Commercial Vehicle revenue tied to a steep drop in North American Class 8 production and a 21.8% decline in Agriculture. Organic net sales fell 9.1%, underscoring just how heavily the top-line growth depended on the acquisition, and Adjusted EBITDA margins compressed to 9.8% from 12.6%. Despite those pressures, management reiterated full-year 2025 guidance for net sales of $528 to $562 million and raised 2026 Accu-Fab revenue synergy expectations to $20 to $30 million, signaling confidence in its strategic pivot toward high-growth data center markets even as shares remain down 18% over the past year.
- Accu-Fab acquisition completed July 1, 2025 drove inorganic revenue growth offsetting legacy market declines
- 38.8% decline in North American Class 8 commercial vehicle production drove 24.0% decline in Commercial Vehicle segment
- Data Center & Critical Power segment saw strong organic growth of 7.4% plus significant Accu-Fab contribution
- Construction & Access benefited from improved non-residential construction demand with 6.2% organic growth
- Agriculture declined 21.8% on continued weak demand across large-ag and small-ag end markets
- Manufacturing margin compressed to 11.0% from 12.6% due to $1.2M non-recurring Accu-Fab integration costs and lower demand
- Interest expense increased to $3.4M from $2.7M due to higher acquisition-related borrowings
- Free cash flow impacted by $3.5M of non-recurring items
“During the third quarter, our team continued to execute with discipline, delivering results that were in line with our expectations. As a result, we are reiterating our full-year financial guidance for 2025.”
Mayville Engineering Company CEO, on the earnings call
Forward Guidance & Outlook
MEC reiterated its full-year 2025 guidance: net sales of $528–$562 million, Adjusted EBITDA of $49–$55 million, and free cash flow of $25–$31 million, with capital expenditures of $13–$17 million. Guidance reflects the Accu-Fab acquisition completed July 1, 2025, and continued soft demand in legacy end markets. The company increased its 2026 revenue synergy expectations from the Accu-Fab acquisition to $20–$30 million, citing strong customer engagement and a rapidly growing pipeline in the data center and critical power market. Management is strategically rebalancing production capacity toward high-growth areas while acknowledging subdued legacy market demand may constrain near-term margin expansion.
MEC YoY Financials
MEC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.