Mayville Engineering Company Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.82%.
Did MEC Beat Earnings? Q4 2025 Results
Mayville Engineering Company delivered a mixed fourth quarter for fiscal 2025, posting revenue that edged past expectations while profitability fell short on both a reported and adjusted basis. Net sales of $134.27 million rose 10.7% year-over-year, nudging just ahead of the $133.59 million consensus, but adjusted loss per share of $0.08 missed the $0.07 estimate by 6.67%, as project launch costs in the company's fast-growing Data Center and Critical Power segment, combined with early-stage inefficiencies on a Commercial Vehicle program, compressed adjusted EBITDA to $6.31 million from $9.19 million a year ago. Manufacturing margins narrowed to 6.6% from 8.9%, with $1.20 million in data center launch costs and $1.70 million in commercial vehicle inefficiencies identified as the primary culprits. Four analysts recently lifted their average price target on MEC to $24.25, reflecting optimism that these headwinds are temporary. Looking ahead, management guided full-year 2026 net sales of $580 million to $620 million and adjusted EBITDA of $50 million to $60 million, with profitability improvement expected to accelerate in the second half as data center programs ramp toward representing more than 20% of total revenue.
- Accu-Fab acquisition contributing incremental revenue across multiple end markets
- Accelerating demand in Data Center & Critical Power end market with 12.7% organic growth
- New business wins driving 19.7% growth in Powersports
- Organic net sales growth of 10.8% in Construction & Access
- 25.3% decline in North American Class 8 commercial vehicle production weighing on Commercial Vehicle segment
- Project launch costs of $1.2M in Data Center & Critical Power and $1.7M early-stage inefficiencies in Commercial Vehicle pressuring margins
“We closed fiscal 2025 with strong momentum within our Data Center & Critical Power end market, securing $15 million of incremental project awards during the fourth quarter, strengthening our 2026 orderbook.”
Mayville Engineering Company CEO, on the earnings call
Forward Guidance & Outlook
MEC introduced both quarterly and full-year guidance. For Q1 2026, the company expects net sales of $137M–$143M and Adjusted EBITDA of $5M–$7M, reflecting continued demand softness in Commercial Vehicle, Agriculture, and Military end markets, plus ongoing Data Center & Critical Power project launch costs. Free cash flow in Q1 is expected to reflect normal seasonal working capital usage and incremental working capital for data center ramp-up with CapEx of $3M–$5M. For full-year 2026, MEC guides net sales of $580M–$620M, Adjusted EBITDA of $50M–$60M, and Free Cash Flow of $25M–$35M. Full-year guidance assumes a full year of Accu-Fab ownership, $40M–$50M of incremental cross-selling revenue, and improvement in legacy end market demand primarily in the second half. Data Center & Critical Power is expected to represent more than 20% of MEC's revenue in 2026. Management expects margin pressure to persist near-term but anticipates operating leverage and favorable mix to drive year-over-year profitability growth for full-year 2026.
MEC YoY Financials
MEC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.