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MEC Q1 2026 Earnings
Reported May 5, 2026 at 4:30 PM ET · SEC Source
Q1 26 EPS
$-0.15
BEAT +30.78%
Est. $-0.22
Q1 26 Revenue
$144.8M
BEAT +4.03%
Est. $139.2M
vs S&P Since Q1 26
+53.9%
BEATING MARKET
MEC +53.9% vs S&P 0.0%
Market Reaction
Did MEC Beat Earnings? Q1 2026 Results
Mayville Engineering Company delivered a stronger-than-expected first quarter, posting non-GAAP adjusted diluted EPS of $-0.15 against a consensus estimate of $-0.22, a beat of roughly 30.78%, while net sales of $144.78 million topped estimates by 4.… Read more Mayville Engineering Company delivered a stronger-than-expected first quarter, posting non-GAAP adjusted diluted EPS of $-0.15 against a consensus estimate of $-0.22, a beat of roughly 30.78%, while net sales of $144.78 million topped estimates by 4.03% and rose 6.8% year-over-year. The headline driver was an explosive ramp in the company's Datacenter & Critical Power segment, where revenue surged 470.2% to $23.63 million, fueled by organic growth of 71.3% and the contribution from the Accu-Fab acquisition completed in Q3 2025. That momentum came with costs, however, as $1.20 million in project launch expenses, $2.42 million in restructuring charges, and a 23.8% drop in Commercial Vehicle sales compressed Adjusted EBITDA to $6.47 million, a 4.5% margin versus 9.0% a year ago. Management raised the low end of full-year 2026 guidance to $590 million-$620 million in net sales with Adjusted EBITDA of $52 million-$60 million, pointing to improving Datacenter program profitability and a recovery in legacy end markets weighted toward the second half as reasons for confidence in sequential margin improvement ahead.
Key Takeaways
- • Datacenter & Critical Power organic net sales growth of 71.3% and 470.2% total growth including Accu-Fab acquisition
- • North American Class 8 commercial vehicle production declined 27.2%, driving 23.8% revenue decline in Commercial Vehicle segment
- • $1.2 million in Datacenter & Critical Power project launch costs pressured margins
- • Accu-Fab acquisition contributed incremental SG&A and higher-margin sales
- • Interest expense more than doubled due to increased borrowings for Accu-Fab acquisition
- • Restructuring and impairment costs of $2.4 million and $1.5 million respectively
- • Improving margin realization late in the quarter as Datacenter programs transitioned to full production
MEC Forward Guidance & Outlook
MEC provided Q2 2026 guidance of $145M-$155M in net sales (midpoint $150M) and $10M-$13M in Adjusted EBITDA (midpoint $11.5M), reflecting continued legacy end market softness offset by ramping Datacenter & Critical Power revenues, with ongoing project launch costs. Q2 free cash flow is expected to reflect incremental working capital investment and planned capex of $6M-$8M. Full-year 2026 guidance was refined by raising the low end: net sales of $590M-$620M (vs. prior low end implied by March 3 announcement), Adjusted EBITDA of $52M-$60M, and Free Cash Flow of $25M-$35M. Full-year assumptions include a full year of Accu-Fab ownership, $50M-$60M of incremental cross-selling revenue, improvement in legacy end market demand primarily in H2, and capex of $15M-$20M.
MEC YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
MEC Revenue by Segment
With YoY comparisons, source: SEC Filings
“We concluded the first quarter with strong momentum, driven by successful project ramp activity in our Datacenter & Critical Power end market. As anticipated, results reflected headwinds from project launch costs and softer demand across our legacy end markets. Additionally, we experienced improving margin realization late in the quarter as several Datacenter & Critical Power programs transitioned into full production. This progress reinforces our confidence in meaningful profitability improvement as the year progresses.”
— Jag Reddy, Q1 2026 Earnings Press Release
MEC Earnings Trends
MEC vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
MEC EPS Trend
Earnings per share: estimate vs actual
MEC Revenue Trend
Quarterly revenue: estimate vs actual
MEC Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $-0.22 | $-0.15 | +30.78% | $144.8M | +4.03% |
| Q4 25 MISS FY | $-0.08 | $-0.08 | -6.67% | $134.3M | +0.51% |
| FY Full Year | — | $0.31 | — | $546.5M | — |
| Q3 25 BEAT | $0.01 | $0.10 | +1,023.60% | $144.3M | +2.68% |
| Q2 25 BEAT | $0.06 | $0.10 | +67.50% | $132.3M | -4.09% |