Mayville Engineering Amends Credit Agreement, Adjusts Leverage Terms

Mayville Engineering Company ( (MEC) ) has provided an update.

On February 25, 2026, Mayville Engineering Company, Inc. amended its Amended and Restated Credit Agreement, reducing the total commitment on its senior secured revolving facility by $75 million to $275 million and adding higher pricing tiers tied to elevated leverage ratios. The Third Amendment also temporarily relaxes leverage and interest coverage covenants through 2026 while simultaneously tightening certain operational covenants, including limits on permitted acquisitions during the 2026 fiscal year, signaling a shift toward more constrained growth activity but greater covenant flexibility as the company manages its capital structure.

The revised agreement allows higher maximum consolidated total leverage ratios, peaking at 5.25 to 1.00 in the first half of 2026 before stepping back down to 3.50 to 1.00 from March 31, 2027, and lowers the minimum interest coverage ratio floor to 2.75 to 1.00 for the latter half of 2026. These changes suggest lenders are accommodating near-term leverage and earnings dynamics while retaining tighter operational controls, which could affect the company’s acquisition strategy and risk profile but preserves access to significant revolving credit capacity.

The most recent analyst rating on (MEC) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Mayville Engineering Company stock, see the MEC Stock Forecast page.

Spark’s Take on MEC Stock

According to Spark, TipRanks’ AI Analyst, MEC is a Neutral.

MEC’s overall score reflects stable financial health and growth potential from strategic acquisitions. However, operational challenges, high valuation, and legacy market weaknesses weigh on the score. The reaffirmation of guidance and potential in new markets are positive, but increased debt and cash flow issues are concerns.

To see Spark’s full report on MEC stock, click here.

More about Mayville Engineering Company

Mayville Engineering Company, Inc. is a U.S.-based manufacturing firm that operates through Mayville Engineering and its subsidiaries. The company relies on a senior secured revolving credit facility to support its operational needs, capital allocation, and potential acquisition activity, making its credit terms a key element of its financial flexibility and balance sheet management.

Average Trading Volume: 160,935

Technical Sentiment Signal: Buy

Current Market Cap: $440.5M

For an in-depth examination of MEC stock, go to TipRanks’ Overview page.