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Mayville Engineering Company (MEC)
NYSE:MEC
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Mayville Engineering Company (MEC) AI Stock Analysis

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MEC

Mayville Engineering Company

(NYSE:MEC)

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Neutral 64 (OpenAI - 4o)
Rating:64Neutral
Price Target:
$17.00
▲(3.34% Upside)
Mayville Engineering Company has a stable financial foundation with strong equity and manageable debt, but faces challenges in profitability and revenue growth. The technical indicators suggest a positive short-term trend, though caution is warranted due to potential overbought conditions. Strategic acquisitions and new business wins are positive, but market challenges and the withdrawal of 2026 financial targets add uncertainty.
Positive Factors
Strategic Acquisition
The Accu-Fab acquisition expands MEC's market reach by 60%, enhancing its serviceable addressable market to $8 billion, which strengthens its competitive position and potential for revenue growth.
New Business Wins
Securing significant new business awards in data center and power generation segments indicates strong market demand and enhances MEC's growth prospects in key industries.
Strong Free Cash Flow
High free cash flow conversion demonstrates MEC's ability to efficiently convert earnings into cash, supporting reinvestment and debt reduction strategies, which are crucial for long-term financial health.
Negative Factors
Decline in Net Sales
A significant decline in net sales reflects challenges in maintaining revenue growth, potentially affecting MEC's profitability and market position if not addressed.
Commercial Vehicle Market Challenges
Weakness in the commercial vehicle market could lead to reduced demand for MEC's products, impacting revenue and necessitating strategic adjustments to mitigate market risks.
Increased SG&A Expenses
Rising SG&A expenses, driven by acquisition and transition costs, could pressure margins and profitability, requiring effective cost management to sustain financial performance.

Mayville Engineering Company (MEC) vs. SPDR S&P 500 ETF (SPY)

Mayville Engineering Company Business Overview & Revenue Model

Company DescriptionMayville Engineering Company, Inc., together with its subsidiaries, operates as a contract manufacturer that serves the heavy and medium duty commercial vehicle, construction and access equipment, powersports, agriculture, military, and other end markets in the United States. The company provides a range of prototyping and tooling, production fabrication, coating, assembly, and aftermarket components. It also supplies engineered components to original equipment manufacturers. The company was founded in 1945 and is headquartered in Mayville, Wisconsin.
How the Company Makes MoneyMEC generates revenue through multiple streams, primarily by providing contract manufacturing services to various industries. This includes the fabrication of metal components and assemblies, which are sold to clients on a project basis. The company also engages in long-term contracts with clients for ongoing manufacturing needs, ensuring a steady flow of income. Additionally, MEC benefits from partnerships with key players in sectors such as defense and transportation, allowing it to secure significant contracts that contribute to its revenue. The company's ability to scale operations and invest in advanced manufacturing technologies further enhances its competitive edge, driving profitability.

Mayville Engineering Company Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strategic achievements such as the Accu-Fab acquisition and new business wins, which strengthen the company’s position in critical markets. However, significant challenges persist, including a notable decline in net sales and ongoing difficulties in the commercial vehicle market, leading to the withdrawal of 2026 financial targets. While there are positive growth strategies in place, the current market conditions present substantial hurdles.
Q2-2025 Updates
Positive Updates
Acquisition of Accu-Fab
The acquisition of Accu-Fab was completed, representing a significant milestone as it diversifies revenue and customer base, particularly into the critical power and data center end market, increasing the serviceable addressable market by 60% to approximately $8 billion.
Adjusted EBITDA Margin Expansion
Despite a 2% decline in net sales, adjusted EBITDA margin expanded by 130 basis points sequentially, indicating effective cost management and improved operating leverage.
New Business Wins
The company is ahead of pace to achieve its annual goal of $100 million in new business awards, with significant wins in data center fabrications and commercial vehicle segments.
Strong Free Cash Flow
The company generated $12.5 million in free cash flow, resulting in a free cash flow conversion of 92% of adjusted EBITDA.
Negative Updates
Decline in Net Sales and Manufacturing Margin
Total sales for the second quarter decreased 19.1% year-over-year to $132.3 million, and the manufacturing margin decreased from $22.3 million to $13.6 million due to lower customer demand.
Commercial Vehicle Market Challenges
The commercial vehicle market outlook has weakened, with a projected 24% decline in production compared to 2024. Elevated inventory levels and regulatory uncertainties are contributing to this downturn.
Increased SG&A Expenses
SG&A expenses increased to $10.3 million for the second quarter of 2025 from $8.3 million in the prior year, primarily due to non-recurring costs associated with the Accu-Fab acquisition and CFO transition.
Withdrawal of 2026 Financial Targets
The company withdrew its 2026 financial targets due to the current macroenvironment, indicating uncertainty in achieving previously set goals.
Company Guidance
During the second quarter of 2025, Mayville Engineering Company (MEC) saw its adjusted EBITDA margin expand by 130 basis points sequentially, even though net sales declined by 2%. The company completed the acquisition of Accu-Fab, which is expected to increase its estimated serviceable addressable market by approximately 60% to about $8 billion. This acquisition is anticipated to be modestly accretive to earnings for the year, with expectations of revenue synergies of $5 million to $10 million in 2026 and $15 million to $20 million by 2028. MEC updated its 2025 guidance to reflect the acquisition, forecasting net sales between $528 million and $562 million, adjusted EBITDA between $49 million and $55 million, and free cash flow between $25 million and $31 million. The company is also prioritizing debt repayment, targeting a net leverage ratio below 2x by the end of 2026. Despite commercial vehicle market softness, MEC is on track to achieve $100 million in new business awards for the year, with significant wins in data center fabrications and power generation engine programs. The company is implementing cost reduction initiatives and operational efficiency measures to improve its operating leverage over time.

Mayville Engineering Company Financial Statement Overview

Summary
MEC shows a stable financial position with strong equity and manageable debt levels. However, profitability and revenue growth have faced challenges, with a decrease in net profit margin and revenue contraction. Operational efficiency remains robust, and cash flow metrics indicate solid cash conversion, though recent declines in free cash flow growth warrant attention.
Income Statement
65
Positive
The income statement shows a mixed performance. The TTM gross profit margin is 11.78%, slightly below the previous year's 12.22%, indicating some pressure on cost management. The net profit margin has decreased to 4.09% from 4.46%, reflecting a decline in profitability. Revenue has contracted by 5.63% in the TTM, following a slight decline in the previous year, suggesting challenges in maintaining sales growth. However, the EBIT and EBITDA margins remain relatively stable, indicating operational efficiency.
Balance Sheet
72
Positive
The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.097 in the TTM, significantly improved from 0.437 in the previous year, indicating reduced leverage and financial risk. The return on equity is 9.30%, slightly down from 10.31%, but still showing effective use of equity to generate profits. The equity ratio is stable, suggesting a solid capital structure.
Cash Flow
68
Positive
Cash flow analysis shows a decrease in free cash flow growth by 8.84% in the TTM, indicating potential cash generation issues. However, the operating cash flow to net income ratio is strong at 1.20, suggesting good cash conversion from earnings. The free cash flow to net income ratio is 0.86, indicating a healthy level of free cash flow relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue524.61M581.60M588.42M539.39M454.83M357.61M
Gross Profit55.10M71.10M69.70M61.07M51.38M31.50M
EBITDA68.45M82.14M55.05M25.77M24.39M25.59M
Net Income17.87M25.97M7.84M18.73M-7.45M-7.09M
Balance Sheet
Total Assets433.75M445.57M496.66M440.58M379.47M338.53M
Cash, Cash Equivalents and Short-Term Investments206.00K206.00K672.00K127.00K118.00K121.00K
Total Debt25.27M112.62M182.08M108.98M68.82M47.94M
Total Liabilities186.90M193.82M266.68M222.71M181.20M137.68M
Stockholders Equity246.84M251.75M229.98M217.87M198.27M200.86M
Cash Flow
Free Cash Flow68.58M77.71M23.77M-6.18M-24.85M28.73M
Operating Cash Flow79.21M89.81M40.36M52.43M14.46M36.52M
Investing Cash Flow-10.35M-11.71M-104.13M-50.67M-33.96M-5.77M
Financing Cash Flow-68.97M-78.56M64.31M-1.75M19.50M-30.63M

Mayville Engineering Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.45
Price Trends
50DMA
14.11
Positive
100DMA
14.91
Positive
200DMA
14.69
Positive
Market Momentum
MACD
0.30
Negative
RSI
72.05
Negative
STOCH
92.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MEC, the sentiment is Positive. The current price of 16.45 is above the 20-day moving average (MA) of 13.72, above the 50-day MA of 14.11, and above the 200-day MA of 14.69, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 72.05 is Negative, neither overbought nor oversold. The STOCH value of 92.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MEC.

Mayville Engineering Company Risk Analysis

Mayville Engineering Company disclosed 35 risk factors in its most recent earnings report. Mayville Engineering Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Mayville Engineering Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$514.46M16.349.14%5.83%33.50%
66
Neutral
$117.70M13.1311.00%14.32%
64
Neutral
$264.33M18.577.37%-16.95%66.04%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
49
Neutral
$47.86M-23.42%3.78%78.39%
46
Neutral
$249.83M642.11-4.96%-3.07%
41
Neutral
$43.28M-9.00-8.37%-3.95%88.17%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MEC
Mayville Engineering Company
16.45
-3.71
-18.40%
AP
Ampco-Pittsburgh
2.26
0.33
17.10%
GIFI
Gulf Island Fabrication
7.74
2.24
40.73%
NWPX
Northwest Pipe Company
54.28
10.49
23.96%
TG
Tredegar
7.32
-0.22
-2.92%
TPCS
TechPrecision
4.73
0.93
24.47%

Mayville Engineering Company Corporate Events

Mayville Engineering’s Earnings Call: Strategic Wins Amid Challenges
Aug 8, 2025

In the latest earnings call, Mayville Engineering Company (MEC) conveyed a sentiment of cautious optimism. The company highlighted successful strategic initiatives, such as the acquisition of Accu-Fab and strong new business wins, which are poised to drive future growth. However, challenges like a decline in net sales and increased leverage due to acquisitions present a mixed outlook.

Mayville Engineering Reports Q2 2025 Financial Results
Aug 7, 2025

Mayville Engineering Company (MEC) is a U.S.-based, vertically-integrated manufacturing partner offering a comprehensive range of solutions from design to production, serving diverse markets such as commercial vehicles, construction, powersports, agriculture, and military. In its second quarter of 2025, MEC reported net sales of $132.3 million, with a GAAP net loss of $1.1 million, while achieving a non-GAAP adjusted net income of $2.1 million. The company generated an adjusted EBITDA of $13.7 million, reflecting a margin of 10.3%, and free cash flow of $12.5 million, despite facing a challenging demand environment across most end markets. Key financial metrics showed a decrease in net sales by 19.1% year-over-year, primarily due to reduced demand and inventory de-stocking in key markets such as commercial vehicles and powersports. However, the military and other markets saw increased sales due to higher aftermarket demand and new customer projects. MEC’s strategic initiatives included the acquisition of Accu-Fab, aimed at diversifying its market presence and enhancing operational leverage. Looking forward, MEC’s management remains focused on integrating Accu-Fab, optimizing operations, and pursuing growth opportunities, though they acknowledge ongoing market uncertainties and have adjusted their full-year guidance accordingly.

Business Operations and StrategyExecutive/Board Changes
Mayville Engineering Expands Board with New Director
Positive
Jul 24, 2025

On July 24, 2025, Mayville Engineering Company announced the election of Tania L. Wingfield to its Board of Directors, expanding the board to seven members. Wingfield, who is also appointed to the Compensation Committee, brings over 30 years of experience in manufacturing and strategic leadership, which is expected to enhance MEC’s execution of its MBX strategy and long-term value creation.

The most recent analyst rating on (MEC) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Mayville Engineering Company stock, see the MEC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 22, 2025