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Mayville Engineering Company (MEC)
NYSE:MEC
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Mayville Engineering Company
(NYSE:MEC)
Rating:61Neutral
Price Target:
$15.00
▲(7.68% Upside)
Positive Factors
Business Development
Mayville is actively pursuing new markets where fabricated parts are required, and the design, tooling and end-user requirements are not a stretch for capacity.
M&A Strategy
The strategic rationale for acquiring Accu-Fab appears compelling and provides a solid foundation from which to build.
Reshoring Benefits
Mayville's first-quarter results underline the company's structural margin improvements and its unique position as a beneficiary of the accelerating reshoring trend.
Negative Factors
Earnings Performance
Shares of Mayville finished down 12% after the company reported worse-than-expected second-quarter results and reduced full-year guidance.
Market Demand
The company reported continued demand softness across its legacy vehicle markets.
Revenue Decline
Revenue for the first quarter showed a year-over-year decline of 15.9%.
Mayville Engineering Company (MEC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$291.97M
Dividend YieldN/A
Average Volume (3M)142.08K
Price to Earnings (P/E)16.7
Beta (1Y)0.76
Revenue Growth-16.95%
EPS Growth66.04%
CountryUS
Employees2,200
SectorIndustrials
Sector Strength83
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)0.10
Shares Outstanding20,317,825
10 Day Avg. Volume175,972
30 Day Avg. Volume142,082
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.29
Price to Sales (P/S)0.56
P/FCF Ratio4.17
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue0.82
Enterprise Value/Gross Profit7.80
Enterprise Value/Ebitda9.89
Forecast
1Y Price Target
$18.00Price Target Upside29.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Mayville Engineering Company Business Overview & Revenue Model
Company DescriptionMayville Engineering Company (MEC) is a leading provider of contract manufacturing services, specializing in precision metal fabrication, machining, and assembly. Operating primarily in the industrial and commercial sectors, MEC serves a diverse range of industries, including automotive, military, and renewable energy. The company is known for its advanced manufacturing capabilities and commitment to quality, offering a wide array of products from complex assemblies to custom-engineered solutions.
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: -16.69%|
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
Mayville Engineering Company (MEC) demonstrates solid profitability with stable financial health, efficient cash flow management, and low leverage. However, a slight revenue decline and moderate ROE indicate room for improvement in profitability.Income Statement
Mayville Engineering Company (MEC) demonstrates solid profitability with a gross profit margin of 11.8% and a net profit margin of 4.1% for TTM (Trailing-Twelve-Months). While revenue experienced a slight decline of 4.4% from the previous year, the company has improved its EBIT and EBITDA margins to 6.9% and 13.7% respectively, indicating enhanced operational efficiency.75
Positive
Balance Sheet
MEC maintains a stable balance sheet with a debt-to-equity ratio of 0.1, reflecting low leverage. The equity ratio stands at 55.8%, indicating a healthy proportion of equity financing. However, return on equity (ROE) at 9.1% suggests moderate profitability relative to shareholder investments.65
Positive
Cash Flow
The company exhibits strong cash flow management with a free cash flow growth rate of 216.6% for TTM. The operating cash flow to net income ratio is robust at 3.8, highlighting efficient conversion of earnings into cash. The free cash flow to net income ratio of 3.3 further underscores solid cash flow generation relative to net income.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 524.61M | 581.60M | 588.42M | 539.39M | 454.83M | 357.61M |
| Gross Profit | 55.10M | 71.10M | 69.70M | 61.07M | 51.38M | 31.50M |
| EBITDA | 43.44M | 82.14M | 55.05M | 25.77M | 24.39M | 25.59M |
| Net Income | 17.87M | 25.97M | 7.84M | 18.73M | -7.45M | -7.09M |
Balance Sheet | ||||||
| Total Assets | 433.75M | 445.57M | 496.66M | 440.58M | 379.47M | 338.53M |
| Cash, Cash Equivalents and Short-Term Investments | 206.00K | 206.00K | 672.00K | 127.00K | 118.00K | 121.00K |
| Total Debt | 25.27M | 110.05M | 182.08M | 108.98M | 68.82M | 47.94M |
| Total Liabilities | 186.90M | 193.82M | 266.68M | 222.71M | 181.20M | 137.68M |
| Stockholders Equity | 246.84M | 251.75M | 229.98M | 217.87M | 198.27M | 200.86M |
Cash Flow | ||||||
| Free Cash Flow | 68.58M | 77.71M | 23.77M | -6.18M | -24.85M | 28.73M |
| Operating Cash Flow | 79.21M | 89.81M | 40.36M | 52.43M | 14.46M | 36.52M |
| Investing Cash Flow | -10.35M | -11.71M | -104.13M | -50.67M | -33.96M | -5.77M |
| Financing Cash Flow | -68.97M | -78.56M | 64.31M | -1.75M | 19.50M | -30.63M |
Mayville Engineering Company Technical Analysis
Negative
13.93
Price Trends
15.59
Negative
14.76
Negative
15.32
Negative
Market Momentum
-0.49
Positive
37.87
Neutral
50.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MEC, the sentiment is Negative. The current price of 13.93 is below the 20-day moving average (MA) of 15.19, below the 50-day MA of 15.59, and below the 200-day MA of 15.32, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 37.87 is Neutral, neither overbought nor oversold. The STOCH value of 50.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $719.33M | 23.26 | 8.87% | 3.06% | 9.44% | 53.83% | |
72 Outperform | $498.43M | 15.38 | 9.14% | ― | 5.83% | 33.50% | |
66 Neutral | $108.88M | 11.47 | 11.00% | ― | 14.32% | ― | |
63 Neutral | $10.76B | 16.24 | 7.41% | 2.07% | 2.60% | -16.34% | |
61 Neutral | $291.97M | 16.66 | 7.37% | ― | -16.95% | 66.04% | |
53 Neutral | $51.35M | ― | -23.42% | ― | 7.72% | 63.07% | |
40 Underperform | $57.50M | 15.81 | -8.37% | ― | -3.95% | 88.17% |
* Industrials Sector Average
Performance Comparison
MEC
Mayville Engineering Company
13.93
-5.03
-26.53%
AP
Ampco-Pittsburgh
2.80
0.87
45.08%
GIFI
Gulf Island Fabrication
6.75
1.15
20.54%
IIIN
Insteel Industries
36.88
5.49
17.49%
NWPX
Northwest Pipe Company
50.86
7.27
16.68%
TPCS
TechPrecision
5.32
1.62
43.78%
Mayville Engineering Company Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
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.
M&A TransactionsBusiness Operations and Strategy
Mayville Engineering Acquires Accu-Fab for $140.5 Million
Positive
Jul 1, 2025
On July 1, 2025, Mayville Engineering Company, Inc. acquired Accu-Fab, LLC for $140.5 million, financed through its existing credit agreement. This acquisition enhances Mayville’s capabilities in providing technology-driven metal fabrication solutions and strengthens its position in the critical power infrastructure, data center, and renewable energy markets.
Private Placements and Financing
Mayville Engineering Expands Credit Facility by $100 Million
Neutral
Jun 27, 2025
On June 26, 2025, Mayville Engineering Company, Inc. amended its credit agreement to increase its revolving credit facility from $250 million to $350 million, utilizing a $100 million accordion feature. This financial move is intended to support the company’s ongoing business needs, with the terms of the credit agreement remaining largely unchanged.
M&A TransactionsBusiness Operations and Strategy
Mayville Engineering Announces Acquisition of Accu-Fab
Positive
May 27, 2025
On May 23, 2025, Mayville Engineering Company announced a Purchase Agreement to acquire Accu-Fab, LLC for $140.5 million, subject to customary adjustments. The acquisition, expected to close in the third quarter of 2025, aims to enhance Mayville’s market position by integrating Accu-Fab’s expertise in metal fabrication and value-added services, thereby strengthening its supply chain capabilities for major OEMs in critical sectors.
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.