Mayville Engineering Company (MEC)
NYSE:MEC
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Mayville Engineering Company
(NYSE:MEC)
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Rating:59Neutral
Price Target:
$28.00
▲(33.21% Upside)
Action:Reiterated
Date:05/09/26
The score is held back primarily by weakened profitability (loss-making with compressed margins) despite strong revenue growth and positive free cash flow, while technicals show a strong uptrend but very overbought momentum. Guidance and data center/critical power demand are constructive, but near-term margin pressure and elevated leverage reduce confidence; valuation metrics also screen poorly due to negative earnings.
Positive Factors
Secular data center demand & revenue growth
Rapid top-line expansion driven by data center and critical power demand and a >$125M qualified pipeline gives MEC a durable secular growth runway. The shift toward higher-content data center programs and AccuFab cross-selling can reshape revenue mix toward longer-term, more stable contracts if execution holds.
Negative Factors
Margin compression and negative profitability
Substantially compressed gross and EBITDA margins convert higher sales into weak or negative earnings, undermining return on capital. If sustained, these margin headwinds limit FCF expansion, impair the firm's ability to deleverage, and reduce reinvestment capacity until higher‑margin programs fully ramp.
Read all positive and negative factors
Positive Factors
Negative Factors
Secular data center demand & revenue growth
Rapid top-line expansion driven by data center and critical power demand and a >$125M qualified pipeline gives MEC a durable secular growth runway. The shift toward higher-content data center programs and AccuFab cross-selling can reshape revenue mix toward longer-term, more stable contracts if execution holds.
Read all positive factors
Mayville Engineering Company Key Performance Indicators (KPIs)
Any
Net Sales by Product Category
Breaks down revenue across the company’s product lines (for example pumps, separators, parts, and engineered systems), showing which products drive sales and margins. High concentration in one product type highlights dependence and single-product risk, while growth in higher-margin categories indicates improving profitability and successful product strategy.
Breaks down revenue across the company’s product lines (for example pumps, separators, parts, and engineered systems), showing which products drive sales and margins. High concentration in one product type highlights dependence and single-product risk, while growth in higher-margin categories indicates improving profitability and successful product strategy.
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The Fly
The FlyMayville Engineering Company (MEC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$510.71M
Dividend YieldN/A
Average Volume (3M)209.75K
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth-0.04%
EPS Growth-172.38%
CountryUS
Employees2,200
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)-0.79
Shares Outstanding20,494,005
10 Day Avg. Volume208,508
30 Day Avg. Volume209,749
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)1.59
Price to Sales (P/S)0.70
P/FCF Ratio14.24
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit10.89
Enterprise Value/Ebitda15.01
Forecast
1Y Price Target
$29.25Price Target Upside39.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.2
Revenue Forecast (FY)$603.02M
Mayville Engineering Company Business Overview & Revenue Model
Company Description
Mayville 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 ...
How the Company Makes Money
MEC makes money primarily by providing contract manufacturing services to customers (typically OEMs) that outsource the fabrication and assembly of metal components and finished/near-finished products. Revenue is generated from customer purchase o...
Mayville Engineering Company Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously optimistic outlook: strong and accelerating demand, bookings, and cross‑selling momentum in the data center and critical power end market (organic growth ~71% YoY, pipeline >$125M, ~$50–$60M of 2026 launches) underpin confidence in revenue growth and improved margins over the remainder of 2026. However, near‑term profitability and cash flow are under pressure from launch costs (~$1.2M), lower legacy volumes (organic sales down ~8.2%), and a substantial increase in net debt (to $219.2M) and leverage (4.4x), which management plans to address through operational execution, selective capital investment, and deleveraging. The positives around secular data center opportunity and raised guidance moderately outweigh the near‑term margin, cash flow, and leverage challenges, but improvements are expected to be second‑half weighted.Positive Updates
Overall Revenue Growth (Including Acquisition)
Total sales for Q1 increased 6.8% year‑over‑year to $144.8 million, driven by the AccuFab acquisition which contributed higher‑margin sales.
Negative Updates
Organic Sales Decline Excluding AccuFab
Excluding the AccuFab acquisition, organic net sales declined approximately 8.2% year‑over‑year in Q1, indicating underlying weakness in legacy end markets.
Read all updates
Q1-2026 Updates
Positive
Negative
Overall Revenue Growth (Including Acquisition)
Total sales for Q1 increased 6.8% year‑over‑year to $144.8 million, driven by the AccuFab acquisition which contributed higher‑margin sales.
Read all positive updates
Company Guidance
For Q2 2026 the company guided net sales of $145–155 million and adjusted EBITDA of $10–13 million; for full‑year 2026 it narrowed the range to net sales of $590–620 million, adjusted EBITDA of $52–60 million and free cash flow of $25–35 million, reflecting a full year of AccuFab ownership, $50–60 million of incremental cross‑selling revenue, a qualified pipeline >$125 million (with ~$50–60 million of projects scheduled to launch in 2026) and the expectation that data center & critical power will represent >20% of revenue in 2026 (targeting ~25% at exit); Q1 actuals included sales of $144.8 million (organic net sales down 8.2% ex‑AccuFab), a manufacturing margin of 7% (vs. 11.3% prior year), adjusted EBITDA margin of 4.5% (vs. 9% prior year), $1.2 million of launch costs, free cash flow use of $6.9 million, net debt of $219.2 million (vs. $80.4 million at end of 2025) and covenant net leverage of 4.4x, while the company plans growth capex above its historical $5–10 million range, expects ~ $1–2 million of annualized savings from footprint optimization, targets long‑term net leverage of 2.5x, and estimates current footprint capacity of roughly $850 million of revenue absent further investment.Mayville Engineering Company Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
78
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 555.69M | 546.49M | 581.60M | 588.42M | 539.39M | 454.83M |
| Gross Profit | 46.31M | 54.01M | 71.10M | 69.70M | 61.07M | 51.38M |
| EBITDA | 33.60M | 37.44M | 82.14M | 55.05M | 55.09M | 24.39M |
| Net Income | -16.30M | -8.11M | 25.97M | 7.84M | 18.73M | -7.45M |
Balance Sheet | ||||||
| Total Assets | 578.07M | 563.64M | 445.57M | 496.66M | 440.58M | 379.47M |
| Cash, Cash Equivalents and Short-Term Investments | 2.07M | 1.50M | 206.00K | 672.00K | 127.00K | 118.00K |
| Total Debt | 23.79M | 25.57M | 110.05M | 181.16M | 108.98M | 67.61M |
| Total Liabilities | 345.89M | 322.90M | 193.82M | 266.68M | 222.71M | 181.20M |
| Stockholders Equity | 232.19M | 240.74M | 251.75M | 229.98M | 217.87M | 198.27M |
Cash Flow | ||||||
| Free Cash Flow | 14.60M | 26.91M | 77.71M | 23.77M | -6.18M | -24.85M |
| Operating Cash Flow | 27.47M | 38.56M | 89.81M | 40.36M | 52.43M | 14.46M |
| Investing Cash Flow | -152.75M | -151.53M | -11.71M | -104.13M | -50.67M | -33.96M |
| Financing Cash Flow | 127.16M | 114.26M | -78.56M | 64.31M | -1.75M | 19.50M |
Mayville Engineering Company Technical Analysis
Neutral
21.02
Price Trends
20.70
Positive
20.24
Positive
17.81
Positive
Market Momentum
1.27
Positive
51.88
Neutral
40.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MEC, the sentiment is Neutral. The current price of 21.02 is below the 20-day moving average (MA) of 23.77, above the 50-day MA of 20.70, and above the 200-day MA of 17.81, indicating a neutral trend. The MACD of 1.27 indicates Positive momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 40.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MEC.
Mayville Engineering Company Risk Analysis
Mayville Engineering Company disclosed 34 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.07B | 17.70 | 10.73% | ― | 10.67% | 30.61% | |
69 Neutral | $260.88M | 13.53 | 13.88% | ― | 7.75% | 276.72% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $510.71M | -11.22 | -6.76% | ― | -0.04% | -172.38% | |
54 Neutral | $193.91M | -39.21 | -145.82% | ― | 6.27% | -1660.64% | |
49 Neutral | $38.84M | -8.20 | -13.31% | ― | -0.36% | 87.31% |
* Industrials Sector Average
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Mayville Engineering Company Corporate Events
Executive/Board ChangesShareholder Meetings
Mayville Engineering Shareholders Back Board, Auditor, Executive Pay
Positive
Apr 23, 2026
On April 21, 2026, Mayville Engineering Company, Inc. held its 2026 annual meeting of shareholders, where investors voted on director elections, auditor ratification and executive pay. Approximately 89% of the 20,318,370 outstanding shares were re...
Business Operations and StrategyPrivate Placements and Financing
Mayville Engineering Amends Credit Agreement, Adjusts Leverage Terms
Neutral
Feb 26, 2026
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 ...
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.