Mayville Engineering Company (MEC)
NYSE:MEC
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Mayville Engineering Company
(NYSE:MEC)
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Rating:58Neutral
Price Target:
$17.50
▼(-3.69% Downside)
Action:ReiteratedDate:03/05/26
The score is driven primarily by a mixed financial profile: a strengthened, low-leverage balance sheet and still-positive operating/free cash flow are offset by the sharp profitability deterioration in 2025 and earnings volatility. The earnings call adds moderate support via explicit 2026 growth/FCF guidance and a sizable data center pipeline, but near-term margin pressure and high leverage temper confidence. Technicals are neutral-to-cautious, and valuation is weak on traditional metrics due to negative earnings and no stated dividend yield.
Positive Factors
Balance Sheet Strength
The marked reduction in leverage to ~0.11 debt-to-equity provides durable financial flexibility versus prior years. A stronger capital structure lowers refinancing and interest risk, supports investment in ramping programs and M&A optionality, and improves covenant headroom over the next 2–6 months.
Negative Factors
Earnings Volatility & Profitability Decline
Sharp profitability swings and a 2025 net loss weaken return generation and make long-term planning harder. Variable margins reflect sensitivity to volume, mix and launch costs; sustained volatility undermines reinvestment capacity and makes achieving consistent returns and covenant targets more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
The marked reduction in leverage to ~0.11 debt-to-equity provides durable financial flexibility versus prior years. A stronger capital structure lowers refinancing and interest risk, supports investment in ramping programs and M&A optionality, and improves covenant headroom over the next 2–6 months.
Read all positive factors
Mayville Engineering Company (MEC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$369.18M
Dividend YieldN/A
Average Volume (3M)209.75K
Price to Earnings (P/E)―
Beta (1Y)0.70
Revenue Growth-12.38%
EPS Growth-0.71%
CountryUS
Employees2,200
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)-0.22
Shares Outstanding20,318,370
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 Cap1.65
Enterprise Value/Revenue1.11
Enterprise Value/Gross Profit13.48
Enterprise Value/Ebitda14.09
Forecast
1Y Price Target
$27.33Price Target Upside50.41% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.04
Revenue Forecast (FY)$601.34M
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 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.
Data provided by:
The Fly
The FlyMayville Engineering Company Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presents a constructive long-term outlook driven by strong demand momentum in the data center and critical power end market, significant pipeline (> $125M) and expected $40M–$50M of cross-selling revenue in 2026, plus clear guidance for revenue and EBITDA growth. Near-term challenges include launch-related costs, margin pressure in Q4 and Q1, elevated net debt and higher leverage (3.7x), and muted organic volumes in legacy markets. Management characterizes the margin impacts as transitory and actionable via operational programs and expected market recoveries in the second half of 2026.Positive Updates
Quarterly Revenue Growth (Including AccuFab)
Total sales for Q4 increased 10.7% year-over-year to $134.3 million (including the AccuFab acquisition).
Negative Updates
Organic Sales Decline
Excluding the AccuFab acquisition, organic net sales declined approximately 5.3% year-over-year in Q4, indicating muted legacy demand.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Revenue Growth (Including AccuFab)
Total sales for Q4 increased 10.7% year-over-year to $134.3 million (including the AccuFab acquisition).
Read all positive updates
Company Guidance
Management introduced quarterly and full‑year 2026 guidance: Q1 sales $137–143M, adjusted EBITDA $5–7M and planned capex $3–5M (with softer free cash flow expected due to seasonal working capital and ramp investments); full‑year sales $580–620M, adjusted EBITDA $50–60M, free cash flow $25–35M, full‑year capex $15–20M and expected free cash flow conversion ~50–60% of adjusted EBITDA (guidance embeds $2–3M of cost improvements net of inflation). They expect $40–50M of incremental data center/critical power cross‑selling revenue in 2026 (pipeline >$125M; data center to represent >20% of 2026 revenues), target net leverage ≤3.0x by year‑end (current net leverage 3.7x; net debt $205.3M at 12/31), and noted recent Q4 metrics of sales $134.3M (+10.7% Y/Y; organic sales -5.3% ex‑AccuFab), manufacturing margin 6.6% (would be ~9% excluding launch costs), adjusted EBITDA margin 4.7% (would be ~7% excluding launch costs), Q4 free cash flow $10.2M (vs $35.6M prior year including a $25.5M settlement), Q4 SG&A $9.7M (7.2% of sales) and Q4 interest expense $3.8M.Mayville Engineering Company Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
74
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 546.49M | 581.60M | 588.42M | 539.39M | 454.83M |
| Gross Profit | 45.16M | 71.10M | 69.70M | 61.07M | 51.38M |
| EBITDA | 43.19M | 82.14M | 55.05M | 55.09M | 24.39M |
| Net Income | -8.11M | 25.97M | 7.84M | 18.73M | -7.45M |
Balance Sheet | |||||
| Total Assets | 563.64M | 445.57M | 496.66M | 440.58M | 379.47M |
| Cash, Cash Equivalents and Short-Term Investments | 1.50M | 206.00K | 672.00K | 127.00K | 118.00K |
| Total Debt | 25.57M | 110.05M | 181.16M | 108.98M | 67.61M |
| Total Liabilities | 322.90M | 193.82M | 266.68M | 222.71M | 181.20M |
| Stockholders Equity | 240.74M | 251.75M | 229.98M | 217.87M | 198.27M |
Cash Flow | |||||
| Free Cash Flow | 26.91M | 77.71M | 23.77M | -6.18M | -24.85M |
| Operating Cash Flow | 38.56M | 89.81M | 40.36M | 52.43M | 14.46M |
| Investing Cash Flow | -151.53M | -11.71M | -104.13M | -50.67M | -33.96M |
| Financing Cash Flow | 114.26M | -78.56M | 64.31M | -1.75M | 19.50M |
Mayville Engineering Company Technical Analysis
Positive
18.17
Price Trends
19.39
Negative
18.52
Negative
16.82
Positive
Market Momentum
-0.39
Negative
48.21
Neutral
64.80
Neutral
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 18.17 is above the 20-day moving average (MA) of 17.71, below the 50-day MA of 19.39, and above the 200-day MA of 16.82, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 48.21 is Neutral, neither overbought nor oversold. The STOCH value of 64.80 is Neutral, 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 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $750.91M | 16.91 | 9.20% | ― | 7.61% | 25.35% | |
64 Neutral | $284.66M | 10.47 | 16.65% | ― | -3.42% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $369.18M | -21.94 | -3.30% | ― | -12.38% | -0.71% | |
46 Neutral | $144.72M | -1.62 | -120.09% | ― | 0.20% | 88.39% | |
42 Neutral | $30.94M | -8.20 | -13.31% | ― | 1.15% | 94.58% |
* Industrials Sector Average
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Mayville Engineering Company Corporate Events
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.