Mayville Engineering Q2 Earnings Call Highlights

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Sat, August 8, 2026 astatine 1:03 PM CDT 7 min read

Key Points

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Q2 income exceeded expectations: Revenue roseate 23.2% twelvemonth implicit twelvemonth to $163 million, including 9.2% integrated growth, driven by information center, captious powerfulness and recovering commercial-vehicle programs. MEC raised its full-year income outlook to $620 million–$650 million.
Data halfway maturation is accelerating but costly: Organic gross successful the conception accrued astir 173%, with much than $125 cardinal successful qualified opportunities and astir $40 cardinal successful caller awards. Launch, outsourcing and capacity-expansion costs pressured adjusted EBITDA margins and are expected to proceed done the 2nd half.
Investment is weighing connected currency flow: MEC maintained its $52 million–$60 cardinal adjusted EBITDA outlook but lowered free-cash-flow guidance to $7 million–$15 million. The institution plans astir $40 cardinal successful incremental superior expenditures positive $10 cardinal successful leased instrumentality implicit the adjacent 2 years, partially funded by a $94 cardinal banal offering utilized to trim debt.

Mayville Engineering (NYSE:MEC) reported second-quarter income maturation that exceeded management's expectations, driven by momentum successful information halfway and captious powerfulness programs and an aboriginal betterment successful commercialized vehicles. The institution raised its full-year income outlook portion maintaining its adjusted EBITDA forecast and lowering its free-cash-flow guidance to bespeak planned maturation investments.

Total second-quarter income accrued 23.2% twelvemonth implicit twelvemonth to $163 million. Excluding the Accu-Fab acquisition, integrated income roseate 9.2%, Chief Financial Officer Rachele Lehr said. Manufacturing borderline improved to 10.9% from 10.3% a twelvemonth earlier, aided by Accu-Fab's higher-margin income publication and improved utilization successful commercialized conveyance and operation and entree markets.

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Adjusted EBITDA margin, however, declined to 8.1% from 10.3% successful the prior-year quarter. Lehr attributed the diminution chiefly to $2.1 cardinal successful information halfway and captious powerfulness programme motorboat costs, arsenic good arsenic higher gain-sharing accruals associated with institution show and workforce expansion.

Data Center Growth Comes With Near-Term Costs

President and CEO Jag Reddy said information halfway and captious powerfulness gross grew organically by astir 173% twelvemonth implicit year, supported by existing OEM customers and cross-selling tied to the Accu-Fab acquisition. The company's qualified accidental pipeline successful the marketplace exceeds $125 million, portion projects scheduled to motorboat during 2026 transportation an estimated worth of $50 cardinal to $60 million, including maturation from existent OEM customers.

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