MEC Q1 2021 Earnings Report
Key Takeaways
Mayville Engineering Company reported strong first-quarter results, driven by improving economic conditions and end-market demand, along with cost-optimizing initiatives. Net sales increased to $112.6 million, and the company generated an adjusted EBITDA of $13.0 million.
Net sales reached $112.6 million.
Net income was $2.5 million.
Adjusted EBITDA totaled $13.0 million.
The company announced a new long-term strategic customer relationship.
MEC
MEC
Forward Guidance
The Company is now providing its 2021 financial outlook as follows: Net sales are expected to be between $450 million to $470 million. Adjusted EBITDA is expected to be between $46 million and $52 million net of the launch costs of between $3.5 million to $5.1 million associated with the new customer relationship.
Positive Outlook
- Generally positive economic outlook.
- Improving manufacturing volumes.
- End markets are expected to remain stable.
- End markets are expected to continue to trend positively in the near-term.
- Laser focused on delivering improved full year 2021 results while pursuing growth opportunities.
Challenges Ahead
- Pandemic-related challenges.
- Supply disruptions.
- Rising raw material costs.
- Inflationary pressure.
- Impact on customer base.