MEC Q1 2024 Earnings Report
Key Takeaways
Mayville Engineering Company reported a strong start to 2024 with double-digit sales growth, margin expansion, improved profitability, and robust free cash flow. Net sales increased by 13.1% year-over-year to $161.3 million, and adjusted EBITDA increased by 33.8% to $18.5 million. The company is on track to achieve its full-year 2024 financial guidance.
Net sales increased by 13.1% year-over-year, reaching $161.3 million.
Net income increased by 26% year-over-year to $3.2 million, or $0.16 per diluted share.
Adjusted EBITDA increased by 33.8% year-over-year to $18.5 million, with an adjusted EBITDA margin of 11.5%.
Free cash flow was $7.9 million, an increase of $16.4 million year-over-year.
MEC
MEC
Forward Guidance
The Company reaffirmed its financial guidance for the full year 2024. The company expects softening in end market demand as the result of various macroeconomic factors, which the Company expects will be offset by the continued ramp-up of new project work with both new and existing customers.
Positive Outlook
- Ramp-up of new project work with both new and existing customers
- Incremental contribution from the MSA acquisition
- Incremental contributions from MBX and commercial pricing related initiatives
- Improved working capital utilization relative to 2023
- Capital expenditures of between $15 and $20 million
Challenges Ahead
- Expected softening in end market demand as the result of various macroeconomic factors
- Inflation
- Elevated interest rates
- Recessionary concerns
- Continuing supply chain constraints