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Sep 30, 2022
MEC Q3 2022 Earnings Report
Achieved significant year-over-year improvements across all metrics and commenced production at Hazel Park, Michigan facility.
Key Takeaways
Mayville Engineering Company reported a strong third quarter with net sales increasing by approximately 25% to $136.3 million and net income increasing significantly from $0.3 million to $6.6 million.
Net sales grew approximately 25% to $136.3 million.
Net income increased significantly from $0.3 million to $6.6 million.
Basic earnings per share increased by $0.31 to $0.32.
Adjusted EBITDA of $16.1 million, up from $10.0 million.
MEC
MEC
Forward Guidance
The Company is refining its 2022 financial outlook and has adjusted its expectations.
Positive Outlook
- Net sales of between $480 million and $530 million has been updated to between $520 million and $540 million.
- Adjusted EBITDA between $58 million and $70 million has been updated to between $58 and $65 million.
- 2022 capital expenditures of between $55 million and $65 million with an expected return to traditional levels in 2023 of $20 million to $25 million.
- This outlook assumes no recoveries associated with the former fitness customer.
- Demand for services remains strong in the near-term across most of the end markets.
Challenges Ahead
- General macroeconomic concerns.
- Monitoring industry trends to ensure capacity is aligned with customer needs.
- Maintaining a flexible posture to take action quickly and as needed.
- No recoveries associated with the former fitness customer.
- Continuing to monitor industry trends