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Sep 30
MEC Q3 2025 Earnings Report
Mayville Engineering Company announced its third quarter 2025 results, with net sales increasing by 6.6% year-over-year.
Key Takeaways
Mayville Engineering Company reported a mixed third quarter in 2025, with net sales increasing by 6.6% to $144.3 million, primarily driven by the Accu-Fab acquisition. However, organic net sales declined by 9.1% due to soft demand in legacy markets like Commercial Vehicle and Agriculture. The company experienced a GAAP net loss of $2.7 million but achieved an Adjusted Net Income of $2.0 million. Adjusted EBITDA was $14.1 million, with a margin of 9.8%.
Net sales increased by 6.6% to $144.3 million, primarily due to the Accu-Fab acquisition, offsetting a 9.1% decline in organic net sales.
The company reported a GAAP net loss of $2.7 million, or ($0.13) per diluted share, compared to a net income of $3.0 million in the prior year.
Adjusted EBITDA was $14.1 million, representing a 9.8% margin, a decrease from $17.1 million and 12.6% in the prior year.
Free Cash Flow was negative ($1.1) million, significantly lower than $15.1 million in the prior year, impacted by non-recurring items.
MEC
MEC
MEC Revenue by Segment
Revenue by Segment
Commercial Vehicle Revenue
CapyFin.comConstruction & Access Revenue
CapyFin.comPowersports Revenue
CapyFin.comData Center & Critical Power Revenue
CapyFin.comAgriculture Revenue
CapyFin.comMilitary Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Mayville Engineering Company maintained its full-year 2025 financial guidance, reflecting the Accu-Fab acquisition and continued soft demand in legacy end markets. The company expects continued working capital efficiencies and capital expenditures between $13 million and $17 million.
Positive Outlook
- Reiterating full-year financial guidance for 2025, indicating confidence in future performance.
- Substantial progress with the integration of the Accu-Fab acquisition, expanding serviceable available market.
- Increased expectations for 2026 revenue synergies from Accu-Fab acquisition to a range of $20 million to $30 million.
- Strong customer engagement and a rapidly growing pipeline of qualified opportunities in the Data Center & Critical Power market.
- Strategic rebalancing of production capacity and resources to serve high-growth areas, aiming to expand market share and capture long-term growth.
Challenges Ahead
- Demand remained soft in legacy end markets, particularly Commercial Vehicle and Agriculture.
- Subdued demand in legacy markets may constrain near-term margin expansion.
- Free cash flow in the quarter was temporarily impacted by $3.5 million of non-recurring items.
- Guidance reflects continued soft demand in legacy end markets.
- Interest expense increased due to higher borrowings associated with the Accu-Fab acquisition.
Revenue & Expenses
Visualization of income flow from segment revenue to net income