Mayville Engineering Company Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 sales rose 6.8% to $144.8M, led by 71% growth in data center and critical power, while legacy markets remained soft. Margin pressure from launch costs and restructuring is expected to ease as new programs reach full production, supporting improved cash flow and deleveraging in the second half.
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The meeting covered director elections, auditor ratification, and executive compensation, all of which passed by majority vote. Board and executive changes were announced, and no shareholder questions were submitted during the Q&A.
Fiscal Year 2025
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Q4 saw strong growth in data center and critical power, offsetting muted legacy markets and driving upfront investments that pressured margins. 2026 guidance calls for higher sales, margin expansion, and significant cross-selling synergies, with Free Cash Flow focused on debt reduction.
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Q3 sales rose 6.6% year-over-year to $144.3M, driven by Accu-Fab acquisition and strong data center demand, while legacy commercial vehicle and agriculture markets remained weak. 2025 guidance was reaffirmed, with data center and critical power expected to reach 20–25% of future revenues.
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Q2 saw a 19% year-over-year sales decline but sequential margin improvement, driven by cost controls and the Accu-Fab acquisition. 2025 guidance was lowered due to persistent end-market softness, especially in commercial vehicles, but new business wins and diversification efforts continue.
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The acquisition for $140.5 million expands into high-growth, high-margin markets like power infrastructure and data centers, adding new manufacturing capabilities and geographic reach. Immediate accretion to earnings and strong synergy potential are expected, with integration targeted for completion within six months post-close.
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First quarter sales declined 15.9% year-over-year, but sequential growth, margin expansion, and strong free cash flow were achieved through operational discipline. Full-year guidance is maintained, with new business wins and a robust M&A pipeline supporting future growth.
Fiscal Year 2024
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Q4 and full-year 2024 saw lower sales and margins due to soft demand and inventory destocking, but strong free cash flow and reduced leverage. 2025 guidance anticipates a slow first half with recovery in the second half, continued cost improvements, and disciplined capital allocation.
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Q3 net sales fell 14.4% year-over-year amid broad demand softness, but cost actions improved margins and reduced leverage. 2024 guidance was lowered, with Q4 expected as the cycle low, while new business wins and a legal settlement support future growth.
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Q2 2024 saw 17.7% sales growth, margin expansion, and strong free cash flow, driven by organic growth, the MSA acquisition, and operational initiatives. Guidance for 2024 was reiterated, with free cash flow outlook raised, despite expected H2 market softness.