MAYVILLE ENGINEERING COMPANY ANNOUNCES THIRD QUARTER 2026 RESULTS
Mayville Engineering Company, Inc. (MEC) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 MAYVILLE ENGINEERING COMPANY ANNOUNCES THIRD QUARTER 2026 RESULTS MILWAUKEE, Wis., November 3, 2026 – Mayville Engineering Company (NYSE: MEC) (the “Company” or “MEC”), a leading value-added provider of design, prototyping and manufacturing solutions serving diverse
How this was made
The 30-second read
Why it matters
The earnings beat and pipeline expansion may attract short‑term buying, but execution risk remains.
Market read
The results provide fresh data for investors in industrial and datacenter equipment stocks.
What to watch
Higher launch costs and uneven operational efficiency could pressure earnings in upcoming quarters.
Net sales increased 18.1% year-over-year to $170.4 million, while Adjusted EBITDA was $17.0 million and free cash flow was ($3.3) million.
Sales growth, led by Datacenter & Critical Power and Commercial Vehicle, improved Adjusted EBITDA and returned the company to GAAP net income. Launch, outsourcing and premium-labor costs, negative free cash flow and continued weakness in Powersports and Agriculture tempered the period.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30, 2026GAAP | $170.4M | – | +18.1% y/y |
| Cost of sales, three months ended September 30, 2026GAAP | 151,595 | – | – |
| Manufacturing margin, three months ended September 30, 2026other | $18.8 million, or 11.0% of net sales | – | – |
| Amortization of intangible assets, three months ended September 30, 2026GAAP | 3,130 | – | – |
| Bonuses and deferred compensation, three months ended September 30, 2026GAAP | 2,461 | – | – |
| Other selling, general and administrative expenses, three months ended September 30, 2026GAAP | 8,834 | – | – |
| Income from operations, three months ended September 30, 2026GAAP | 4,338 | – | – |
| Interest expense, three months ended September 30, 2026GAAP | $3M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | 958 | – | – |
| Net income, three months ended September 30, 2026GAAP | $400K | – | – |
| Diluted EPS, three months ended September 30, 2026GAAP | $0.02 per diluted share | – | – |
| EBITDA, three months ended September 30, 2026non-GAAP | $15.58M | – | – |
| EBITDA Margin, three months ended September 30, 2026non-GAAP | 9.1% | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $17M | – | – |
| Adjusted EBITDA Margin, three months ended September 30, 2026non-GAAP | 10.0% of net sales | – | – |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $4M | – | – |
| Adjusted Diluted EPS, three months ended September 30, 2026non-GAAP | $0.15 | – | – |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $4.33M | – | – |
| Capital expenditures, three months ended September 30, 2026other | 7,680 | – | – |
| Free cash flow, three months ended September 30, 2026non-GAAP | ($3.3) million | – | – |
| Net sales, nine months ended September 30, 2026GAAP | $478.1M | – | – |
| Income (loss) from operations, nine months ended September 30, 2026GAAP | (2,961) | – | – |
| Net loss, nine months ended September 30, 2026GAAP | −$9.85M | – | – |
| Diluted loss per share, nine months ended September 30, 2026GAAP | $(0.43) | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $36.60M | – | – |
| Adjusted EBITDA Margin, nine months ended September 30, 2026non-GAAP | 7.7% | – | – |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $2.42M | – | – |
| Adjusted Diluted EPS, nine months ended September 30, 2026non-GAAP | $0.10 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $3.00M | – | – |
| Capital expenditures, nine months ended September 30, 2026other | 19,942 | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | −$16.94M | – | – |
| Net debt to trailing twelve-month Adjusted EBITDA, as of September 30, 2026non-GAAP | 2.9x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Commercial VehicleImproved customer demand during the third quarter of 2026, supported by an increase in North American Class 8 production. | $52.8M | – | increase of 34.7% |
| Datacenter & Critical PowerAccelerating demand from legacy customers and new project launches. | $37.2M | – | increase of 64.9% |
| Construction & AccessContinued improvement in non-residential construction demand. | $24.2M | – | increase of 9.3% |
| PowersportsContinued soft customer demand due to global supply chain realignment among OEMs in this end market. | $16.8M | – | decrease of 26.9% |
| AgricultureContinued demand softness for large agricultural equipment. | $7.3M | – | decrease of 9.9% |
| MilitaryContinued program transition delays. | $7.2M | – | decrease of 2.8% |
| OtherContinued strong aluminum extrusion demand. | $24.8M | – | increase of 13.5% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
FY 2026 Forecast outlook
- Revenue$630 million to $640 million
- NoteAdjusted EBITDA: $48 million to $52 million
- NoteFree Cash Flow: $(16) million to $(6) million
- NotePlanned capital expenditures: $25 million to $35 million
What drove it
- Net sales growth was primarily due to growing demand in Datacenter & Critical Power, Commercial Vehicle, Construction & Access and Other end markets.
- The increase in manufacturing margin dollars was primarily attributable to improved capacity utilization driven by higher Datacenter & Critical Power sales volumes and growth in Commercial Vehicle and Construction & Access.
- Other selling, general and administrative expenses decreased primarily due to lower non-recurring acquisition-related expenses and realization of Accu-Fab acquisition synergies.
- The company secured approximately $45 million in new Datacenter & Critical Power project awards during the quarter, and its qualified opportunity pipeline exceeds $200 million.
- The Thomson, Georgia facility acquisition closed on October 1, 2026 and, with planned equipment investment, is expected to add approximately $50 million of annual revenue capacity by 2028.
Concerns
- Datacenter & Critical Power project launch and outsourcing costs, and premium labor, partially offset higher sales volumes and improved capacity utilization.
- The company said operational efficiency across its footprint remained uneven as teams responded to rapidly evolving customer requirements and the pace and volume of incoming demand.
- Powersports, Agriculture and Military end-market sales declined year over year.
- Free cash flow was ($3.3) million in the third quarter and ($16,940) for the nine months ended September 30, 2026.
- Guidance incorporates ongoing softness in Agriculture and Powersports, working capital investment and planned capital expenditures.
What to watch
- Datacenter & Critical Power volume ramps, project launches and the conversion of the qualified opportunity pipeline.
- Launch, outsourcing and premium-labor costs and the expected improvement in operating leverage as volumes ramp.
- Capacity expansion, including equipment investment and the Thomson, Georgia facility.
- Commercial Vehicle and Construction & Access demand improvement.
- Cash flow, working capital investment and capital expenditures of $25 million to $35 million included in FY 2026 guidance.
Balance sheet and cash flow
- Cash and cash equivalents were $1,509 as of September 30, 2026, versus $1,502 as of December 31, 2025.
- Net debt outstanding was $146.6 million as of September 30, 2026.
- Total cash and availability on the senior secured revolving credit facility was $30.3 million as of September 30, 2026.
- Bank revolving credit notes were $130,174 as of September 30, 2026, versus $202,525 as of December 31, 2025.
- Receivables were $86,211 as of September 30, 2026, versus $57,551 as of December 31, 2025.
- Inventories were $78,158 as of September 30, 2026, versus $59,398 as of December 31, 2025.
- Purchases of property, plant and equipment were $(19,942) for the nine months ended September 30, 2026, versus $(8,430) in the prior-year period.
- Net cash provided by operating activities was $3,002 for the nine months ended September 30, 2026, versus $25,181 in the prior-year period.
- Net cash used in investing activities was $(19,936) for the nine months ended September 30, 2026, versus $(148,470) in the prior-year period.
- Proceeds from stock offering were $93,884 for the nine months ended September 30, 2026.
Analysis
MEC delivered third-quarter net sales of $170.4 million, up 18.1% year over year, and returned to GAAP profitability with net income of $0.4 million, or $0.02 per diluted share, compared with a net loss of $2.7 million, or ($0.13) per diluted share. Adjusted EBITDA increased to $17.0 million from $14.1 million, and Adjusted EBITDA margin rose to 10.0% from 9.8%. Manufacturing margin remained 11.0% of net sales, while its dollar value increased to $18.8 million from $15.9 million.
Growth was concentrated in Datacenter & Critical Power, where sales rose 64.9% to $37.2 million, and Commercial Vehicle, where sales increased 34.7% to $52.8 million. Construction & Access also grew 9.3%, while Other increased 13.5%. These gains more than offset lower Powersports sales, down 26.9%, Agriculture sales, down 9.9%, and Military sales, down 2.8%. Management tied Datacenter & Critical Power demand to both legacy customers and new project launches, while citing North American Class 8 production for Commercial Vehicle strength.
Higher capacity utilization supported profit growth, and other selling, general and administrative expenses declined to $8.8 million from $10.5 million, reflecting lower non-recurring acquisition-related costs and Accu-Fab synergies. However, the company absorbed $3.0 million of Datacenter & Critical Power launch and outsourcing costs and premium labor. Management also described operational efficiency as uneven amid evolving customer requirements and incoming demand volumes. Third-quarter free cash flow was ($3.3) million, compared with ($1.1) million, driven by higher capital expenditures for equipment supporting Datacenter & Critical Power demand.
The balance sheet showed net debt of $146.6 million and $30.3 million of total cash and revolver availability as of September 30, 2026, with net debt to trailing twelve-month Adjusted EBITDA at 2.9x. For FY 2026, MEC guided to net sales of $630 million to $640 million, Adjusted EBITDA of $48 million to $52 million, and free cash flow of $(16) million to $(6) million. The forecast incorporates a full year of Accu-Fab ownership, Datacenter & Critical Power cross-selling, continued Commercial Vehicle and Construction & Access improvement, ongoing Agriculture and Powersports softness, and launch, outsourcing, working-capital and capital-investment demands.
The principal operational focus is capacity. MEC secured approximately $45 million in new Datacenter & Critical Power project awards and reported a qualified opportunity pipeline exceeding $200 million. It expects to reach full capacity within the next 18 months and has begun deploying capital. The Thomson, Georgia acquisition closed on October 1, 2026 and, together with planned equipment investment, is expected to add approximately $50 million of annual revenue capacity by 2028 and increase total revenue capacity beyond the approximately $850 million previously disclosed.
Management, verbatim
Our third quarter results were in line with our expectations and reflected strong demand as project volumes continued to accelerate within our Datacenter & Critical Power end market.
Jag Reddy, President and Chief Executive Officer
During the quarter, we secured approximately $45 million of new Datacenter & Critical Power project awards, and our qualified opportunity pipeline now exceeds $200 million.
Jag Reddy, President and Chief Executive Officer
Looking ahead, I am excited about the opportunity in front of us and our ability to deliver profitable growth in 2027 and beyond.
Jag Reddy, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported third-quarter and nine-month operating metrics were not provided.
- GAAP gross margin was not reported.
- FY 2026 guidance for gross margin, operating expenses and tax rate was not provided.
- Prior FY 2026 outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Dividend and share-repurchase capital-return amounts for the reported period were not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is an SEC Form 8‑K Item 2.02 quarterly results release for Mayville Engineering Company, a Tier‑1 supplier to OEMs.
Ticker impact
Mayville Engineering Company reported Q3 2026 results with net sales up 18.1% YoY and a swing to a small net profit.
likely modest upside as investors price in stronger sales and profitability
The company posted a profit after a loss year‑over‑year and highlighted a growing datacenter pipeline, which may lift the stock in the near term.
Market effects
Datacenter & Critical Power market shows continued demand, supporting related Tier‑1 suppliers.
U.S. industrial manufacturing sector may see slight uplift from the earnings beat.
Limited to niche industrial segment; no broad macro impact.
Counterpoint
The profit margin remains thin and free cash flow is negative, suggesting potential downside if growth stalls.
Key entities
- companyMayville Engineering Company
NYSE‑listed provider of design, prototyping and manufacturing solutions.
- executiveJag Reddy
President and CEO who commented on the results.
