Mayville Engineering Co Inc (FRA:2YN)

Q1 2025 Mayville Engineering Company Inc Earnings Call Transcript

May 7, 2025 / 02:00 PM GMT

Release Date Price: €11.4 (+0.88%)

Transcript 10-Q8-K

Key Points

Positve

Mayville Engineering Co Inc (MEC) achieved a 12% sequential sales growth and margin expansion despite softer customer demand.
The company maintained its full-year guidance, driven by strong execution and demand in less cyclical markets like military.
MEC's domestic footprint positions it well to benefit from OEM reshoring activities and changes in US trade policy.
The company secured significant new business wins, progressing towards its annual goal of $100 million in new business.
MEC generated $5.4 million in free cash flow during the first quarter, with a free cash flow conversion of 44% of adjusted EBITDA.

Negative

Total sales for the first quarter decreased by 15.9% year over year due to softer customer demand and inventory destocking.
The manufacturing margin decreased from $20.9 million to $15.3 million, primarily due to lower net sales.
The construction and access market revenue decreased by 31.4% year over year, reflecting soft demand.
Agricultural market revenues decreased by 26.9% year over year, with an uncertain outlook due to interest rates and trade policy impacts.
Adjusted EBITDA margin decreased by 250 basis points to 9% in the current quarter, attributed to lower sales despite cost rationalization efforts.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

MEC.N - Mayville Engineering Company Inc
Q1 2025 Mayville Engineering Company Inc Earnings Call
May 07, 2025 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Hello everyone, and thank you for joining the Mayville Engineering Company first quarter 2025 earnings call.

My name is Sammy and I'll be coordinating your call today.

During the presentation, you can register a question by pressing followed by 1 on your telephone keypad. If you change your mind, please press star, followed by 2 on your telephone keypad to remove yourself from a question queue.

I'd now like to hand over to your host, Stefan Neely, with Valle advisor to begin. Stefan, please go ahead.

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Unidentified_2 [2]
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