Q4 2025 Mayville Engineering Company Inc Earnings Call Transcript
Key Points
- Mayville Engineering Co Inc (MEC) experienced robust demand momentum in the data center and critical power end markets, positioning the company for growth in 2026.
- The company secured approximately $15 million in new project awards with data center and critical power customers during the fourth quarter.
- MEC's construction and access market revenues increased by approximately 13% year-over-year, supported by the Accu-Fab acquisition and strong nonresidential activity.
- The powersports market saw a 20% year-over-year increase in net sales, driven by new business wins and stabilized customer production schedules.
- MEC's qualified opportunity pipeline exceeds $125 million, with projects scheduled to launch in 2026 valued at approximately $40 million to $50 million.
- Fourth quarter margin performance was pressured due to early-stage project inefficiencies and project launch costs.
- Organic net sales declined by 5.3% compared to the prior year period, excluding the impact of the Accu-Fab acquisition.
- The manufacturing margin rate decreased to 6.6% from 8.9% in the prior year period, impacted by project launch costs and inefficiencies.
- Interest expense increased to $3.8 million for the fourth quarter, driven by higher borrowings from the Accu-Fab acquisition.
- Free cash flow during the fourth quarter declined to $10.2 million from $35.6 million in the prior year period, primarily due to the absence of settlement proceeds received last year.
Hello, everyone, and thank you for joining us today for the Mayville Engineering Company fourth quarter and full year 2025 results conference call. My name is Sami, and I'll be coordinating your call today. (Operator Instructions)
I would now like to hand over to your host, Stefan Neely with Vallum Advisors to begin. Please go ahead, Stefan.
Thank you, operator. On behalf of our entire team, I'd like to welcome you to our fourth quarter and full year 2025 results conference call. Leading the call today is MEC's President and CEO, Jag Reddy; and Rachele Lehr, Chief Financial Officer.
Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the Securities and Exchange Commission. Except as required by law, we undertake no obligation to update our forward-looking statements.
Further
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
