Mayville Engineering reports Q3 adjusted EPS 21c, consensus 19c

Reports Q3 revenue $158.2M, consensus $159.54M. “We delivered significant year-over-year growth in revenue, Adjusted EBITDA and free cash flow in the third quarter, while continuing to demonstrate focused execution under our MBX value creation framework,” stated Jag Reddy, President and Chief Executive Officer. “We generated organic sales growth across our commercial vehicle, powersports and military markets during the third quarter. Our collective focus on driving improved cost absorption and price discipline resulted in strong Adjusted EBITDA margins and record free cash flow generation during the quarter, even as our Hazel Park facility continued to ramp up utilization.” “At our inaugural Investor Day event in September, we introduced three-year performance targets that highlight the significant value creation potential of our business,” continued Reddy. “Our value creation roadmap seeks to drive margin expansion and improved free cash flow conversion through sustained volume growth, value-based pricing, improved asset optimization and process improvements, all of which were evident in our strong third quarter performance. In combination, these initiatives are expected to deliver between $105 to $135 million of annual Adjusted EBITDA, 14% to 16% Adjusted EBITDA margins and $65 to $75 million of annual free cash flow generation by year-end 2026.”