Mayville Engineering sees FY24 organic net sales up mid-high single digits

The company states: “In 2024, we anticipate that a combination of share gains, enhanced productivity, a higher-value sales mix and continued price discipline will position us to deliver another year of profitable growth. We expect that our Hazel Park facility will approach $100 million of annualized sales during the fourth quarter 2024, consistent with our prior forecast, while recently adopted MBX-related and commercial pricing initiatives are expected to deliver between $3 to $6 million of incremental Adjusted EBITDA benefit this year, net of inflationary pressures. For the full-year 2024, these actions are expected to result in mid-to-high single digit organic net sales growth, between 40 to 80 basis points of Adjusted EBITDA margin expansion, and significant year-over-year growth in free cash flow generation, putting us on-pace to achieve the 2026 financial targets introduced at our 2023 Investor Day. While our 2024 outlook contemplates a potential softening in macroeconomic conditions, we continue to experience pronounced demand strength across our business which, together with the benefits of our MBX self-help actions, position MEC to deliver above-market growth through the cycle. Looking ahead, our capital allocation strategy will continue to prioritize debt reduction, returns-focused organic growth investments, together with opportunistic open-market purchase of our common equity under our existing share repurchase authorization. We continue to expect that MEC will achieve our net leverage target of 1.5x to 2.0x by the end of 2024.”