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Mayville Engineering Company
(NYSE:MEC)
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Rating:49Neutral
Price Target:
$17.00
▼(-17.76% Downside)
Action:Reiterated
Date:09/16/26
The score is held down primarily by deteriorating profitability and weaker cash flow (negative TTM net margin and negative TTM free cash flow), reinforced by a clearly bearish technical trend (price below key moving averages, negative MACD). Offsetting these, the balance sheet remains relatively conservative and the latest earnings call was supportive on top-line growth and bookings with raised sales guidance, though near-term margins, leverage, and free cash flow remain key risks.
Positive Factors
Datacenter growth
Datacenter and Critical Power is becoming a meaningful growth platform, supported by a large qualified pipeline and scheduled launches. Its expansion into a higher-growth end market can diversify MEC beyond cyclical legacy customers and support stronger revenue mix over the next several quarters.
Negative Factors
Profitability compression
Sharp margin deterioration and negative net income show that current growth is not yet translating into durable earnings power. Continued pressure on gross margin, operating costs, or program execution could limit reinvestment capacity and weaken the benefits of higher revenue if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Datacenter growth
Datacenter and Critical Power is becoming a meaningful growth platform, supported by a large qualified pipeline and scheduled launches. Its expansion into a higher-growth end market can diversify MEC beyond cyclical legacy customers and support stronger revenue mix over the next several quarters.
Read all positive factors
Mayville Engineering Company Key Performance Indicators (KPIs)
Any
Net Sales by Product Category
Breaks down revenue across the company’s product lines (for example pumps, separators, parts, and engineered systems), showing which products drive sales and margins. High concentration in one product type highlights dependence and single-product risk, while growth in higher-margin categories indicates improving profitability and successful product strategy.
Breaks down revenue across the company’s product lines (for example pumps, separators, parts, and engineered systems), showing which products drive sales and margins. High concentration in one product type highlights dependence and single-product risk, while growth in higher-margin categories indicates improving profitability and successful product strategy.
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The Fly
The FlyMayville Engineering Company (MEC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$442.18M
Dividend YieldN/A
Average Volume (3M)501.71K
Price to Earnings (P/E)―
Beta (1Y)0.63
Revenue Growth11.77%
EPS Growth-196.68%
CountryUS
Employees2,400
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)-0.83
Shares Outstanding25,500,332
10 Day Avg. Volume586,248
30 Day Avg. Volume501,709
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)1.59
Price to Sales (P/S)0.70
P/FCF Ratio14.24
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$38.00Price Target Upside83.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.26
Revenue Forecast (FY)$636.08M
Mayville Engineering Company Business Overview & Revenue Model
Company Description
Mayville Engineering Company, Inc., together with its subsidiaries, engages in the production, design, prototyping and tooling, fabrication, aluminum extrusion, coating, and assembling of aftermarket components in the United States. It supplies en...
How the Company Makes Money
MEC makes money primarily by providing contract manufacturing services to OEMs and Tier suppliers under customer purchase orders and supply agreements, generating revenue from the sale of fabricated metal components, subassemblies, and finished as...
Mayville Engineering Company Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive picture driven by strong top-line growth, a robust Datacenter & Critical Power surge (173% YoY) and a large pipeline and bookings flow, supported by a $94M equity raise that improved liquidity. Management is investing aggressively to expand capacity and is taking disciplined, margin-focused commercial actions (pricing and selectivity) to capture higher-value, longer-term programs. Near-term profitability and cash flow are under pressure from deliberate launch and outsourcing costs ($2.1M in Q2 plus $2–$3M expected in H2), increased interest expense, and higher net debt/leverage (2.9x), but these are presented as temporary and funded by strengthened liquidity and planned capital investments. Overall, highlights around demand, bookings, and strategic positioning notably outweigh the near-term margin and cash-flow headwinds.Positive Updates
Strong Top-Line Growth
Total sales increased 23.2% year-over-year to $163.0 million in Q2 2026; organic net sales (ex-Accu-Fab) rose 9.2% YoY.
Negative Updates
Adjusted EBITDA Margin Pressure
Adjusted EBITDA margin declined to 8.1% in Q2 2026 from 10.3% in the prior-year period, driven by $2.1 million of DCP project launch costs, higher gain-sharing accruals, and workforce expansion.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total sales increased 23.2% year-over-year to $163.0 million in Q2 2026; organic net sales (ex-Accu-Fab) rose 9.2% YoY.
Read all positive updates
Company Guidance
Management guided Q3 net sales of $160–170M and adjusted EBITDA of $15.5–18.5M (which includes $1–1.5M in launch costs and $1–1.5M in outsourcing), and for full‑year 2026 raised net sales to $620–650M while keeping adjusted EBITDA at $52–60M and lowering free cash flow to $7–15M; the outlook assumes full‑year Accu‑Fab ownership and $50–60M of incremental cross‑selling revenue, includes $5–6M of total launch costs and $2–3M of outsourcing for the year, and reflects Q2 results of $163M sales (+23.2% YoY; organic +9.2% ex‑Accu‑Fab), a 10.9% manufacturing margin, 8.1% adjusted EBITDA margin, $2.1M of DCP launch costs in Q2 and an expected additional $2–3M of outsourcing in H2; capital plans call for roughly $40–50M of incremental investment over the next two years (about $25M in 2026 plus ~$10M of leased equipment), potential new‑facility spend of $25–30M to support $50–60M of revenue, equipment lead times of 4–6 months, and a strengthened balance sheet (≈$94M net equity proceeds, >$100M available liquidity) with net debt of $134.7M and covenant leverage at 2.9x (long‑term target 2.5x).Mayville Engineering Company Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
63
Positive
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 586.34M | 546.49M | 581.60M | 588.42M | 539.39M | 454.83M |
| Gross Profit | 50.38M | 54.01M | 71.10M | 69.70M | 61.07M | 51.38M |
| EBITDA | 24.13M | 37.44M | 82.14M | 55.05M | 55.09M | 24.39M |
| Net Income | -17.30M | -8.11M | 25.97M | 7.84M | 18.73M | -7.45M |
Balance Sheet | ||||||
| Total Assets | 588.58M | 563.64M | 445.57M | 496.66M | 440.58M | 379.47M |
| Cash, Cash Equivalents and Short-Term Investments | 2.20M | 1.50M | 206.00K | 672.00K | 127.00K | 118.00K |
| Total Debt | 154.75M | 25.57M | 110.05M | 181.16M | 108.98M | 67.61M |
| Total Liabilities | 263.09M | 322.90M | 193.82M | 266.68M | 222.71M | 181.20M |
| Stockholders Equity | 325.48M | 240.74M | 251.75M | 229.98M | 217.87M | 198.27M |
Cash Flow | ||||||
| Free Cash Flow | -4.57M | 26.91M | 77.71M | 23.77M | -6.18M | -24.85M |
| Operating Cash Flow | 13.93M | 38.56M | 89.81M | 40.36M | 52.43M | 14.46M |
| Investing Cash Flow | -158.38M | -151.53M | -11.71M | -104.13M | -50.67M | -33.96M |
| Financing Cash Flow | 146.45M | 114.26M | -78.56M | 64.31M | -1.75M | 19.50M |
Mayville Engineering Company Technical Analysis
Negative
20.67
Price Trends
23.14
Negative
26.86
Negative
23.11
Negative
Market Momentum
-1.69
Negative
28.44
Positive
17.80
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MEC, the sentiment is Negative. The current price of 20.67 is above the 20-day moving average (MA) of 18.69, below the 50-day MA of 23.14, and below the 200-day MA of 23.11, indicating a bearish trend. The MACD of -1.69 indicates Negative momentum. The RSI at 28.44 is Positive, neither overbought nor oversold. The STOCH value of 17.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MEC.
Mayville Engineering Company Risk Analysis
Mayville Engineering Company disclosed 34 risk factors in its most recent earnings report. Mayville Engineering Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mayville Engineering Company Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $995.81M | 20.28 | 12.16% | ― | 15.12% | 50.31% | |
66 Neutral | $249.50M | 7.30 | 15.30% | 8.39% | 14.97% | 8162.28% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | $179.11M | -2.87 | -152.73% | 2.14% | 3.27% | -1069.57% | |
49 Neutral | $442.18M | -21.02 | -6.63% | ― | 11.77% | -196.68% | |
49 Neutral | $53.63M | -42.25 | -15.08% | ― | -0.19% | 38.34% |
* Industrials Sector Average
MEC
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.