Key Highlights

  • Net sales rose 18.1% to USD 170.4 million, driven by Datacenter and Critical Power growth and improving commercial vehicle demand.
  • Net income was USD 0.4 million, or USD 0.02 per share, and adjusted diluted EPS was USD 0.15.
  • Adjusted EBITDA was USD 17.0 million, a 10.0% margin, and net Debt to trailing adjusted EBITDA was 2.9 times.
  • Full-year guidance is net sales of USD 630 to 640 million and adjusted EBITDA of USD 48 to 52 million.

Demand Accelerates

Mayville Engineering Company, Inc. (NYSE:MEC), a Milwaukee-based provider of design, prototyping and Manufacturing solutions, reported third-quarter 2026 net sales of USD 170.4 million, up 18.1%. Net Income was USD 0.4 million, or USD 0.02 per diluted share, and non-GAAP adjusted diluted EPS was USD 0.15. Adjusted EBITDA was USD 17.0 million, a Margin of 10.0% of net sales.

President and Chief Executive Officer Jag Reddy said the results were in line with expectations as project volumes accelerated in the Datacenter and Critical Power end market, with improving Demand in Commercial Vehicle and in Construction and Access. He said adjusted EBITDA margin improved sequentially through higher capacity utilization while the company absorbed project launch costs, and that operating efficiency across the footprint was uneven as teams responded to the pace of incoming demand.

Analyst estimates were EPS of USD 0.12 against reported EPS of USD 0.15, and Revenue of USD 165.1 million against reported revenue of USD 170.4 million.

Datacenter Awards

During the quarter the company secured USD 45 million of new Datacenter and Critical Power project awards. Reddy described what the company views as a historic, multi-year growth opportunity in that space and said the priority is investing in the people, equipment and capacity needed to capture it.

Leverage, Cash Flow and Guidance

Free cash flow in the quarter was negative USD 3.3 million versus negative USD 1.1 million, a larger outflow as launch costs and Working Capital Investment continued. Net debt was USD 146.6 million, equal to 2.9 times trailing twelve-month adjusted EBITDA, and total cash and availability under the senior secured revolving Credit Facility was USD 30.3 million.

Updated 2026 guidance calls for net sales of USD 630 million to USD 640 million with a midpoint of USD 635 million, adjusted EBITDA of USD 48 million to USD 52 million with a midpoint of USD 50 million, and free cash flow of negative USD 16 million to negative USD 6 million. These compare with 2025 actuals of USD 546.5 million, USD 47.1 million and USD 26.9 million. Guidance assumes a full year of Accu-Fab ownership, incremental cross-selling revenue and continued improvement in Commercial Vehicle and Construction and Access, partly offset by lower demand in Agriculture and Powersports. Capital spending of USD 25 million to USD 35 million includes the initial investment in the Thomson, Georgia facility.

Items to Follow

Launch cost absorption, operating efficiency and free cash flow against the guided range are the items to follow, together with the conversion of the USD 45 million of new awards into production volume.