Key Highlights

  • Mayville Engineering (NYSE:MEC) reported third quarter 2026 net sales of USD 170.4 million, up 18.1% from USD 144.3 million a year earlier, with Datacenter and Critical Power sales up 64.9%.
  • Net income was USD 0.4 million, or USD 0.02 per diluted share, against a loss of USD 2.7 million a year earlier; adjusted Diluted Earnings per Share were USD 0.15.
  • Adjusted EBITDA reached USD 17.0 million, a 10.0% margin, and net Debt stood at USD 146.6 million, or 2.9 times trailing adjusted EBITDA.
  • Full-year 2026 guidance calls for net sales of USD 630 million to USD 640 million and negative free Cash Flow of USD 6 million to USD 16 million.

Datacenter Demand Lifts Third Quarter Sales

Mayville Engineering (NYSE:MEC) announced third quarter 2026 results on November 3, 2026, for the three months ended September 30. Net sales rose to USD 170.4 million from USD 144.3 million. Datacenter and Critical Power sales climbed 64.9% to USD 37.2 million, and Commercial Vehicle rose 34.7% to USD 52.8 million on higher North American Class 8 production. Construction and Access grew 9.3% and Other markets 13.5%. Powersports fell 26.9%, Agriculture 9.9% and Military 2.8%. The company secured about USD 45 million of new datacenter project awards and said its qualified pipeline exceeds USD 200 million.

Why Profit Lagged Revenue Growth

The company manufactures precision metal enclosures, racks and sub-assemblies for power and datacenter customers, plus components for commercial vehicles, construction and other equipment makers. Manufacturing Margin was USD 18.8 million, or 11.0% of sales, but included USD 3.0 million of project launch and outsourcing costs and premium labor. Management said efficiency was uneven as teams responded to fast-rising demand. Adjusted EBITDA margin improved to 10.0% from 9.8%, helped by capacity utilization, while interest expense fell to USD 3.0 million from USD 3.4 million. GAAP Net Income of USD 0.4 million compares with adjusted net income of USD 4.0 million, which excludes items the company treats as non-core.

Cash Burn, Leverage and Capacity Build

Free cash flow was negative USD 3.3 million in the quarter as Capital spending on equipment rose. The company closed its Thomson, Georgia Facility Acquisition on October 1, 2026, which it expects to add about USD 50 million of annual revenue capacity by 2028 beyond the roughly USD 850 million disclosed earlier. Guidance for 2026 includes adjusted EBITDA of USD 48 million to USD 52 million, and the release did not Supply the prior range, so no raise or cut is stated. Risks include launch costs, uneven operations, Powersports and Agriculture softness, and 2.9 times leverage. The guidance assumes a full year of Accu-Fab ownership, incremental datacenter cross-selling and capital spending of USD 25 million to USD 35 million, including the Thomson investment. A conference call was set for November 4, 2026, at 10:00 a.m. ET.

Where Things Stand

Sales grew 18.1% because datacenter and commercial vehicle volumes outran weaker Powersports and Agriculture demand, but profit stayed thin because launch costs, premium labor and uneven efficiency absorbed most of the gain. Mayville Engineering (NYSE:MEC) still moved from a loss to a small profit year over year. The next test is whether Operating Leverage appears as volumes ramp, since management expects to be near full capacity within about 18 months. Cash flow and the debt ratio will show how much that growth costs. Management described the quarter as in line with its own expectations.