Mayville Engineering (NYSE: MEC) grows Q1 2026 sales but posts loss, updates 2026 outlook

Rhea-AI Filing Summary

Mayville Engineering Company reported first quarter 2026 net sales of $144.8 million, up 6.8% year over year, but posted a net loss of $8.2 million, or ($0.40) per diluted share, versus breakeven a year ago. Profitability was pressured by Datacenter & Critical Power project launch costs, non-recurring restructuring, and softer Commercial Vehicle demand.

Adjusted EBITDA fell to $6.5 million, or 4.5% of net sales, from $12.2 million, or 9.0%. Datacenter & Critical Power sales surged to $23.6 million, up 470.2%, helped by the Accu-Fab acquisition, while Commercial Vehicle and Military end markets declined. Free cash flow was ($6.9) million, compared with $5.4 million.

The company ended March 31, 2026 with $219.2 million of net debt and a net debt to trailing twelve‑month Adjusted EBITDA ratio of 4.4x. For full-year 2026, MEC now targets net sales of $590–$620 million, Adjusted EBITDA of $52–$60 million, and free cash flow of $25–$35 million, assuming continued Datacenter & Critical Power growth and a full year of Accu-Fab.

Positive

• Datacenter & Critical Power growth and pipeline: Q1 2026 net sales in this end market rose 470.2% year over year to $23.6 million, and the company secured approximately $50 million of new project awards, supported by a qualified opportunity pipeline exceeding $125 million.
• Raised full-year 2026 guidance range floor: Management now targets 2026 net sales of $590–$620 million, Adjusted EBITDA of $52–$60 million, and free cash flow of $25–$35 million, raising the low end of prior full-year guidance while maintaining the high end.

Negative

• Sharp swing to loss and margin deterioration: Q1 2026 net loss was $8.2 million versus $20 thousand of net income a year earlier, while Adjusted EBITDA dropped to $6.5 million (4.5% margin) from $12.2 million (9.0%), driven by launch costs, restructuring and weaker legacy demand.
• Higher leverage and interest burden: Net debt was $219.2 million as of March 31, 2026, with net debt to trailing twelve‑month Adjusted EBITDA at 4.4x, and quarterly interest expense more than doubled year over year to $3.7 million.
• Negative free cash flow and legacy softness: Free cash flow was ($6.9) million versus $5.4 million a year ago, and key legacy end markets weakened, with Commercial Vehicle sales down 23.8% and Military down 32.0% year over year.

Insights

Industrial earnings analyst

MEC grows sales but sees sharp margin compression, higher leverage, and cautious near‑term guidance.

MEC grew Q1 2026 net sales 6.8% to $144.8 million, driven by Datacenter & Critical Power, Construction & Access, Powersports and the Accu‑Fab acquisition. However, project launch costs, restructuring and weaker Commercial Vehicle demand cut manufacturing margin to $11.0 million, only 7.6% of net sales.

Net loss reached $8.2 million versus roughly breakeven a year earlier, while Adjusted EBITDA fell to $6.5 million (4.5% margin). Net debt of $219.2 million and a net debt to trailing twelve‑month Adjusted EBITDA ratio of 4.4x highlight balance sheet pressure as interest expense more than doubled.

Management leans on Datacenter & Critical Power, where Q1 sales jumped 470.2% to $23.6 million and new awards totaled about $50 million. FY 2026 guidance for net sales of $590–$620 million and Adjusted EBITDA of $52–$60 million implies recovery later in 2026, but execution on project ramps and legacy end‑market improvement remain pivotal.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q1 2026 net sales: $144.8M Q1 2026 net income (loss): ($8.2M) Q1 2026 Adjusted EBITDA: $6.5M +5 more

8 metrics

Q1 2026 net sales $144.8M Net sales for the three months ended March 31, 2026; up 6.8% year over year

Q1 2026 net income (loss) ($8.2M) Net loss and comprehensive loss for the three months ended March 31, 2026

Q1 2026 Adjusted EBITDA $6.5M Adjusted EBITDA in Q1 2026, 4.5% of net sales, vs $12.2M prior year

Datacenter & Critical Power sales $23.6M Q1 2026 net sales in Datacenter & Critical Power; 470.2% growth vs prior-year period

Commercial Vehicle sales $38.8M Q1 2026 Commercial Vehicle net sales; 23.8% decrease vs prior-year period

Net debt $219.2M Net debt outstanding as of March 31, 2026; net debt to TTM Adjusted EBITDA 4.4x

FY 2026 net sales guidance $590–$620M Full-year 2026 net sales forecast range provided by management

Q1 2026 free cash flow ($6.9M) Free cash flow for the three months ended March 31, 2026, vs $5.4M prior year

Key Terms

Adjusted EBITDA, Free cash flow, Datacenter & Critical Power, International Traffic in Arms Regulations (ITAR), +2 more

6 terms

Adjusted EBITDA financial

"MEC reported Adjusted EBITDA of $6.5 million in the first quarter of 2026, or 4.5% of net sales"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

Free cash flow financial

"Free cash flow during the first quarter of 2026 was ($6.9) million as compared to $5.4 million"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

Datacenter & Critical Power financial

"Demand within our Datacenter & Critical Power end market remains robust and continues to be the primary growth catalyst"

International Traffic in Arms Regulations (ITAR) regulatory

"MEC holds the International Traffic in Arms Regulations (ITAR) certification and produces components for the United States military"

A U.S. export control system that regulates the sale, transfer and technical support of defense-related products and services to foreign countries and entities. Think of it as a set of permission slips and traffic signals for moving military or dual-use items across borders; failure to comply can block sales, lead to heavy fines or lost contracts, and therefore materially affect a company’s revenue, customers and stock value.

non-GAAP financial

"This press release contains financial information calculated in a manner other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The non-GAAP measures used in this press release are EBITDA"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

Adjusted Net Income (Loss) financial

"Adjusted Net Income (Loss) and Adjusted Diluted EPS represent net income (loss) before the aforementioned Adjusted EBITDA addback items"

Adjusted net income (loss) is a company’s reported profit or loss after management removes certain one-time, unusual, or non-cash items to show what the business earned from its regular operations. Think of it like checking a household budget but excluding a major one-off repair or a tax refund to see typical monthly living costs. Investors use it to compare underlying performance across periods and companies, but the adjustments can vary by company and are not standardized.

Earnings Snapshot

Net sales: $144.8M · Guidance included

Q1 2026

Net sales $144.8M +6.8% YoY

Net income (loss) ($8.2M) from $0.0M prior-year period

Adjusted EBITDA $6.5M vs $12.2M prior-year period

Adjusted net income (loss) ($3.1M) vs $2.3M prior-year period

Free cash flow ($6.9M) vs $5.4M prior-year period

Guidance

For 2026, MEC guides to net sales of $590–$620M, Adjusted EBITDA of $52–$60M, and free cash flow of $25–$35M, assuming a full year of Accu-Fab, $50–$60M of cross-selling revenue, and improved legacy end-market demand.

Understanding 8-K Material Events →

0001766368false00017663682026-05-052026-05-05

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 5, 2026

Mayville Engineering Company, Inc.

(Exact name of registrant as specified in its charter)

Wisconsin		001-38894		39-0944729
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

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135 S. 84th Street, Suite 300

Milwaukee, Wisconsin 53214

(Address of principal executive offices, including zip code)

(414) 381-2860

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)

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Securities registered pursuant to Section 12(b) of the Act:

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Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, no par value		MEC		New York Stock Exchange

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02. Results of Operations and Financial Condition.

On May 5, 2026, Mayville Engineering Company, Inc. issued a press release announcing financial results for its three months ended March 31, 2026. A copy of such press release is furnished as Exhibit 99 to this Current Report on Form 8-K and is incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.

(a) Not applicable.

(b) Not applicable.

(c) Not applicable.

(d) Exhibits. The exhibit listed in the exhibit index below is being furnished herewith.

EXHIBIT INDEX

Exhibit Number	​ ​ ​
99	​	Press Release of Mayville Engineering Company, Inc., dated May 5, 2026 regarding financial results for its three months ended March 31, 2026.
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104	​	Cover Page Interactive Data File (embedded within the Inline XBRL document).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

​	MAYVILLE ENGINEERING COMPANY, INC.
​	​	​
Date: May 5, 2026	By:	/s/ Rachele M. Lehr
​	​	Rachele M. Lehr
​	​	Chief Financial Officer

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Exhibit 99

MAYVILLE ENGINEERING COMPANY ANNOUNCES

FIRST QUARTER 2026 RESULTS

MILWAUKEE, Wis., May 5, 2026 – Mayville Engineering Company (NYSE: MEC) (the “Company” or “MEC”), a leading value-added provider of design, prototyping and manufacturing solutions serving diverse end markets, today announced results for the three-months ended March 31, 2026.

FIRST QUARTER 2026 RESULTS

(All comparisons versus the prior-year period)

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● Net sales of $144.8 million, or +6.8% y/y

● Net loss of $8.2 million, or ($0.40) per diluted share; Non-GAAP Adjusted Diluted EPS of ($0.15)

● Adjusted EBITDA of $6.5 million

● Adjusted EBITDA margin of 4.5% of net sales

● Quarterly Free Cash Flow of ($6.9) million

● Ratio of net debt to trailing twelve-month Adjusted EBITDA of 4.4x as of March 31, 2026

● Secured $50 million in Datacenter & Critical Power project awards

MANAGEMENT COMMENTARY

“We concluded the first quarter with strong momentum, driven by successful project ramp activity in our Datacenter & Critical Power end market," said Jag Reddy, President and Chief Executive Officer. “As anticipated, results reflected headwinds from project launch costs and softer demand across our legacy end markets. Additionally, we experienced improving margin realization late in the quarter as several Datacenter & Critical Power programs transitioned into full production. This progress reinforces our confidence in meaningful profitability improvement as the year progresses."

“Demand within our Datacenter & Critical Power end market remains robust and continues to be the primary growth catalyst for MEC,” Reddy continued. “In the first quarter alone, we secured approximately $50 million of new Datacenter & Critical Power project awards, surpassing the total awards won in this end market during the entire second half of last year. Our qualified opportunity pipeline exceeds $125 million, supported by strong customer quoting activity. We expect this momentum to drive profitable growth as we move through 2026. While conditions in our legacy end markets remain mixed, the strength and trajectory of our Datacenter & Critical Power business provides clear visibility to improved financial performance.”

“Our capital allocation priorities remain clear and disciplined," Reddy concluded. "We are focused on debt reduction and targeted investments in equipment and capacity needed to support accelerating Datacenter & Critical Power end market demand. As profitability and free cash flow strengthen throughout the year, we will look to continue to reduce leverage while investing to scale and diversify our platform, all with the objective of maximizing long-term shareholder value.”

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PERFORMANCE SUMMARY

Net sales increased by 6.8% on a year-over-year basis in the first quarter of 2026, primarily due to organic growth in the Datacenter & Critical Power, Construction & Access and Powersports end markets and the impact of the Accu-Fab, which was acquired in the third quarter of 2025. These increased volumes were partially offset by lower demand in the Commercial Vehicle and Military end markets.      

Manufacturing margin was $11.0 million in the first quarter of 2026, or 7.6% of net sales, versus $15.3 million, or 11.3% of net sales, in the prior year period. The year-over-year decrease in manufacturing margin was primarily attributable to $1.2 million of project launch costs within the Datacenter & Critical Power end market, non-recurring restructuring costs, and lower capacity utilization due to softer demand primarily within the Commercial Vehicle end market. This decrease was partially offset by higher margin sales contribution from the Accu-Fab acquisition.

Bonuses and deferred compensation expense was $4.8 million in the first quarter of 2026 as compared to $3.3 million in the prior year period. Other selling, general and administrative expenses were $9.2 million in the first quarter of 2026 as compared to $8.7 million for the same prior year period. The increase in other selling, general and administrative expenses primarily reflects incremental SG&A expense associated with the Accu-Fab acquisition.

Interest expense was $3.7 million in the first quarter of 2026, as compared to $1.6 million in the prior year period, due to increased borrowings under the Company’s revolving credit facility associated with the Accu-Fab acquisition.

Net loss for the first quarter of 2026 was $8.2 million, or ($0.40) per diluted share, versus net income of $20 thousand, or $0.00 per diluted share, in the prior year period.

MEC reported Adjusted EBITDA of $6.5 million in the first quarter of 2026, or 4.5% of net sales, versus $12.2 million, or 9.0% of net sales, in the prior year period. The decrease in Adjusted EBITDA is primarily due to lower Commercial Vehicle end market demand and Datacenter & Critical Power project launch costs, partially offset by the benefit of the Accu-Fab acquisition.

First quarter Adjusted Net Loss was $3.1 million, or ($0.15) per diluted share, versus Adjusted Net Income of $2.3 million, or $0.10 per diluted share, in the prior year period. The increase in Adjusted Net Loss reflects lower income from operations, and higher interest expense.

Free cash flow during the first quarter of 2026 was ($6.9) million as compared to $5.4 million in the prior year period. The decrease was primarily driven by lower cash flow from operations and higher capital expenditures related to equipment investments needed to support rapidly accelerating demand in the Datacenter & Critical Power end market.

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END MARKET UPDATE

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​	​	Three Months Ended
​	​	March 31,
​	​	2026		​	2025
Commercial Vehicle	​	$	38,775	​	$	50,877
Construction & Access	​		20,135	​	​	19,524
Powersports	​		23,292	​	​	22,250
Datacenter & Critical Power	​	​	23,626	​	​	4,144
Agriculture	​		10,346	​	​	10,935
Military	​	​	5,767	​	​	8,487
Other	​	​	22,839	​	​	19,362
Net Sales	​	$	144,780	​	$	135,579

Commercial Vehicles

MEC is a Tier 1 supplier to many of the country’s top original equipment manufacturers (OEM) of commercial vehicles providing exhaust & aftertreatment, engine components, cooling, fuel and structural systems for both heavy- and medium-duty commercial vehicles.

Net sales to the Commercial Vehicle end market were $38.8 million in the first quarter of 2026, a decrease of 23.8% versus the prior year period. The decrease was attributable to an expected decline in customer demand driven by a 27.2% decrease in North American Class 8 commercial vehicle production compared to the first quarter of 2025.

Construction & Access

MEC manufactures components and sub-assemblies for OEMs within the construction & access market including fenders, hoods, supports, frames, platforms, frame structures, doors and tubular products such as exhaust & aftertreatment, engine components, cooling system components, handrails and full electro-mechanical assemblies.

Net sales to the Construction & Access end market were $20.1 million in the first quarter of 2026, an increase of 3.1% versus the prior year period. The increase in net sales was primarily due to improved non-residential construction demand.

Powersports

MEC manufactures stampings and complex metal assemblies and coatings for OEMs within the all-terrain vehicles (ATV), side-by-sides, utility task vehicles (UTV), marine propulsion, and motorcycle markets. MEC’s powersports expertise includes axle housings, steering columns, swing arms, fenders, suspension components, ATV/UTV racks, cowl assemblies and vehicle frames.

Net sales to the Powersports end market were $23.3 million in the first quarter of 2026, an increase of 4.7% versus the prior year period. The increase in net sales to the Powersports end market was primarily driven by incremental volumes from discrete, short-cycle customer programs, partially offset by continued demand softness among legacy ATV, UTV, and motorcycle OEMs, as well as lower sales within the marine propulsion market.

Datacenter & Critical Power

MEC manufactures precision metal enclosures, racks, frames, and sub-assemblies for OEMs that deliver reliable power distribution, backup energy systems, and intelligent power management solutions in mission-critical datacenter and electrical infrastructure environments.

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Net sales to the Datacenter & Critical Power end market were $23.6 million in the first quarter of 2026, an increase of 470.2% versus the prior year period. The increase in sales reflects accelerating demand from legacy customers and revenues associated with the Accu-Fab acquisition. Organic net sales growth in this end market was 71.3% in the first quarter of 2026, when compared to the first quarter of 2025.

Agriculture

MEC is an integral partner in the supply chain of the world’s leading agriculture OEMs manufacturing components and sub-assemblies including fenders, hoods, supports, frames, platforms, frame structures, doors, and tubular products such as exhaust, engine components, cooling system components, handrails and full electro-mechanical assemblies.

Net sales to the Agriculture end market were $10.3 million in the first quarter of 2026, a decrease of 5.4% versus the prior year period. The decrease in net sales in the Agriculture end market reflect continued demand softness for large agricultural equipment, partially offset by improved small agriculture demand.

Military

MEC holds the International Traffic in Arms Regulations (ITAR) certification and produces components for the United States military. Products include exhaust, engine components, cooling, fuel, suspension, structural systems, and chemical agent resistant coating (CARC) painting capabilities.

Net sales to the Military end market were $5.8 million in the first quarter of 2026, a decrease of 32.0% versus the prior year period. The decrease in net sales compared to the prior year was due to program transition delays.

Other

MEC also produces a wide variety of components and assemblies for customers in the industrial equipment & fixtures, consumer tools, mining, forestry, automotive, and medical markets.

Net sales to Other end markets for the first quarter of 2026 were $22.8 million, an increase of 18.0% versus the prior year period. The increase in net sales compared to the prior year period was associated with the Accu-Fab acquisition.

BALANCE SHEET UPDATE

As of March 31, 2026, MEC had net debt outstanding of $219.2 million and total cash and availability on its senior secured revolving credit facility of $261.4 million, with $42.2 million of availability after taking into account for the Company’s debt covenants under the revolving credit facility. At the end of the first quarter, the ratio of net debt to trailing twelve-month Adjusted EBITDA was 4.4x, as calculated pursuant to the terms of the Company’s current Credit Agreement.

FINANCIAL GUIDANCE

Today, the Company is providing financial guidance for the second quarter of 2026 and refining its financial guidance for the full-year by raising the low end of previously announced full-year guidance on March 3, 2026 in connection with the Company’s announcement of its full-year fiscal results. The Company is maintaining the high end of the range for full-year guidance. All guidance is current as of the time provided and is subject to change.

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Q2 2025

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Q2 2026 Forecast

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(in Millions)

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Actual

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Low

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Mid

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High

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Net Sales

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$

132.3

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$

145

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$

150

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$

155

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Adjusted EBITDA

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$

13.7

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$

10

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$

11.5

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$

13

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Second quarter 2026 sales guidance reflects continued demand softness across legacy end markets, partly offset by ramping revenues on Datacenter & Critical Power projects. Adjusted EBITDA guidance for the quarter also incorporates ongoing project launch costs within the Datacenter & Critical Power end market. Free cash flow for the second quarter of 2026 is expected to reflect incremental working capital investment to support the Datacenter & Critical Power ramp up and planned capital expenditures of $6 million to $8 million.

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FY 2025

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FY 2026 Forecast

(in Millions)

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Actual

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Low

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Mid

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High

Net Sales

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$

546.5

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$

590

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$

605

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$

620

Adjusted EBITDA

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$

47.1

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$

52

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$

56

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$

60

Free Cash Flow

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$

26.9

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$

25

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$

30

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$

35

The Company’s full-year 2026 guidance assumes a full year of Accu-Fab ownership, $50 million to $60 million of incremental cross-selling revenue, and improvement in legacy end market demand, primarily in the second half of the year. Guidance for the year also incorporates Datacenter & Critical Power launch costs associated with awarded programs. Free Cash Flow guidance reflects working capital efficiencies and planned capital expenditures of between $15 and $20 million.

FIRST QUARTER 2026 RESULTS CONFERENCE CALL

The Company will host a conference call on Wednesday, May 6, 2026 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).

For a live webcast of the conference call and to access the accompanying investor presentation, please visit www.mecinc.com and click on the link to the live webcast on the Investors page.

For telephone access to the conference, call (833) 461-5787 and please use the Access Code: 119453383.

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements that reflect plans, estimates and beliefs. Such statements

involve risk and uncertainties. Actual results may differ materially from those contemplated by these forward-looking statements as a result of various factors. Important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements include, but are not limited to: macroeconomic conditions, including inflation, elevated interest rates, labor availability, material cost pressures trade policy uncertainty and inconsistent demand, have had, and may continue to have, a negative impact on our business, financial condition, cash flows and results of operations (including future uncertain impacts); risks relating to developments in the industries in which our customers operate; risks related to scheduling production accurately and maximizing efficiency; our ability to realize net sales represented by our awarded business; failure to compete successfully in our markets; our ability to maintain our manufacturing, engineering and technological expertise; the loss of any of our large customers or the loss of their respective market shares; risks related to entering new markets; our ability to recruit and retain our key executive officers, managers and trade-skilled personnel; macroeconomic conditions impacting datacenter & critical power end market demand; volatility in the prices or availability of raw materials critical to our business; manufacturing risks, including delays and technical problems, issues with third-party suppliers, environmental risks and applicable statutory and regulatory requirements; our ability to successfully identify or integrate acquisitions; geopolitical and economic developments, including foreign trade relations and associated tariffs; our ability to develop new and innovative processes and gain customer acceptance of such processes; risks related to our information technology systems and infrastructure; results of legal disputes, including product liability, intellectual property infringement and other claims; risks associated with our capital-intensive industry; risks related to our employee stock ownership

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plan’s treatment as a tax-qualified retirement plan; our ability to satisfy our current obligations under existing indebtedness and other factors described in “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, as such may be amended or supplemented in our subsequently filed Quarterly Reports on Form 10-Q. This discussion should be read in conjunction with our audited consolidated financial statements included in the Company’s previously filed Annual Report on Form 10-K for the year ended December 31, 2025. We undertake no obligation to update or revise any forward-looking statements after the date on which any such statement is made, whether as a result of new information, future events or otherwise, except as required by federal securities laws.

ABOUT MAYVILLE ENGINEERING COMPANY

Founded in 1945, MEC is a leading U.S.-based, vertically-integrated, value-added manufacturing partner providing a full suite of manufacturing solutions from concept to production, including design, prototyping and tooling, fabrication, aluminum extrusion, coating, assembly and aftermarket components. Our customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction & access equipment, powersports, datacenter & critical power, agriculture, military and other end markets. Along with process engineering and development services, MEC maintains an extensive manufacturing infrastructure with 27 facilities, of which 22 are in use, across nine states. These facilities make it possible to offer conventional and CNC (computer numerical control) stamping, shearing, fiber laser cutting, forming, drilling, tapping, grinding, tube bending, machining, welding, assembly, and logistic services. MEC also possesses a broad range of finishing capabilities including shot blasting, e-coating, powder coating, wet spray and military grade chemical agent resistant coating (CARC) painting. For more information, please visit www.mecinc.com.

NON-GAAP FINANCIAL MEASURES

This press release contains financial information calculated in a manner other than in accordance with U.S. generally accepted accounting principles (“GAAP”).

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The non-GAAP measures used in this press release are EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Adjusted Diluted EPS and Free Cash Flow.

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EBITDA represents net income (loss) before interest expense, provision (benefit) for income taxes, depreciation, and amortization. EBITDA Margin represents EBITDA as a percentage of net sales for each period. Adjusted EBITDA represents EBITDA before stock-based compensation expense, loss on extinguishment of debt, restructuring and impairment costs. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of net sales for each period. Adjusted Net Income (Loss) and Adjusted Diluted EPS represent net income (loss) before the aforementioned Adjusted EBITDA addback items and acquisition related amortization of intangible assets, which do not reflect our core operating performance. Free Cash Flow represents net cash provided by, or used in, operating activities, less cash flows used in the purchase of property, plant and equipment. We present Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Adjusted Diluted EPS and Free Cash Flow as management uses these measures as key performance indicators, and we believe they are measures frequently used by securities analysts, investors and other parties to evaluate companies in our industry. These metrics are supplemental measures of our operating performance that are neither required by, nor presented in accordance with, GAAP. These measures should not be considered as an alternative to net income (loss) or cash flow provided by, or used in, operating activities, or any other performance measure derived in accordance with GAAP as an indicator of our operating performance. These measures may not be comparable to the similarly named measures reported by other companies and have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP.

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Please reference our reconciliation of net income (loss), the most directly comparable measure calculated in accordance with GAAP, to EBITDA, Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Diluted EPS,

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Free Cash Flow and the calculation of EBITDA Margin and Adjusted EBITDA Margin included in this press release.

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Mayville Engineering Company, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share amounts)

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​	​	March 31,		​	December 31,
​	​ ​ ​	2026		​ ​ ​	2025
ASSETS		​	​		​	​
Cash and cash equivalents	​	$	2,066	​	$	1,502
Receivables, net of allowances for doubtful accounts of $590 at March 31, 2026 and $577 at December 31, 2025	​		68,138	​		57,551
Inventories, net	​		66,024	​		59,398
Tooling in progress	​		5,374	​		4,746
Prepaid expenses and other current assets	​		5,684	​		5,217
Total current assets	​		147,286	​		128,414
Property, plant and equipment, net	​		149,789	​		149,996
Assets held for sale	​	​	3,082	​	​	1,402
Goodwill	​		140,246	​		140,246
Intangible assets, net	​		108,150	​		111,280
Operating lease assets	​	​	27,734	​	​	30,473
Other long-term assets	​		1,785	​		1,829
Total assets	​	$	578,072	​	$	563,640
LIABILITIES AND SHAREHOLDERS’ EQUITY	​		​	​		​
Accounts payable	​	$	62,816	​	$	52,377
Current portion of operating lease obligation	​	​	6,842	​	​	6,729
Accrued liabilities:	​		​	​		​
Salaries, wages, and payroll taxes	​		5,939	​		2,753
Bonuses and deferred compensation	​		2,327	​		2,170
Other current liabilities	​		11,822	​		10,740
Total current liabilities	​	​	89,746	​	​	74,769
Bank revolving credit notes	​		212,392	​		202,525
Operating lease obligation, less current maturities	​	​	23,785	​	​	25,572
Deferred compensation, less current portion	​		4,801	​		5,240
Deferred income tax liability	​		7,990	​		11,298
Other long-term liabilities	​		7,172	​		3,499
Total liabilities	​	$	345,886	​	$	322,903
Commitments and contingencies	​		​	​		​
Common shares, no par value, 75,000,000 authorized, 22,602,432 shares issued at March 31, 2026 and 22,505,704 at December 31, 2025	​		—	​		—
Additional paid-in-capital	​		208,401	​		208,777
Retained earnings	​		43,801	​		51,976
Treasury shares at cost, 2,187,334 shares at March 31, 2026 and December 31, 2025	​		(20,016)	​		(20,016)
Total shareholders’ equity	​		232,186	​		240,737
Total liabilities and shareholders' equity	​	$	578,072	​	$	563,640

​

​

Mayville Engineering Company, Inc.

Condensed Consolidated Statements of Net Income (Loss)

(in thousands, except share amounts and per share data)

​

​	​	​	​	​	​	​
​	​	Three Months Ended
​	​	March 31,
​	​ ​ ​	2026		​ ​ ​	2025
Net sales	​	$	144,780	​	$	135,579
Cost of sales	​		133,819		​	120,255
Amortization of intangible assets	​		3,130		​	1,733
Bonuses and deferred compensation	​		4,804		​	3,325
Other selling, general and administrative expenses	​	​	9,171	​	​	8,689
Impairment of long-lived assets	​	​	1,544	​	​	—
Income (loss) from operations	​		(7,688)	​		1,577
Interest expense	​		(3,661)		​	(1,567)
Loss on extinguishment of debt	​	​	(134)	​	​	—
Income (loss) before taxes	​		(11,483)		​	10
Income tax expense (benefit)	​		(3,308)		​	(10)
Net income (loss) and comprehensive income (loss)	​	$	(8,175)	​	$	20
​	​	​	​	​	​	​
Earnings (loss) per share:	​		​	​		​
Basic	​	$	(0.40)	​	$	0.00
Diluted	​	$	(0.40)	​	$	0.00
​	​	​	​	​	​	​
Weighted average shares outstanding:	​		​	​		​
Basic	​		20,445,112	​		20,520,696
Diluted	​		20,445,112	​		20,750,938

​

​

Mayville Engineering Company, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

​	​	​	​	​	​	​
​	​	Three Months Ended
​	​	March 31,
​	​ ​ ​	2026		​ ​ ​	2025
CASH FLOWS FROM OPERATING ACTIVITIES		​	​		​	​
Net income (loss)	​	$	(8,175)	​	$	20
Adjustments to reconcile net income (loss) to net cash provided by operating activities:	​		​	​	​	—
Depreciation	​		7,820	​		7,750
Amortization	​		3,130	​		1,733
Allowance for doubtful accounts	​		13	​		22
Inventory excess and obsolescence reserve	​		106	​		(164)
Stock-based compensation expense	​		795	​		1,101
Gain on disposal of property, plant and equipment	​		(4)	​		(3)
Impairment of long-lived assets	​		1,544	​		—
Deferred compensation	​		(1,024)	​		275
Loss on extinguishment of debt	​		134	​	​	—
Non-cash lease expense	​	​	1,624	​		1,318
Other non-cash adjustments	​	​	300	​	​	70
Changes in operating assets and liabilities:	​		​	​		​
Accounts receivable	​		(10,601)	​		(8,167)
Inventories	​		(6,732)	​		(914)
Tooling in progress	​		(628)	​		329
Prepaids and other current assets	​		(366)	​		(186)
Accounts payable	​		10,185	​		10,444
Deferred income taxes	​		(3,308)	​	​	(538)
Operating lease obligations	​	​	(1,727)	​	​	(1,303)
Accrued liabilities	​		4,158	​		(3,454)
Net cash provided by (used in) operating activities	​		(2,756)	​		8,333
CASH FLOWS FROM INVESTING ACTIVITIES	​		​	​		​
Purchases of property, plant and equipment	​		(4,184)	​		(2,962)
Proceeds from sale of property, plant and equipment	​		5	​		3
Net cash used in investing activities	​		(4,179)	​		(2,959)
CASH FLOWS FROM FINANCING ACTIVITIES	​		​	​		​
Proceeds from bank revolving credit notes	​		480,731	​		282,113
Payments on bank revolving credit notes	​		(470,863)	​		(284,359)
Payments of financing costs	​	​	(398)	​	​	—
Shares withheld for employees' taxes	​		(1,171)	​		(1,170)
Purchase of treasury stock	​	​	—	​	​	(1,747)
Payments on finance leases	​		(800)	​		(234)
Net cash provided by (used in) financing activities	​		7,499	​		(5,397)
Net increase (decrease) in cash and cash equivalents	​		564	​		(23)
Cash and cash equivalents at beginning of period	​		1,502	​		206
Cash and cash equivalents at end of period	​	$	2,066	​	$	183

​

​

Mayville Engineering Company, Inc.

Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA

(in thousands)

​	​	​	​	​	​	​	​
​	​	Three Months Ended					​
​	​	March 31,					​
​	​ ​ ​	2026		​ ​ ​	2025		​ ​ ​
Net income (loss) and comprehensive income (loss)	​	$	(8,175)	​	$	20	​
Interest expense	​		3,661		​	1,567	​
Provision (benefit) for income taxes	​		(3,308)		​	(10)	​
Depreciation and amortization	​		10,950		​	9,483	​
EBITDA	​		3,128	​		11,060	​
Stock-based compensation expense	​	​	795	​	​	1,101	​
Loss on extinguishment of debt	​	​	134	​	​	—	​
Restructuring and impairment	​	​	2,416	​	​	—	​
Adjusted EBITDA	​	$	6,473	​	$	12,161	​
Net sales	​	$	144,780	​	$	135,579	​
EBITDA Margin	​		2.2	%		8.2	%
Adjusted EBITDA Margin	​		4.5	%		9.0	%

​

​

​

Mayville Engineering Company, Inc.

Reconciliation of Net Income (Loss) and Diluted EPS to Adjusted Net Income and Diluted EPS

(in thousands, except share amounts and per share data)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

March 31,

​

​

2026

​

​

2025

​

​ ​ ​

Earnings

​

Diluted EPS

​ ​ ​

​

Earnings

​

Diluted EPS

Net income (loss) and comprehensive income (loss)

​

$

(8,175)

​

$

(0.40)

​

​

$

20

​

$

0.00

Stock-based compensation expense

​

​

795

​

​

0.04

​

​

​

1,101

​

​

0.05

Loss on extinguishment of debt

​

​

134

​

​

0.01

​

​

​

—

​

​

—

Restructuring and impairment

​

​

2,416

​

​

0.12

​

​

​

—

​

​

—

Acquisition related amortization of intangible assets

​

​

3,130

​

​

0.15

​

​

​

1,733

​

​

0.08

Tax effect of above adjustments

​

​

(1,431)

​

​

(0.07)

​

​

​

(562)

​

​

(0.03)

Adjusted net income (loss) and comprehensive income (loss)

​

$

(3,131)

​

$

(0.15)

​

​

$

2,292

​

$

0.10

​

​

​

Mayville Engineering Company, Inc.

Reconciliation of Free Cash Flow

(in thousands)

​	​	​	​	​	​	​
​	​	Three Months Ended
​	​	March 31,
​	​ ​ ​	2026		​ ​ ​	2025
Net cash provided by (used in) operating activities	​	$	(2,756)	​	$	8,333
Less: Capital expenditures	​	​	4,184	​	​	2,962
Free cash flow	​	$	(6,940)	​	$	5,371

​

​

FAQ

How did Mayville Engineering Company (MEC) perform financially in Q1 2026?

MEC grew Q1 2026 net sales 6.8% to $144.8 million but reported a net loss of $8.2 million, or ($0.40) per diluted share. Adjusted EBITDA declined to $6.5 million, or 4.5% of net sales, reflecting launch costs, restructuring, and softer legacy end‑market demand.

What drove Mayville Engineering’s Datacenter & Critical Power growth in Q1 2026?

Datacenter & Critical Power net sales rose to $23.6 million, up 470.2% year over year. Growth came from accelerating demand at legacy customers and contributions from the Accu‑Fab acquisition, with organic sales in this end market up 71.3% compared to Q1 2025.

Which Mayville Engineering end markets were weakest in Q1 2026?

The Commercial Vehicle end market saw net sales fall 23.8% to $38.8 million, reflecting a 27.2% decline in North American Class 8 production. The Military end market also softened, with net sales down 32.0% to $5.8 million due to program transition delays.

What is Mayville Engineering’s leverage and liquidity position as of March 31, 2026?

MEC reported $219.2 million of net debt and total cash plus revolving credit availability of $261.4 million, with $42.2 million of availability after covenant considerations. Net debt to trailing twelve‑month Adjusted EBITDA was 4.4x under the company’s Credit Agreement.

What guidance did Mayville Engineering provide for Q2 2026?

For Q2 2026, MEC forecasts net sales of $145–$155 million and Adjusted EBITDA of $10–$13 million. Guidance reflects continued softness in legacy markets, partially offset by ramping Datacenter & Critical Power revenues and ongoing project launch costs in that end market.

What are Mayville Engineering’s full-year 2026 financial targets?

For full-year 2026, MEC targets net sales of $590–$620 million, Adjusted EBITDA of $52–$60 million, and free cash flow of $25–$35 million. Assumptions include a full year of Accu‑Fab, $50–$60 million of cross‑selling revenue, and improved legacy end‑market demand.

How did Mayville Engineering’s free cash flow trend in Q1 2026?

Free cash flow declined to ($6.9) million in Q1 2026 from $5.4 million a year earlier. The reduction was driven by lower cash from operations and higher capital expenditures, largely tied to equipment investments supporting rapidly increasing Datacenter & Critical Power demand.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99 EX-99 348.8 KB

Other Documents

• EX-101 EX-101.SCH 2.6 KB
• EX-101 EX-101.LAB 14.9 KB
• EX-101 EX-101.PRE 9.7 KB