Mayville Raises Sales Outlook as Data-Center Demand Accelerates
Second-quarter sales climbed to $163.0 million as organic growth returned.
Mayville Engineering Company (MEC), a manufacturer, raised its annual sales outlook after Datacenter & Critical Power revenue nearly sextupled from a year earlier, driven by legacy-customer demand and the Accu-Fab acquisition.
The quarter marked a broader turn in Mayville’s trajectory. Net sales growth accelerated to 23.2% from 6.8% in the first quarter, while organic growth reached 9.2%, reversing the 9.1% decline reported in the third quarter of 2024.
Second-quarter net sales rose 23.2% year over year and increased 12.6% sequentially. The GAAP net loss narrowed to $2.1 million, or $0.09 a share, from $8.2 million, or $0.40 a share, in the first quarter, though it widened from $1.1 million a year earlier. Adjusted earnings improved to $0.07 a share from a loss of $0.15 a share sequentially, while declining from $0.16 a share in the prior-year period.
Adjusted EBITDA more than doubled sequentially to $13.2 million, and the margin expanded to 8.1% from 4.5%. Manufacturing margin rose to 10.9% from 7.6% in the first quarter and 10.3% a year earlier as capacity utilization improved and Accu-Fab contributed higher-margin sales. Datacenter project-launch costs increased to $2.1 million from $1.2 million, continuing to weigh on profitability as volumes ramped.
Datacenter & Critical Power sales climbed 476.5% to $29.0 million, including 172.8% organic growth. Commercial Vehicle revenue rose 3.4% to $50.8 million as Class 8 production improved, and Construction & Access sales increased 14.7% to $23.1 million on stronger nonresidential-construction demand. Powersports, Agriculture and Military revenue declined, while Other end-market sales rose 25.6% to $26.1 million.
Mayville now expects 2026 net sales of $620 million to $650 million, about 5% above its previous guidance, with adjusted EBITDA of $52 million to $60 million and free cash flow of $7 million to $15 million. Expected Accu-Fab cross-selling revenue increased to $50 million to $60 million from the $40 million to $50 million range issued with fourth-quarter results.
For the third quarter, the company projects sales of $160 million to $170 million and adjusted EBITDA of $15.5 million to $18.5 million. That compares with prior-year sales of $144.3 million and adjusted EBITDA of $14.1 million. Datacenter project awards moderated to about $40 million from $50 million in the first quarter, while the qualified opportunity pipeline remained above $125 million.
Free cash flow remained negative at $6.6 million as quarterly capital spending increased to $8.1 million. Mayville used about $94 million of equity-offering proceeds to repay debt, lowering net leverage to 2.9 times trailing adjusted EBITDA from 4.4 times and lifting liquidity above $100 million. The company also announced an additional $50 million of organic-growth investment through 2027 to expand Datacenter & Critical Power capacity.