Mayville Engineering Turns Profit After Two Loss Quarters

The Tip Desk · November 10, 2026 · 4 min read

Third-quarter net sales reached $170.4 million as Datacenter & Critical Power volumes accelerated and Adjusted EBITDA margin widened to 10.0%.

Mayville Engineering Company (MEC), a value-added manufacturer of design, prototyping and metal-fabrication solutions, reported net income of $0.4 million, or $0.02 a share, for the three months ended September 30, 2026, after a net loss of $2.1 million, or ($0.09) a share, in the second quarter.

Net sales were $170.4 million, up 18.1% from a year earlier, after 23.2% growth in the second quarter and 6.8% growth in the first quarter. President and Chief Executive Officer Jag Reddy said the quarter was in line with expectations and reflected strong demand as project volumes continued to accelerate in Datacenter & Critical Power.

Adjusted EBITDA was $17.0 million, or 10.0% of net sales, versus $13.2 million, or 8.1% of net sales, in the second quarter. Manufacturing margin was $18.8 million, or 11.0% of net sales. The company said the year-over-year increase in manufacturing-margin dollars was primarily attributable to improved capacity utilization from higher sales volumes in Datacenter & Critical Power, Commercial Vehicle and Construction & Access, partially offset by $3.0 million of Datacenter & Critical Power project launch and outsourcing costs and premium labor.

Datacenter & Critical Power net sales were $37.2 million, up 64.9% from a year earlier, which the company said reflected accelerating demand from legacy customers and new project launches. During the quarter MEC secured approximately $45 million of new Datacenter & Critical Power project awards, and Reddy said the qualified opportunity pipeline now exceeds $200 million. Commercial Vehicle net sales were $52.8 million, up 34.7%, which the company attributed to improved customer demand and higher North American Class 8 production. Construction & Access net sales were $24.2 million, up 9.3%, on continued improvement in non-residential construction demand. Other end-market sales were $24.8 million, up 13.5%, associated with continued strong aluminum extrusion demand.

Powersports net sales were $16.8 million, down 26.9%, which the company said was primarily driven by continued soft customer demand from global supply-chain realignment among OEMs. Agriculture net sales were $7.3 million, down 9.9%, reflecting continued demand softness for large agricultural equipment. Military net sales were $7.2 million.

GAAP net income compared with a net loss of $2.7 million, or ($0.13) a share, in the year-ago quarter. Non-GAAP adjusted diluted EPS was $0.15, versus $0.10 a year earlier. Interest expense was $3.0 million, down from $3.4 million a year earlier, due to decreased average borrowings under the revolving credit facility, partially offset by higher interest rates. Other selling, general and administrative expenses were $8.8 million, down from $10.5 million a year earlier, primarily reflecting a decrease in non-recurring acquisition-related expenses and synergies associated with the Accu-Fab acquisition.

Free cash flow was ($3.3) million, versus ($6.6) million in the second quarter. The company said free cash flow decreased from ($1.1) million a year earlier, primarily driven by higher capital expenditures related to equipment needed to support accelerating Datacenter & Critical Power demand, partially offset by higher cash flow from operations. Net debt to trailing twelve-month Adjusted EBITDA was 2.9x as of September 30, 2026, unchanged from June 30. Net debt outstanding was $146.6 million, with total cash and availability on the senior secured revolving credit facility of $30.3 million.

The company updated full-year 2026 guidance to net sales of $630 million to $640 million, with a $635 million midpoint, after raising full-year net sales guidance by approximately 5% in the second quarter. Adjusted EBITDA guidance is $48 million to $52 million. Free cash flow guidance is ($16) million to ($6) million, reflecting working-capital investment and planned capital expenditures of $25 million to $35 million, including the initial investment in the Thomson, Georgia facility. The company said the sales outlook assumes a full year of Accu-Fab ownership, incremental Datacenter & Critical Power cross-selling revenue, and continued improvement in Commercial Vehicle and Construction & Access, partially offset by ongoing softness in Agriculture and Powersports.

On October 1, 2026, MEC closed on the acquisition of its Thomson, Georgia facility, which, together with planned equipment investment, is expected to add approximately $50 million of annual revenue capacity by 2028 and increase total revenue capacity beyond the approximately $850 million previously disclosed. Reddy said the company is anticipating reaching full capacity within the next 18 months based on awarded programs and pipeline, and has started deploying capital toward expanding its footprint.