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Mayville Engineering Company (MEC) investor relations material
Mayville Engineering Company Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net sales rose 6.6% year-over-year to $144.3 million in Q3 2025, driven by the Accu-Fab acquisition, while organic net sales declined 9.1% due to softness in legacy markets.
Adjusted EBITDA was $14.1 million (9.8% margin), down from $17.1 million (12.6% margin) year-over-year; adjusted diluted EPS fell to $0.10 from $0.27.
Free cash flow was negative at ($1.1) million, impacted by $3.5 million in nonrecurring costs and lower operating cash flow.
Data Center & Critical Power pipeline exceeds $100 million, with $30 million in new project awards and expected 2026 revenue synergies of $20–$30 million from Accu-Fab.
Net income swung to a loss of $2.7 million from a $3.0 million profit in Q3 2024, reflecting non-recurring costs and lower legacy demand.
Financial highlights
Q3 2025 net sales were $144.3 million, up from $135.4 million in Q3 2024; manufacturing margin was $15.9 million (11.0% of sales), down from $17.1 million (12.6%).
Adjusted EBITDA margin declined to 9.8% from 12.6% year-over-year.
Interest expense rose to $3.4 million due to higher borrowings for the Accu-Fab acquisition.
Free cash flow for Q3 was ($1.1) million, and net debt rose to $214.9 million from $114.1 million year-over-year.
Adjusted Net Income dropped to $2.0 million from $5.8 million year-over-year.
Outlook and guidance
Full-year 2025 guidance reaffirmed: net sales $528–$562 million, adjusted EBITDA $49–$55 million, free cash flow $25–$31 million.
Capital expenditures for 2025 projected at $13–$17 million, focused on automation and high-return projects.
2026 revenue synergies from Accu-Fab expected in the $20–$30 million range.
Net leverage ratio expected to reach 3x or lower by end of 2026, with a long-term target below 2.5x.
Q4 expected to reflect normal seasonality and continued softness in commercial vehicle; positive free cash flow anticipated.
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Advancing HDAC inhibitors for rare cardiopulmonary diseases, targeting major market and partnership milestones.
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