MEC

Mayville Engineering’s second quarter saw revenue and profit come in well above Wall Street’s expectations, but the market reacted negatively to ongoing cost pressures and near-term margin constraints. Management attributed the strong sales to robust demand in data center and critical power markets and a modest recovery in commercial vehicles. CEO Jagadeesh Reddy emphasized, “Our second quarter results reflect stronger-than-expected demand across several key end markets,” particularly highlighting rapid growth in data center programs and early signs of commercial vehicle market recovery. However, significant launch and outsourcing costs weighed on profitability, with management identifying these as temporary and linked to capacity expansion. Is now the time to buy MEC? Find out in our full research report (it’s free). Revenue: $163 million vs analyst estimates of $151.1 million (23.2% year-on-year growth, 7.9% beat) Adjusted EPS: $0.07 vs analyst estimates of -$0.05 (significant beat) Adjusted EBITDA: $13.17 million vs analyst estimates of $11.4 million (8.1% margin, 15.6% beat) The company lifted its revenue guidance for the full year to $635 million at the midpoint from $605 million, a 5% increase EBITDA guidance for the full year is $56 million at the midpoint, below analyst estimates of $56.41 million Operating Margin: 0.2%, in line with the same quarter last year Market Capitalization: $583.7 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Michael Shlisky (D.A. Davidson) pressed for details on the capacity reservation model. CEO Jagadeesh Reddy explained that discussions are focused on data center customers, with potential structures involving upfront fees or volume commitments, but no contracts have been signed yet. Vladimir Bystricky (Citigroup) asked about the drivers behind the revenue and EBITDA guidance range. CFO Rachele Lehr cited three factors: the pace of commercial vehicle recovery, timing and execution in data center program volumes, and how quickly launch and outsourcing costs can be reduced. Greg Palm (Craig-Hallum) questioned how the company is prioritizing new business given limited capacity. Reddy responded that Mayville Engineering is walking away from lower-margin or smaller programs to reserve capacity for larger, higher-value opportunities, especially in data center and critical power. Ross Sparenblek (William Blair) inquired about the mix shift toward recurring, higher-margin revenue and the stability of the portfolio. Reddy noted that while cyclical markets like commercial vehicles remain, the company is increasing the share of data center business, aiming for this to reach up to 30% of total revenue over time. Edward Jackson (Northland Securities) sought clarification on the timing and nature of outsourced functions and labor costs. Management explained that outsourcing is mainly for laser cutting, brake pressing, and painting due to equipment and labor constraints, and expects these activities to return in-house as new investments are completed. In the coming quarters, the StockStory team will be monitoring (1) the pace at which Mayville Engineering brings outsourced operations in-house and reduces temporary launch costs, (2) the effectiveness of capacity expansion in meeting strong data center and critical power demand, and (3) signs of sustained recovery in commercial vehicle and construction end markets. Additionally, execution on selective capital investments and successful ramp-up of new facilities will be important markers for future growth and margin improvement. Mayville Engineering currently trades at $22.92, down from $27.73 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 10:00 a.m. ET President and Chief Executive Officer - Jagadeesh Reddy Chief Financial Officer - Rachele Lehr Operator: Hello everyone, thank you for joining us and welcome to the 2026 second quarter Mayville Engineering Company earnings call. I will now hand the conference over to Stefan Neely with Vallum Advisors. Please go ahead. Stefan Neely Thank you, operator. On behalf of our entire team, I'd like to welcome you to our second quarter 2026 results conference call. Leading the call today is MEC's President and CEO, Jag Reddy; and Rachele Lehr, Chief Financial Officer. Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the Securities and Exchange Commission. Except as required by law, we undertake no obligation to update our forward-looking statements. Further, this call will include the discussion of certain non-GAAP financial measures. Reconciliation of these measures to our closest GAAP financial measure is included in our quarterly earnings press release, which is available at mecinc.com. Following our prepared remarks, we will open the line for questions. With that, I would like to turn the call over to Jag. Jagadeesh Reddy: Thank you, Stefan, and good morning, everyone. Our second quarter results reflect stronger-than-expected demand across several key end markets. This was highlighted by continued momentum in data center and critical power and the early recovery underway in our commercial vehicle market. As a result, top line performance exceeded our expectations and positions us well as we enter the second half of the year. Throughout the quarter, our execution remained strong as we ramped activity across numerous data center and critical power programs while continuing to invest in the people and equipment needed to support future demand. These investments are to expand the capacity required to support long-term profitable growth. As anticipated, higher volumes drove improved operating leverage sequentially during the quarter. As we move quickly to capture a rapidly expanding data center and critical power opportunity pipeline, we are incurring incremental operating costs ahead of the associated revenue. This reflects two deliberate timing-related investments. First, the capacity and equipment we're putting in place to ensure effective program launches. Second, the incremental cost of outsourcing certain elements of the fabrication process to third parties, as equipment constraints in our existing facilities currently limit our ability to perform this work in-house. We have ordered the equipment needed to bring this work in-house, though it carries a 4- to 6-month lead time. We expect launch costs to continue through the second half of the year as we support customers' aggressive program timelines. These investments are front-loaded by design and reflect both the natural cost of scaling at pace and the opportunity for profitable growth that we see ahead. Importantly, we continue to view these costs as temporary, and we expect them to subside as we bring our newly hired workforce up to full productivity and complete our targeted capacity investments. These programs are building toward a meaningful step-up in margins over time. As these investments come online, production volumes ramp and utilization improves, we expect strong incremental margins to materialize. Simply put, the programs we are launching today are accretive to the long-term margin profile of the business, and the investments we're making now unlock that expansion in the future. A significant milestone during the quarter was the successful completion of our common stock offering, which generated approximately $94 million in net proceeds. The offering advances our capital allocation priorities by strengthening the balance sheet and enhancing financial flexibility. We used the proceeds to reduce debt, exiting the quarter with more than $100 million of available liquidity. With a stronger balance sheet and increased liquidity, we are well positioned to fund strategic growth initiatives and capitalize on the significant opportunities developing within the data center and critical power market. Equally important was the timing of the offering. With demand accelerating beyond what operating cash flow alone could prudently fund, securing capital now gives us the flexibility to invest ahead of demand rather than react to it. This provides us with the financial foundation to pursue profitable growth opportunities with confidence. As we deploy this capital, we will remain disciplined, prioritizing higher-value, higher-margin opportunities that we believe will generate the strongest returns and create lasting value for our shareholders. Moving to some of our key end markets. Commercial Vehicle net sales increased approximately 3% year over year in the second quarter as North American Class 8 production began to recover. Customer build rates have continued to accelerate, and we expect this dynamic to continue into the second half of this year. In its most recent report, ACT's full-year 2026 outlook projects a 9.1% increase in Class 8 production, supported by a projected 45% increase in production throughout the remainder of the year. This outlook reflects a continued upcycle in order activity and leads to a projected 9.7% increase in 2027. Given that our demand activity typically precedes Class 8 production by approximately 6 weeks, we are encouraged by the activity levels we are seeing today. In Construction & Access, revenue increased approximately 15% year over year in the quarter as performance was supported by strength in non-residential activity. In Powersports, net sales decreased approximately 6% year over year, driven primarily by softness in legacy ATV, UTV, and motorcycle OEMs, resulting from ongoing offshoring initiatives. Within Datacenter & Critical Power, we delivered organic growth of approximately 173% year-over-year, supported by growth from existing OEM customers and project launches tied to Accu-Fab-related cross-selling opportunities. Demand in this end market remains robust, with our qualified opportunity pipeline continuing to exceed $125 million. The value of projects scheduled to launch in 2026 is approximately $50 million to $60 million, including the growth from our existing OEM customers, Datacenter & Critical Power is expected to represent approximately 20% of total revenue in 2026. As demand for these higher-value programs accelerates, we are making disciplined portfolio decisions across the business. This includes actively evaluating pricing and margin profiles across our portfolio on a case-by-case basis. This may result in changes to mix or capacity allocation over time. These dynamics are unfolding against a backdrop of limited manufacturing capacity across the U.S., increasing the value of reliable domestic supply. In response, we are evaluating opportunities for customers to reserve dedicated capacity with us. For customers, this provides greater certainty of supply. For MEC, it creates more predictable revenue and supports margin expansion by directing capacity toward our highest-value programs. We will continue to manage capacity and production priorities carefully to support sustainable, diversified, and profitable growth over the long term. Before turning to capital allocation, I would like to highlight a few examples of the commercial momentum we are seeing across the business. During the second quarter, we secured approximately $40 million in new awards with data center and critical power customers. While these awards are not expected to contribute materially in the near term, they provide strong visibility into the future, with production launches and revenue generation anticipated to begin during 2027. Based on current visibility, we expect total 2026 bookings across all of our end markets to exceed $150 million, supported by sustained demand and an improving cyclical backdrop. Within our legacy end markets, we continue to expand our share with key commercial vehicle customers as they prepare for upcoming product launches tied to the 2027 EPA regulation changes. These programs are expected to begin entering production in late 2026. Beyond Commercial Vehicle, we secured business through new model introductions for an access customer, while also capturing additional service business supporting a military customer. In Datacenter & Critical Power, the approximately $40 million in awards secured during the quarter reflect both new business and continued expansion with major customers. These programs include power distribution units, switchgear, and static transfer switches. Turning to capital allocation in more detail. With our balance sheet significantly strengthened, our focus is centered on three priorities: investing in organic growth, continuing to reduce leverage, and pursuing selective accretive acquisitions. First, organic growth. Customer demand is increasingly outpacing our current available capacity, and our organic investments are aimed squarely at unlocking more of it. Over the next 2 years, we expect to invest an incremental $50 million to expand capacity and support the growing needs of our Datacenter & Critical Power customers. These investments include targeted upgrades across our existing manufacturing footprint, customer-supported program investments, and the development and equipping of a new production facility. Together, these initiatives are expected to increase our revenue capacity beyond the approximately $850 million we have discussed previously, with room to build from there over time. Rachele will discuss in greater detail later on the return criteria we apply to these capital investments. Second, deleveraging. As production volumes increase and profitability improves, we expect earnings growth and cash generation to become increasingly important drivers of leverage reduction. Our long-term net leverage target remains 2.5x, and the actions we took this quarter represent a meaningful step toward achieving this objective. Third, accretive M&A. We will remain opportunistic, pursuing acquisitions that strengthen our competitive position, expand capacity, and support long-term value creation. With conditions improving across our legacy end markets, accelerating momentum in Datacenter & Critical Power, and a significantly stronger balance sheet, we are well positioned to deliver profitable growth and create lasting shareholder value. We believe we are entering a transformative chapter defined by expanding capacity, accelerating growth, improving profitability, and rising returns on invested capital. The investments we are making today are building a stronger, more competitive company and positioning us for meaningful value creation in the years ahead. With that, I would like to turn the call over to Rachele. Rachele Lehr: Thank you, Jag, and good morning, everyone. Total sales for the second quarter increased 23.2% on a year-over-year basis to $163 million. Excluding the impact of the Accu-Fab acquisition, organic net sales increased by 9.2% compared to the prior year period. Our manufacturing margin was 10.9% for the second quarter of 2026, compared to 10.3% for the prior year period. The increase in our manufacturing margin was due to higher-margin sales contribution from the Accu-Fab acquisition and improved capacity utilization as the Commercial Vehicle and Construction & Access end markets started to recover. This was partially offset by $2.1 million of Datacenter & Critical Power-related project launch costs. Other selling, general, and administrative expenses were $9.3 million, or 5.7% of net sales for the second quarter of 2026, as compared to $10.3 million, or 7.8% of net sales for the same prior year period. The decrease in these expenses primarily relates to non-recurring executive transition expenses and Accu-Fab-related acquisition costs in the prior year period. This is partially offset by incremental SG&A expenses associated with the acquisition. Adjusted EBITDA margin was 8.1% for the quarter, compared to 10.3% in the prior-year period. The decrease reflects $2.1 million of project launch costs and higher gain-sharing accruals due to the current company performance and the expansion of our workforce, partially offset by the benefit of the Accu-Fab acquisition and higher legacy end-market volumes. As Jag mentioned, our project launch costs in Datacenter & Critical Power came in slightly above our expectations to meet our customers' program timelines, while equipment constraints in our existing facilities limit our in-house capacity. We expect to recognize an additional $2 million to $3 million of outsourcing costs in the second half of the year. As activity accelerates, programs reach full production, and targeted capital investments are deployed, we expect these costs to normalize and to realize operating leverage across our footprint, positioning us to ramp new programs in the pipeline more efficiently and supporting the margin expansion we expect over time. Interest expense was $3.5 million for the second quarter of 2026, as compared to $1.4 million in the prior year period. The increase was driven by increased average borrowings and interest rate under the company's revolving credit facility and the timing of debt repayment. As a reminder, the proceeds from our May equity offering were used to reduce debt during the quarter. However, under the terms of our credit agreement, the resulting step-down in our borrowing rate will not take effect until August. Turning now to our cash flow and the balance sheet. Free cash flow during the second quarter of 2026 was a use of $6.6 million, as compared to $12.5 million provided in the prior year period. The year-over-year decrease was primarily driven by lower operating cash flow, reflecting reduced profitability, and working capital investments to support the launch of Datacenter & Critical Power programs. Capital expenditures also increased by $5.6 million, driven primarily by equipment investments supporting the launch of new programs. At the end of the second quarter, our net debt was $134.7 million, up from $71.8 million at the end of the second quarter of 2025. Our debt resulted in our bank covenant net leverage ratio of 2.9x as of June 30th. Now, turning to a review of our outlook for the third quarter and the full year. For the third quarter of 2026, we currently expect net sales for the quarter of between $160 million and $170 million, and adjusted EBITDA of between $15.5 million to $18.5 million. Our third quarter outlook reflects continued recovery within our Commercial Vehicle and Construction & Access end markets, along with the ongoing ramp of the Datacenter & Critical Power programs. Our outlook also includes $1 million to $1.5 million in launch-related costs in addition to $1 million to $1.5 million in outsourcing costs. For the full year, we increased our financial guidance for net sales and lowered our free cash flow guidance. We now expect net sales of between $620 million and $650 million. We still expect adjusted EBITDA of between $52 million and $60 million and free cash flow of between $7 million and $15 million. This outlook reflects a full year of Accu-Fab ownership, $50 million to $60 million of incremental cross-selling revenue, and continued improvement in legacy end-market demand as Commercial Vehicle recovers and Construction & Access continues to deliver steady performance. Additionally, our full-year outlook includes $5 million to $6 million in launch-related costs, and $2 million to $3 million in outsourcing costs. I'd also like to provide some additional detail on our capital allocation plans. As Jag mentioned, we expect to invest approximately $40 million of incremental capital expenditures in the business over the next 2 years, along with an additional $10 million of leased equipment, which will be reflected in financing cash flow. Our updated full-year 2026 guidance includes approximately $25 million of this planned investment, with the balance occurring primarily in 2027, and to a lesser extent in 2028. Separately, these amounts do not include any investment in a new manufacturing facility. We are actively evaluating several potential sites in the southeastern United States and believe an investment of this type would likely fall in the $25 million to $30 million range and support approximately $50 million to $60 million of incremental revenue. We are generally targeting a decision in late 2026 and will provide updates as our plans take shape. Underpinning these plans is a disciplined approach to capital deployment. We are carefully matching our organic growth investment to customer demand and hold new capital to clear return thresholds, targeting a payback period of 2 to 3 years and an internal rate of return of at least 15%. In summary, our second quarter results reflect strong top line performance that came in well above our expectations. While launch and outsourcing costs are impacting near-term profitability, these investments are supporting programs that will contribute sustainable future revenue and earnings growth. As we move through the second half of the year, our focus remains on successfully scaling Datacenter & Critical Power programs, improving operational efficiency, and converting the commercial pipeline in front of us into profitable growth. With a stronger balance sheet, ample liquidity, and a disciplined investment framework, we believe we are well positioned to capitalize on the demand environment ahead and continue to create long-term value for shareholders. With that, operator, we are ready to open the line for questions. Operator: Your first question is from the line of Mike Shlisky with D.A. Davidson. Michael Shlisky: I wanted to ask a question to follow up, Jag, on your comments about customers being able to potentially reserve some capacity in future periods. Just want to get a little bit more detail there. Was that a data center only comment or is that across most of your end markets? And does this mean that they have to give a deposit to reserve that space, or do you think there would be kind of like a reserve take-or-pay contract, or will it be just having space for a small fee and you can figure out the exact quantities and amounts later? Jagadeesh Reddy: Mike, good question. We are exploring various options, particularly with data center customers, where there is an increasing need for capacity and there is a constraint in the U.S. manufacturing space to accommodate all the demand that we're seeing and they're seeing in the data center build out. And so we have had multiple conversations with many of our data center customers, and they were exploring different models. We put together an upfront fee structure, we have also discussed volume commitments and we continue to explore these options. Even though we have not signed any particular customer to a contract like that, but there is interest and we continue to explore those options with our data center customers. Michael Shlisky: Great. And then as a follow-up, I wanted to just ask for a little more detail on your truck-related as well. Does the relatively quick ramp-up in trucks, does that change any of your capacity plans for data centers or any of the other groups, or is that still going to run in its own area? I guess you can comment also on whether along the way as the truck market ramps up, if you had any interesting new business wins the last quarter or so. Jagadeesh Reddy: Absolutely. We continue to see a significant ramp in Commercial Vehicle build-out rates. Our understanding currently is that most of the 2026 build slots have been filled and the customers are just beginning to open up their 2027 build slots. That is certainly a faster uptick than we have anticipated in Q1, and we continue to support our customers, all three major customers we currently work with, as they increase their build-outs and build rates. At the same time, we continue to see good market share gains, particularly related to 2027 EPA emissions change. We talked about in our prepared remarks, a couple of wins in the Commercial Vehicle space, and we continue to see good activity with the OEMs that are introducing new models going into 2027. In the previous quarters, we talked about our significant wins for the 2027 model truck, particularly a couple of the customers. And those programs continue to be on track with revenue potentially showing up in late Q4. Certainly, the ramp for those vehicle programs will be in 2027. Operator: Your next question is from the line of Vlad Bystricky with Citigroup. Vladimir Bystricky: I just wanted to ask you about, when I think about the revenues and adjusted EBITDA range for 3Q and the back half of this year, can you just talk about the puts and takes at the low end versus the high ends of the outlook and whether the ranges are more dependent on sort of customer timing or uncertainty, or more so around your ability to continue ramping on DCP volumes and deliveries? Rachele Lehr: Vlad, yes, I think as we talk about it, the primary variables as we look at the low end and the high end are truly the pace of the CV recovery. We are seeing, as Jag mentioned, a lot of increase there, but how fast does that happen? That's a piece that will impact whether we're at the low or the high. The timing and execution of DCP volume, so we're continuing to see the volume, but this market is continuing to evolve and change. And so sometimes customers are pushing things out, pulling things forward, so that could impact it. And then how quickly can we get through these launch and outsourcing costs? The outsourcing costs are highly related to when we get our capital equipment purchases. And so the sooner those come in and the sooner we can get those up to speed, the sooner we'll be able to then reduce those costs. So those are kind of the three factors that put us on different ends of the range. Vladimir Bystricky: Got it. That's really helpful. Appreciate the color, Rachele. And then just as a follow-up, can you give us some color on the nature of the DCP program awards that you've been winning over the past year or so? Are these mainly additional programs for existing customers? Are you seeing new customer wins? And then just to follow up to that, can you, as you think about the incremental DCP cross-selling revenue on Slide 11, should we think about the level of certainty around those revenues or any risks around generating those sales in the time frames noted on the slide? Jagadeesh Reddy: Yes, Vlad, the wins in the DCP end market are both existing customers increasing volumes of existing Accu-Fab programs. It's new programs from existing DCP customers and multiple new customers that we have been able to bring online since the transaction closed in July of last year. So we have added a significant number of new customer programs to the mix since the closing of Accu-Fab acquisition. We talked about as an example one particular customer that is new to MEC and Accu-Fab that have so far awarded a little over $55 million worth of programs just this year alone, and they continue to look at additional programs to award to MEC, right? So that is, I would say, that probably out of the $90 million of bookings that we've had in the two quarters this year, easily that's -- $55 million of that is just from one brand new customer that came online after the acquisition closed. At the same time, the total $135 million of bookings we have had since the transaction closed are a mix of new programs from existing customers and new volume increases from existing programs that we picked up with the acquisition. And from a timing perspective we feel really good about the timing of these incremental cross-selling revenues that we have laid out on Slide 11, and we see a line of sight to certainly right in 2026 revenue, and then we also see good progress towards the '27 revenues. Operator: Your next question is from the line of Greg Palm with Craig-Hallum. Greg Palm: I wanted to follow up on the capacity reservations that you talked about. In terms of like background, are these requests coming directly from customers and how did these conversations even start? And to be clear, are they solely with your existing customer base or are you having these conversations with companies that you aren't yet doing business with? Jagadeesh Reddy: I would say most of these conversations are with both existing and new customers in the DCP market space, Greg. As I mentioned earlier, that is a new business model that we're exploring. And in our legacy end markets, whether it's construction, or CV, or Ag, that is not a framework that those customers are used to. And even though we have had preliminary conversations with legacy customers, but we're already on contract for those volumes, we already won those programs, and it's a little bit challenging to go back to those customers. Certainly the new customers we're bringing on, those are the conversations we're having. And I'll also throw in the mix, as we are working on our Southeast facility identification, that's another opportunity for us to put in front of the DCP customers to say, look, at some point we will have a new facility in the Southeast and here's your opportunity to reserve some capacity, so I would say that's another interesting opening for us to pursue that framework. Greg Palm: And I guess given this dynamic, are you changing at all how you're looking at newer business opportunities in the pipeline? Are you becoming more selective to hold some of these potential spots for larger capacity reservations? Jagadeesh Reddy: We are. I would say that as much as our sales team hates it, right? We have had to say no to some small programs. We have had to say no to some opportunities, because we are, right now, in the next 12 months as we project out our capacity utilization, as we project out where we will be by mid to late next year, we're already making some calls on which programs to walk away from, which programs we need to exit, right? So that's it. It's a lot of analysis and a lot of internal conversations that we're having. But yes, we're having to make some choices. And my expectation is that those choices will help us in the long run to improve our mix, improve our profitability, and continue to push up our expectations for our margin profile. Operator: Your next question is from the line of Ross Sparenblek with William Blair. Ross Sparenblek: Sticking to the new wins here, can you maybe just give us a sense of how the mix of revenue is expected to change over time as we think about maybe bespoke programs versus these higher quality longer-term programs that you're selectively bidding on? Jagadeesh Reddy: Yes. We are certainly prioritizing volume increases from existing programs. What I mean by that is if a DCP customer currently has a program that we're building in one of our plants, and we have seen occasions where they would come in and then say, I want to double my volumes, I want to triple my volumes, I want to quadruple my volumes. Those programs obviously get a higher priority because it's the product line that we know well and processes have been set up and it's easier to scale those programs. We're prioritizing out those. At the same time, right, if we're adding equipment, CapEx, new incremental costs, we're going back to them to raise our prices even for those existing programs. That will push our mix and margin up for the future. At the same time, we are looking at where can I exhaust my open capacity? So we're being very selective about converting our tube plants in Michigan, particularly one plant and potentially a second plant, to take on fabrication of DCP products. This is, I would say, a very challenging switch over, but the team has done a phenomenal job in converting one of our tube plants into a fab plant and that has opened up significant opportunities for us to take on DCP product lines. That would be our second opportunity. Again, you know, we talked about Powersports customers offshoring many of our programs, even though that's a headwind in the short term, we're looking to take that capacity, convert that to DCP as well. So that's a second priority that we're driving. And then last but not least, scale. If we're going to take on a $10 million, $20 million program, we would prioritize that versus multiple $2 million to $3 million programs. So that's how we're trying to scale up and mix up for the future. Ross Sparenblek: Yes, that's helpful. And that's kind of what I'm trying to assess here. There's inherent cyclicality in some of your end markets. You can't really fix that, but you're going back and you're repricing existing business because of the level of demand. So I was trying to -- how should we think about the contribution of kind of higher quality, longer term, like recurring revenue, just the stability of the portfolio outside of just, honestly, we're going to have more DCs, maybe some more defense, um, just generally speaking, like, is it kind of 30% heading to 20% that's like bespoke kind of a one-off, set or cyclical? And if it's not a good number, it's fine. Jagadeesh Reddy: Yes, in the past, Ross, you know we talked about reducing our overall CV mix to just under 25%. I think we're making good progress, not by exiting CV programs, but by increasing our exposure to DCP programs, so that's number one. We see a line of sight to 20% revenue mix of DCP product lines by end of this year, even though we're not laying out any long-term targets for our DCP mix, I could see in the long run somewhere between 25% to 30% of total revenues, MEC revenues, exposed to DCP because we do think that it's a 3- to 5-year cycle, at least from what we can assess. So those are the two drivers that I would say that, you know, reduce a lower margin end market exposure and increase a higher margin from DCP exposure in the long run. Ross Sparenblek: Okay, understood. And then maybe just one more really quick on that new facility coming online. Forgive me, but did you guys give a kind of a sense of the size there on square footage as we think about the revenue runway you gave us? Jagadeesh Reddy: We have not. We continue to explore those options. We feel pretty good about being able to find and close on a plant sometime this year. And what we are targeting is a plant that has some existing infrastructure that could eventually generate between $50 million and $60 million of revenue once it's fully capitalized, i.e., put capital equipment and hire new people, train them, and scale that up. Operator: Your next question is from the line of Ted Jackson with Northland Securities. Edward Jackson: My first question was actually just a clarification. You made a comment with regards to kind of what you thought this plant that you want to put in place in the Southwest might cost, and I missed the number. And so I just wanted to get that really quick. Rachele Lehr: Yes, we said that, that could cost us $25 million to $30 million range. That would be buying a facility that would be in the $10 million to $15 million and then putting another $10 million to $15 million in capital in that. Edward Jackson: And then, so when we think about the $50 million of incremental CapEx that you want to put into play over the next, call it, 2 years. Half of that is from this both building and the equipment to make it a factory, and then the other half is expansion within your existing footprint in terms of capability, capacity, is that the way to read that? Rachele Lehr: Yes, that's correct. Yes, we were saying in our existing facilities, we're investing about $10 million to $15 million incremental, just kind of on the fringes for where we have existing. And then as we grow in the future, we've put that similar target out. Edward Jackson: And then taking this a step farther on your view with regards to the revenue capability of your capacity, this would take that view north of $900 million, but your current view is $850 million, and you're going to add $50 million to $60 million plus more capability in your existing facility. We're talking about something between $900 million and $1 billion in terms of revenue support off this expansion. Rachele Lehr: Yes, we've publicly stated that in our existing facilities, we think we have $850 million in capacity. And so then adding that $50 million to $60 million would take you north of the $900 million. Jagadeesh Reddy: I do want to add a caveat, Ted. That is the capacity number. At the same time, right, you know, some of our end markets could be highly cyclical, right? By the time we get to that extra capacity, we just need to be aware that some of our legacy end markets, you know, could go back into a downturn, so we just need to be a little cautious, not just stack a number on top of another number. Edward Jackson: No, no, I'm just trying to understand the kind of the dynamics with regards to your investments and what it all means. And the long and short of it is, is it's not that -- I understand it's not a revenue number, but simply put, you know, sometime when we're either exiting '27 or in '28, the firm itself at a fundamental level should have the infrastructure to support that kind of revenue. Jagadeesh Reddy: That's right. That's exactly right. Edward Jackson: And then I wanted to touch base on two more things. One, I'm just kind of curious the functions that you have to outsource, what are they? And then the equipment that you need to put in place, you're saying it's 4- to 6-month lead times. Is that -- I assume you already put the orders in for that equipment, and so I guess where I'm going with that is that what is the function and at what point do we see that constraint being resolved? Is that something in early '27? Or will you have that before the end of the year? Jagadeesh Reddy: Yes, the couple of main things we're outsourcing, one is laser capacity. That is strictly taking large sheets of metal and cutting into shapes. We have ordered a significant number of laser machines. Some of them are being installed. Some of them are on their way. Some of them will get delivered towards the end of this year. We're adding a lot of laser cutting machines across the enterprise, so we're outsourcing some of that work as we ramp new programs. Secondly, we are also outsourcing some brake press capacity. That's primarily -- yes, we have some machines on order, but more importantly there is labor constraint in some of our key factories. We're in the Defiance, Ohio area, the unemployment rate is 2.3%. In Mayville, in the Wisconsin area, the unemployment rate is 2.9%, right? So we're working hard to fill some of those positions. While we fill those positions and train these new operators, we're outsourcing some of that work as well. And then last but not least, paint capacity. At the industry, there is a dearth of paint capacity, paint and powder coat capacity in the country, so we're looking at bringing some of that work into our Wisconsin paint facilities. At the same time, sometimes it's more economical just to outsource some of the paint capacity to local paint vendors in some of these locations, so we're outsourcing that as well. So those are, I would say, three of the activities we're currently outsourcing, and we expect to pull some, if not all of it, by early next year, at least for these programs back in-house and hence some increased transitionary costs in the second half of this year. Edward Jackson: Okay, so it's a combination of equipment and labor. And then labor was actually the next question I wanted to ask is you put this expansion in place and you've commented in the past in terms of the amount of hiring you've done, the hiring needs that you have, and honestly, the challenge of retaining in what's really a seller's market in terms of labor these days for manufacturers. What's the view with regards to the cost to put all this new capacity in place from a labor standpoint, both in terms of just kind of headcount and maybe dollar per headcount, and how does that layer in relative to the ramp in demand? And I guess where I'm getting in as we think about it, and I know you're not giving '27 guidance, but as we think about '27 and a lot of this capacity turns on, you're going to have -- I'd imagine you're going to have to have some investment in terms of some labor expenses, operating expenses, COGS that are going to go in front of that, and kind of how do we think about that as we get into '27 and you really start to see at least the top line, the benefits of your investments and kind of the investments that you're going to have to continue to do to kind of drive forward to what should be great margins as you get there. That's my last question. I hope it wasn't too long. Jagadeesh Reddy: I'm going to let Rachele get into some of the details of our hiring and hiring plans and associated costs, but you know, in general, I would say that we're not the only ones that are seeing labor constraints, so we're doing a couple of things. Number one, as the labor costs increase, at least temporarily or in certain locations, we're pricing our programs accordingly to take into account increased costs. That's number one. Number two, we're asking our customers if it's a transitionary cost to actually pay for that increase in overtime or outsourcing or things like that. So we're having those conversations with our customers. And then last but not least, we're also looking at locations where we have access to good labor pools, like the Detroit area. So our Hazel Park is obviously being scaled up. Similarly, we can hire people in Raleigh, North Carolina. We can hire people in the Chicago area, so we are prioritizing where to put some of these larger programs to make sure that we have good access to labor pools as well. Rachele Lehr: And I would add to that beyond really identifying strategically where we want to put programs, we're looking across all of our sites from a very holistic manner. It's about attraction, retention, the overall employee experience. And so from an attraction standpoint, yes, we need to ramp up our plants by several hundred people by the end of the year, so getting to your point, Ted, we're looking to be ramped with those employees before we hit '27 so we can hit the '27 production versus waiting till '27 to start hiring. That's all built into our plans right now. We're actually leveraging some third-party resources to help us with that too. As Jag pointed out, in several markets where we have very low unemployment, our teams have already pulled out everything out of our tool chest, but now let's go and use others. We're not afraid to use the resources we need, but doing it prudently. Everything comes through me with the business case, so we get to make sure that we're making the right decision for our financials and it's all built into our second half guidance right now. Then also from a retention standpoint, with having some of those outside resources helping us on attraction, our teams in location are going to be able to focus more on what's happening in the facilities with the employees, with the management to make sure we're focused, of course with the standard retention programs and things like that, that you put in place to keep our employees. So we're taking a holistic look at this to make sure that we aren't just bringing people in and continuing to cycle them out. We're bringing them in so they stick and can help us contribute to future years' revenue and growth. Edward Jackson: Congrats on the quarter. Operator: Your next question is from the line of Greg Palm with Craig-Hallum. Greg Palm: I guess from our seat on the outside, it's hard to understand the full impact of some of these temporary cost pressures, so I'm trying to figure out your visibility here as we get into 2027, because I'm assuming you'll continue to win more business and there's going to be new programs that launch. There's always going to be like this ongoing impact, but is it just a matter of increasing your revenue to some point that you're better able to absorb them? And then just to be clear, it sounds like some of the outsourcing stuff is really just a byproduct of once the equipment's there and you have it, you take it in-house and those go away entirely, so I just wanted to confirm that. Rachele Lehr: Yes, I think starting with the outsourcing, you're absolutely right. Once the capital equipment's in, we won't need to use the outsourcing, at least for the existing programs. As you point out on winning new business, yes, there might be some, but the margins will be higher. It will be built in. We'll understand that. But really right now the $1 million to $1.5 million that we've been looking at each quarter is as we look to bring additional facilities up to speed. So Jag mentioned now we're looking at another two facilities, so those are the things that we're incurring right now. But yes, as we potentially open the Southeast facility, we know we'll need ramp costs there. So it's really facility-based where we're seeing a lot of this. We will continue to have that, that way, and then we'll also have the increased margin for absorption, as you pointed out as well. Jagadeesh Reddy: Just to add to that, Greg, at some point, right, we're going to run out of footprint, we're going to run out of capacity even with all of these additions, right? So what is the timing? We're obviously not providing any guidance at this point. Is it '28? Is it late 2027? So I think those are some of the calculations that are going into our planning for next year. At the appropriate time towards the end of this year, beginning of next year, I think, you know, we'll have more clarity internally, but also we'll be able to share, you know, more of those details with our shareholders and our stakeholders. Greg Palm: Okay, and then I guess just one more follow up on the capacity reservation point. And this kind of relates to potentially the new facility that you talked about. Like are you -- would you be expecting to dedicate that to like a single customer? And what are the chances that some of that CapEx requirement could actually get funded by an actual customer? And same thing with the capacity reservation, dedication, is that -- are there certain like launch or ramp-up costs that could actually be incurred by the customer in that situation versus yourself? Jagadeesh Reddy: It is possible. Those are all the options our commercial team is exploring with our customers. Operator: This concludes our Q&A. I will now turn the call back to Jag Reddy for closing remarks. Jagadeesh Reddy: Before we conclude, I want to thank our employees for their continued strong focus and execution and our shareholders for their ongoing support. We remain confident in the progress we're making to position MEC for durable high growth, higher margin in the years ahead. We look forward to sharing our continued progress with you. Thank you for joining us today. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Mayville Engineering, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Mayville Engineering wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Mayville Engineering (MEC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Mayville Engineering Company, Inc.? Here are five stocks we like better. Q2 sales exceeded expectations: Revenue rose 23.2% year over year to $163 million, including 9.2% organic growth, driven by data center, critical power and recovering commercial-vehicle programs. MEC raised its full-year sales outlook to $620 million–$650 million. Data center growth is accelerating but costly: Organic revenue in the segment increased approximately 173%, with more than $125 million in qualified opportunities and about $40 million in new awards. Launch, outsourcing and capacity-expansion costs pressured adjusted EBITDA margins and are expected to continue through the second half. Investment is weighing on cash flow: MEC maintained its $52 million–$60 million adjusted EBITDA outlook but lowered free-cash-flow guidance to $7 million–$15 million. The company plans roughly $40 million in incremental capital expenditures plus $10 million in leased equipment over the next two years, partly funded by a $94 million stock offering used to reduce debt. Mayville Engineering (NYSE:MEC) reported second-quarter sales growth that exceeded management’s expectations, driven by momentum in data center and critical power programs and an early recovery in commercial vehicles. The company raised its full-year sales outlook while maintaining its adjusted EBITDA forecast and lowering its free-cash-flow guidance to reflect planned growth investments. Total second-quarter sales increased 23.2% year over year to $163 million. Excluding the Accu-Fab acquisition, organic sales rose 9.2%, Chief Financial Officer Rachele Lehr said. Manufacturing margin improved to 10.9% from 10.3% a year earlier, aided by Accu-Fab’s higher-margin sales contribution and improved utilization in commercial vehicle and construction and access markets. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Adjusted EBITDA margin, however, declined to 8.1% from 10.3% in the prior-year quarter. Lehr attributed the decline primarily to $2.1 million in data center and critical power program launch costs, as well as higher gain-sharing accruals associated with company performance and workforce expansion. President and CEO Jag Reddy said data center and critical power revenue grew organically by approximately 173% year over year, supported by existing OEM customers and cross-selling tied to the Accu-Fab acquisition. The company’s qualified opportunity pipeline in the market exceeds $125 million, while projects scheduled to launch during 2026 carry an estimated value of $50 million to $60 million, including growth from current OEM customers. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High MEC expects data center and critical power to represent about 20% of 2026 revenue. During the quarter, it secured approximately $40 million in new awards in the segment, with production launches and revenue contributions expected to begin in 2027. The awards include power distribution units, switchgear and static transfer switches. Reddy said the company is investing in workforce, equipment and capacity ahead of customer program launches. Current facility constraints have forced MEC to outsource portions of fabrication work, including laser cutting, brake-press capacity and certain painting services. The company has ordered equipment to bring work in-house, though the machines have lead times of four to six months. → No Hangover: Revisiting Microsoft One Week After Earnings Lehr said MEC expects an additional $2 million to $3 million of outsourcing costs in the second half. For the full year, the company’s outlook includes $5 million to $6 million of launch-related expenses and $2 million to $3 million of outsourcing costs. Management expects those costs to normalize as equipment is deployed, employees reach productivity targets and programs move to full production. Commercial vehicle sales rose about 3% year over year during the second quarter as North American Class 8 production began recovering. Reddy said customer build rates have continued to increase, with 2026 build slots largely filled and customers beginning to open 2027 slots. MEC’s demand activity generally precedes Class 8 production by roughly six weeks, he said. Management cited ACT’s outlook for a 9.1% increase in full-year 2026 Class 8 production and a projected 45% rise in production during the rest of the year, followed by a projected 9.7% increase in 2027. MEC also said it continues to gain commercial-vehicle share through programs tied to 2027 EPA emissions regulations, with some revenue potentially beginning in late 2026 and larger ramps expected in 2027. Construction and access revenue rose approximately 15% from a year earlier, supported by non-residential activity. Powersports revenue fell about 6%, reflecting softness among legacy ATV, UTV and motorcycle OEMs as a result of offshoring initiatives. Management said it is becoming more selective in allocating capacity, including declining smaller opportunities and considering exits from some programs. Reddy said the company is prioritizing higher-volume programs, particularly expansions of existing data center and critical power products, as well as opportunities in the $10 million to $20 million range over multiple smaller projects. MEC completed a common-stock offering during the quarter that generated approximately $94 million in net proceeds. The company used the funds to reduce debt and exited the period with more than $100 million of available liquidity, according to Reddy. Net debt stood at $134.7 million at June 30, compared with $71.8 million a year earlier, and the company’s bank covenant net leverage ratio was 2.9 times. Second-quarter free cash flow was a use of $6.6 million, compared with $12.5 million provided in the prior-year quarter, reflecting lower profitability, working-capital investment and higher capital expenditures. Over the next two years, MEC expects to invest about $40 million in incremental capital expenditures and an additional $10 million in leased equipment. The company’s 2026 guidance incorporates about $25 million of the planned investment, with most of the remaining spending expected in 2027. Separately, MEC is evaluating potential manufacturing sites in the Southeastern U.S. Management said a new facility could require a $25 million to $30 million investment and support approximately $50 million to $60 million of incremental revenue once fully equipped and staffed. The company is targeting a decision in late 2026. Lehr said capital projects must meet a targeted payback period of two to three years and an internal rate of return of at least 15%. For the third quarter, MEC expects sales of $160 million to $170 million and adjusted EBITDA of $15.5 million to $18.5 million. The outlook includes $1 million to $1.5 million of launch costs and another $1 million to $1.5 million of outsourcing costs. For the full year, the company increased its sales outlook to $620 million to $650 million. It maintained adjusted EBITDA guidance of $52 million to $60 million and lowered free-cash-flow guidance to $7 million to $15 million. 2026 sales outlook: $620 million to $650 million 2026 adjusted EBITDA outlook: $52 million to $60 million 2026 free cash flow outlook: $7 million to $15 million Expected 2026 bookings: More than $150 million across end markets Reddy said MEC is also exploring capacity-reservation arrangements with data center customers, including potential upfront fees and volume commitments. No such contracts have been signed, but management said customers have shown interest amid limited U.S. manufacturing capacity. Mayville Engineering Company, Inc (NYSE:MEC) is a U.S.-based industrial manufacturer specializing in engineered metal castings and precision machining services. Headquartered in Mayville, Wisconsin, the company leverages over a century of casting experience to design, produce and finish complex metal components for a broad range of heavy-duty applications. The company operates two principal business segments: iron castings and steel castings. Its iron segment utilizes green sand and lost-foam molding processes to produce gray and ductile iron components, while the steel segment employs electric-arc furnace technology to manufacture high-strength steel castings. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Mayville Engineering Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Mayville Engineering Co Inc (NYSE:MEC) delivered strong second-quarter results with total sales increasing 23.2% year-over-year, exceeding expectations. The company is experiencing robust growth in the data center and critical power market, with organic growth of approximately 173% year-over-year and a qualified opportunity pipeline exceeding $125 million. Mayville Engineering Co Inc (NYSE:MEC) successfully completed a common stock offering, generating approximately $94 million in net proceeds to strengthen its balance sheet and enhance financial flexibility. The commercial vehicle market is showing signs of recovery, with a projected 9.1% increase in Class 8 production for 2026 and a further 9.7% increase in 2027, supported by new program wins tied to 2027 EPA regulations. Mayville Engineering Co Inc (NYSE:MEC) secured approximately $40 million in new data center and critical power awards during the quarter, providing strong visibility into future revenue growth beginning in 2027. The company is making disciplined portfolio decisions, prioritizing higher-margin opportunities and exploring capacity reservation models with customers to support margin expansion. Mayville Engineering Co Inc (NYSE:MEC) incurred $2.1 million in data center and critical power-related project launch costs during the quarter, which negatively impacted adjusted EBITDA margin. The company expects to recognize an additional $2 million to $3 million in outsourcing costs in the second half of the year due to equipment constraints and labor shortages. Free cash flow was a use of $6.6 million in the second quarter, a significant decrease from $12.5 million provided in the prior year period, driven by lower operating cash flow and increased capital expenditures. Net debt increased to $134.7 million from $71.8 million at the end of the second quarter of 2025, with a bank covenant net leverage ratio of 2.9 times. Power sports net sales decreased approximately 6% year-over-year due to softness in legacy ATV, UTV, and motorcycle OEMs resulting from ongoing offshoring initiatives. The company faces labor constraints in key manufacturing locations, with unemployment rates as low as 2.3% in Defiance, Ohio, and 2.9% in Mayville, Wisconsin, making it challenging to fill positions and ramp up production. Warning! GuruFocus has detected 4 Warning Sign with MEC. Is MEC fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more detail on the capacity reservation model you mentioned, specifically whether it applies only to data center customers and what the structure of these agreements might look like (e.g., upfront fees, volume commitments)? A: Jack Reddy (President and CEO) explained that the capacity reservation discussions are primarily with both existing and new data center and critical power customers, driven by the significant constraints in US manufacturing capacity. They are exploring various models, including upfront fee structures and volume commitments, though no contracts have been signed yet. This framework is also being considered for the new Southeast facility, offering customers a chance to reserve capacity ahead of its completion. Q: What are the key variables that will determine whether the company lands at the low or high end of the Q3 revenue and adjusted EBITDA guidance ranges? A: Rochelle Lehr (CFO) identified three primary factors: the pace of the commercial vehicle recovery, the timing and execution of data center and critical power volumes (which can be pushed or pulled by customers), and how quickly the company can resolve its launch and outsourcing costs, which are tied to the delivery of new capital equipment. Q: Can you elaborate on the nature of the data center and critical power program awards, and how confident are you in the timing of the incremental cross-selling revenue? A: Jack Reddy noted that the wins include increased volumes from existing programs, new programs from existing customers, and multiple new customers brought online since the AccuFab acquisition. He highlighted one new customer that has awarded over $55 million in programs this year alone. The company has strong line of sight to the 2026 revenue targets and good progress toward 2027 targets. Q: Are the capacity reservation requests coming directly from customers, and are you having these conversations with companies you don't currently do business with? A: Jack Reddy confirmed that most conversations are with both existing and new customers in the DCP market. This is a new business model not typically used in legacy markets like commercial vehicle or construction. The company is also using the potential new Southeast facility as a lever to offer capacity reservations to DCP customers. Q: Given the strong demand, are you becoming more selective about new business opportunities in the pipeline? A: Jack Reddy stated that the company is indeed becoming more selective, having to say no to some smaller programs and exit certain opportunities as it projects capacity utilization over the next 12 months. These disciplined choices are expected to improve the overall mix and profitability in the long run. Q: How is the revenue mix expected to change over time as you prioritize higher-quality, longer-term programs? A: Jack Reddy explained that the company is prioritizing volume increases from existing DCP programs, which are easier to scale, and is being selective about converting legacy plants to DCP production. They are also focusing on larger programs (e.g., $10-20 million) over smaller ones. The goal is to increase DCP mix to 20% of revenue by end of 2026, with a long-term target of 25-30%, while reducing exposure to lower-margin cyclical markets. Q: Can you provide more detail on the new manufacturing facility, including cost and revenue expectations? A: Jack Reddy indicated the company is targeting a facility in the Southeastern US with an investment in the $25-30 million range (including building and equipment), which would support approximately $50-60 million of incremental revenue once fully operational. A decision is expected in late 2026. Q: What specific functions are being outsourced, and when do you expect to bring this work back in-house? A: Jack Reddy detailed that the company is outsourcing laser cutting, brake press capacity, and paint/powder coat work due to equipment constraints and labor shortages in key areas like Defiance, Ohio (2.3% unemployment) and Mayville, Wisconsin (2.9%). New equipment has been ordered with 4-6 month lead times, and the company expects to bring most of this work back in-house by early next year. Q: How are you managing labor constraints and the associated costs as you ramp up capacity? A: Jack Reddy and Rochelle Lehr explained that the company is pricing programs to account for increased labor costs, asking customers to pay for transitionary costs like overtime and outsourcing, and strategically locating programs in areas with better labor pools (e.g., Detroit, Raleigh, Chicago). They are also using third-party resources for hiring and focusing on retention to ensure they are fully staffed before 2027 production ramps. Q: As you continue to win new business, will the temporary cost pressures persist into 2027, and will the outsourcing costs go away entirely once equipment is installed? A: Rochelle Lehr confirmed that once capital equipment is installed and programs are ramped, the outsourcing costs will subside. However, new facility ramps (like the potential Southeast site) will incur similar costs. The company expects improved margins from higher absorption and built-in pricing for new business, but will provide more clarity on 2027 guidance later this year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

MILWAUKEE, August 04, 2026--(BUSINESS WIRE)--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 June 30, 2026. SECOND QUARTER 2026 RESULTS (All comparisons versus the prior-year period) Net sales of $163.0 million, or +23.2% y/y; organic net sales increased +9.2% y/y Net loss of $2.1 million, or ($0.09) per diluted share; Non-GAAP Adjusted Diluted EPS of $0.07 Adjusted EBITDA of $13.2 million Adjusted EBITDA margin of 8.1% of net sales Quarterly Free Cash Flow of ($6.6) million Ratio of net debt to trailing twelve-month Adjusted EBITDA of 2.9x1 as of June 30, 2026 Secured $40 million in Datacenter & Critical Power project awards MANAGEMENT COMMENTARY "Our second quarter results reflect stronger-than-expected order activity within our Commercial Vehicle end market and continued momentum across our Datacenter & Critical Power end market," said Jag Reddy, President and Chief Executive Officer. "Our execution remained strong as we continued to invest in resources and equipment necessary to support the accelerating customer demand. As volumes increased, margins improved through better capacity utilization, though we continued to absorb project launch costs associated with the ramp up of new Datacenter & Critical Power programs. At the same time, we are making selective decisions to prioritize capacity for higher-value, higher-margin programs that support long-term profitable growth." "During the quarter, we secured approximately $40 million of new Datacenter & Critical Power project awards as customer demand remained robust," Reddy continued. "Our qualified opportunity pipeline continues to exceed $125 million, supported by strong customer quoting activity. Within our Commercial Vehicle end market, demand trends improved during the quarter, and we expect continued recovery through the remainder of the year, complemented by steady activity in our Construction & Access end market. Reflecting these favorable trends, we are raising our full-year 2026 net sales guidance by approximately 5%." "We also completed a common stock offering during the quarter, generating approximately $94 million in net proceeds," Reddy concluded. "The proceeds were immediately used to reduce debt and strengthen our balance sheet, increasing our available liquidity to more than $100 million. Given the significant opportunities we continue to see across the Datacenter & Critical Power infrastructure market, we also intend to use a portion of the net proceeds from the offering to invest an incremental $50 million in organic growth initiatives across 2026 and 2027 to expand capacity to support higher-value programs. These investments position MEC to deliver attractive, sustainable returns on invested capital as we capitalize on a multi-year secular growth opportunity." PERFORMANCE SUMMARY Net sales increased by 23.2% on a year-over-year basis in the second quarter of 2026, primarily due to organic growth in the Datacenter & Critical Power, Commercial Vehicle, and Construction & Access end markets and the impact of the Accu-Fab acquisition completed in the third quarter of 2025. These increases were partially offset by lower demand in the Powersports, Agriculture and Military end markets. Manufacturing margin was $17.7 million in the second quarter of 2026, or 10.9% of net sales, versus $13.6 million, or 10.3% of net sales, in the prior year period. The year-over-year increase in manufacturing margin was primarily attributable to higher margin sales contribution from the Accu-Fab acquisition and improved capacity utilization as demand in several legacy end markets improved. This increase was partially offset by $2.1 million of project launch costs and higher costs associated with ongoing workforce expansion to support demand. Bonuses and deferred compensation expense was $4.8 million in the second quarter of 2026 as compared to $1.5 million in the prior year period. Other selling, general and administrative expenses were $9.3 million in the second quarter of 2026 as compared to $10.3 million for the same prior year period. The decrease in other selling, general and administrative expenses primarily reflects non-recurring executive transition expenses and Accu-Fab acquisition-related costs in the prior year period, partially offset by incremental SG&A expenses associated with the acquisition. Interest expense was $3.5 million in the second quarter of 2026, as compared to $1.4 million in the prior year period, due to increased average borrowings and interest rate under the Company’s revolving credit facility and the timing of debt repayment during the second quarter of 2026. Net loss for the second quarter of 2026 was $2.1 million, or ($0.09) per diluted share, versus net loss of $1.1 million, or ($0.05) per diluted share, in the prior year period. MEC reported Adjusted EBITDA of $13.2 million in the second quarter of 2026, or 8.1% of net sales, versus $13.7 million, or 10.3% of net sales, in the prior year period. The decrease in Adjusted EBITDA is primarily due to Datacenter & Critical Power project launch costs, incremental SG&A expense related to the Accu-Fab acquisition, and increased gain sharing accruals, partially offset by the earnings contribution from the Accu-Fab acquisition and stronger Commercial Vehicle demand. Second quarter Adjusted Net Income was $1.6 million, or $0.07 per diluted share, versus $3.4 million, or $0.16 per diluted share, in the prior year period. The decrease in Adjusted Net Income reflects lower income from operations and higher interest expense. Free cash flow during the second quarter of 2026 was ($6.6) million as compared to $12.5 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. END MARKET UPDATE Commercial Vehicle 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 $50.8 million in the second quarter of 2026, an increase of 3.4% versus the prior year period. The increase was attributable to higher OEM production of class 8 commercial vehicles, supported by improving freight market fundamentals and carrier profitability. 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. Net sales to the Datacenter & Critical Power end market were $29.0 million in the second quarter of 2026, an increase of 476.5% 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 172.8% in the second quarter of 2026, when compared to the second 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 $23.1 million in the second quarter of 2026, an increase of 14.7% 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 $18.5 million in the second quarter of 2026, a decrease of 6.0% versus the prior year period. The decrease in net sales to the Powersports end market was primarily driven by soft demand among ATV, UTV, and motorcycle OEMs resulting from ongoing offshoring initiatives. 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 $9.0 million in the second quarter of 2026, a decrease of 3.0% versus the prior year period. The decrease in net sales in the Agriculture end market reflects continued demand softness for large agricultural equipment, partially offset by improved small agriculture equipment 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 $6.5 million in the second quarter of 2026, a decrease of 22.6% 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 second quarter of 2026 were $26.1 million, an increase of 25.6% versus the prior year period. The increase in net sales compared to the prior year period was associated with strong aluminum extrusion demand. BALANCE SHEET UPDATE As of June 30, 2026, MEC had net debt outstanding of $134.7 million and total cash and availability on its senior secured revolving credit facility of $108.5 million. At the end of the second quarter, the ratio of net debt to trailing twelve-month Adjusted EBITDA was 2.9x, as calculated pursuant to the terms of the Company’s current credit agreement. FINANCIAL GUIDANCE Today, the Company is providing financial guidance for the third quarter of 2026 and updating its full-year financial guidance. All guidance is current as of the time provided and is subject to change. Third quarter 2026 sales guidance reflects continued recovery within the Company’s Commercial Vehicle and Construction & Access end markets, along with the ongoing ramp-up of Datacenter & Critical Power programs. Adjusted EBITDA guidance for the quarter also incorporates the impact of continued launch and outsourcing costs associated with new Datacenter & Critical Power programs. Free cash flow for the third quarter of 2026 is expected to reflect working capital efficiencies and planned capital expenditures of $10 million to $12 million. 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 continued improvement in several key legacy end markets. Guidance also incorporates launch and outsourcing costs associated with awarded Datacenter & Critical Power programs as they progress through their ramp-up phase. Free Cash Flow guidance reflects expected working capital efficiencies and planned capital expenditures of $25 million and $35 million. SECOND QUARTER 2026 RESULTS CONFERENCE CALL The Company will host a conference call on Wednesday, August 5, 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: 936476675. 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 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"). 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. 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, CFO transition costs, natural disaster costs, acquisition related costs and 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. 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, Free Cash Flow and the calculation of EBITDA Margin and Adjusted EBITDA Margin included in this press release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804273608/en/ Contacts INVESTOR CONTACT Stefan Neely or Brian Hawthorne(615) [email protected]

Mayville Engineering (MEC) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of a loss of $0.08 per share. This compares to earnings of $0.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +187.50%. A quarter ago, it was expected that this company would post a loss of $0.28 per share when it actually produced a loss of $0.15, delivering a surprise of +46.43%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Mayville Engineering, which belongs to the Zacks Engineering - R and D Services industry, posted revenues of $162.98 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.88%. This compares to year-ago revenues of $132.33 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Mayville Engineering shares have added about 41.8% since the beginning of the year versus the S&P 500's gain of 11%. While Mayville Engineering has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Mayville Engineering was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.20 on $157.16 million in revenues for the coming quarter and $0.22 on $607.99 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Engineering - R and D Services is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, TSS Inc. (TSSI), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of +33.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. TSS Inc.'s revenues are expected to be $51.9 million, up 18% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mayville Engineering Company, Inc. (MEC) : Free Stock Analysis Report TSS Inc. (TSSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Vertically integrated manufacturing solutions provider Mayville Engineering Company (NYSE:MEC) will be reporting earnings this Tuesday after the bell. Here’s what to look for. Mayville Engineering beat analysts’ revenue expectations last quarter, reporting revenues of $144.8 million, up 6.8% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. Is Mayville Engineering a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Mayville Engineering’s revenue to grow 13.6% year on year, a reversal from the 19.1% decrease it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Mayville Engineering has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at Mayville Engineering’s peers in the engineered components and systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. RBC Bearings delivered year-on-year revenue growth of 19.2%, beating analysts’ expectations by 2.1%, and Gates Industrial Corporation reported revenues up 6.6%, topping estimates by 1.7%. Read our full analysis of RBC Bearings’s results here and Gates Industrial Corporation’s results here. Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the engineered components and systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Mayville Engineering is down 25.4% during the same time and is heading into earnings with an average analyst price target of $36.50 (compared to the current share price of $25.51). ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.

Tetra Tech (TTEK) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.4 per share. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.00%. A quarter ago, it was expected that this consulting and engineering services company would post earnings of $0.31 per share when it actually produced earnings of $0.34, delivering a surprise of +9.68%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Tetra, which belongs to the Zacks Engineering - R and D Services industry, posted revenues of $1.11 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.60%. This compares to year-ago revenues of $1.15 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Tetra shares have lost about 0.1% since the beginning of the year versus the S&P 500's gain of 8.5%. While Tetra has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Tetra was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $1.15 billion in revenues for the coming quarter and $1.55 on $4.31 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Engineering - R and D Services is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Mayville Engineering (MEC), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This company is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of -180%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Mayville Engineering's revenues are expected to be $149.69 million, up 13.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tetra Tech, Inc. (TTEK) : Free Stock Analysis Report Mayville Engineering Company, Inc. (MEC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MILWAUKEE, July 22, 2026--(BUSINESS WIRE)--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 that it will issue second quarter 2026 results after the market closes on Tuesday, August 4, 2026. A conference call will be held the following day, Wednesday, August 5, 2026, at 10:00 a.m. ET to review the Company’s financial results and conduct a question-and-answer session. A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of the Company’s corporate website at https://ir.mecinc.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software. To participate in the live teleconference: A replay of the live event will also be available on the Company’s website shortly after the conclusion of the call. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260722177303/en/ Contacts INVESTOR CONTACT Stefan Neely or Brian Hawthorne(615) [email protected]

Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Mayville Engineering (NYSE:MEC) and its peers. Engineered components and systems companies possess technical know-how in sometimes narrow areas such as metal forming or intelligent robotics. Lately, automation and connected equipment collecting analyzable data have been trending, creating new demand. On the other hand, like the broader industrials sector, engineered components and systems companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings. The 12 engineered components and systems stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was in line. In light of this news, share prices of the companies have held steady as they are up 4.8% on average since the latest earnings results. Originally founded solely on tool and die manufacturing, Mayville Engineering Company (NYSE:MEC) specializes in metal fabrication, tube bending, and welding to be used in various industries. Mayville Engineering reported revenues of $144.8 million, up 6.8% year on year. This print exceeded analysts’ expectations by 3.7%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and EBITDA estimates. Mayville Engineering scored the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 18% since reporting and currently trades at $26.85. Is now the time to buy Mayville Engineering? Access our full analysis of the earnings results here, it’s free. Founded as a single retail store, Arrow Electronics (NYSE:ARW) provides electronic components and enterprise computing solutions to businesses globally. Arrow Electronics reported revenues of $9.47 billion, up 39% year on year, outperforming analysts’ expectations by 12.9%. The business had an incredible quarter with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates. Arrow Electronics achieved the biggest analyst estimate beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 11.9% since reporting. It currently trades at $214.71. Is now the time to buy Arrow Electronics? Access our full analysis of the earnings results here, it’s free. A developer of the communication systems used in the Batmobile of “The Dark Knight,” ESCO (NYSE:ESE) is a provider of engineered components for the aerospace, defense, and utility sectors. ESCO reported revenues of $309.3 million, up 33.5% year on year, falling short of analysts’ expectations by 3.4%. It was a softer quarter as it posted a significant miss of analysts’ revenue and adjusted operating income estimates. ESCO delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 14.3% since the results and currently trades at $285.07. Read our full analysis of ESCO’s results here. Headquartered in Milwaukee, Regal Rexnord (NYSE:RRX) provides power transmission and industrial automation products. Regal Rexnord reported revenues of $1.48 billion, up 4.3% year on year. This print surpassed analysts’ expectations by 3%. It was a strong quarter as it also put up a solid beat of analysts’ revenue estimates and a solid beat of analysts’ organic revenue estimates. The stock is down 15% since reporting and currently trades at $196.73. Read our full, actionable report on Regal Rexnord here, it’s free. With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE:RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries. RBC Bearings reported revenues of $518 million, up 18.3% year on year. This result beat analysts’ expectations by 2.3%. More broadly, it was a satisfactory quarter as it also recorded a solid beat of analysts’ revenue estimates but a miss of analysts’ EBITDA estimates. The stock is down 6.5% since reporting and currently trades at $572.19. Read our full, actionable report on RBC Bearings here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. 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