Investors might want to bet on Mayville Engineering (MEC) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between ...

FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Commission File Number: 001-38894 Mayville Engineering Company, Inc. (Exact Name of Registrant as Specified in its Charter) Wisconsin 39-09 ...

Mayville Engineering Company (MEC) Q1 2025 Earnings Call May 07, 2025 10:00 AM ET Speaker0 Hello, everyone, and thank you for joining the Mayville Engineering Company First Quarter twenty twenty five Earnings Call. My name is Sami, and I'll be coordinating your call today. I would now like to hand over to your host, Stefan Neely, with Valem Advisers to begin. Stefan, please go ahead. Speaker1 Thank you, operator. On behalf of our entire team, I'd like to welcome you to our first quarter twenty twenty five r ...

1Q25 Results Presentation May 7, 2025 SAFE HARBOR STATEMENT Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: This presentation contains statements that are forward -looking in nature which express the beliefs and expectations of management including statements regarding the Company's expected results of operations or liquidity; statements concerning projections, predictions, expectations, estimates or forecasts as to our business, financial and operational results and f ...

Mayville Engineering (MEC) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 300%. A quarter ago, it was expected that this company would post a loss of $0.16 per share when it actually produced earnings of $0.76, delivering a surprise of 575%.Over the last four quarters, the company ha ...

Exhibit 99 MAYVILLE ENGINEERING COMPANY ANNOUNCES FIRST QUARTER 2025 RESULTS MILWAUKEE, Wis., May 6, 2025 – Mayville Engineering Company (NYSE: MEC) (the "Company" or "MEC"), a leading value-added provider of design, prototyping and manufacturing solutions serving diverse end markets, today announced results for the three-months ended March 31, 2025. FIRST QUARTER 2025 RESULTS (All comparisons versus the prior-year period) MANAGEMENT COMMENTARY "Our strong first quarter results were driven by the team's exe ...

Economic Conditions and Market Impact - In 2024, the company faced negative impacts from customers implementing inventory de-stocking activities, leading to reduced cash flows and operating results[66]. - The company is affected by macroeconomic conditions, including inflation and elevated interest rates, which have negatively impacted results[66]. - The company anticipates that future sales will depend on the success of its customers, with potential adverse effects if economic conditions deteriorate[72]. - The company expects material cost inflation and inflationary pressures on wages and benefits to continue in 2025, which may not be fully mitigated through price increases[67]. - Geopolitical events and trade regulations could disrupt operations and affect the availability of raw materials, negatively impacting sales and profitability[97][98]. - Climate change risks and related regulations could impose additional costs and affect operations, potentially harming financial condition[100][102]. Customer and Supplier Dependence - The largest customers in 2024 included PACCAR Inc. and John Deere, accounting for 16.8% and 11.3% of net sales, respectively[82]. - The company relies on a limited number of major manufacturers for a majority of net sales, making it vulnerable to the loss of these customers[82]. - The company is dependent on a limited number of large customers, and any loss of these customers could materially affect financial performance[82]. - The company is vulnerable to supply shortages due to reliance on third-party suppliers, which could adversely affect financial condition and cash flows[88]. Operational Challenges - The company may face challenges in maintaining manufacturing and technological expertise due to changing technology and evolving process development[81]. - The prices and availability of raw materials are subject to volatility, which could adversely affect results of operations if costs cannot be passed to customers[87]. - The company may experience difficulties in recruiting and retaining qualified employees, impacting its ability to meet customer needs and grow[86]. - Disruptions from technical problems or natural disasters could lead to production delays and increased expenses, impacting financial results[96]. Financial Performance and Results - Net sales for the twelve months ended December 31, 2024, were $581,604, a decrease of 1.4% compared to $588,425 in 2023[252]. - Net income for the same period was $25,968, significantly up from $7,844 in 2023, representing a 231.5% increase[252]. - Earnings per share (EPS) increased to $1.26 for basic shares, compared to $0.38 in 2023, marking a 226.3% rise[252]. - Cash flows from operating activities were $89,807, up from $40,363 in 2023, indicating a 122.2% increase[255]. - The company reported a gain on lawsuit settlement of $25,500, which impacted income before taxes positively[252]. Debt and Financial Management - As of December 31, 2024, the company had $79.7 million outstanding under its revolving credit facility, with the potential to incur significant additional indebtedness for growth strategies[119]. - The company is subject to risks related to its indebtedness, including restrictions on business and financial transactions due to covenants in its credit agreement[117]. - The company entered into an amended and restated credit agreement on June 28, 2023, providing for a $250 million revolving credit facility, maturing on June 28, 2028[116]. - The company incurred interest expense of $10,989, slightly down from $11,092 in 2023[252]. - A hypothetical 100-basis-point increase in borrowing rates would result in an additional $1.1 million of interest expense based on variable rate debt as of December 31, 2024[223]. Internal Controls and Governance - The company has a material weakness in its internal control over financial reporting, which could adversely affect investor confidence and the value of its common stock[111]. - The company is in the process of remediating its material weakness in internal controls, but cannot guarantee that all deficiencies have been identified or that future weaknesses will not occur[112]. - The company’s articles of incorporation and bylaws contain provisions that may make it difficult for shareholders to effect a change in control, potentially depressing the trading price of its common stock[125]. - The company’s ESOP and 401(k) plan may have interests that differ from other investors, potentially affecting corporate governance and decision-making[121]. Acquisitions and Growth Strategy - The company plans to continue growth through acquisitions, but may face challenges in identifying suitable targets and integrating them successfully[90]. - Acquisitions involve risks such as management distraction, litigation, and potential regulatory approval delays, which could harm financial condition and results[91]. - The company completed the acquisition of Mid-States Aluminum (MSA) on July 1, 2023, for a purchase price of $95,945, with total net consideration paid amounting to $90,002[299]. - The acquisition of MSA is expected to provide significant new cross-selling opportunities with both new and existing customers in the lightweight materials fabrication sector[300]. Taxation and Employee Benefits - The current income tax expense for 2024 was $2,659 million, significantly higher than $191 million in 2023[340]. - Total income tax expense for 2024 was $7,596 million, compared to $1,039 million in 2023, indicating a substantial increase[340]. - The effective tax rate for 2024 was 22.6%, up from 11.7% in 2023[341]. - The employer match expense for the 401(k) Plan increased to $3,380 million in 2024 from $3,232 million in 2023, reflecting a growth of 4.6%[339]. - Healthcare costs incurred by the Company for self-funded medical benefits were $24.01 million, $20.29 million, and $17.15 million for the years ended December 31, 2024, 2023, and 2022, respectively[352].

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Financial Data and Key Metrics Changes - Total sales for Q4 2024 decreased by 18.4% year-over-year to $121.3 million, driven by customer destocking and weaker end-user demand [34][35] - Manufacturing margin for Q4 was $10.8 million, down from $18.2 million in the prior-year period, with a manufacturing margin rate of 8.9%, a decrease of 340 basis points [35][36] - Full-year 2024 net sales were $581.6 million, a decrease of 1.2% compared to the prior year, while adjusted EBITDA was $64.4 million, down from $66.1 million in 2023 [39][40] Business Line Data and Key Metrics Changes - Commercial vehicle revenue decreased by 10.5% year-over-year in Q4, reflecting a similar trend in the broader market [15] - Powersports market revenue decreased by 29.1% year-over-year in Q4, impacted by inventory destocking and soft consumer demand [17] - Construction and access revenues decreased by 34.5% year-over-year in Q4, with expectations of continued softness in demand [19] - Agricultural market revenue decreased by 46.5% year-over-year in Q4, with an uncertain outlook due to various economic factors [20] Market Data and Key Metrics Changes - North American Class 8 truck production decreased by 10.4% year-over-year, with forecasts predicting a further decline of 4.8% in 2025 [15][16] - The powersports market is expected to see a low single-digit decrease in 2025, with significant uncertainty due to high financing rates [43] - The agricultural market is anticipated to decline by low to mid-twenty percentiles in 2025 [43] Company Strategy and Development Direction - The company is focusing on diversifying into less cyclical, higher-value opportunities, particularly in industrial infrastructure and data center investments [8][24] - M&A remains a key part of the long-term strategy, targeting acquisitions in high-growth adjacent markets with revenues between $50 million and $150 million [29][76] - The company aims to maintain disciplined capital allocation, prioritizing debt repayment and opportunistic share repurchases [28][46] Management's Comments on Operating Environment and Future Outlook - Management anticipates ongoing softness in demand across most end markets in the first half of 2025, with a gradual recovery expected in the second half [7][13] - The company remains committed to achieving long-term targets set during the 2023 Investor Day, although the timeline may be extended due to current market conditions [31][84] - Management expressed confidence in the company's ability to generate strong free cash flow and improve operational efficiencies despite current challenges [27][30] Other Important Information - Free cash flow for 2024 was nearly $78 million, with organic free cash flow more than doubling compared to 2023 levels [9][40] - The company repurchased nearly $4 million worth of common stock in Q4, with a total of $5.9 million repurchased for the full year [10][11] Q&A Session Summary Question: Margin guidance for 2025 and MBX initiatives - Management indicated that $1 to $3 million of margin improvement is anticipated from MBX initiatives, with benefits expected to materialize more significantly in the second half of 2025 [49][51] Question: Exposure to potential tariffs - Management noted that only a small percentage of inputs are subject to tariffs, and costs are generally passed through to customers, minimizing impact [54][56] Question: Powersports market guidance - The powersports market is expected to decline by low single digits, with a potential 20-25% year-over-year decline anticipated [60] Question: M&A strategy and target valuations - The company is actively pursuing acquisitions in high-growth markets, with a focus on targets that are margin accretive and provide market diversification [76][78] Question: Path to achieving EBITDA margin targets - Management believes the 14% to 16% EBITDA margin targets are achievable, but the timeline may extend due to current market conditions [84][86] Question: Update on Hazel Park ramp-up - Management confirmed that expectations for Hazel Park remain unchanged, with new product launches on track despite current demand impacts [89]

Mayville Engineering Company, Inc. (NYSE:MEC) Q4 2024 Earnings Call March 5, 2025 10:00 AM ET Company Participants Stefan Neely - Investor Relations Jag Reddy - President and Chief Executive Officer Todd Butz - Chief Financial Officer Rachele Lehr - Chief Human Resources Officer Conference Call Participants Sam Karlov - William Blair Ted Jackson - Northland Capital Markets Operator Hello, and welcome everyone, to the Mayville Engineering Company Fourth Quarter 2024 Earnings conference call. My name is Becky ...