MEC Filings — Mayville Engineering Company, Inc. - FilingSpy
MEC
Mayville Engineering Company, Inc.
A contract manufacturer that fabricates, welds, coats, and assembles metal parts and components for big-name OEMs across trucks, construction, powersports, agriculture, and the military. Founded in 1945 by Mayville natives Ted Bachhuber and his uncle Leo in a rented garage behind a Main Street alley in Wisconsin, its first letterhead read "Tools, Dies, and Special Machinery." Today it ranks as one of the largest U.S. fabricators—and it also makes shotshell reloaders under the MEC Outdoors brand.
Revenue returned to growth for a second straight quarter, but MEC posted its fifth consecutive quarterly net loss as interest costs more than doubled.
rose for a second straight quarter, but the company remained unprofitable. Revenue climbed 23.2% to $163.0 million, driven by the Accu-Fab acquisition and in Datacenter & Critical Power, while improved 0.6 points to 10.9%; however, a net loss of $2.1 million persisted as more than doubled on higher acquisition debt. The top line is recovering, but rising financing costs are consuming the improvement.
Key takeaways
rose 23.2% to $163.0 million, the second consecutive quarter of growth, driven by the Accu-Fab acquisition and organic demand in Datacenter & Critical Power, Commercial Vehicle, and Construction & Access end markets.
improved 0.6 points to 10.9%, as higher-margin sales from the acquired Accu-Fab business and better capacity utilization more than offset lingering restructuring and launch costs.
The company reported a net loss of $2.1 million, its fifth consecutive quarterly loss, as a 148.6% increase in to $3.5 million on higher floating-rate acquisition debt outweighed the operating improvement.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 net sales rose 23.2% to $163M driven by Datacenter & Critical Power and the Accu-Fab acquisition, but net loss widened to $2.1M.
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increased 23.2% to $163.0M in Q2 FY2026, driven by in Datacenter & Critical Power, Commercial Vehicle, and Construction & Access end markets, plus the Accu-Fab acquisition.
turned negative for the first half of the fiscal year at -$13.6 million, compared to a $17.9 million inflow a year ago, as fell and more than doubled to $12.3 million to support datacenter projects.
rose 40.2% sequentially to $325.5 million, reflecting the issuance of shares as consideration for the Accu-Fab acquisition, while the stood at 4.40x against an amended .
What changed
The Q1 FY2026 watch item on recovery materialized: gross margin rebounded 3.3 points sequentially to 10.9% from 7.6%, as the non-recurring restructuring and launch costs flagged in the prior quarter were largely absorbed.
The recovery flagged as a watch item in Q3 FY2025 has now extended to a second consecutive quarter of growth, with the 23.2% increase in Q2 FY2026 accelerating from the 6.8% rise in Q1 FY2026.
The material weakness in internal controls that had been flagged since FY2019 was remediated in FY2025, as noted in the prior annual report; no new control deficiencies were disclosed in this filing.
What to watch
Whether can hold above 10% in the second half of FY2026 now that restructuring and launch costs have rolled off, and whether the Accu-Fab business sustains its higher-margin contribution as integration progresses.
The trajectory of the $125.7 million floating-rate balance at 6.65% and the 4.40x relative to the amended , particularly if remains negative and interest costs continue to rise.
Whether the organic growth in Datacenter & Critical Power, Commercial Vehicle, and Construction & Access end markets is sustained, or whether the growth remains dependent on the Accu-Fab acquisition masking underlying demand trends.
The performance of the Data Center & Critical Power end market, which represents a material new exposure dependent on sustained capital investment in that sector.
dollars rose 29.9% to $17.7M and margin percentage improved 60 to 10.9%, helped by higher-margin Accu-Fab sales and better capacity utilization.
For the six-month period, percentage fell 160 to 9.3% due to restructuring costs, project launch costs for Datacenter & Critical Power, and softer Commercial Vehicle demand.
more than doubled in both periods (up 148.6% in Q2) due to higher average borrowings and rates on the .
turned negative at ($13.6M) for the first half of FY2026 from $17.9M a year ago, as declined and more than doubled to $12.3M.
The company amended its credit agreement in February 2026, reducing the capacity to $275M and relaxing covenants through 2026.
Quantitative and Qualitative Disclosures About Market Risk
Interest-rate risk from SOFR-based floating debt is the primary quantified exposure; commodity and customer-forecast risks are managed without derivatives.
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A hypothetical 100-basis-point rise in interest rates would increase by $941 based on variable-rate debt at June 30, 2026.
The company had $125,718 borrowed under its at 6.65% as of June 30, 2026, exposing it to -based floating-rate variability.
The company does not use derivative financial instruments to hedge interest-rate risk or to speculate on rate changes.
Commodity raw materials such as steel, aluminum, copper, and paint chemicals are subject to price fluctuations, with no commodity hedging instruments in place as of June 30, 2026.
The company seeks to pass commodity price increases to customers and often uses customer contracts to mitigate margin erosion.
Customer order forecasts can change dramatically quarter-to-quarter, creating demand-driven market risk.
We are not currently a party to any material litigation proceedings. From time to time, however, we may be a party to litigation and subject to claims incident to the ordinary course of business. Regardless of the outcome, litigation can have an adverse impact on us because of d…
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We are not currently a party to any material litigation proceedings. From time to time, however, we may be a party to litigation and subject to claims incident to the ordinary course of business. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.
There have been no material changes to the risk factors previously disclosed in Part I, Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on March 4, 2026.
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There have been no material changes to the risk factors previously disclosed in Part I, Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on March 4, 2026.