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Dec 31, 2025
MEC Q4 2025 Earnings Report
MEC Q4 2025 Earnings Report
Key Takeaways
Mayville Engineering Company (MEC) reported a 10.7% increase in net sales for Q4 2025, driven by the Accu-Fab acquisition and growth in Data Center & Critical Power. However, the company faced a net loss of $4.4 million due to project launch costs, early-stage inefficiencies in commercial vehicle projects, and higher interest expenses.
Net sales grew 10.7% year-over-year to $134.3 million, primarily due to the Accu-Fab acquisition.
Data Center & Critical Power end market saw significant growth, with organic sales up 12.7% and $15 million in new project awards.
Profitability was pressured by $1.2 million in data center launch costs and $1.7 million in commercial vehicle project inefficiencies.
The company introduced quarterly guidance to provide better visibility into fast-moving data center infrastructure trends.
Revenue by Segment
Forward Guidance
MEC expects full-year 2026 net sales between $580 million and $620 million, with growth driven by Accu-Fab synergies and data center expansion.
Positive Outlook
- Accu-Fab cross-selling synergies expected to generate $40 to $50 million in revenue.
- Data Center & Critical Power expected to represent over 20% of total revenue.
- Anticipated year-over-year profitability growth for full-year 2026.
- Qualified opportunity pipeline in data centers exceeds $125 million.
- Project activity expected to ramp significantly in the second quarter of 2026.
Challenges Ahead
- Continued demand softness across legacy end markets like Commercial Vehicle and Agriculture.
- Margin pressure expected to persist in the near-term due to launch-phase dynamics.
- Normal seasonal working capital usage expected in Q1 2026.
- Planned capital expenditures of $15 million to $20 million for the full year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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