MEC earnings analysis
What we found in MEC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Mayville Engineering Company reported Q1 2026 revenue of $144.8 million, surpassing estimates by 4.0%, with an EPS of -$0.15 outperforming expectations of -$0.24. The company's growth was driven by the Datacenter & Critical Power segment, although challenges in legacy markets were noted. The overall performance reflects continued operational struggles, especially in margins despite revenue growth.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth
- Revenue reached $144.8 million, up 6.8% from $135.6 million Y/Y.
- EPS Outperformance
- Reported EPS of -$0.15 compared to estimates of -$0.24.
- Segment Strength
- Notable growth in the Datacenter & Critical Power segment contributed to higher sales.
- Capital Expenditures
- Capex increased to $4.2 million from $3.0 million Y/Y, reflecting investment in growth.
- Debt Increase
- Interest expense rose significantly by 133.6% to $3.7 million year-over-year.
- Margin Pressures
- Gross margin decreased to 7.6% from 11.3% Y/Y, highlighting operational challenges.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Debt Levels
- Interest expense jumped by 133.6% to $3.7 million due to higher borrowings.
- Negative Free Cash Flow
- Free cash flow for the quarter was -$6.9 million, down from $5.4 million the previous year.
- Weakness in Legacy Markets
- Demand in key legacy markets like Commercial Vehicles and Military shows continued decline.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.15
- Gross margin
- 7.6%
- Operating margin
- -5.3%
What they said about what is next.
Future guidance emphasized focus on managing legacy market headwinds while capitalizing on Datacenter growth.
The filing reads worse than the one before it.
What came before.
- 10-Q · November 5, 2025
- MEC reported quarterly net sales of $144,310 (per filing, in thousands), up from $135,392 in Q3 2024, but profitability deteriorated: operating income fell to $48 from $5,727 and the company posted a net loss of $2,675…
- 10-K · March 6, 2024
- MEC positions itself as a vertically integrated, U.S.-based Tier‑1 value‑added manufacturer with broad end‑to‑end capabilities and scale. The 10‑K emphasizes market leadership (ranked largest U.S. fabricator 2011–2023),…
- 10-Q · May 3, 2023
- MEC reported Q1 net sales of $142,645,000, up $6,393,000 (4.7%) versus Q1 2022 ($136,252,000), but profitability and cash generation deteriorated. Gross margin improved modestly to 11.48% from 10.92% a year ago, while…
- 10-K · March 1, 2023
- MEC presents a strategy focused on leveraging its scale, end-to-end capabilities and technology-enabled automation to win share from OEMs through organic expansion, the MBX lean initiative and opportunistic M&A. The…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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