Key Highlights

  • Mayville Engineering (NYSE:MEC) reported third-quarter 2026 net sales of USD 170.4 million, up 18.1% from USD 144.3 million, with Datacenter and Critical Power sales jumping 64.9%.
  • Net income came to USD 0.4 million, or USD 0.02 a diluted share, against a USD 2.7 million loss a year earlier, while adjusted diluted EPS reached USD 0.15.
  • Adjusted EBITDA hit USD 17.0 million, a 10.0% margin, and net Debt was USD 146.6 million, or 2.9 times trailing adjusted EBITDA.
  • The company's fiscal 2026 guidance calls for net sales of USD 630 million to USD 640 million and free Cash Flow between negative USD 6 million and negative USD 16 million.

Datacenter Orders Push Third-Quarter Revenue Higher

Mayville Engineering (NYSE:MEC) released third-quarter 2026 results on November 3, 2026, covering the three months ended September 30. Net sales increased to USD 170.4 million from USD 144.3 million. Datacenter and Critical Power sales surged 64.9% to USD 37.2 million, while Commercial Vehicle grew 34.7% to USD 52.8 million on stronger North American Class 8 production. Construction and Access rose 9.3% and Other markets 13.5%, whereas Powersports dropped 26.9%, Agriculture 9.9% and Military 2.8%. The company won about USD 45 million of fresh datacenter project awards and reports a qualified pipeline above USD 200 million.

Launch Expenses Keep Profit Behind Revenue Growth

The company makes precision metal enclosures, racks and subassemblies for power and datacenter customers, along with parts for commercial vehicle, construction and other equipment makers. Manufacturing Margin reached USD 18.8 million, or 11.0% of sales, yet absorbed USD 3.0 million of project launch and outsourcing costs along with premium labor. Management said efficiency was uneven as teams worked to keep pace with rapidly rising demand. Adjusted EBITDA margin edged up to 10.0% from 9.8%, aided by better capacity use, and interest expense declined to USD 3.0 million from USD 3.4 million. GAAP Net Income of USD 0.4 million compares with adjusted net income of USD 4.0 million, which excludes items the company regards as non-core.

Negative Cash Flow, Leverage and the Thomson Facility

Free cash flow was negative USD 3.3 million in the quarter because Capital spending on equipment increased. The Thomson, Georgia Facility Acquisition closed on October 1, 2026, and is expected to add about USD 50 million of annual revenue capacity by 2028, on top of the roughly USD 850 million disclosed earlier. Full-year 2026 adjusted EBITDA guidance is USD 48 million to USD 52 million, but the release did not give the prior range, so no raise or cut can be stated. Risks include launch costs, operational inconsistency, softness in Powersports and Agriculture, and leverage of 2.9 times. The outlook assumes a full year of Accu-Fab ownership, more datacenter cross-selling and capital spending of USD 25 million to USD 35 million, including the Thomson investment. A conference call was set for November 4, 2026, at 10:00 a.m. ET.

Where Things Stand

Launch costs, premium labor and uneven efficiency absorbed most of the gain from 18.1% sales growth, which is why net income stayed at USD 0.4 million. Mayville Engineering (NYSE:MEC) still moved from a loss to a small profit year over year, and datacenter and commercial vehicle volumes outran softness in Powersports and Agriculture. The next test is whether Operating Leverage shows up as volumes ramp, since management expects to be near full capacity within about 18 months. Cash flow and the Leverage Ratio will reveal the cost of that growth. Management described the quarter as in line with its own expectations.