Mayville Engineering Company Reports Q4 and Full-Year 2024 Financial Results

Mayville Engineering Company Reports Fourth Quarter and Full-Year 2024 Financial Results

Mayville Engineering Company, a leading provider of design, prototyping, and manufacturing solutions serving a diverse range of end markets, has announced its financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Results

(All comparisons are made to the prior-year period.)

• Net Sales: $121.3 million
• Net Income: $16.0 million, or $0.76 per diluted share
• Non-GAAP Adjusted Diluted EPS: ($0.07)
• Adjusted EBITDA: $9.2 million
• Adjusted EBITDA Margin: 7.6% of net sales
• Quarterly Free Cash Flow: $35.6 million, including $25.5 million from the Settlement Agreement with the former fitness customer
• Net Debt to Trailing Twelve-Month Adjusted EBITDA Ratio: 1.3x as of December 31, 2024
• Facility Closure: Completion of Wautoma, WI facility closure, resulting in a $0.5 million restructuring expense

Full-Year 2024 Results

(All comparisons are made to the prior-year period.)

• Net Sales: $581.6 million, a 1.2% decrease year-over-year
• Net Income: $26.0 million, or $1.24 per diluted share
• Non-GAAP Adjusted Diluted EPS: $0.62
• Adjusted EBITDA: $64.4 million
• Adjusted EBITDA Margin: 11.1% of net sales
• Free Cash Flow: $77.7 million, including $25.5 million from the Settlement Agreement

Full-Year 2025 Financial Guidance

• Net Sales: Expected between $560 million and $590 million
• Adjusted EBITDA: Projected between $60 million and $66 million
• Free Cash Flow: Estimated between $43 million and $50 million

Management Commentary

Jag Reddy, President and CEO, stated that despite softer demand in core vertical markets, the company maintained stable margins, profitability, and disciplined net working capital management. He emphasized the impact of MEC’s MBX value creation framework, which focuses on strategic pricing, commercial growth, and capital efficiency, positioning the company for long-term profitable growth.

Reddy noted that while lower customer activity affected the second half of 2024, MEC’s strategic actions have set the stage for EBITDA margin expansion and operational efficiencies. The company is actively pursuing new business opportunities in high-value, emerging growth end-markets, including industrial infrastructure investments and domestic data-center build-outs. In 2024, Mayville Engineering secured over $100 million in new business wins, marking a 12% year-over-year increase.

Regarding capital allocation, Mayville Engineering prioritized debt reduction and stock repurchases in Q4 2024. The company repaid over $31 million in debt, reducing net leverage to 1.3x, and repurchased nearly $4 million of common stock under its $25 million share repurchase authorization. Moving into 2025, Mayville Engineering plans to maintain balance sheet discipline while exploring acquisitions that accelerate market diversification and long-term growth.

Mayville Engineering Reddy indicated that the first half of 2025 may experience continued muted demand, similar to the latter half of 2024, due to customer inventory normalization. However, conditions are expected to improve in the second half of the year as customer order activity picks up.

Performance Summary

• Net sales decreased by 18.4% year-over-year in Q4 2024 due to lower customer demand and inventory de-stocking, partially offset by growth in new customer projects.
• Manufacturing margin was $10.8 million (8.9% of net sales), down from $18.2 million (12.3%) in the prior year due to lower fixed cost absorption and fewer working days.
• Profit sharing, bonus, and deferred compensation expenses remained unchanged at $3.6 million.
• Selling, general, and administrative expenses increased to $7.9 million from $7.2 million, primarily due to higher compliance costs and wage inflation.
• Interest expense decreased to $2.0 million from $3.6 million, reflecting lower borrowings and interest rates.
• Net income was $16.0 million ($0.76 per diluted share), compared to $2.2 million ($0.11 per diluted share) in the prior year, driven by a $25.5 million gain from the settlement agreement.
• Adjusted EBITDA declined to $9.2 million (7.6% of net sales) from $17.7 million (11.9%) due to lower demand and fixed cost absorption.
• Adjusted net loss was ($1.6) million, or ($0.07) per diluted share, compared to adjusted net income of $4.4 million ($0.21 per share) in the prior year.
• Free cash flow increased to $35.6 million from $19.9 million, driven by the $25.5 million settlement.

End Market Performance

Commercial Vehicles

Net sales: $47.2 million (-10.5% YoY). The decline reflects a 10.4% drop in North American Class vehicle demand.

Construction & Access

Net sales: $17.0 million (-34.5% YoY). Sales fell due to reduced demand, customer de-stocking, and production cuts.

Powersports

Net sales: $17.4 million (-29.1% YoY). Decrease attributed to soft demand, inventory reductions, and production cuts amid high financing rates.

Agriculture

Net sales: $7.7 million (-46.5% YoY). Demand weakened due to inventory de-stocking and production reductions in both large and small agriculture markets.

Military

Net sales: $7.4 million (-16.5% YoY). The decline was expected due to the roll-off of certain aftermarket programs.

Other Markets

Net sales: $24.6 million (+11% YoY). Growth was driven by increased demand for aluminum extrusion products and new customer projects.

Balance Sheet Update

As of December 31, 2024:

• Debt Outstanding: $82.3 million
• Total Cash and Available Credit: $225.4 million
• Net Debt to Trailing Twelve-Month Adjusted EBITDA Ratio: 1.3x

MEC utilized free cash flow and settlement proceeds to repay $31.8 million in debt.

2025 Financial Guidance

Mayville Engineering expects demand to remain soft in early 2025, improving in the second half. The guidance does not account for potential tariff impacts. Free cash flow projections reflect working capital efficiencies and capital expenditures of $13M-$17M.

Q4 2024 Earnings Call

Mayville Engineering will host a conference call on March 5, 2025, at 10:00 a.m. ET (9:00 a.m. CT).

• Webcast: www.mecinc.com
• U.S. Dial-in: (833) 470-1428
• Canada Dial-in: (833) 950-0062
• Access Code: 948393

This press release includes forward-looking statements that involve risks and uncertainties.Mayville Engineering Actual results may differ due to macroeconomic conditions, industry trends, competition, and regulatory factors. Please refer to Mayville Engineering s latest SEC filings for more information.

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