Mayville Engineering Company, Inc 10-Q for FY2026 Q3

Mayville Engineering Company, Inc. (MEC)

10-Q 2026-11-04 For: 2026-09-30

Added on November 04, 2026

About this 10-Q

Mayville Engineering Company, Inc filed this 10-Q on November 4, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

MEC reported third-quarter net sales of $170,358, up 18.1% from $144,310, driven by Datacenter & Critical Power, Commercial Vehicle, and Construction & Access growth. Nine-month free cash flow fell to ($16,937) from $16,751, while revolving credit availability was $30,344. AI summary

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $170.36M; up 18.1% from $144.31M a year earlier
Net income: $424K; compared with a net loss of $2.68M a year earlier
Diluted EPS: $0.02; compared with -$0.13 a year earlier


Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, no par value		MEC		New York Stock Exchange

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Wisconsin	39-0944729
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

135 S. 84th Street, Suite 300 Milwaukee, Wisconsin	53214
(Address of principal executive offices)	(Zip Code)


Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller reporting company	☐

Emerging growth company	☐


		Page

PART I.	FINANCIAL INFORMATION	5

Item 1.	Financial Statements (Unaudited)	5

	Condensed Consolidated Balance Sheets	5

	Condensed Consolidated Statements of Comprehensive Income (Loss)	6

	Condensed Consolidated Statements of Cash Flows	7

	Condensed Consolidated Statements of Shareholders’ Equity	9

	Notes to Condensed Consolidated Financial Statements	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31

Item 4.	Controls and Procedures	31

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	32

Item 1A.	Risk Factors	32

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32

Item 5.	Other Information	32

Item 6.	Exhibits	33

Signatures		34


		September 30,			December 31,
		2026			2025
ASSETS
Cash and cash equivalents		$	1,509		$	1,502
Receivables, net of allowances for doubtful accounts of $720 at September 30, 2026 and $577 at December 31, 2025			86,211			57,551
Inventories, net			78,158			59,398
Tooling in progress			2,643			4,746
Prepaid expenses and other current assets			6,074			5,217
Total current assets			174,595			128,414
Property, plant and equipment, net			159,970			149,996
Assets held for sale			3,082			1,402
Goodwill			140,452			140,246
Intangible assets, net			101,890			111,280
Operating lease assets			24,628			30,473
Other long-term assets			1,222			1,829
Total assets		$	605,839		$	563,640
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable		$	71,258		$	52,377
Current portion of operating lease obligation			7,013			6,729
Accrued liabilities:
Salaries, wages, and payroll taxes			6,045			2,753
Bonuses and deferred compensation			4,423			2,170
Other current liabilities			11,538			10,740
Total current liabilities			100,277			74,769
Bank revolving credit notes			130,174			202,525
Operating lease obligation, less current maturities			20,311			25,572
Deferred compensation, less current portion			5,426			5,240
Deferred income tax liability			7,955			11,298
Other long-term liabilities			14,367			3,499
Total liabilities			278,510			322,903
Commitments and contingencies (see Note 8)
Common shares, no par value, 75,000,000 authorized, 27,688,384 shares issued at September 30, 2026 and 22,505,704 at December 31, 2025			—			—
Additional paid-in-capital			305,215			208,777
Retained earnings			42,130			51,976
Treasury shares at cost, 2,187,334 shares at September 30, 2026 and December 31, 2025			(20,016)			(20,016)
Total shareholders’ equity			327,329			240,737
Total liabilities and shareholders' equity		$	605,839		$	563,640


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2026			2025			2026			2025
Net sales		$	170,358		$	144,310		$	478,119		$	412,217
Cost of sales			151,595			128,371			430,702			367,126
Amortization of intangible assets			3,130			3,125			9,400			6,591
Bonuses and deferred compensation			2,461			2,221			12,111			7,071
Other selling, general and administrative expenses			8,834			10,545			27,323			29,727
Impairment of long-lived assets			—			—			1,544			—
Income (loss) from operations			4,338			48			(2,961)			1,702
Interest expense			(2,956)			(3,430)			(10,093)			(6,395)
Loss on extinguishment of debt			—			—			(134)			—
Income (loss) before taxes			1,382			(3,382)			(13,188)			(4,693)
Income tax expense (benefit)			958			(707)			(3,342)			(941)
Net income (loss) and comprehensive income (loss)		$	424		$	(2,675)			(9,846)			(3,752)

Earnings (loss) per share:
Basic		$	0.02		$	(0.13)		$	(0.43)		$	(0.18)
Diluted		$	0.02		$	(0.13)		$	(0.43)		$	(0.18)

Weighted average shares outstanding:
Basic			25,590,157			20,423,858			22,953,232			20,485,995
Diluted			25,830,313			20,423,858			22,953,232			20,485,995


		Shareholders' Equity
		Additional			Treasury			Retained
		Paid-in-Capital			Shares			Earnings			Total
Balance as of December 31, 2025		$	208,777		$	(20,016)		$	51,976		$	240,737
Net income (loss)			—			—			(8,175)			(8,175)
Stock-based compensation			795			—			—			795
Employee tax withholding on restricted stock units			(1,171)			—			—			(1,171)
Balance as of March 31, 2026		$	208,401		$	(20,016)		$	43,801		$	232,186
Net income (loss)			—			—			(2,095)			(2,095)
Stock-based compensation			1,507			—			—			1,507
Stock offering			93,884			—			—			93,884
Employee tax withholding on restricted stock units			2			—			—			2
Balance as of June 30, 2026		$	303,794		$	(20,016)		$	41,706		$	325,484
Net income (loss)			—			—			424			424
Purchase of treasury stock			—			—			—			—
Stock-based compensation			1,461			—			—			1,461
Employee tax withholding on restricted stock units			(40)			—			—			(40)
Balance as of September 30, 2026		$	305,215		$	(20,016)		$	42,130		$	327,329

		Shareholders' Equity
		Additional			Treasury			Retained
		Paid-in-Capital			Shares			Earnings			Total
Balance as of December 31, 2024		$	207,076		$	(15,409)		$	60,086		$	251,753
Net income			—			—			20			20
Purchase of treasury stock			—			(1,747)			—			(1,747)
Stock-based compensation			1,101			—			—			1,101
Employee tax withholding on restricted stock units			(1,170)			—			—			(1,170)
Balance as of March 31, 2025		$	207,007		$	(17,156)		$	60,106		$	249,957
Net loss			—			—			(1,097)			(1,097)
Purchase of treasury stock			—			(2,860)			—			(2,860)
Stock-based compensation			1,007			—			—			1,007
Employee tax withholding on stock options exercised			(164)			—			—			(164)
Balance as of June 30, 2025		$	207,850		$	(20,016)		$	59,009		$	246,843
Net loss			—			—			(2,675)			(2,675)
Stock-based compensation			845			—			—			845
Employee tax withholding on restricted stock units			(243)			—			—			(243)
Balance as of September 30, 2025		$	208,452		$	(20,016)		$	56,334		$	244,770


		Useful Lives			September 30,			December 31,
		Years			2026			2025
Land			Indefinite		$	2,564		$	2,564
Land improvements			15-39			3,822			4,769
Building and building improvements			15-39			81,771			80,338
Machinery, equipment and tooling			3-10			352,995			327,976
Vehicles			5			6,001			5,720
Office furniture and fixtures			3-7			26,535			25,577
Construction in progress			N/A			10,900			4,725
Total property, plant and equipment, gross						484,588			451,669
Less accumulated depreciation						324,618			301,673
Total property, plant and equipment, net					$	159,970		$	149,996


Balance as of December 31, 2025	$	140,246
Changes in goodwill		—
Balance as of March 31, 2026	$	140,246
Measurement period adjustment		206
Balance as of June 30, 2026	$	140,452
Changes in goodwill		—
Balance as of September 30, 2026	$	140,452


					September 30, 2026
		Useful Lives			Gross Carrying			Accumulated
		Years			Amount			Amortization			Net
Amortizable intangible assets:
Customer relationships and contracts			9-17		$	163,040		$	71,731	$	91,309
Trade name			10			14,780			11,513		3,267
Developed technology			7			4,962			2,291		2,671
Patents			19			24			17		7
Non-compete agreements			2			2,200			1,375		825
Total amortizable intangible assets, net					$	185,006		$	86,927	$	98,079
Non-amortizable brand name			Indefinite			3,811			—		3,811
Total intangible assets, net					$	188,817		$	86,927	$	101,890


					December 31, 2025
		Useful Lives			Gross Carrying			Accumulated
		Years			Amount			Amortization			Net
Amortizable intangible assets:
Customer relationships and contracts			9-17		$	163,040		$	64,817	$	98,223
Trade name			10			14,780			10,404		4,376
Developed technology			7			4,962			1,750		3,212
Patents			19			24			16		8
Non-compete agreements			2			2,200			550		1,650
Total amortizable intangible assets, net					$	185,006		$	77,537	$	107,469
Non-amortizable brand name			Indefinite			3,811			—		3,811
Total intangible assets, net					$	188,817		$	77,537	$	111,280


Year ending December 31,
2026 (remainder)	$	3,130
2027	$	11,970
2028	$	11,364
2029	$	9,922
2030	$	9,368
Thereafter	$	52,325


		Balance at			Fair Value Measurements at
		September 30,			Report Date Using
		2026			(Level 1)			(Level 2)			(Level 3)
Deferred compensation liability		$	5,841		$	5,841		$	—		$	—
Total		$	5,841		$	5,841		$	—		$	—


		Contract			Contract
		Assets			Liabilities
As of December 31, 2025		$	4,746		$	3,315
Net activity			(2,103)			(1,009)
As of September 30, 2026		$	2,643		$	2,306


		Shares
		Outstanding
Balance as of December 31, 2025		20,318,370
Treasury stock purchases		—
Common stock issued (including stock-based compensation impact) ⁽¹⁾		5,182,680
Balance as of September 30, 2026		25,501,050

		Shares
		Outstanding
Balance as of December 31, 2024		20,416,908
Treasury stock purchases		(304,136)
Common stock issued (including stock-based compensation impact)		205,598
Balance as of September 30, 2025		20,318,370


		Three Months Ended September 30,
		2026					2025					Increase (Decrease)
					% of Net					% of Net		Amount
		Amount			Sales		Amount			Sales		Change			% Change
Net sales		$	170,358		100.0	%	$	144,310		100.0	%	$	26,048		18.1	%
Cost of sales			151,595		89.0	%		128,371		89.0	%		23,224		18.1	%
Manufacturing margin			18,763		11.0	%		15,939		11.0	%		2,824		17.7	%
Amortization of intangible assets			3,130		1.8	%		3,125		2.2	%		5		0.2	%
Bonuses and deferred compensation			2,461		1.4	%		2,221		1.5	%		240		10.8	%
Other selling, general and administrative expenses			8,834		5.2	%		10,545		7.3	%		(1,711)		(16.2)	%
Income from operations			4,338		2.5	%		48		0.0	%		4,290		8,937.5	%
Interest expense			(2,956)		(1.7)	%		(3,430)		(2.4)	%		(474)		(13.8)	%
Provision (benefit) for income taxes			958		0.6	%		(707)		(0.5)	%		1,665		235.5	%
Net income (loss) and comprehensive income (loss)		$	424		0.2	%	$	(2,675)		(1.9)	%	$	3,099		115.9	%
EBITDA		$	15,582		9.1	%	$	11,184		7.7	%	$	4,398		39.3	%
Adjusted EBITDA		$	16,958		10.0	%	$	14,081		9.8	%	$	2,877		20.4	%


		September 30,			December 31,
		2026			2025
Finished goods and purchased parts		$	31,975		$	29,962
Raw materials			32,413			18,876
Work-in-process			13,769			10,560
Total		$	78,158		$	59,398


	Nine Months Ended
	September 30,
	2026			2025
Cash paid for amounts included in the measurement of lease liabilities for finance leases:
Operating cash flows	$	376		$	46
Financing cash flows	$	2,992		$	856

Cash paid for amounts included in the measurement of lease liabilities for operating leases:
Operating cash flows	$	5,835		$	5,027

Right-of-use assets obtained in exchange for recorded lease obligations:
Operating leases	$	52		$	3,787
Finance leases	$	16,479		$	2,322


		Nine Months Ended September 30,
		2026					2025					Increase (Decrease)
					% of Net					% of Net		Amount
		Amount			Sales		Amount			Sales		Change			% Change
Net sales		$	478,119		100.0	%	$	412,217		100.0	%	$	65,902		16.0	%
Cost of sales			430,702		90.1	%		367,126		89.1	%		63,576		17.3	%
Manufacturing Margin			47,417		9.9	%		45,091		10.9	%		2,326		5.2	%
Amortization of intangible assets			9,400		2.0	%		6,591		1.6	%		2,809		42.6	%
Bonuses and deferred compensation			12,111		2.5	%		7,071		1.7	%		5,040		71.3	%
Other selling, general and administrative expenses			27,323		5.7	%		29,727		7.2	%		(2,404)		(8.1)	%
Impairment of long-lived assets			1,544		0.3	%		—		—	%		1,544		NM
Income from operations			(2,961)		(0.6)	%		1,702		0.4	%		(4,663)		(274.0)	%
Interest expense			(10,093)		(2.1)	%		(6,395)		(1.6)	%		3,698		57.8	%
Loss on extinguishment of debt			(134)		(0.0)	%		—		—	%		(134)		NM
Provision (benefit) for income taxes			(3,342)		(0.7)	%		(941)		(0.2)	%		(2,401)		(255.2)	%
Net income (loss) and comprehensive income (loss)		$	(9,846)		(2.1)	%	$	(3,752)		(0.9)	%	$	(6,094)		(162.4)	%
EBITDA		$	30,333		6.3	%	$	31,924		7.7	%	$	(1,591)		(5.0)	%
Adjusted EBITDA		$	36,605		7.7	%	$	40,747		9.9	%	$	(4,142)		(10.2)	%


					Payments Due by Period
		Total			2026 (Remainder)			2027 – 2028			2029 – 2030			Thereafter
Long-term debt principal payment obligations ⁽¹⁾		$	131,549		$	500		$	131,049		$	—		$	—
Forecasted interest on debt payment obligations ⁽²⁾			11,689			2,287			9,402			—			—
Finance lease obligations ⁽³⁾			18,477			1,146			8,463			7,479			1,389
Operating lease obligations ⁽³⁾			29,676			1,957			14,263			9,066			4,390
Total		$	191,391		$	5,890		$	163,177		$	16,545		$	5,779


							Total Number		Dollar Value of
							of Shares		Shares that
		Total					Purchased as		May Yet Be
		Number					Part of Publicly		Purchased
		of Shares		Average Price			Announced Plans		Under the Plans
Period		Purchased		Paid per Share			or Programs⁽¹⁾		or Programs⁽¹⁾
July 2026		—		$	—		—		$	14,497,519
August 2026		—		$	—		—		$	14,497,519
September 2026		—		$	—		—		$	14,497,519
Total		—					—


Exhibit Number		Description

31.1		Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32		Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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	MAYVILLE ENGINEERING COMPANY, INC.

Date: November 4, 2026	By:	/s/ Jagadeesh A. Reddy
		Jagadeesh A. Reddy
		President, Chief Executive Officer and Director

	By:	/s/ Rachele M. Lehr
		Rachele M. Lehr
		Chief Financial Officer