Mayville Engineering Guides 2026 as Data Center Push Squeezes Near-Term Margins

Overview

• Fourth-quarter 2025 sales reached $134.3 million, up 10.7% year over year, with organic sales down 5.3% as manufacturing margin fell to 6.6% and adjusted EBITDA margin to 4.7% due to about $2.9 million of launch and early-stage inefficiency costs.
• Guidance calls for Q1 2026 net sales of $137–$143 million and full-year net sales of $580–$620 million, with adjusted EBITDA of $50–$60 million and capital spending of $15–$20 million.
• The qualified pipeline in data center and critical power exceeds $125 million, with $40–$50 million of projects slated to launch in 2026 and those end markets expected to contribute more than 20% of revenue.
• MEC is retooling six legacy plants and implementing its MBX framework to boost throughput while carrying additional labor under a roughly 55% fixed-cost structure to meet 8–12 week program launch windows.
• The AccuFab acquisition is driving cross-selling with $40–$50 million of incremental 2026 revenue expected to ramp mostly in the second half, as management targets net leverage of 3.0x or lower and free-cash-flow conversion of 50%–60% of adjusted EBITDA.