Mayville Engineering 2025 Q2 Earnings Sharp Net Loss Amid Revenue Drop

Mayville Engineering reported its fiscal 2025 Q2 earnings on August 6, 2025. The results fell short of expectations, with the company posting a net loss, marking a significant shift from profitability. The company did not revise its guidance but outlined challenges in core markets.

Revenue
Q2 revenue declined 19.1% year-over-year to $132.33 million. The Fabrication segment remained the largest contributor at $63.96 million, followed by Performance structures at $39.86 million. The Tube segment added $20.56 million in revenue, while the Tank segment reported $9.30 million. Outdoor sports brought in $2.11 million, and intercompany sales elimination accounted for a negative $3.45 million. Collectively, these segments reflect a broad-based revenue decline.

Earnings/Net Income
Mayville Engineering posted a net loss of $1.10 million, or $0.05 per share, in 2025 Q2, compared to a net income of $3.78 million, or $0.18 per share, in the prior-year period. This represents a 129.0% deterioration in net income and a 127.8% drop in earnings per share. Despite the loss, the company has maintained profitability in eight prior years for the same quarter.

Price Action
Shares of Mayville Engineering rose 6.08% in the latest trading session but fell 11.47% over the past week and 9.67% month-to-date, reflecting mixed short-term investor sentiment.

Post-Earnings Price Action Review
A strategy of buying MEC on earnings beats and holding for 30 days generated a 96.33% return, outperforming the 63.97% benchmark. The strategy also showed no maximum drawdown and a Sharpe ratio of 0.63, highlighting its strong risk-adjusted performance and making it an appealing option for growth-focused investors.

CEO Commentary
CEO Jagadeesh Reddy noted a 130-basis-point sequential improvement in adjusted EBITDA margins despite a 2% decline in net sales, crediting cost management and operational leverage. He emphasized the strategic acquisition of Accu-Fab, which expands the company’s addressable market by 60% into power and data center sectors. Reddy cited near-term revenue and cost synergies and referenced prior success with the MBX framework. While acknowledging softness in core markets and reduced production from key customers, he expressed confidence in MEC’s ability to deliver above-market growth and profitability.

Guidance
For fiscal 2025, Mayville Engineering expects net sales of $528 million to $562 million, adjusted EBITDA of $49 million to $55 million, and free cash flow of $25 million to $31 million. These forecasts reflect the impact of the Accu-Fab acquisition and ongoing demand challenges in core markets. The company also anticipates $1 million to $2 million in cost improvements and $13 million to $17 million in capital expenditures, with $5 million to $6 million in non-recurring costs from the CFO transition and acquisition. It aims to reduce net leverage to below 2x by the end of 2026.

Additional News
On August 6, 2025, Mayville Engineering announced the acquisition of Accu-Fab, a strategic move expanding into the critical power and data center markets. This acquisition is expected to increase the company’s serviceable addressable market by 60% to $8 billion. The integration of Accu-Fab will provide near-term revenue and cost synergies and is aligned with the company’s long-term growth objectives. Additionally, the company is undergoing a transition in its CFO role, which is expected to incur non-recurring costs of $5 million to $6 million in 2025. No dividend or share repurchase program changes were disclosed.