Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow generation and growth potential [1] Group 1 - The service offers subscribers access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the sector [1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-38894 Mayville Engineering Company, Inc. (Exact name of Registrant as specified in its Charter) Wisconsin 39-0944729 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO S ...

Manufacturing margin was 6.6% in the quarter, down from 8.9% a year earlier. Lehr attributed the decline to $1.2 million of data center and critical power-related launch costs and $1.7 million of early-stage inefficiencies on a commercial vehicle project, partially offset by a higher-margin contribution from Accu-Fab. Excluding those temporary items, she said manufacturing margin would have been approximately 9%.Chief Financial Officer Rachele Lehr reported fourth-quarter sales increased 10.7% year over yea ...

Mayville Engineering Company (NYSE:MEC) Q4 2025 Earnings call March 04, 2026 10:00 AM ET Company ParticipantsJagadeesh A. Reddy - President and CEORachele M. Lehr - CFOStephen Neely - Managing DirectorConference Call ParticipantsGreg Palm - Senior Research AnalystSam Carlo - AnalystTed Jackson - Senior Equity Research AnalystNone - AnalystNone - AnalystOperatorThank you for joining us today for the Mayville Engineering Company fourth quarter and full year 2025 results conference call. My name is Sammy. I'll ...

Financial Data and Key Metrics Changes - Total sales for Q4 2025 increased by 10.7% year-over-year to $134.3 million, while organic net sales declined by 5.3% excluding the Accu-Fab acquisition [15] - Manufacturing margin rate decreased to 6.6% from 8.9% in the prior year, primarily due to project launch costs and early-stage project inefficiencies [15][17] - Free Cash Flow for Q4 2025 was $10.2 million, down from $35.6 million in the prior year, largely due to a one-time settlement received in the previous year [17][18] Business Line Data and Key Metrics Changes - Net sales in the commercial vehicle market declined approximately 19% year-over-year, while construction and access market revenues increased by approximately 13% [6] - Powersports market net sales grew approximately 20% year-over-year, driven by new business wins and stabilized customer production schedules [7] - Data center and critical power market saw growth of approximately 13% year-over-year, supported by legacy OEM demand and early project launches [8] Market Data and Key Metrics Changes - The qualified opportunity pipeline for the data center and critical power market exceeds $125 million, with expected project launches valued at $40 million-$50 million in 2026 [8] - The serviceable addressable market for new data center capacity is estimated to be between $115 million and $185 million per gigawatt, representing a total market opportunity of approximately $3.2 billion [8] - The data center market is expected to grow at a compound annual rate of approximately 16% from 2026 through 2030 [9] Company Strategy and Development Direction - The company is focused on executing its MBX operational excellence framework and optimizing its manufacturing footprint to enhance operating leverage [5] - Investments are being made to support program readiness and execution in anticipation of higher volume programs, with a focus on capturing demand in the data center and critical power market [4][5] - The company aims to maintain a disciplined approach to capital deployment, prioritizing debt reduction and potential M&A opportunities to diversify end market exposure [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the fourth quarter represented a transitional period, with muted demand in legacy markets but robust demand in data center and critical power markets [4] - The company expects margins to normalize as project volumes ramp up and utilization improves, with a focus on profitable growth in 2026 and beyond [5][14] - Management expressed confidence in the growth trajectory for 2026, driven by anticipated improvements in legacy markets and strong demand in the data center sector [14][21] Other Important Information - The company is introducing quarterly financial guidance in addition to its full-year outlook to provide better visibility into business trends [12] - For 2026, the company expects net sales between $580 million and $620 million, with Adjusted EBITDA of $50 million to $60 million [19] Q&A Session Summary Question: Impact of revised ACT outlook on commercial vehicle market - Management noted an increase in Class A truck orders and expects demand to accelerate build rates from commercial vehicle customers starting mid to late Q2 [27][28] Question: Signs of improvement in agriculture market - Management indicated that while large agriculture remains down, there are signs of improvement in small agriculture and related sectors [31] Question: Margin headwinds in critical power segment - Management expects most launch costs to be incurred in the first half of 2026, with a return to full run rate anticipated by the end of Q2 [32] Question: Clarification on EBITDA guidance and margin progression - Management explained that ongoing costs and lower legacy market volumes are impacting margins, with expectations for improvement in the second half of the year [41][57] Question: Customer concentration in data center market - Management stated that the data center market is reasonably diversified across multiple customers, mitigating significant concentration risks [69] Question: Capacity to ramp up data center business without sacrificing legacy business - Management confirmed that current capacity allows for ramping up data center business while maintaining legacy business operations [78]

Financial Data and Key Metrics Changes - Total sales for Q4 2025 increased by 10.7% year-over-year to $134.3 million, while organic net sales declined by 5.3% excluding the Accu-Fab acquisition [15] - Manufacturing margin rate decreased to 6.6% from 8.9% in the prior year, primarily due to project launch costs and early-stage project inefficiencies [15][17] - Adjusted EBITDA margin was 4.7%, down from 7.6% year-over-year, reflecting lower legacy market volumes and project launch costs [17] - Free Cash Flow for Q4 2025 was $10.2 million, a decline from $35.6 million in the prior year, mainly due to a one-time settlement received last year [17][18] Business Line Data and Key Metrics Changes - Net sales in the commercial vehicle market declined approximately 19% year-over-year, while construction and access market revenues increased by about 13% [6] - Powersports market net sales grew approximately 20% year-over-year, driven by new business wins and stabilized production schedules [7] - Data center and critical power market saw growth of approximately 13% year-over-year, supported by legacy OEM demand and early project launches [8] Market Data and Key Metrics Changes - The qualified opportunity pipeline for the data center and critical power market exceeds $125 million, with expected project launches valued at $40 million-$50 million in 2026 [9] - The serviceable addressable market for new data center capacity is estimated to be between $115 million and $185 million per gigawatt, representing a total market opportunity of approximately $3.2 billion [9] - The data center market is expected to grow at a compound annual rate of approximately 16% from 2026 through 2030 [10] Company Strategy and Development Direction - The company is focused on executing its MBX operational excellence framework to drive process improvements and optimize its manufacturing footprint [5] - The strategy includes disciplined capital deployment, prioritizing debt reduction while remaining opportunistic in M&A to diversify end market exposure [12][21] - The company anticipates a gradual improvement in legacy end markets, particularly in the second half of 2026, while investing in growth initiatives [14] Management's Comments on Operating Environment and Future Outlook - Management noted that margin pressure is primarily due to early-stage project inefficiencies and project launch costs, which are expected to normalize as programs ramp up [5] - The company is entering a transitional year, with expectations for profitable growth and improved Free Cash Flow as legacy markets recover [14][21] - Management expressed confidence in the progress being made to position the company for durable, higher-margin growth in the future [95] Other Important Information - The company expects Free Cash Flow conversion for the full year to be between 50% and 60% of Adjusted EBITDA, with capital expenditures projected at $15 million-$20 million [21] - The net leverage ratio at the end of Q4 2025 was 3.7 times, with a target of reducing it to 3 times or lower by the end of 2026 [18][21] Q&A Session Summary Question: Impact of revised ACT outlook on commercial vehicle market - Management acknowledged the increase in Class A truck orders and expects demand to accelerate build rate increases from commercial vehicle customers starting mid to late Q2 [27][28] Question: Signs of improvement in agriculture market - Management indicated that while large agriculture remains down, there are signs of improvement in small agriculture and related sectors [30] Question: Margin headwinds in critical power segment - Management expects most margin pressures from project launch costs to be resolved by the end of Q2, with a return to normal margins in the second half of the year [31] Question: Clarification on EBITDA guidance and margin progression - Management explained that ongoing costs and lower legacy market volumes are impacting EBITDA guidance, with expectations for improvement in the second half of the year [39][56] Question: Customer concentration in data center segment - Management stated that the customer base within the data center market is reasonably diversified, with no significant concentration expected [68] Question: Current utilization and production shifts - Management reported that current utilization is around 55%, with plans to increase capacity through additional shifts and automation [82] Question: Definition of revenue synergies - Revenue synergies are defined as any data center customer work being produced in legacy MEC plants, excluding productivity improvements at the Accu-Fab facilities [90]

MAYVILLE ENGINEERING COMPANY 4Q25 RESULTS PRESENTATION MARCH 3, 2026 SAFE HARBOR STATEMENT Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: This presentation contains statements that are forward -looking in nature which express the beliefs and expectations of management including statements regarding the Company's expected results of operations or liquidity; statements concerning projections, predictions, expectations, estimates or forecasts as to our business, financia ...

Mayville Engineering (MEC) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.16. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +50.00%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced earnings of $0.1, delivering a surprise of +100%.Over the last four quarters, the company h ...

Financial Performance - Net sales for Q4 2025 were $134.3 million, representing a year-over-year increase of 10.7%[3] - The net loss for Q4 2025 was $4.4 million, or ($0.22) per diluted share, compared to a net income of $16.0 million, or $0.76 per diluted share in the prior year[9] - Adjusted EBITDA for Q4 2025 was $6.3 million, or 4.7% of net sales, down from $9.2 million, or 7.6% of net sales in the prior year[10] - Full-year 2025 net sales were $546.5 million, a decrease of 6.0% year-over-year[3] - Net income for the year ended December 31, 2025, was $(8,110) thousand, a decrease from $25,968 thousand in 2024[43] - EBITDA for the year ended December 31, 2025, was $37,443 thousand, compared to $82,141 thousand in 2024, reflecting a decline in EBITDA margin from 14.1% to 6.9%[44] - Adjusted EBITDA for the year ended December 31, 2025, was $47,057 thousand, down from $64,407 thousand in 2024, with an adjusted EBITDA margin of 8.6%[44] - The company’s diluted EPS for the year ended December 31, 2025, was $(0.40), a decrease from $1.24 in 2024[47] Cash Flow and Liquidity - Free cash flow for Q4 2025 was $10.2 million, down from $35.6 million in the prior year, primarily due to a prior year settlement receipt[12] - Free cash flow for the year ended December 31, 2025, was $26,914 thousand, significantly lower than $77,709 thousand in 2024[49] - Net cash provided by operating activities for the year ended December 31, 2025, was $38,562 thousand, down from $89,807 thousand in 2024[43] - The company experienced a net cash used in investing activities of $(151,530) thousand for the year ended December 31, 2025, compared to $(11,712) thousand in 2024[43] - Cash and cash equivalents increased to $1.50 million in 2025 from $0.21 million in 2024, showing improved liquidity[39] - The company reported a net increase in cash and cash equivalents to $1,502 thousand at the end of the period, up from $206 thousand at the beginning[43] Debt and Liabilities - The ratio of net debt to trailing twelve-month Adjusted EBITDA was 3.7x as of December 31, 2025[27] - The company’s total liabilities rose to $322.90 million in 2025, compared to $193.82 million in 2024, indicating increased leverage[39] - The company’s interest expense for the year was $10.22 million, slightly down from $10.99 million in 2024, reflecting potential improvements in debt management[41] - The company reported a significant increase in interest expense, totaling $10,215 thousand for the year ended December 31, 2025, compared to $10,989 thousand in 2024[44] Assets and Equity - Total assets increased to $563.64 million as of December 31, 2025, up from $445.57 million at the end of 2024, reflecting growth in the company's infrastructure[39] - The company’s goodwill increased significantly to $140.25 million in 2025 from $92.65 million in 2024, suggesting recent acquisitions or increased valuation of existing assets[39] - The company reported a decrease in retained earnings to $51.98 million in 2025 from $60.09 million in 2024, indicating challenges in profitability[39] Market Performance and Growth - The Data Center & Critical Power end market generated $20.4 million in net sales for Q4 2025, with organic growth of 12.7% year-over-year[22] - The company expects Accu-Fab cross-selling synergies to generate approximately $40 to $50 million in revenue, positioning Data Center & Critical Power to represent over 20% of total revenue[2] - Full-year 2026 net sales guidance is projected between $580 million and $620 million, assuming a full year of Accu-Fab ownership[30] Operational Strategy - The company plans to prioritize debt reduction through free cash flow generation and disciplined capital allocation[4] - The company is focused on expanding its manufacturing capabilities and integrating new technologies to enhance operational efficiency[34] - Capital expenditures for the year ended December 31, 2025, were $11,648 thousand, slightly lower than $12,098 thousand in 2024[49]

Core Insights - Riverwater Partners' Micro Opportunities Strategy reported solid absolute returns in Q3 2025 but lagged behind the benchmark due to not keeping pace with the market rally [1] - The strategy continues to focus on quality companies amid a volatile environment [1] Company Overview - Mayville Engineering Company, Inc. (NYSE:MEC) is a metal fabrication company involved in design, production, prototyping, tooling, aluminum extrusion, coating, and assembly of aftermarket components [2] - As of December 16, 2025, Mayville Engineering's stock closed at $18.25 per share, with a market capitalization of $370.81 million [2] Performance Metrics - Mayville Engineering's one-month return was 21.67%, and its shares gained 12.31% over the last 52 weeks [2] - In Q3 2025, Mayville Engineering's total sales increased by 6.6% year-over-year to $144.3 million [4] Market Position and Trends - The Industrials sector showed mixed results, with opportunities in reshoring trends and domestic manufacturing, although some companies faced near-term challenges [3] - Mayville Engineering experienced softened customer demand in certain end markets, impacting its performance [3] - Despite near-term weaknesses, there is confidence in Mayville Engineering's long-term positioning to benefit from the reshoring of manufacturing to the U.S. [3] Hedge Fund Interest - Mayville Engineering is not among the 30 most popular stocks among hedge funds, with 7 hedge fund portfolios holding the stock at the end of Q3 2025, down from 11 in the previous quarter [4]