mec(US:MEC)2025-05-06 20:29Financial Performance - Net sales for Q1 2025 were $135.6 million, a decrease of 15.9% year-over-year due to lower customer demand and inventory de-stocking[5]. - Adjusted EBITDA was $12.2 million, representing 9.0% of net sales, down from $18.5 million or 11.5% in the prior year[9]. - Free cash flow generated in Q1 2025 was $5.4 million, compared to $7.9 million in the prior year, reflecting a decrease in net cash from operating activities[11]. - Net sales for Q1 2025 were $135,579, a decrease of 16% compared to $161,269 in Q1 2024[38]. - EBITDA for Q1 2025 was $11,060, down 34.5% from $16,885 in Q1 2024, resulting in an EBITDA margin of 8.2%[42]. - Adjusted EBITDA for Q1 2025 was $12,161, a decline of 34.5% from $18,521 in Q1 2024, with an adjusted EBITDA margin of 9.0%[42]. - Net income for Q1 2025 was $20, significantly lower than $3,241 in Q1 2024, leading to diluted EPS of $0.00 compared to $0.16[38][44]. - Free cash flow for Q1 2025 was $5,371, down from $7,850 in Q1 2024[46]. Market Performance - The military end market saw a 6.7% increase in net sales to $8.5 million, driven by higher service and after-market demand[22]. - The commercial vehicle market reported net sales of $50.9 million, a decrease of 13.7% year-over-year, while overall demand fell by 16.7%[14]. Guidance and Future Outlook - The company maintained its full-year 2025 guidance with net sales forecasted between $560 million and $590 million[25]. - The company aims to secure $100 million in new project awards in 2025, supported by strong engagement from customers[2]. Balance Sheet and Cash Flow - Total current assets increased to $122,011 as of March 31, 2025, compared to $112,944 at December 31, 2024[36]. - Total liabilities rose to $197,745 as of March 31, 2025, compared to $193,817 at December 31, 2024[36]. - Cash and cash equivalents decreased to $183 at the end of Q1 2025 from $206 at the end of Q4 2024[36]. - Accounts payable increased to $49,749 as of March 31, 2025, compared to $39,119 at December 31, 2024[36]. - The company reported a net cash provided by operating activities of $8,333 for Q1 2025, down from $10,625 in Q1 2024[40]. Shareholder Actions - The company repurchased $1.7 million of common stock during the first quarter, with $17.4 million remaining under the share repurchase program[4]. - The ratio of net debt to trailing twelve-month Adjusted EBITDA was 1.4x as of March 31, 2025[24]. Manufacturing Performance - Manufacturing margin was $15.3 million, or 11.3% of net sales, down from $20.9 million or 13.0% in the prior year[6].