NYSE$MEC

Mayville Engineering Company Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

MEC demonstrated solid execution on strategic priorities, culminating in a strong start to the year.

Mayville Engineering Company reported a strong start to 2024 with double-digit sales growth, margin expansion, improved profitability, and robust free cash flow. Net sales increased by 13.1% year-over-year to $161.3 million, and adjusted EBITDA increased by 33.8% to $18.5 million. The company is on track to achieve its full-year 2024 financial guidance.

  • Net sales increased by 13.1% year-over-year, reaching $161.3 million.
  • Net income increased by 26% year-over-year to $3.2 million, or $0.16 per diluted share.
  • Adjusted EBITDA increased by 33.8% year-over-year to $18.5 million, with an adjusted EBITDA margin of 11.5%.
  • Free cash flow was $7.9 million, an increase of $16.4 million year-over-year.

Headline financials

Total Revenue

$161M

Previous: $143M+13.1%
EPS

$0.16

Previous: $0.12+33.3%
Adjusted EBITDA

$18.5M

Previous: $13.8M+33.8%
Adjusted EBITDA Margin

11.5%

Previous: 9.7%+18.6%
Manufacturing Margin %

13.0%

No prior period
Capital Expenditures

-$2.78M

Previous: -$2.41M-15.2%
Free Cash Flow

$466K

Previous: $163K+185.9%
Net Income

$3.24M

Previous: $2.57M+26.1%
Operating Income

$7.63M

Previous: $4.67M+63.4%
Gross Profit

$20.9M

Previous: $16.4M+27.8%
Cash & Equivalents

$314K

Previous: $126K+149.2%
Total Assets

$500M

Previous: $448M+11.6%

Revenue & EPS history

MEC · Revenue · Quarterly

$161M

Q1 2024+13.1%vs Q1 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

MEC · $158M total across 6 segments · Q3 2023

  • Commercial Vehicle
    $57.3M
  • Construction & Access
    $26.3M
  • Powersports
    $25.1M
  • Other
    $23.5M
  • Agriculture
    $15M
  • Military
    $11M

Forward guidance

The Company reaffirmed its financial guidance for the full year 2024. The company expects softening in end market demand as the result of various macroeconomic factors, which the Company expects will be offset by the continued ramp-up of new project work with both new and existing customers.

Tailwinds

  • Ramp-up of new project work with both new and existing customers
  • Incremental contribution from the MSA acquisition
  • Incremental contributions from MBX and commercial pricing related initiatives
  • Improved working capital utilization relative to 2023
  • Capital expenditures of between $15 and $20 million

Headwinds

  • Expected softening in end market demand as the result of various macroeconomic factors
  • Inflation
  • Elevated interest rates
  • Recessionary concerns
  • Continuing supply chain constraints

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-1.3%

Avg return

Earnings day

+3.1%

Avg return

5 days after

+5.6%

Avg return

30 days after

39%

11 / 28 earnings

Positive

+17.6%

Q3 2022

Best reaction

-37.7%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.6%+19.6%+45.9%
Q4 2025-1.8%-10.8%-13.7%
Q3 2025-10.4%-6.3%-8.3%
Q1 2025-3.8%+11.7%+13.7%
Q4 2024-0.1%+8.2%-8.8%
Q3 2024-16.3%-18.1%-19.7%
Q2 2024+10.9%+13.0%+11.3%
Q1 2024+7.4%+16.2%+16.1%
Q4 2023+6.8%+3.6%+6.9%
Q3 2023+3.6%+6.9%+11.9%
Q2 2023-7.9%+0.2%-2.9%
Q1 2023-5.9%-17.5%-2.3%
Q4 2022-4.0%-4.7%-8.4%
Q3 2022+17.6%+45.1%+99.2%
Q2 2022-0.8%-3.4%-3.9%
Q1 2022+8.2%-1.2%+9.6%
Q4 2021-5.7%-2.0%-9.4%
Q3 2021-4.8%-4.8%-18.8%
Q2 2021-2.4%-1.3%-16.8%
Q1 2021-5.7%+8.2%+18.6%
Q4 2020+1.4%+6.3%+3.2%
Q3 2020+14.3%+15.6%+24.6%
Q2 2020-1.5%+6.4%+14.0%
Q1 2020+8.3%+30.4%+34.5%
Q4 2019-6.2%+2.0%-15.4%
Q3 2019-37.7%-19.9%-26.8%
Q2 2019-5.8%-11.3%+1.9%
Q1 2019+3.3%-5.7%+0.4%
Q4 2018
Q3 2018
Q2 2018
Q1 2018

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