NYSE$MEC
Mayville Engineering Company Inc · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
MEC's Q4 2022 earnings showcased growth in net sales and adjusted EBITDA, driven by favorable demand and strategic initiatives.
Mayville Engineering Company (MEC) reported a strong fourth quarter in 2022, with a 13.8% increase in net sales and a significant improvement in net income compared to the prior year. The company's adjusted EBITDA also increased by 26.2%, reflecting the positive impact of its business transformation initiatives and favorable demand conditions.
- Net sales increased by 13.8% year-over-year, driven by increased commercial sales volumes and price discipline.
- Net income increased by $15.9 million year-over-year, reaching $2.4 million.
- Adjusted EBITDA increased by 26.2% year-over-year, reflecting improved operational performance.
- The company is focused on margin expansion and profitable growth through its MBX Initiative.
Headline financials
Revenue & EPS history
MEC · Revenue · Quarterly
$129M
Revenue by segment
MEC · $158M total across 6 segments · Q3 2023
- Commercial Vehicle$57.3M—36.2%
- Construction & Access$26.3M—16.6%
- Powersports$25.1M—15.9%
- Other$23.5M—14.9%
- Agriculture$15M—9.5%
- Military$11M—6.9%
Forward guidance
MEC provided financial guidance for the full year 2023, including net sales between $540 million and $580 million and adjusted EBITDA between $62 million and $71 million. The guidance reflects an estimated decrease in net sales due to lower raw material pass-through costs and a negative impact from the ramp-up of production at its Hazel Park facility.
Tailwinds
- Net sales guidance of between $540 million and $580 million
- Adjusted EBITDA guidance of between $62 million and $71 million
- Capital expenditures guidance of between $20 million and $25 million
- MBX Initiative is expected to drive improved margin capture, free cash generation and profitability.
- Prioritizing capital allocation towards bolt-on acquisitions, productivity and automation, debt reduction, and share repurchases.
Headwinds
- Estimated 4% to 5% decrease in net sales related to lower raw material pass-through costs.
- Estimated $4 million to $6 million negative impact of under-absorbed overhead costs associated with the ramp up of production at its Hazel Park, Michigan facility.
- Potential for a softening in the broader macroeconomic outlook during 2023.
- Planned expenses related to the ramp-up of Hazel Park will adversely impact margins by approximately 100 basis-points in 2023.
- Ongoing supply chain challenges, labor availability and cost pressures, and the COVID-19 pandemic may have a negative impact on business.
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 Q4 2022
-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
| Quarter | Report date | Reaction (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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