NYSE$MEC
Mayville Engineering Company Inc · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
MEC's Q4 2023 earnings were announced, showcasing revenue growth and improved profitability despite challenges.
Mayville Engineering Company reported a 15.6% increase in net sales to $148.6 million for Q4 2023, driven by organic growth and the acquisition of MSA. Net income was $2.2 million, or $0.11 per diluted share, with an adjusted EBITDA of $17.7 million. The company experienced a negative impact from UAW labor strikes but achieved a record quarterly free cash flow of $19.9 million.
- Net sales increased by 15.6% year-over-year, reaching $148.6 million.
- Net income reached $2.2 million, with adjusted diluted EPS at $0.21.
- Adjusted EBITDA was $17.7 million, impacted by the Hazel Park facility ramp-up and UAW strikes.
- Record quarterly free cash flow of $19.9 million was achieved.
Headline financials
Revenue & EPS history
MEC · Revenue · Quarterly
$149M
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 anticipates mid-to-high single-digit organic net sales growth and between 40 to 80 basis points of Adjusted EBITDA margin expansion for the full-year 2024. They expect their Hazel Park facility to approach $100 million of annualized sales during the fourth quarter 2024.
Tailwinds
- Expect mid-to-high single digit organic net sales growth.
- Expect between 40 to 80 basis points of Adjusted EBITDA margin expansion.
- Expect significant year-over-year growth in free cash flow generation.
- MBX-related and commercial pricing initiatives are expected to deliver between $3 to $6 million of incremental Adjusted EBITDA benefit this year, net of inflationary pressures.
- Hazel Park facility is expected to approach $100 million of annualized sales during the fourth quarter 2024.
Headwinds
- Contemplates a potential softening in macroeconomic conditions.
- 2024 guidance reflects the expected softening in end market demand as the result of various macroeconomic factors.
- 2024 guidance reflects incremental contribution from the MSA acquisition, including $20 to $30 million of incremental net sales and $4 to $6 million of incremental Adjusted EBITDA.
- 2024 financial guidance reflects incremental contributions from MBX related initiatives of $3 to $6 million.
- The impact of these initiatives is net of normal annual cost inflation, representing the Company’s ability to improve efficiency and manage pricing, given higher labor and input costs.
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 2023
-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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