Mayville Engineering Company to Introduce Strategy Update & Multi-Year Financial Targets at 2023 Investor Day

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MAYVILLE, Wis.–(BUSINESS WIRE)– Mayville Engineering Company (NYSE: MEC) (the “Company” or “MEC”), a leading value-added provider of design, prototyping and manufacturing solutions serving diverse end-markets, will host an Investor Day at its Hazel Park, Michigan facility today, September 14, 2023, beginning at 9:00 a.m. ET.

At the Investor Day event, MEC will provide a progress update on its MEC Business Excellence (MBX) value creation framework, including a focus on targeted commercial growth, best-in-class operational execution and its capital allocation priorities. Within its presentation, MEC will also introduce new, three-year performance targets, as outlined below.

“Today, we are introducing three-year performance targets that highlight the significant value creation potential of our business,” stated Jag Reddy, President and CEO of MEC. “Multi-year secular trends toward reshoring and outsourcing, together with growing demand for integrated supply chain solutions across both existing and underserved adjacent markets, create a compelling opportunity for MEC in the years ahead. We will seek to further optimize recent investments in world-class engineering, design and manufacturing capabilities, while deploying efficient, standardized processes that enhance both our value proposition with customers and the long-term profitability of our business. We are excited by the outlook for our business and look forward to continuing to build a leading platform of scale across our diverse end-markets.”


In 2022, MEC launched MBX, a holistic, strategic framework designed to drive profitable growth through targeted commercial expansion within higher-value adjacent markets; the implementation of more efficient business processes; improved asset optimization and productivity; and further standardization across the enterprise. MBX positions MEC to provide a solutions-based platform equipped to scale with the unique requirements of existing customers, while capitalizing on underserved demand within emerging growth sectors, including energy transition. In combination, MEC believes the MBX framework will contribute to ratable growth in sustained revenue, margin realization and profitability.

Organic Growth Acceleration. MEC intends to further leverage commercial expansion opportunities provided by reshoring/outsourcing megatrends within its vertical markets, while leveraging existing production capacity at Hazel Park and related manufacturing facilities. The Company anticipates these actions will result in net sales growth of $170 to $240 million between year-end 2023 and year-end 2026.

Ratable Margin Expansion. During the next three years, MEC intends to drive significant margin expansion through a combination of sustained volume growth; value-based pricing; improved asset optimization; and process improvements. These initiatives, in combination with continued normalization in supply chain and further optimization of the Hazel Park facility, are expected to result in between 14% to 16% Adjusted EBITDA Margin, or 300 to 400 basis points of margin expansion, between year-end 2023 and year-end 2026.

Significant Free Cash Flow Generation. Between year-end 2023 and year-end 2026, the Company anticipates that it will generate approximately $200 million in free cash flow. The Company is committed to maximizing shareholder value through a reduction in debt outstanding; investments in high-return, accretive acquisition opportunities; and through a programmatic share repurchase program.


Today, MEC is reiterating its full-year 2023 financial guidance, as outlined below:

 Low-EndHigh End
Full-Year 2023 Net Sales ($MM)$580$610
Full-Year 2023 Adjusted EBITDA ($MM)$66$71
Full-Year 2023 Capital Expenditures ($MM)$15$20


Today, MEC is introducing full-year 2026 financial targets, as outlined below:

 Low-EndHigh End
Full-Year 2026 Net Sales ($MM)$750$850
Full-Year 2026 Adjusted EBITDA ($MM)$105$135
Full-Year 2026 Adjusted EBITDA Margin (%)14%16%
Full-Year 2026 Free Cash Flow ($MM)$65$75


The investor day event will be held today at 9:00 a.m. Eastern Time and will include presentations by Jag Reddy, MEC’s President and Chief Executive Officer; Todd Butz, MEC’s Chief Financial Officer; Rand Stille, MEC’s Chief Operating Officer, and Ryan Raber, MEC’s Executive Vice President of Strategy, Sales and Marketing.

A webcast of the event and a link to the accompanying presentation materials are available in the Investor Relations section of the MEC corporate website at, and a replay of the webcast will be available at the same site following the event.


Founded in 1945, Mayville Engineering Company (MEC) is a leading U.S.-based, vertically-integrated, value-added manufacturing partner providing a full suite of manufacturing solutions from concept to production, including design, prototyping and tooling, fabrication, aluminum extrusion, coating, assembly and aftermarket components. Our customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction & access equipment, powersports, agriculture, military and other end markets. Along with process engineering and development services, MEC maintains an extensive manufacturing infrastructure with 22 facilities across seven states. These facilities make it possible to offer conventional and CNC (computer numerical control) stamping, shearing, fiber laser cutting, forming, drilling, tapping, grinding, tube bending, machining, welding, assembly, and logistic services. MEC also possesses a broad range of finishing capabilities including shot blasting, e-coating, powder coating, wet spray and military grade chemical agent resistant coating (CARC) painting.


The financial target information provided in this press release includes the forward-looking financial measures calculated in a manner other than in accordance with U.S. generally accepted accounting principles (GAAP).

The non-GAAP measures used in this press release are adjusted net income (loss) before interest, taxes, depreciation and amortization (Adjusted EBITDA), Adjusted EBITDA as a percentage of net sales (Adjusted EBITDA margin) and free cash flow, which management uses as key performance indicators, and we believe they are measures frequently used by securities analysts, investors and other parties to evaluate companies in our industry. These metrics are supplemental measures of our operating performance that are neither required by, nor presented in accordance with, GAAP. These measures should not be considered as an alternative to net income or cash provided by operating activities, or any other performance measure derived in accordance with GAAP as an indicator of our operating performance.

The Company calculates forward-looking Adjusted EBITDA and Adjusted EBITDA margin based on internal forecasts that omit certain amounts that would be included in forward-looking GAAP net income (loss). The Company calculates free cash flow based on forward-looking cash provided from operating activities less forward-looking capital expenditures. The Company is not able to provide a reconciliation of forward-looking Adjusted EBITDA, Adjusted EBITDA margin or free cash flow guidance to forward-looking GAAP net income (loss) or forward-looking cash flow provided by operating activities because forecasting the exact timing or impact of items, including, without limitation, the impact of macroeconomic, industry and operational changes through 2026, that have not yet occurred and are out of its control is inherently uncertain and unavailable without unreasonable efforts. Further, the Company believes that such reconciliations would imply a degree of precision and certainty that could be confusing to investors and could have substantial impact on GAAP measures of financial performance.


This press release includes forward-looking statements that reflect plans, estimates and beliefs. Such statements involve risk and uncertainties. Actual results may differ materially from those contemplated by these forward-looking statements as a result of various factors. Important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements include, but are not limited to: macroeconomic conditions, including inflation, rising interest rates and recessionary concerns, as well as ongoing supply chain challenges, labor availability and cost pressures, and the COVID-19 pandemic, have had, and may continue to have, a negative impact on our business, financial condition, cash flows and results of operations (including future uncertain impacts); risks relating to developments in the industries in which our customers operate; risks related to scheduling production accurately and maximizing efficiency; our ability to realize net sales represented by our awarded business; failure to compete successfully in our markets; our ability to maintain our manufacturing, engineering and technological expertise; the loss of any of our large customers or the loss of their respective market shares; risks related to entering new markets; our ability to recruit and retain our key executive officers, managers and trade-skilled personnel; volatility in the prices or availability of raw materials critical to our business; manufacturing risks, including delays and technical problems, issues with third-party suppliers, environmental risks and applicable statutory and regulatory requirements; our ability to successfully identify or integrate acquisitions; our ability to develop new and innovative processes and gain customer acceptance of such processes; risks related to our information technology systems and infrastructure; geopolitical and economic developments, including foreign trade relations and associated tariffs; results of legal disputes, including product liability, intellectual property infringement and other claims; risks associated with our capital-intensive industry; risks related to our treatment as an S Corporation prior to the consummation of our initial public offering; risks related to our employee stock ownership plan’s treatment as a tax-qualified retirement plan; and other factors described in “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022, as such may be amended or supplemented in our subsequently filed Quarterly Reports on Form 10-Q. This discussion should be read in conjunction with our audited consolidated financial statements included in the Company’s previously filed Annual Report on Form 10-K for the year ended December 31, 2022. We undertake no obligation to update or revise any forward-looking statements after the date on which any such statement is made, whether as a result of new information, future events or otherwise, except as required by federal securities laws.


Stefan Neely or Noel Ryan
(615) 844-6248

Source: Mayville Engineering Company