Key Points – Q2 sales exceeded expectations: Revenue rose 23.2% year over year to $163 million, including 9.2% organic growth, driven by data center, critical power and recovering commercial-vehicle programs.
MEC raised its full-year sales outlook to $620 million–$650 million. – Data center growth is accelerating but costly: Organic revenue in the segment increased approximately 173%, with more than $125 million in qualified opportunities and about $40 million in new awards
Launch, outsourcing and capacity-expansion costs pressured adjusted EBITDA margins and are expected to continue through the second half. – Investment is weighing on cash flow: MEC maintained its $52 million–$60 million adjusted EBITDA outlook but lowered free-cash-flow guidance to $7 million–$15 million. The company plans roughly $40 million in incremental capital expenditures plus $10 million in leased equipment over the next two years, partly funded by a $94 million stock offering used to reduce debt. Mayville Engineering (NYSE:MEC) reported second-quarter sales growth that exceeded management’s expectations, driven by momentum in data center and critical power programs and an early recovery in commercial vehicles.
The company raised its full-year sales outlook while maintaining its adjusted EBITDA forecast and lowering its free-cash-flow guidance to reflect planned growth investments. Total second-quarter sales increased 23.2% year over year to $163 million. Excluding the Accu-Fab acquisition, organic sales rose 9.2%, Chief Financial Officer Rachele Lehr said.