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Mayville Engineering Company (MEC)
NYSE:MEC
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Earnings Data
Report Date
Mar 04, 2025TBA Not Confirmed
Period Ending
2024 (Q4)Consensus EPS Forecast
-$0.08Last Year’s EPS
$0.21Same Quarter Last Year
Based on 1 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Nov 05, 2024
|% Change Since: -25.77%
|Next Earnings Date:Mar 04, 2025
Earnings Call Sentiment|Neutral
The earnings call reflects a challenging quarter for MEC with significant revenue declines and reduced guidance due to demand softening across several key markets. However, the company has taken decisive cost rationalization actions and secured new project wins that are expected to provide future growth. The legal settlement provides additional financial flexibility. Despite short-term challenges, the company remains optimistic about long-term growth and financial targets.Company Guidance
In the earnings call for the third quarter of 2024, Mayville Engineering Company (MEC) provided updated financial guidance in response to softening customer demand across their key markets. The company anticipates full-year net sales between $580 million and $590 million, adjusted EBITDA of $63 million to $66 million, and capital expenditures ranging from $13 million to $15 million. Despite a 14.4% year-over-year decrease in third-quarter sales to $135.4 million and a 12.6% adjusted EBITDA margin, MEC implemented cost rationalization initiatives, including a 12% workforce reduction and the closure of the Wautoma facility, expected to yield $1 million to $3 million in annualized savings. The company remains on track with its strategic goals, projecting revenues between $750 million and $850 million and an adjusted EBITDA margin of 14% to 16% by 2026. Additionally, MEC's free cash flow for the year is projected to be between $45 million and $55 million, excluding impacts from a recent $25.5 million legal settlement. The company is poised for growth with approximately $80 million in new project wins and no significant market share losses.Cost Rationalization Efforts
Introduced a series of cost rationalization initiatives, including a 12% reduction in labor force and permanent closure of the Wautoma facility, expected to result in $600,000 of restructuring expenses in Q4 and $1 million to $3 million in annualized cost savings.
Improved Financial Metrics
Despite a 14.4% decrease in net sales, manufacturing margin rate improved by 60 basis points year-over-year to 12.6%, attributed to ongoing MBX and pricing initiatives.
New Project Wins
Secured approximately $80 million in new project wins, including engine components for commercial vehicles and aluminum extrusion programs for mass public transit expansion.
Legal Settlement
Settled a legal dispute with a former fitness customer, resulting in a gross cash settlement of $25.5 million, which will be used for debt repayment and share repurchases.
Strong Free Cash Flow
Generated $15.1 million in free cash flow for the third quarter and reduced net leverage to 1.6x.
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MEC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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MEC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Nov 05, 2024 | $21.81 | $17.53 | -19.62% |
| Aug 06, 2024 | $16.75 | $18.51 | +10.51% |
| May 07, 2024 | $13.62 | $15.00 | +10.13% |
| Mar 05, 2024 | $12.55 | $13.42 | +6.93% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Mayville Engineering Company (MEC) report earnings?
Mayville Engineering Company (MEC) is schdueled to report earning on Mar 04, 2025, TBA Not Confirmed.
What is Mayville Engineering Company (MEC) earnings time?
Mayville Engineering Company (MEC) earnings time is at Mar 04, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is MEC EPS forecast?
MEC EPS forecast for the fiscal quarter 2024 (Q4) is -$0.08.
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