Mayville Engineering Company, Inc. · NYSE:MEC
Mayville Engineering — Q1 2025 Earnings Presentation
16 slides from Mayville Engineering's earnings presentation, May 7, 2025
Slide 1: 1Q25 Results Presentation
1Q25 Results Presentation May 7, 2025
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: This presentation contains statements that are forward-looking in nature which express the beliefs and expectations of management including statements regarding the Company’s expected results
Slide 3: 1Q25 Financial Performance
1Q25 FINANCIAL PERFORMANCE Strategic execution drove operating leverage improvements, despite soft customer demand Consistent execution under MBX strategic framework resulted in • Net sales declined 15.9% y/y, due to customer channel inventory destocking resulting from softening end-market demand, p
Slide 4: First Quarter Financial Performance
FIRST QUARTER FINANCIAL PERFORMANCE Net Sales Adj. EBITDA & Margin Adjusted Diluted EPS Free Cash Flow ($MM) ($MM & % of Net Sales) ($/share) ($MM) $0.22 $161.3 $18.5 $7.9 $135.6 $12.2 $5.4 11.5% 9.0% $0.04 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 4 See the appendix for reconciliations of Adjusted EB
Slide 5: 2025 End-Market Outlook
2025 END-MARKET OUTLOOK Customer demand remains subdued in 1H25, with gradual improvement throughout 2H25 as channel inventory levels normalize Construction Commercial Vehicle & Access Powersports MEC Net Sales % Change 11.7% 5.8% 0% – (5%) 1.9% (5.6%) (Year-Over-Year) (2.4%) (11.9%) (1%) – (5%) (5%
Slide 6: 1Q Net Sales & Adjusted EBITDA Performance Highlights
1Q NET SALES & ADJUSTED EBITDA PERFORMANCE HIGHLIGHTS Strategic execution and operational discipline supported positive free cash flow Evolving economy increases consumer demand risk Net sales decreased 15.9% y/y in Q1, due to weak end market 1Q Net Sales Reconciliation demand across the majority of
Slide 7: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Capital allocation priorities focused on maximizing cash flow and return on invested capital Balanced approach to capital allocation Capital Expenditures ($MM) $59 Consistent Debt Paydown • Net leverage of 1.4x as of March 31, 2025 • At or below 1.0x net debt by the end
Slide 8: Disciplined Capital Management
DISCIPLINED CAPITAL MANAGEMENT Flexible balance sheet with ample liquidity to support long term growth $250 $225 Total Cash & $203 Available Liquidity1 ($MM) $150 Total Debt2 $82 ($MM) $81 Net Leverage Ratio3 2.1x 1.3x 1.4x Net Working $63 Capital4 $48 $49 2023 2024 1Q25 1) Assumes continued complia
Slide 9: 2025 Financial Guidance
2025 FINANCIAL GUIDANCE As of May 7, 2025 Business Outlook Financial Assumptions • Ongoing demand softness expected to • Continued discipline in executing • Year-over-year revenue change by end • Strategic value-based pricing and MBX persist in key end markets through organic commercial growth initi
Slide 10: Pure Play Domestic Metal Fabricator
Pure Play Domestic Metal Fabricator Largely insulated from tariff impact due to 100% domestic footprint 22 Manufacturing Facilities • Milwaukee, WI (Corporate Headquarters) 7 States (WI, OH, MI, PA, VA, AR, MS) 100% Domestic Manufacturing ~2,200 Employees Contract price mechanism passes on Foreign D
Slide 11: Investment Thesis
INVESTMENT THESIS Domestic strategic evolution story supported by attractive re-shoring and outsourcing mega trends • Proven framework of operational excellence supports improved capacity utilization and enables commercial growth • Value creation platform expected to drive multi-year Adjusted EBITDA
Slide 12: Appendix
APPENDIX
Slide 13: Historical Material Price Pass-Through
HISTORICAL MATERIAL PRICE PASS-THROUGH Material Price Pass-Throughs (Y-o-Y Change in $MMs) 1Q 2Q 3Q 4Q Full Year 2023 $ (9.9) $ (8.3) $ (0.5) $ (0.4) $ (19.1) 2024 $ — $ (1.1) $ (0.7) $ (0.2) $ (2.0) 2025 $ (1.9) $ (1.9) 13
Slide 14: Non-GAAP Reconciliation of Adjusted EBITDA
Non-GAAP Reconciliation of Adjusted EBITDA Q1 ($MM) 2025 2024 Net income and comprehensive income $ 0.0 $ 3.2 Interest expense 1.6 3.4 Provision (benefit) for income taxes (0.0) 1.0 Depreciation and amortization 9.5 9.3 EBITDA $ 11.1 $ 16.9 Stock-based compensation expense 1.1 1.2 Legal costs due to
Slide 15: Non-GAAP Reconciliation of Adjusted Net Income & Diluted EPS
Non-GAAP Reconciliation of Adjusted Net Income & Diluted EPS Q1 ($MM, except share amounts and per share values) 2025 2024 Net income and comprehensive income $ 0.0 $ 3.2 Stock-based compensation expense 1.1 1.2 Legal costs due to former fitness customer — 0.5 Tax affect of the above adjustments (0.
Slide 16: Non-GAAP Reconciliation of Free Cash Flow
Non-GAAP Reconciliation of Free Cash Flow Q1 2025 2024 ($MM) Net cash provided by operating activities $ 8.3 $ 10.6 Purchase of property, plant and equipment (3.0) (2.8) Free cash flow $ 5.4 $ 7.9 16 Note: Totals may not sum due to rounding.
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