Mayville Engineering Company, Inc. · NYSE:MEC
Mayville Engineering — Q4 2024 Earnings Presentation
17 slides from Mayville Engineering's earnings presentation, Mar 5, 2025
Slide 1: 4Q24 Results Presentation
4Q24 Results Presentation March 4, 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: 4Q24 Financial Performance
4Q24 FINANCIAL PERFORMANCE Continued cost rationalization and operational discipline, while navigating a trough in customer demand • Net sales declined 18.4% y/y, due to customer de-stocking of channel inventory Operational focus on due to weak end-market demand, partially offset by new project ramp
Slide 4: Fourth Quarter Financial Performance
FOURTH QUARTER FINANCIAL PERFORMANCE Net Sales Adj. EBITDA & Margin Adjusted Diluted EPS Free Cash Flow ($MM) ($MM & % of Net Sales) ($/share) ($MM) (18.4%) (48.1%) +79.1% $17.7 $0.21 $35.6 $148.6 $121.3 $19.9 11.9% $9.2 7.6% $(0.07) 4Q23 4Q24 4Q23 4Q24 4Q23 4Q24 4Q23 4Q24 4 See the appendix for rec
Slide 5: Full Year Financial Performance
FULL YEAR FINANCIAL PERFORMANCE Net Sales Adj. EBITDA & Margin Adjusted Diluted EPS Free Cash Flow ($MM) ($MM & % of Net Sales) ($/share) ($MM) (1.2%) (2.5%) (0.5%) (21.5%) +227.0% $588.4 $66.1 $0.79 $77.7 $581.6 $64.4 $0.62 11.2% 11.1% $23.8 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 5
Slide 6: 2025 End-Market Outlook
2025 END-MARKET OUTLOOK Customer demand remains subdued in 1H25, with gradual improvement throughout 2H25 as channel inventory levels normalize Construction Commercial Vehicle & Access Powersports MEC Net Sales % Change 5.8% 0% - 3% 11.7% 1.9% (Year-Over-Year) (5.6%) (2.4%) 0% - (3%) (11.9%) (1%) –
Slide 7: 4Q Net Sales & Adjusted EBITDA Performance Highlights
4Q NET SALES & ADJUSTED EBITDA PERFORMANCE HIGHLIGHTS End-market demand stabilized through the quarter, while operational excellence preserved operating margin Customer demand remains muted Net sales decreased 18.4% y/y in Q4, driven by soft end 4Q Net Sales Reconciliation market demand across our s
Slide 8: 2024 Net Sales & Adjusted EBITDA Performance Highlights
2024 NET SALES & ADJUSTED EBITDA PERFORMANCE HIGHLIGHTS Strategic execution created commercial growth and pricing momentum, despite softening demand in 2H24 2H demand softness offset commercial growth Net sales decreased 1.2% y/y, due to soft demand late in the 2024 Net Sales Reconciliation year alt
Slide 9: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Capital allocation priorities focused on maximizing cash flow and return on invested capital Balanced approach to capital allocation Capital Expenditures ($MM) $59 Consistent Debt Paydown • Net leverage of 1.3x as of December 31, 2024 • Below the low-end of the 1.5x – 2
Slide 10: Disciplined Capital Management
DISCIPLINED CAPITAL MANAGEMENT Flexible balance sheet with ample liquidity to support long term growth Total Cash & $250 $225 $198 Available Liquidity1 ($MM) $150 Total Debt2 $82 ($MM) $75 Net Leverage Ratio3 2.1x 1.3x 1.3x $63 Net Working $48 Capital4 $39 2022 2023 2024 1) Assumes continued complia
Slide 11: 2025 Financial Guidance
2025 FINANCIAL GUIDANCE As of March 4, 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 all key end markets through organic commercial growth
Slide 12: Investment Thesis
INVESTMENT THESIS Strategic evolution story supported by attractive re-shoring and outsourcing mega trends • Strategically positioned to capture available opportunities as the current environment evolves • Value creation platform expected to drive multi-year Adjusted EBITDA margin Strategic improvem
Slide 13: Appendix
APPENDIX
Slide 14: 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 2022 $ 14.6 $ 10.4 $ 2.5 $ 0.5 $ 28.0 2023 $ (9.9) $ (8.3) $ (0.5) $ (0.4) $ (19.1) 2024 $ — $ (1.1) $ (0.7) $ (0.2) $ (2.0) 14
Slide 15: Non-GAAP Reconciliation of Adjusted EBITDA
Non-GAAP Reconciliation of Adjusted EBITDA Full Year Q4 ($MM) 2024 2023 2024 2023 Net income and comprehensive income $ 26.0 $ 7.8 $ 16.0 $ 2.2 Interest expense 11.0 11.1 2.0 3.6 Provision (benefit) for income taxes 7.6 1.0 5.1 (0.4) Depreciation and amortization 37.6 35.1 9.5 9.6 EBITDA $ 82.1 $ 55
Slide 16: Non-GAAP Reconciliation of Adjusted Net Income & Diluted EPS
Non-GAAP Reconciliation of Adjusted Net Income & Diluted EPS Full Year Q4 ($MM, except share amounts and per share values) 2024 2023 2024 2023 Net income and comprehensive income $ 26.0 $ 7.8 $ 16.0 $ 2.2 Loss on extinguishment of debt — 0.2 — — MSA acquisition related costs — 1.4 — 0.0 Stock-based
Slide 17: Non-GAAP Reconciliation of Free Cash Flow
Non-GAAP Reconciliation of Free Cash Flow Full Year Q4 2024 2023 2024 2023 ($MM) Net cash provided by operating activities $ 89.8 $ 40.4 $ 38.0 $ 26.7 Purchase of property, plant and equipment (12.1) (16.6) (2.3) (6.8) Free cash flow $ 77.7 $ 23.8 $ 35.6 $ 19.9 17 Note: Totals may not sum due to rou
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