Mayville Engineering (MEC) posted fourth-quarter revenue of $142 million, in line with expectations, as defense segment growth offset modest declines in energy-related contracts. The company maintained its full-year guidance despite macroeconomic headwinds.
- Q4 revenue: $142 million, up 3% YoY
- Defense segment revenue grew 12% year-over-year
- Energy division revenue declined 5% due to delayed project completions
- Non-GAAP net income: $18.7 million, up 7% YoY
- Adjusted EBITDA: $31.2 million
- 2026 full-year guidance: $560M–$575M revenue, $125M–$130M EBITDA
Mayville Engineering (MEC) delivered consistent financial results for its fiscal fourth quarter, reporting consolidated revenue of $142 million, meeting analyst estimates and marking a 3% year-over-year increase. The defense segment drove performance with a 12% revenue rise, supported by renewed government procurement for advanced manufacturing systems. In contrast, the energy division saw a 5% decline, primarily due to delayed project completions in North America’s shale regions. The company recorded a non-GAAP net income of $18.7 million, up 7% from the prior-year quarter, attributable to improved operational efficiency and tighter cost controls. Gross margin expanded to 34.5%, reflecting favorable mix shifts within the defense portfolio. MEC’s adjusted EBITDA reached $31.2 million, underscoring resilience in its core industrial operations despite ongoing supply chain adjustments. Management reaffirmed full-year 2026 guidance, projecting revenue between $560 million and $575 million and EBITDA of $125 million to $130 million. The outlook assumes continued government spending on defense infrastructure and a gradual recovery in energy capital investment, particularly in midstream equipment contracts. The stock responded positively in after-hours trading, gaining 2.1% as investors welcomed the stable outlook. MEC remains a key player in the defense industrial base, with exposure to both U.S. military modernization initiatives and North American energy equipment markets. While the broader energy sector, as tracked by XLE, showed mixed signals, MEC’s diversified model provided insulation from volatility in crude oil prices, currently trading at $78.30 per barrel (CL=F).