Thu, Mar 6, 7:16 PM (51 days ago)
Mayville Engineering Company, Inc. (MEC, NYSE: MEC) reported a decline in net sales to $581,604,000 for the fiscal year ending December 31, 2024, down 1.2% from $588,425,000 in 2023, attributed to softening demand and customer de-stocking. Gross profit increased to $71,097,000, reflecting improved manufacturing margins at 12.2%. Net income surged to $25,968,000, a 231.1% increase, driven by a $25,500,000 gain from a lawsuit settlement. Operating expenses rose slightly, with total selling, general, and administrative costs at $31,518,000. MEC's strategic focus includes enhancing operational efficiencies through automation and expanding its market presence via acquisitions, exemplified by the acquisition of Mid-States Aluminum. The company faces risks from macroeconomic conditions, labor availability, and potential disruptions in supply chains. The financial condition remains solid, with a leverage ratio of 1.28 and an interest coverage ratio of 4.62 as of December 31, 2024. MEC's future outlook hinges on navigating economic fluctuations and maintaining strong customer relationships, particularly with major clients like PACCAR and John Deere. The company does not anticipate paying dividends in the near term, favoring reinvestment for growth.