# Mayville Engineering Company, Inc. (MEC)

Informational only - not investment advice.

CIK: 0001766368
SIC: 3460 Metal Forgings & Stampings
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 34](/major-group/34/) > [SIC 3460 Metal Forgings & Stampings](/industry/3460/)
Latest 10-K filed: 2026-03-04
SEC page: https://www.sec.gov/edgar/browse/?CIK=1766368
Filing source: https://www.sec.gov/Archives/edgar/data/1766368/000110465926023496/tmb-20251231x10k.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-04 · accession 0001104659-26-023496 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001766368.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 546,487,000 USD | 2025 | verified |
| Net income | -8,110,000 USD | 2025 | verified |
| Assets | 563,640,000 USD | 2025 | verified |
| Free cash flow | 26,914,000 USD | 2025 | computed |
| Net margin | -1.48% | 2025 | computed |
| Operating margin | -0.70% | 2025 | computed |
| Revenue YoY | -6.04% | 2025 | computed |
| ROE | -3.37% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | MEC | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | -1.5% | 6.1% | 0 | 35 |
| Operating margin | -0.7% | 9.3% | 6 | 32 |
| Revenue growth | -6.0% | 4.5% | 9 | 36 |
| FCF margin | 4.9% | 10.7% | 29 | 35 |
| ROE | -3.4% | 11.6% | 3 | 35 |
| ROA | -1.4% | 4.4% | 3 | 36 |
| Liabilities / equity | 1.34 | 0.89 | 74 | 35 |
| Current ratio | 1.72 | 2.59 | 26 | 36 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 34 SIC Major Group 34, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 546487000 | USD | 2025 | 2026-03-04 |
| Net income | -8110000 | USD | 2025 | 2026-03-04 |
| Assets | 563640000 | USD | 2025 | 2026-03-04 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001766368.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 313,331,000 | 354,526,000 | 519,704,000 | 357,606,000 | 454,826,000 | 539,392,000 | 588,425,000 | 581,604,000 | 546,487,000 |
| Net income | 5,246,000 | 17,935,000 | -4,753,000 | -7,092,000 | -7,451,000 | 18,727,000 | 7,844,000 | 25,968,000 | -8,110,000 |
| Operating income | 9,426,000 | 22,169,000 | -1,958,000 | -6,498,000 | -7,391,000 | 25,774,000 | 20,191,000 | 44,553,000 | -3,844,000 |
| Diluted EPS |  |  | -0.27 | -0.36 | -0.36 | 0.91 | 0.38 | 1.24 | -0.40 |
| Operating cash flow | 30,801,000 | 36,715,000 | 33,402,000 | 36,523,000 | 14,457,000 | 52,426,000 | 40,363,000 | 89,807,000 | 38,562,000 |
| Capital expenditures | 11,259,000 | 17,879,000 | 25,797,000 | 7,794,000 | 39,309,000 | 58,610,000 | 16,598,000 | 12,098,000 | 11,648,000 |
| Share buybacks | 8,713,000 | 7,833,000 | 2,591,000 | 2,509,000 | 2,153,000 | 4,947,000 | 2,661,000 | 5,896,000 | 4,607,000 |
| Assets |  | 391,725,000 | 363,582,000 | 338,533,000 | 379,473,000 | 440,581,000 | 496,661,000 | 445,570,000 | 563,640,000 |
| Liabilities |  | 288,736,000 | 162,687,000 | 137,676,000 | 181,202,000 | 222,714,000 | 266,683,000 | 193,817,000 | 322,903,000 |
| Stockholders' equity |  |  | 200,895,000 | 200,857,000 | 198,271,000 | 217,867,000 | 229,978,000 | 251,753,000 | 240,737,000 |
| Cash and cash equivalents |  | 3,089,000 | 1,000 | 121,000 | 118,000 | 127,000 | 672,000 | 206,000 | 1,502,000 |
| Free cash flow | 19,542,000 | 18,836,000 | 7,605,000 | 28,729,000 | -24,852,000 | -6,184,000 | 23,765,000 | 77,709,000 | 26,914,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 1.67% | 5.06% | -0.91% | -1.98% | -1.64% | 3.47% | 1.33% | 4.46% | -1.48% |
| Operating margin | 3.01% | 6.25% | -0.38% | -1.82% | -1.63% | 4.78% | 3.43% | 7.66% | -0.70% |
| Return on equity |  |  | -2.37% | -3.53% | -3.76% | 8.60% | 3.41% | 10.31% | -3.37% |
| Return on assets |  | 4.58% | -1.31% | -2.09% | -1.96% | 4.25% | 1.58% | 5.83% | -1.44% |
| Liabilities / equity |  |  | 0.81 | 0.69 | 0.91 | 1.02 | 1.16 | 0.77 | 1.34 |
| Current ratio |  | 1.36 | 1.88 | 1.69 | 1.71 | 1.38 | 1.88 | 1.75 | 1.72 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001766368.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.32 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.12 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.08 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | 1,614,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 158,217,000 |  | 0.07 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 148,582,000 | 2,227,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 161,269,000 | 3,241,000 | 0.16 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 |  | 3,241,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 163,636,000 |  | 0.18 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 |  | 3,782,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 135,392,000 |  | 0.14 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 121,306,000 | 15,971,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 135,579,000 | 20,000 | 0.00 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 |  | 20,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 132,328,000 |  | -0.05 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | -1,097,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 144,310,000 |  | -0.13 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 134,270,000 | -4,358,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 144,780,000 | -8,175,000 | -0.40 | reported discrete quarter |
| 2026-Q2 | 2026-03-31 |  | -8,175,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 162,981,000 |  | -0.09 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from MEC's latest 10-K: [/company/MEC/business/](/company/MEC/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from MEC's latest 10-K: [/company/MEC/risk-factors/](/company/MEC/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1766368/000110465926091110/tmb-20260630x10q.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-05
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to assist in the understanding and assessing the trends and significant changes in our results of operations and financial condition. Historical results may not be indicative of future performance. This discussion includes forward-looking statements that reflect our plans, estimates and beliefs. Such statements involve risks and uncertainties. Our actual results may differ materially from those contemplated by these forward-looking statements as a result of various factors, including those set forth in “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 and “Cautionary Statement Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q. This discussion should be read in conjunction with our audited Consolidated Financial Statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025 and our unaudited Condensed Consolidated Financial Statements and the notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q. In this discussion, we use certain non-GAAP financial measures. Explanation of these non-GAAP financial measures and reconciliation to the most directly comparable GAAP financial measures are included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations. Investors should not consider non-GAAP financial measures in isolation or as substitutes for financial information presented in compliance with GAAP.

All amounts are presented in thousands except share amounts, per share data, years and ratios.

Overview

MEC is a leading U.S.-based vertically-integrated, value-added manufacturing partner providing a full suite of manufacturing solutions from concept to production, including design, prototyping and tooling, fabrication, aluminum extrusion, coating, assembly and aftermarket components. Our customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, datacenter & critical power, construction & access equipment, powersports, agriculture, military and other end markets. We have developed long-standing relationships with our blue-chip customers based upon our commitment to “Unmatched Excellence”.

Our one operating segment focuses on producing metal components that are used in a broad range of heavy- and medium-duty commercial vehicles, datacenter & critical power, construction & access equipment, powersports, agricultural, military and other products.

Macroeconomic Conditions

The broader market dynamics over the past few years have resulted in impacts to the Company including: inflation, elevated interest rates, labor availability, material cost pressures, trade policy uncertainty and inconsistent customer demand. The Company expects some of these dynamics to continue in 2026 and could continue to have an impact on demand, material costs and labor.

How We Assess Performance

Net Sales. Net sales reflect sales of our components and products net of allowances for returns and discounts. In addition to the current macroeconomic conditions, several factors affect our net sales in any given period, including weather, timing of acquisitions and the production schedules of our customers. Net sales are recognized at the time of shipment or at delivery to the customer.

Manufacturing Margins. Manufacturing margins represents net sales less cost of sales. Cost of sales consists of all direct and indirect costs used in the manufacturing process, including raw materials, labor, equipment costs, depreciation, lease expenses, subcontract costs and other directly related overhead costs. Our cost of sales is directly affected by the fluctuations in commodity prices, primarily sheet steel and aluminum, but these changes are largely mitigated by contractual agreements with our customers that allow us to pass through these price variations based upon certain market indexes.

Depreciation and Amortization. We carry property, plant and equipment on our balance sheet at cost, net of accumulated depreciation. Depreciation on property, plant and equipment is computed on a straight-line basis over the estimated useful life of the asset. The periodic expense related to leasehold improvements and intangible assets is depreciation and amortization expense, respectively. Leasehold improvements are depreciated over the lesser of the life of the underlying asset or the remaining lease term. Our intangible assets were recognized as a result of certain acquisitions and are generally amortized on a straight-line basis over the estimated useful lives of the assets.

25

Table of Contents

Other Selling, General and Administrative Expenses. Other selling, general and administrative expenses consist primarily of salaries and personnel costs for our sales and marketing, finance, human resources, information systems, administration and certain other managerial employees and certain corporate level administrative expenses such as audit, accounting, legal and other consulting and professional services, travel and insurance.

Other Key Performance Indicators

EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow

EBITDA represents net income (loss) before interest expense, provision (benefit) for income taxes, depreciation and amortization. EBITDA Margin represents EBITDA as a percentage of net sales for each period.

Adjusted EBITDA represents EBITDA before stock-based compensation expense, loss on extinguishment of debt, CFO transition costs, natural disaster costs, acquisition related costs and restructuring and impairment costs. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of net sales for each period.

Free cash flow represents net cash provided by (used in) operating activities less cash flow used in the purchase of property, plant and equipment.

These metrics are supplemental measures of our operating performance that are neither required by, nor presented in accordance with, GAAP. These measures should not be considered as an alternative to net income (loss) or any other performance measure derived in accordance with GAAP as an indicator of our operating performance. We present EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow as management uses these measures as key performance indicators, and we believe they are measures frequently used by securities analysts, investors and other parties to evaluate companies in our industry. These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP.

Our calculation of EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow may not be comparable to the similarly named measures reported by other companies. Potential differences between our measures of EBITDA and Adjusted EBITDA compared to other similar companies’ measures of EBITDA and Adjusted EBITDA may include differences in capital structure and tax positions.

​

26

Table of Contents

The following table presents a reconciliation of net income (loss) and comprehensive income (loss), the most directly comparable measure calculated in accordance with GAAP, to EBITDA and Adjusted EBITDA, and the calculation of EBITDA Margin and Adjusted EBITDA Margin for each of the periods presented.

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","Three Months Ended","\u200b","\u200b","Six Months Ended","\u200b"],["\u200b","\u200b","June 30,","\u200b","\u200b","June 30,","\u200b"],["\u200b","\u200b \u200b \u200b","2026","\u200b \u200b \u200b","\u200b","2025","\u200b \u200b \u200b","\u200b \u200b \u200b","2026","\u200b \u200b \u200b","\u200b","2025","\u200b \u200b \u200b"],["Net income (loss) and comprehensive income (loss)","\u200b","$","(2,095)","\u200b","\u200b","$","(1,097)","\u200b","\u200b","$","(10,270)","\u200b","\u200b","$","(1,077)","\u200b"],["Interest expense","","\u200b","3,475","","\u200b","\u200b","1,398","","","\u200b","7,137","","\u200b","\u200b","2,965"],["Provision (benefit) for income taxes","","\u200b","(992)","","\u200b","\u200b","(225)","","","\u200b","(4,300)","","\u200b","\u200b","(234)"],["Depreciation and amortization","","\u200b","11,234","","\u200b","\u200b","9,603","","","\u200b","22,184","","\u200b","\u200b","19,086"],["EBITDA","","\u200b","11,622","","\u200b","\u200b","9,679","","","\u200b","14,751","","\u200b","\u200b","20,740"],["Stock-based compensation expense (1)","","\u200b","1,507","","\u200b","\u200b","1,007","","","\u200b","2,302","","\u200b","\u200b","2,108"],["Loss on extinguishment of debt (2)","\u200b","\u200b","\u2014","\u200b","\u200b","\u200b","\u2014","\u200b","\u200b","\u200b","134","\u200b","\u200b","\u200b","\u2014","\u200b"],["CFO transition costs (3)","\u200b","\u200b","\u2014","\u200b","\u200b","\u200b","1,148","\u200b","\u200b","\u200b","\u2014","\u200b","\u200b","\u200b","1,148","\u200b"],["Natural disaster costs (4)","\u200b","\u200b","\u2014","\u200b","\u200b","\u200b","293","\u200b","\u200b","\u200b","\u2014","\u200b","\u200b","\u200b","293","\u200b"],["Acquisition related costs (5)","","\u200b","\u2014","","\u200b","\u200b","1,548","","","\u200b","\u2014","","\u200b","\u200b","2,378"],["Restructuring and impairment (6)","\u200b","\u200b","45","\u200b","\u200b","\u200b","\u2014","\u200b","\u200b","\u200b","2,460","\u200b","\u200b","\u200b","\u2014","\u200b"],["Adjusted EBITDA","\u200b","$","13,174","\u200b","\u200b","$","13,675","\u200b","\u200b","$","19,647","\u200b","\u200b","$","26,667","\u200b"],["Net sales","\u200b","$","162,981","\u200b","\u200b","$","132,328","\u200b","\u200b","$","307,761","\u200b","\u200b","$","267,907","\u200b"],["EBITDA Margin","\u200b","","7.1","%","\u200b","","7.3","%","\u200b","","4.8","%","\u200b","","7.7","%"],["Adjusted EBITDA Margin","\u200b","","8.1","%","\u200b","","10.3","%","\u200b","","6.4","%","\u200b","","10.0","%"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["(1)","Non-cash employee compensation based on the value of common stock issued pursuant to the 2019 Omnibus Incentive Plan."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["(2)","Unamortized debt issuance costs written off as part of the execution of the Third Amendment, attributable to lenders that decreased their capacity in the Credit Agreement."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["(3)","Costs associated with the separation of the former CFO."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["(4)","Costs incurred for facility clean-up following tornado damage at one of the Company\u2019s locations."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["(5)","Transaction costs, primarily legal and professional services, related to the acquisition of Accu-Fab."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["(6)","Restructuring and impairment costs related to the consolidation of four warehouses into the Company\u2019s existing facilities."]]
[[/GREPCENT_TABLE]]

27

Table of Contents

The following table presents a reconciliation of net cash provided by (used in) operating activities, the most directly comparable measure calculated in accordance with GAAP, to free cash flow for each of the periods presented.

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1766368/000110465926023496/tmb-20251231x10k.htm
Complete FY 2025 MD&A: /company/MEC/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-03-04
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to assist in understanding and assessing the trends and significant changes in our results of operations and financial condition. Historical results may not be indicative of future performance. This discussion includes forward-looking statements that reflect our plans, estimates and beliefs. Such statements involve risks and uncertainties. Our actual results may differ materially from those contemplated by these forward-looking statements as a result of various factors, including those set forth in “Risk Factors” in Part I, Item 1A and “Cautionary Statement Regarding Forward-Looking Statements” of this Annual Report on Form 10-K. This discussion should be read in conjunction with our audited consolidated financial statements and the notes thereto included in Part II, Item 8 of this Annual Report on Form 10-K. In this discussion, we use certain financial measures that are not prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Explanation of these non-GAAP financial measures and reconciliation to the most directly comparable GAAP financial measures are included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations. Investors should not consider non-GAAP financial measures in isolation or as substitutes for financial information presented in compliance with GAAP.

All amounts are presented in thousands except share amounts, per share data, years and ratios.

Overview

MEC is a leading U.S.-based vertically-integrated, value-added manufacturing partner providing a full suite of manufacturing solutions from concept to production, including design, prototyping and tooling, fabrication, aluminum extrusion, coating, assembly and aftermarket components. Our customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction & access equipment, powersports, data center & critical power, agriculture, military and other end markets. We have developed long-standing relationships with our blue-chip customers based upon our commitment to “Unmatched Excellence”.

Our one operating segment focuses on producing metal components that are used in a broad range of heavy- and medium-duty commercial vehicles, construction & access equipment, powersports, data center & critical power, agricultural, military and other products.

Critical Accounting Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts and disclosures. Therefore, these estimates and assumptions affect reported amounts of assets, liabilities, revenue, expenses, and associated disclosures of contingent liabilities. Critical accounting estimates are those estimates that, in management’s view, are most important in the portrayal of our financial condition and results of operations. Management evaluates these estimates on an ongoing basis, using historical experience, consultation with third parties, and other methods considered reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from our estimates. Any effects on our business, financial position, or results of operations resulting from revisions to these estimates are recognized in the accounting period in which the facts that give rise to the revision become known. The methods, estimates, and judgments that we use in applying our accounting estimates have a significant impact on the results that we report in our financial statements. These critical accounting estimates require us to make difficult and subjective judgments, often as a result of the need to make estimates regarding matters that are inherently uncertain. Those critical accounting estimates that require the most significant judgment or involve the selection or application of alternative accounting policies and are material to our consolidated financial statements are discussed further below.

Business Combinations

We record assets acquired and liabilities assumed in a business combination under the acquisition method of accounting where consideration is first assigned to identifiable assets and liabilities based on estimated fair values, with any excess recorded as goodwill. During the measurement period, which is up to one year from the acquisition date, we may adjust provisional amounts that were recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date.

Determining the fair value of assets acquired and liabilities assumed requires significant judgment, including the selection of valuation methodologies. For our recent acquisition, fair value estimates of acquired property and equipment were based on independent appraisals that gave consideration to the highest and best use of the assets. The land, buildings, and improvements; and

30

Table of Contents

other property and equipment appraisals used one, or a combination, of the cost, market or sales comparison approaches. Significant estimates and assumptions, including recent sales prices of similar equipment, asset condition, and current and anticipated market trends, were used in determining the fair values of these assets. The assistance of an independent third-party valuation firm was used to determine the fair values and useful lives of the finite-lived intangible assets, including customer relationships and non-compete agreements. Valuation methods used were based on management’s forecasted cash inflows and outflows and using a relief from royalty method for developed technologies and the multi-period excess earnings method for customer relationships. Assumptions used in the intangible valuations include forecasted revenue growth rates, discounted future cash flows and the weighted average cost of capital of a select peer group.

Goodwill, Intangible Assets and Other Long-Lived Assets

Our long-lived assets consist primarily of property, equipment, purchased intangible assets and goodwill. The valuation and the impairment testing of these long-lived assets involve significant judgments and assumptions, particularly as they relate to the identification of reporting units, asset groups and the determination of fair value.

We test our tangible and intangible long-lived assets subject to amortization for impairment whenever facts and circumstances indicate that the carrying amount of an asset may not be recoverable. We test goodwill and indefinite lived intangible assets for impairment annually, or more frequently if triggering events occur indicating that there may be impairment.

We have recorded goodwill and performed testing for potential goodwill impairment at the reporting unit level. A reporting unit is an operating segment, or a business unit one level below an operating segment for which discrete financial information is available, and for which management regularly reviews the operating results. Additionally, components within an operating segment can be aggregated as a single reporting unit if they have similar economic characteristics. We have concluded we have one reporting unit.

We determine the fair value of our reporting unit using an income approach. Under the income approach, we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. The income approach is dependent on several key management assumptions, including estimates of future sales, gross margins, operating costs, interest expense, income tax rates, capital expenditures, changes in working capital requirements and the weighted average cost of capital or the discount rate. Discount rate assumptions include an assessment of the risk inherent in the future cash flows of the reporting unit. Expected cash flows used under the income approach are developed in conjunction with our budgeting and forecasting process.

We test our goodwill for impairment on an annual basis, and more frequently if events or changes in circumstances indicate that it might be impaired. For the years ended December 31, 2025 and 2024, there were no events or changes in circumstances that would indicate an impairment of our goodwill.

Changes to management assumptions and estimates utilized in the income approach could negatively impact the fair value conclusions for our reporting unit resulting in goodwill impairment. All key assumptions and valuations are determined by and are the responsibility of management. The factors used in the impairment analysis are inherently subject to uncertainty. We believe that the estimates and assumptions are reasonable to determine the fair value of our reporting unit, however, if actual results are not consistent with these estimates and assumptions, goodwill and other intangible assets may be overstated which could trigger an impairment charge.

For impairment testing of long-lived assets, we identify asset groups at the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flow expected to be generated by the assets. If the carrying amount of an asset group exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset group. For the year ended December 31, 2025 and 2024, there were no events or changes in circumstances that indicated an impairment of our long-lived assets.

Determining the useful life of an intangible asset also requires judgment. Certain intangible assets are expected to have indefinite lives based on their history and our plans to continue to support and build the acquired brands. Other acquired intangible assets such as customer relationships, trade names, and non-compete agreements are expected to have determinable useful lives. The costs of determinable-lived intangibles are amortized to expense over their estimated lives.

31

Table of Contents

Macroeconomic Conditions

The broader market dynamics over the past few years have resulted in impacts to the Company, elevated interest rates, inconsistent customer demand, material cost inflation and labor availability. The Company expects some of these dynamics to continue in 2026 and could continue to have an impact on demand, material costs and labor.

How We Assess Performance

Net Sales. Net sales reflect sales of our components and products net of allowances for returns and discounts. In addition to the current macroeconomic conditions, several factors affect our net sales in any given period, including weather, timing of acquisitions and the production schedules of our customers. Net sales are recognized at the time of shipment or at delivery to the customer.

Manufacturing Margins. Manufacturing margins represents net sales less cost of sales. Cost of sales consists of all direct and indirect costs used in the manufacturing process, including raw materials, labor, equipment costs, depreciation, lease expenses, subcontract costs and other directly related overhead costs. Our cost of sales is directly affected by the fluctuations in commodity prices, primarily sheet steel and aluminum, but these changes are largely mitigated by contractual agreements with our customers that allow us to pass through these price variations based upon certain market indexes.

Depreciation and Amortization. We carry property, plant and equipment on our balance sheet at cost, net of accumulated depreciation. Depreciation on property, plant and equipment is compute

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/MEC/mda/fy2025/
All MD&A years: /company/MEC/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/MEC/mda/fy2024/): filed 2025-03-06; accession 0001558370-25-002369 (https://www.sec.gov/Archives/edgar/data/1766368/000155837025002369/tmb-20241231x10k.htm)
- [FY 2023 MD&A](/company/MEC/mda/fy2023/): filed 2024-03-06; accession 0001558370-24-002598 (https://www.sec.gov/Archives/edgar/data/1766368/000155837024002598/tmb-20231231x10k.htm)
- [FY 2022 MD&A](/company/MEC/mda/fy2022/): filed 2023-03-01; accession 0001558370-23-002542 (https://www.sec.gov/Archives/edgar/data/1766368/000155837023002542/tmb-20221231x10k.htm)
- [FY 2021 MD&A](/company/MEC/mda/fy2021/): filed 2022-03-02; accession 0001564590-22-008290 (https://www.sec.gov/Archives/edgar/data/1766368/000156459022008290/mec-10k_20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3460 Metal Forgings & Stampings) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/MEC.md · JSON record: /company/MEC.json · verified financials: /company/MEC/financials.json / /company/MEC/financials.csv · machine TOC for the whole site: /llms.txt