MEC's Data Center Surge Boosts Q1 Sales

Mayville Engineering Companys Q1 sales surged 6.8% to $144.8M, beating expectations with a 71% jump in data center and critical power segments. Despite organic sales dipping 8.2% without AccuFab, margins took a hit due to launch costs and legacy market slumps. Data center demand exploded, with a qualified pipeline over $125M and $50-60M in launches set for next year. Guidance was tweaked upward for Q2 and full-year sales, with free cash flow outlook holding at $25-35M. As ramps hit full speed and legacy markets hint at recovery, MEC is eyeing capacity expansions and debt cuts toward 2.5x leverage, setting up for a high-margin growth trajectory ahead. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/94e7c0372f11b608