Mayville Engineering Company, Inc. (MEC) reported a net income of $25.97 million for the fiscal year ending December 31, 2024, a significant increase of 231% compared to $7.84 million in the previous year. The company's net sales for 2024 were $581.60 million, reflecting a slight decline of 1.2% from $588.43 million in 2023. This decrease was attributed to softening demand in key markets, customer inventory destocking, and the conclusion of certain military aftermarket programs. However, the company noted that new program wins and the acquisition of Mid-States Aluminum (MSA) contributed positively to its revenue.
In terms of operational efficiency, MEC's manufacturing margins improved to 12.2% in 2024, up from 11.8% in 2023, driven by initiatives under the MEC Business Excellence (MBX) framework, which focuses on cost reduction and pricing strategies. The company also reported a reduction in its labor force by 12% during the third quarter of 2024, which contributed to the improved margins. Additionally, EBITDA for the year was $82.14 million, representing a 49.2% increase from $55.06 million in 2023.
MEC has continued to expand its operational footprint, operating 23 facilities across the United States, with a total manufacturing capacity exceeding three million square feet. The company has maintained a workforce of approximately 2,200 employees, with a focus on enhancing employee skills through training and development programs. The acquisition of MSA, completed in July 2023, has positioned MEC to leverage lightweight materials fabrication, further diversifying its product offerings and customer base.
Looking ahead, MEC anticipates ongoing challenges from macroeconomic conditions, including inflation and labor availability, which may impact demand and operational costs in 2025. The company has expressed confidence in its ability to navigate these challenges through its strategic initiatives and operational efficiencies. MEC's management is committed to addressing a material weakness identified in its internal control over financial reporting, specifically related to the review and approval of journal entries, and is implementing a remediation plan to enhance its internal controls.
About Mayville Engineering Company, Inc.
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