On this page of StockholderLetter.com we present the latest annual shareholder letter from Mayville Engineering Company, Inc. — ticker symbol MEC. Reading current and past MEC letters to shareholders can bring important insights into the investment thesis.
2025 ANNUAL REPORT
Dear Fellow Shareholders, MEC enters 2026 as a stronger, more diversified, and strategically well-positioned company. We continue to execute with discipline in a challenging end market environment while building the foundation for profitable, sustainable growth in the years ahead. The consistent execution we have demonstrated over the past several years, coupled with our MBX operating framework, has created a more durable business model with greater diversification. Despite persistent softness across several legacy end markets in 2025, our team acted decisively to protect profitability, tighten cost control, and reallocate capacity and investments toward higher growth opportunities. Supported by strong free cash flow, this disciplined approach has enabled us to continue advancing our value-creation pillars: commercial expansion, operational excellence, and disciplined capital deployment. Accu-Fab Acquisition: A Transformative Milestone One of the most significant achievements of the year was our acquisition of Accu Fab. Accu-Fab s key portfolio enhancements: It expands our presence in the structurally higher growth Data Center & Critical Power end market, which we currently estimate will be more than 20% of our revenues in 2026, with additional upside as infrastructure investment continues. It creates compelling cross-selling opportunities that we expect to generate between $40 million and $50 million of incremental revenue in 2026. It is long-term accretive to margins. Demand momentum within Data Center & Critical Power continues to accelerate. Supported by multi year infrastructure investment trends, our qualified pipeline in this end market now exceeds $125 million driving end market diversification and enhancing the Company s earnings profile. Positioned for Recovery and Multi-Year Growth While several of MEC s legacy end markets, including Commercial Vehicle, Agriculture, and Powersports, continue to face regulatory and macroeconomic headwinds, we expect conditions to gradually improve later in 2026. The actions we took in 2025 to streamline our cost structure, enhance utilization, and strengthen operating flexibility ensures we are well positioned to capture operating leverage as demand recovers. At the same time, our customer relationships remain strong across our legacy end markets.
Bidding activity and new project opportunities have remained healthy. New project awards across these end markets totaled more than $108 million in 2025, exceeding our annual target and providing a strong foundation for multi year growth. Disciplined Capital Deployment Anchored in Long-Term Strategy Our near-term capital priorities remain focused on debt repayment and reducing net leverage toward our long term target of below 2.5x. Over the longer term, we remain focused on strengthening the balance sheet, sustaining strong free cash flow, and deploying capital toward opportunities that enhance long term shareholder value, including acquisitions that are both revenue growth and margin accretive. A Foundation for Sustainable, Higher Margin Growth The year 2026 represents an important phase in MEC s value creation journey. We are positioned to benefit from improving end market trends and continued growth in Data Center & Critical Power. With strong free cash generation, disciplined execution, enhanced operating leverage, and the long term benefits of our MBX value creation framework, we believe MEC is well positioned to deliver durable, profitable growth for years to come. Thank you to our employees, customers, partners, and shareholders for your continued support. We look forward to building on our momentum in 2026. Sincerely, Jagadeesh (Jag) A. Reddy President, CEO and Director
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MEC Shareholder/Stockholder Letter Transcript:

2025
ANNUAL REPORT

Dear Fellow Shareholders,
MEC enters 2026 as a stronger, more diversified, and
strategically well-positioned company. We continue to
execute with discipline in a challenging end market
environment while building the foundation for profitable,
sustainable growth in the years ahead. The consistent
execution we have demonstrated over the past several
years, coupled with our MBX operating framework, has
created a more durable business model with greater
diversification.
Despite persistent softness across several legacy end markets in 2025, our team acted decisively
to protect profitability, tighten cost control, and reallocate capacity and investments toward
higher   growth opportunities. Supported by strong free cash flow, this disciplined approach has
enabled us to continue advancing our value-creation pillars: commercial expansion,
operational excellence, and disciplined capital deployment.
Accu-Fab Acquisition: A Transformative Milestone
One of the most significant achievements of the year was our acquisition of Accu   Fab.
Accu-Fab   s key portfolio enhancements:


It expands our presence in the structurally higher   growth Data Center & Critical Power end
market, which we currently estimate will be more than 20% of our revenues in 2026, with
additional upside as infrastructure investment continues.
It creates compelling cross-selling opportunities that we expect to generate between $40
million and $50 million of incremental revenue in 2026.
It is long-term accretive to margins.
Demand momentum within Data Center & Critical Power continues to accelerate. Supported
by multi   year infrastructure investment trends, our qualified pipeline in this end market now
exceeds $125 million driving end market diversification and enhancing the Company   s earnings
profile.
Positioned for Recovery and Multi-Year Growth
While several of MEC   s legacy end markets, including Commercial Vehicle, Agriculture, and
Powersports, continue to face regulatory and macroeconomic headwinds, we expect
conditions to gradually improve later in 2026. The actions we took in 2025 to streamline our cost
structure, enhance utilization, and strengthen operating flexibility ensures we are well positioned
to capture operating leverage as demand recovers.
At the same time, our customer relationships remain strong across our legacy end markets.

Bidding activity and new project opportunities have remained healthy. New project awards
across these end markets totaled more than $108 million in 2025, exceeding our annual target
and providing a strong foundation for multi   year growth.
Disciplined Capital Deployment Anchored in Long-Term Strategy
Our near-term capital priorities remain focused on debt repayment and reducing net leverage
toward our long   term target of below 2.5x. Over the longer term, we remain focused on
strengthening the balance sheet, sustaining strong free cash flow, and deploying capital toward
opportunities that enhance long   term shareholder value, including acquisitions that are both
revenue growth and margin accretive.
A Foundation for Sustainable, Higher Margin Growth
The year 2026 represents an important phase in MEC   s value   creation journey. We are positioned
to benefit from improving end market trends and continued growth in Data Center & Critical
Power. With strong free cash generation, disciplined execution, enhanced operating leverage,
and the long   term benefits of our MBX value creation framework, we believe MEC is well
positioned to deliver durable, profitable growth for years to come.
Thank you to our employees, customers, partners, and shareholders for your continued support.
We look forward to building on our momentum in 2026.
Sincerely,
Jagadeesh (Jag) A. Reddy
President, CEO and Director


shareholder letter icon 3/10/2026 Letter Continued (Full PDF)
 

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