Data center surge lifts MEC's 2026 sales outlook as Q2 revenue jumps 23%
MEC has more than doubled off its 52-week low of $12.1.
Summary
MEC reported Q2 2026 net sales of $163 million, up 23% y/y, and raised full-year sales guidance by ~5% on accelerating data center demand. The company also announced $40 million in new project awards and plans $50 million in incremental growth investments.
Key Events · Earnings and Guidance · MEC
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Q2 Sales Surge 23%
Net sales reached $163.0 million, with Datacenter & Critical Power revenue jumping 476.5% to $29.0 million. Organic growth in that segment was 172.8%.
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Full-Year Guidance Raised
2026 net sales guidance increased by ~5% to a range of $620–$650 million. Adjusted EBITDA is now expected at $52–$60 million, with free cash flow of $7–$15 million.
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$40M in New Data Center Awards
The company secured approximately $40 million in new Datacenter & Critical Power project awards during the quarter, with a qualified pipeline exceeding $125 million.
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$50M Growth Investment Planned
MEC intends to invest an incremental $50 million in organic growth initiatives across 2026 and 2027 to expand capacity for higher-value data center programs.
Analysis · MEC · Manufacturing
A nearly fivefold surge in Datacenter & Critical Power revenue propelled Mayville Engineering's Q2 sales 23% higher year-over-year. The company raised its full-year sales guidance by about 5% and earmarked an additional $50 million to capture multi-year secular growth in data center infrastructure. While launch costs and higher interest continue to pressure the bottom line, the balance sheet is healthier after a recent equity raise, and $40 million in new project awards signals sustained momentum.
At the time of this filing, MEC was trading at $26.51 on NYSE in the Manufacturing sector, with a market capitalization of approximately $706.9M. The 52-week trading range was $12.10 to $38.76. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.