Mission Statement, Vision, & Core Values of Mayville Engineering Company, Inc. (MEC)

When a manufacturer like Mayville Engineering Company, Inc. (MEC) is guiding toward $545 million in net sales for the 2025 fiscal year, you defintely have to ask what foundational principles are driving that performance, especially as they navigate a 3.5x net leverage ratio (total debt relative to cash flow) as of Q3 2025. This isn't just about metal fabrication; it's about the Mission Statement, Vision, and Core Values that keep a company focused when legacy markets like Commercial Vehicle get soft.

You're looking for the operating playbook behind the numbers, but can a set of written values really translate to the kind of discipline that delivers a $52 million Adjusted EBITDA midpoint? We all know that a strong mission is a powerful tool for strategic capital deployment, but how does MEC's commitment to its team and shareholders actually play out on the factory floor? Let's break down the core beliefs that underpin their strategy.

Mayville Engineering Company, Inc. (MEC) Overview

Mayville Engineering Company, Inc. (MEC) is a leading U.S.-based, vertically integrated, value-added manufacturing partner, and you need to understand its core strengths and financial trajectory right now. Founded in 1945 by cousins Leo and Ted Bachhuber, the company has grown from a small tool and die shop in Mayville, Wisconsin, into a major supplier for Original Equipment Manufacturers (OEMs) across multiple demanding industries. They're a long-term player.

MEC's business is built on providing a full suite of manufacturing solutions, from initial design and prototyping (a key value-add) to high-volume production. They handle complex metal fabrication, which means they do the heavy lifting for major clients. This includes processes like:

• Laser and plasma cutting
• Stamping and forming
• Welding and tube bending
• Protective coating and painting
• Final assembly and kitting

This comprehensive capability is why they serve diverse markets like commercial vehicles, construction, agriculture, and military. For the full fiscal year 2025, the company has reconfirmed its revenue guidance, projecting net sales at the midpoint of $545 million, which shows a solid, if slightly moderated, top line in a tough industrial environment. They are defintely a partner you can trust for complex, high-mix manufacturing.

Q3 2025 Financial Performance: Growth in Strategic Markets

The latest financial reports, covering the third quarter ended September 30, 2025, give us a clear map of where the money is moving. Total net sales for the quarter were $144.3 million, marking a 6.6% increase year-over-year. This is a crucial number because it shows the company is successfully executing its growth strategy, even as some legacy markets slow down.

Here's the quick math: while organic net sales were down due to softer demand in markets like Commercial Vehicle and Agriculture, strategic acquisitions are paying off. The growth is heavily supported by the Accu-Fab acquisition, which significantly expanded their presence in the high-growth Data Center & Critical Power end market. This is where the opportunity is shifting.

The company's focus on non-cyclical, higher-margin segments is showing results:

• Military Market Sales: Grew 6.7% year-over-year to $7.4 million in Q3 2025.
• Other End Market Sales: Increased 8.9% to $21.9 million, driven by new customer projects in the industrial equipment and power generation sectors.

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a key measure of operational profitability, came in at $14.1 million for the quarter, representing a 9.8% margin on net sales. The company reported a GAAP Net loss of $2.7 million, but on an Adjusted Net Income basis, they earned $2.0 million, or $0.10 per diluted share, beating analyst consensus. This tells you management is controlling costs effectively even with revenue volatility.

A Vertically Integrated Leader in U.S. Manufacturing

Mayville Engineering Company, Inc. is not just another fabricator; it's one of the leading U.S.-based, vertically integrated manufacturing partners, and that vertical integration is the key differentiator. They control the entire production chain-from design to coating and final assembly-operating out of 23 facilities across seven states with nearly three million square feet of manufacturing space. This extensive domestic footprint is a significant advantage, especially with the current trend of onshoring manufacturing and managing complex global supply chain risks.

Their success stems from a long-term, partnership-focused approach with blue-chip OEMs, which has cemented their role as a Tier 1 supplier. Plus, the company remains majority employee-owned, fostering a culture of Personal Responsibility in Daily Excellence (P.R.I.D.E.) that directly translates to quality and efficiency. They treat the business like it's their own, because it is.

If you want to dig deeper into the ownership structure and the drivers behind their stock performance, you should check out Exploring Mayville Engineering Company, Inc. (MEC) Investor Profile: Who's Buying and Why?

Mayville Engineering Company, Inc. (MEC) Mission Statement

You're looking for the anchor that guides Mayville Engineering Company, Inc. (MEC) through market volatility and strategic shifts, and that's exactly what their mission statement provides. It's not just corporate fluff; it's the operating principle for a company that remains majority employee-owned, which changes the game entirely.

MEC's mission is clear: We empower our team to create premium products and solutions for our customers, enabling growth for our employees, shareholders, and the communities we serve. This statement is the foundation for their long-term goals, linking internal culture directly to external market success and stakeholder value. Honestly, a mission that puts the 'team' first in a manufacturing environment is defintely a smart move.

This mission breaks down into three actionable core components-Team Empowerment, Premium Solutions, and Stakeholder Growth-that drive every decision, from capital deployment to customer relationship management. You can see this in the numbers: the company's ability to execute on this mission helped them deliver Q3 2025 Net Sales of $144.3 million.

Empowering Our Team: The Employee-Owner Advantage

The first core component, 'We empower our team,' is deeply connected to MEC's unique structure as a majority employee-owned company. This model ensures every employee is a shareholder, aligning personal effort with company financial performance. It's a powerful incentive structure.

The culture is driven by a core value system known as P.R.I.D.E. (Personal Responsibility in Daily Excellence), which emphasizes individual accountability and continuous improvement. This focus on the people is what allows them to maintain a high level of operational excellence across their extensive manufacturing infrastructure, which includes 27 facilities across nine states.

• Fosters a culture of ownership and accountability.
• Drives engagement and process improvement from the floor up.
• Supports a long-term view of success over short-term gains.

When you have a workforce that is personally invested, you see better execution. For a deeper dive into the ownership structure and its impact on performance, check out Exploring Mayville Engineering Company, Inc. (MEC) Investor Profile: Who's Buying and Why?

Creating Premium Products and Solutions: Quality and Market Leadership

The second component, 'create premium products and solutions for our customers,' is where MEC's operational excellence shines. This isn't just a promise; it's a verifiable track record of quality and scale in a demanding industry.

The company has been named the nation's largest fabricator by The Fabricator Magazine for the fifteenth consecutive year as of June 2025, which is a testament to their consistent quality and scale. They are a Tier 1 supplier, meaning they are a direct, trusted partner to top Original Equipment Manufacturers (OEMs) in markets like commercial vehicles, construction, and military.

Here's the quick math on their quality commitment: MEC holds multiple critical certifications across its facilities, including ISO 9001:2015 (Quality Management), ISO 14001:2015 (Environmental Management), and IATF 16949:2016 (Automotive Quality), ensuring their processes meet the highest global standards for defect reduction and consistency. This level of process control is non-negotiable for their long-term customer relationships, which average more than 18 years with their Top-10 customers.

Enabling Growth for All Stakeholders: Financial and Community Impact

The final component, 'enabling growth for our employees, shareholders, and the communities we serve,' is the financial and social payoff of the mission. This is where the strategic moves and the employee-owner culture translate into tangible returns.

For shareholders, the focus on growth is evident in their strategic expansion. The acquisition of Accu-Fab, for example, is a direct move to expand their serviceable available market into the high-growth Data Center & Critical Power end market. This acquisition contributed to the Q3 2025 Adjusted Net Income of $2.0 million. Management expects this single acquisition to generate between $20 million and $30 million in revenue synergies in 2026.

For employees and communities, 'growth' means job stability and opportunity. The employee-ownership model ensures that financial success flows back to the team. The company's Q3 2025 Adjusted EBITDA was $14.1 million, demonstrating continued profitability even as they navigate soft demand in legacy markets like Commercial Vehicle and Agriculture. This financial discipline supports the long-term health required to be a stable employer and community partner.

Mayville Engineering Company, Inc. (MEC) Vision Statement

You're looking for a clear line of sight between Mayville Engineering Company, Inc.'s (MEC) stated purpose and its financial reality. The company's mission statement, which acts as its core strategic vision, is a four-part commitment: 'We empower our team to create premium products and solutions for our customers, enabling growth for our employees, shareholders, and the communities we serve.' This isn't corporate fluff; it's a direct map for capital allocation and operational focus. Honesty, the near-term challenge is balancing soft demand in legacy markets like Commercial Vehicle and Agriculture against the high-growth opportunity in Data Center & Critical Power. That's where the rubber meets the road.

The core purpose is to be a leading U.S.-based, vertically-integrated, value-added manufacturing partner. They do this by offering a full suite of solutions, from design and prototyping to fabrication and coating, across 27 facilities in nine states. This comprehensive capability is the 'premium product' engine that drives everything else.

You can see a deeper dive into the ownership structure and market positioning here: Exploring Mayville Engineering Company, Inc. (MEC) Investor Profile: Who's Buying and Why?

Empowering the Team and Creating Premium Products (Employees & Customers)

The first part of the mission focuses on the internal engine: empowering the team to create premium products. This directly translates to their commitment to continuous improvement (a core value) and innovation. For customers, being a Tier 1 supplier to major Original Equipment Manufacturers (OEMs) in diverse end markets like construction, powersports, and military is proof of the 'premium' quality. They have to be defintely good to hold those contracts.

In the third quarter of 2025, while overall organic net sales decreased by 9.1% due to soft legacy demand, net sales to the 'Other' end market-which includes the new Data Center & Critical Power segment-increased by 8.9% year-over-year. This shows the team is successfully pivoting to higher-growth, higher-margin opportunities, which is exactly what 'empowerment' should look like. The Accu-Fab acquisition, which is driving this growth, is a concrete example of strategically deploying capital to support the team's new focus.

Enabling Growth for Shareholders (Financial Performance)

Growth for shareholders is the bottom line, and for a public company, that means profitability and a strong balance sheet. The company is managing a challenging environment, but the numbers show discipline. Here's the quick math on recent performance and leverage:

• Q3 2025 Adjusted EBITDA was $14.1 million, representing a 9.8% margin on net sales.
• Adjusted Diluted Earnings Per Share (EPS) for Q3 2025 was $0.10.
• Full-year 2025 EPS guidance is projected at $0.31.

The net leverage ratio (net debt to trailing twelve-month Adjusted EBITDA) was 3.5x as of September 30, 2025. That's higher than I'd prefer for a cyclical manufacturer, but the management is reiterating its full-year guidance, suggesting confidence in their operational improvements and the new market expansion. They are also forecasting 2026 revenue synergies from the Accu-Fab acquisition to be between $20 million and $30 million, which should improve the leverage ratio next year.

Serving the Communities (Social Responsibility)

The final component of the mission, serving the communities, is where social responsibility and operational footprint meet. MEC operates 27 facilities across nine states, and being a major employer in these areas is a direct form of community support. The company's commitment to its facilities and local workforce is a key factor in its long-term stability and reputation. They define their Social Responsibility as a promise to operate with great regard for the quality of life of their employees, the local communities, and society as a whole. This is a crucial, non-financial moat, especially when you consider the tight labor market for skilled manufacturing workers. It helps them attract and retain the 'team' they need to execute the first part of their mission. That's good risk management.

Mayville Engineering Company, Inc. (MEC) Core Values

You're looking for the real DNA of Mayville Engineering Company, Inc. (MEC), not just the boilerplate. As a seasoned analyst, I can tell you that a company's values aren't just posters on a wall; they are the actions that drive the financial outcomes. MEC's framework is built around six core values that directly map to their strategic moves in 2025, especially their push into high-growth markets like data centers.

MEC's mission is clear: Exploring Mayville Engineering Company, Inc. (MEC) Investor Profile: Who's Buying and Why?. They state, 'We will empower our team to create premium products and solutions for our customers, enabling growth for our employees, shareholders, and the communities we serve.' That's a stakeholder-centric view, and you see it reflected in their capital allocation.

Integrity & Respect: The Foundation of Trust

Integrity and respect are the non-negotiable bedrock of any enduring business, and for MEC, this translates directly into disciplined financial stewardship and corporate governance. You see this commitment in how they manage their balance sheet and treat shareholder capital. Honestly, good governance is just good business.

For example, in the second quarter of 2025, MEC demonstrated fiscal discipline by repaying $8.7 million of debt and repurchasing $2.9 million in shares under their existing authorization using free cash flow. This action shows respect for capital and a commitment to maintaining a healthy financial structure, which is a defintely positive signal to the market. As of June 30, 2025, their debt outstanding stood at a manageable $72.0 million.

• Maintain fiscal discipline.
• Prioritize shareholder returns.
• Uphold strong corporate governance.

Teamwork & Collaborative: The 'One MEC' Approach

The values of teamwork and being collaborative are embodied in MEC's operational strategy, which they call the MBX (MEC Business Excellence) value creation framework. It's about getting all 2,300+ employees at their 20 national locations working together to improve efficiency. This isn't just a feel-good initiative; it has a clear financial return.

Here's the quick math: The company's 2025 adjusted EBITDA guidance of $49 million to $55 million includes a benefit of $1 million to $2 million from cost improvement initiatives driven by this MBX operational excellence. That's a concrete result of their collaborative efforts to rationalize costs and implement strategic value-based pricing, even while facing inflationary pressures. Teamwork pays the bills.

Agile & Customer-focused: Driving Strategic Growth

Agility and a customer-focused mindset are crucial for navigating the current market volatility, where demand in legacy markets like commercial vehicles has been soft. MEC's response has been to pivot strategically, which is the definition of agility. They're not waiting for the cycle to turn; they're changing their business mix.

The most significant 2025 example is the Accu-Fab acquisition, which closed at the beginning of the third quarter. This move instantly diversified MEC into the high-growth critical power and data center end markets. This acquisition is expected to contribute between $28 million and $32 million in incremental 2025 revenue and between $6 million and $8 million in incremental Adjusted EBITDA. That's a massive, value-accretive shift, and it's why they were able to reaffirm their full-year 2025 net sales guidance of $528 million to $562 million, despite legacy market headwinds.

• Acquire new capabilities (Accu-Fab).
• Diversify into high-growth markets (data centers).
• Accelerate revenue synergies (expecting $5 million to $10 million in 2026).