Mayville Engineering Company, Inc. (MEC): Business Model Canvas [Dec-2025 Updated]

You're looking to see how Mayville Engineering Company, Inc. (MEC) is actually executing its pivot into the high-growth Data Center space, and frankly, their Business Model Canvas tells a clear story. This isn't just about making metal parts; it's about leveraging the largest vertically-integrated domestic footprint-26 facilities strong-to de-risk supply chains for major OEMs. With 2025 net sales guidance pegged between $\text{528 million}$ and $\text{562 million}$, the question is how they fund the next phase, especially with $\text{247.5 million}$ in cash and credit capacity in hand as of Q3 2025. It's a masterclass in capacity redeployment, so check out the nine building blocks below to see the whole picture.

Mayville Engineering Company, Inc. (MEC) - Canvas Business Model: Key Partnerships

You're looking at how Mayville Engineering Company, Inc. (MEC) structures its external relationships to deliver value, which is critical given the shift toward data centers and away from cyclical heavy vehicles. Here's the breakdown of their key partnerships as of late 2025, grounded in the latest figures.

Strategic, long-term relationships with major Original Equipment Manufacturers (OEMs) remain the bedrock. MEC is a Tier 1 supplier to many of the country's top OEMs across several sectors. The company's manufacturing footprint is 100% domestic, and they leverage this for customers looking to reshore supply chains.

The supplier base is heavily localized, which is a key partnership feature supporting their domestic strategy. Specifically, roughly 92% of the direct materials Mayville Engineering Company, Inc. uses are sourced domestically. This high domestic sourcing helps insulate earnings before interest, taxes, depreciation and amortization (EBITDA) because contract pricing passes tariffs through.

The integration of Accu-Fab, which closed on July 1, 2025, for a cash consideration of $140.5 million, is a major strategic partnership move to access the Data Center/Critical Power (DC/CP) market. This acquisition brings in partners from high-growth sectors. The team booked $30 million of DC/CP awards in 3Q25, and management expects this segment to approach around 20% of sales in 2026. Accu-Fab's historical Adjusted EBITDA margin was 20.2% (three years ended 2024) compared to MEC's 11.2% in that same period, showing the value of these new partnerships.

You can see the current financial weight of these OEM relationships across the major segments in the third quarter of 2025:

Collaboration on design and prototyping is embedded in the service offering. Mayville Engineering Company, Inc. provides a full suite of services from concept to production, including design and prototyping. The team is tracking ahead of pace to achieve their annual goal of $100 million in new business awards for 2025. This suggests strong, active collaboration with customers on future product pipelines.

• Manufacturing is 100% domestic.
• Direct materials sourcing is approximately 92% domestic.
• Accu-Fab acquisition cost was $140.5 million.
• New DC/CP awards booked in 3Q25 totaled $30 million.
• Annual new business award goal for 2025 is $100 million.

Finance: draft 13-week cash view by Friday.

Mayville Engineering Company, Inc. (MEC) - Canvas Business Model: Key Activities

You're looking at the core engine of Mayville Engineering Company, Inc. (MEC) as of late 2025. The Key Activities section of the Business Model Canvas shows where the real work happens to deliver value, and for MEC, it's all about deep, in-house capability and strategic pivot.

Vertically-integrated custom metal fabrication, coating, and assembly is the foundation. This integration means MEC controls the process from raw material shaping through to the final painted and assembled product. This capability is what allows them to be a sole-sourced manufacturer for over 95% of their products, a key differentiator in the supply chain. Financially, this integrated model supported Q3 2025 net sales of $144.3 million, even as organic net sales declined by 9.1%. The company operates 27 facilities across the continental U.S. to support this footprint.

A major activity is the execution of the MBX (MEC Business Excellence) lean manufacturing strategy. This isn't just a slogan; it's a systematic effort to drive operational efficiency. For instance, cost improvement benefits from MBX operational excellence and value-based pricing are embedded in the full-year 2025 Adjusted EBITDA guidance, contributing between $1 million to $3 million. This focus on standardization and lean principles is designed to improve profitability, targeting an Adjusted EBITDA margin of 9.8% in Q3 2025.

You see capacity redeployment to support high-growth Data Center demand as a critical, ongoing activity. This is largely fueled by the recent Accu-Fab acquisition, which itself contributed $21.2 million to Q3 2025 net sales. Management is actively shifting resources to capitalize on this secular trend, with expectations that the Data Center & Critical Power end market will represent at least 20% of overall sales by 2026. The current qualified pipeline in this area is noted as exceeding $100 million. This strategic pivot is key to offsetting softness in legacy markets like Commercial Vehicle, which saw a 2.4% year-over-year decline in Q3 2025.

Finally, managing the entire product lifecycle from concept to full production is a continuous activity that underpins their value proposition. This involves design and prototyping, which is essential for securing long-term OEM partnerships. The company is investing to support this future growth, with expected Capital Expenditures for the full year 2025 maintained in the range of $13 million and $17 million. The successful integration of Accu-Fab is projected to yield revenue synergies between $20 to $30 million by 2026, which is a direct result of effectively managing the lifecycle of new market entry.

Here's a quick look at the financial scale tied to these activities for the full year 2025 guidance:

The successful execution of these activities is what management is betting on to hit those guidance numbers, especially as they work through lower demand in legacy segments.

Mayville Engineering Company, Inc. (MEC) - Canvas Business Model: Key Resources

You're looking at the core assets Mayville Engineering Company, Inc. (MEC) relies on to execute its strategy as of late 2025. These aren't just line items on a balance sheet; they are the tangible and human engines driving their value proposition, especially as they pivot capacity toward the Data Center & Critical Power market.

The physical infrastructure is significant. Mayville Engineering Company, Inc. maintains an extensive 100% domestic manufacturing footprint, which the company touts as comprising 26 facilities across nine U.S. states. This domestic concentration is a key differentiator, especially when OEMs are looking to de-risk supply chains. To be fair, the company is actively managing this footprint, planning a consolidation that will reduce the count by closing three warehouses and one manufacturing facility by the end of 2026, with an expected charge in the neighborhood of $\mathbf{\$5}$ to $\mathbf{\$7 \text{ million}}$ for that optimization.

The commitment to advanced manufacturing technology and automation equipment underpins their efficiency drive. They continue to invest in a technology-enabled asset base, aiming to boost profitability, quality, and employee safety while securing a long-term cost advantage over competitors. This investment supports their strategy to redeploy capacity out of six Commercial Vehicle-focused plants into the higher-velocity Data Center & Critical Power work.

Human capital is structured around a unique ownership model. Mayville Engineering Company, Inc. remains majority employee-owned through its Employee Stock Ownership Plan (ESOP), which it has maintained since 1985. Company contributions to the ESOP are discretionary, generally depending on profitability. This structure is intended to align employee effort with company performance. Still, management is focused on executing a High-Performance Culture across the organization.

Financially, liquidity remains a critical resource. As of the end of the third quarter of 2025, Mayville Engineering Company, Inc. reported total cash and availability on its senior secured revolving credit facility of $\mathbf{\$247.5 \text{ million}}$. This liquidity position is set against net debt outstanding of $\mathbf{\$214.9 \text{ million}}$ at that same date.

Here's a quick look at some key operational and financial metrics from that Q3 2025 snapshot:

The company is actively managing its asset base to align with growth areas. For instance, they are redeploying capacity from six CV-focused plants into the DC/CP segment.

• Domestic Manufacturing Footprint: $\mathbf{26}$ facilities
• Domestic Material Sourcing: Roughly $\mathbf{92\%}$ of direct materials
• ESOP Established: Since 1985
• Cash & Credit Availability (Q3 2025): $\mathbf{\$247.5 \text{ million}}$

Finance: draft 13-week cash view by Friday.

Mayville Engineering Company, Inc. (MEC) - Canvas Business Model: Value Propositions

You're looking at the core differentiators for Mayville Engineering Company, Inc. (MEC) as of late 2025, which are heavily rooted in scale and comprehensive capability.

MEC's primary value proposition is its position as the #1 domestic fabricator, a title it has held for the fifteenth consecutive year according to The Fabricator Magazine's FAB 40 list. This scale is supported by an extensive physical footprint, operating 26 plants across nine U.S. states, or 23 facilities, with 22 in use, across seven states as of June 2025. This vertical integration is a key selling point for Original Equipment Manufacturers (OEMs) seeking a single, reliable domestic source.

The commitment to a fully domestic operation directly addresses supply chain volatility. MEC's manufacturing is 100% domestic, and roughly 92% of the direct materials used are also sourced domestically. This structure helps insulate earnings by passing tariff costs through contract pricing to OEMs, offering a level of supply chain risk mitigation that many competitors cannot match in the current environment.

The end-to-end solution offering covers the entire product lifecycle, moving beyond simple fabrication. This includes:

• Design, prototyping, and tooling services
• Fabrication, aluminum extrusion, and specialized finishing
• Complex assembly and high-volume production capabilities
• Logistics and aftermarket components support

This capability is further enhanced by value-added engineering expertise, which is critical for product redevelopment cycles. For instance, the company anticipates that new high-growth segments, like Data Center & Critical Power, will yield gross margins approximately 10 percentage points above the historical average margin range of 15% to 20%. Furthermore, the integration of Accu-Fab is expected to unlock between $20 million and $30 million in revenue synergies by 2026, demonstrating the tangible financial value derived from their integrated engineering and M&A strategy. To execute these new programs, MEC already has over 90% of the required production assets in place internally.

Mayville Engineering Company, Inc. (MEC) - Canvas Business Model: Customer Relationships

You're looking at how Mayville Engineering Company, Inc. (MEC) manages its key accounts right now, late in 2025. Honestly, the relationship strategy is clearly bifurcated: supporting deep, established OEM ties while aggressively pursuing new, high-growth Data Center partners.

Dedicated account management fostering long-term OEM relationships.

MEC's structure definitely leans on existing, deep-rooted partnerships. For context, looking back at the end of 2024, the top single customer still represented a significant 16.8% of net sales. Furthermore, the top ten customers collectively drove 70.6% of the prior year's net sales, which tells you that maintaining these relationships is central to the baseline business. For instance, the relationship with John Deere alone involved producing over 5,000 SKUs across 65 platforms in 2024, accounting for 11.3% of total revenue then. This level of integration requires dedicated account management to ensure operational continuity.

High-touch engagement with Data Center OEMs for new program wins.

The engagement in the Data Center & Critical Power segment is where the high-touch effort is clearly focused for new business. Management noted that the qualified opportunity pipeline in this specific market has grown substantially, exceeding $100 million as of the third quarter of 2025. This aggressive pursuit is paying off; MEC secured $30 million in new project awards within that segment just in Q3 2025. This market is expected to be a major revenue driver, projected to represent 20% to 25% of total revenues in the coming years.

Collaborative development model for profitable product engineering.

The collaborative model is being proven through the Accu-Fab integration, which is key to unlocking value in the new segment. Revenue synergy expectations from that acquisition for 2026 have been increased to a range of $20 million to $30 million. This segment is also expected to yield gross margins approximately 10 percentage points above MEC's historical average gross margin rate of 15% to 20%. That margin uplift is the direct financial proof of successful product engineering collaboration.

Operational alignment with customer production schedules.

To support these varied relationships, MEC relies on a broad physical footprint. The company operates 23 strategically located U.S. facilities across seven states, which helps align manufacturing capacity with customer needs, whether it's supporting legacy production or ramping up for new Data Center builds. This physical presence is critical for operational alignment, especially when legacy markets like Commercial Vehicles saw declines of 24% year-over-year in Q3 2025, requiring flexible resource allocation.

Here's a quick look at the revenue contribution context as of Q3 2025:

The relationship strategy hinges on leveraging the existing trust from long-term partners while aggressively deploying high-touch engagement to capture the projected 20% to 25% revenue share from the Data Center market by 2026. The ability to manage the contrasting demands-softness in legacy markets versus rapid scaling in new ones-is what defines the current relationship execution.

Mayville Engineering Company, Inc. (MEC) - Canvas Business Model: Channels

You're looking at how Mayville Engineering Company, Inc. (MEC) gets its value proposition to the customer, and honestly, it's all about boots on the ground and physical presence. For a value-added manufacturer like MEC, the channel strategy is deeply rooted in proximity and technical sales expertise, especially since they serve blue-chip Original Equipment Manufacturers (OEMs).

The primary channel for direct customer engagement is the sales force, which is highly technical to support complex fabrication needs. As of late 2025, this team is comprised of approximately 50 experienced professionals. These individuals are tasked with managing and expanding relationships with key accounts across diverse end markets, including commercial vehicles, construction, agriculture, and the newly emphasized Data Center/Critical Power sector following the Accu-Fab acquisition. This direct sales force targets both the procurement and engineering teams within these OEM organizations, which is crucial given the high customer switching costs associated with their embedded relationships and broad capabilities.

The physical backbone of this channel strategy is the expansive, domestic manufacturing footprint, designed to offer that critical "local" presence to customers across the United States. As of late 2025, Mayville Engineering Company, Inc. (MEC) operates 26 plants across nine U.S. states. This network is 100% domestic, which supports reshoring trends among OEMs.

The strategic location of these facilities is a key component of the channel, ensuring serviceability and strong relationships. The manufacturing capacity is spread across states including, but not limited to, Arkansas, Michigan, Ohio, Pennsylvania, Virginia, and Wisconsin.

Here's a quick look at the scale of the physical channel assets supporting the sales effort:

This physical network is currently undergoing refinement to better align with growth areas. For instance, Mayville Engineering launched a footprint optimization plan in early August 2025 to consolidate three warehouses and one manufacturing facility by the end of 2026. This move is aimed at achieving fixed-cost relief and better asset utilization, specifically aligned to the growth in the Data Center/Critical Power (DC/CP) segment.

The channel effectiveness is directly tied to the expected financial output, which for the full year 2025 is guided to be between $528 million and $562 million in net sales.

The core elements of the channel delivery include:

• - Direct sales force targeting OEM procurement and engineering teams, supported by approximately 50 experienced professionals.
• - Network of 26 U.S. manufacturing and service facilities operating across nine states.
• - Strategic facility location near major customer operations, with ongoing optimization to align capacity with high-growth markets like Data Center/Critical Power.

Mayville Engineering Company, Inc. (MEC) - Canvas Business Model: Customer Segments

You're looking at the core markets Mayville Engineering Company, Inc. (MEC) serves as of late 2025. The business is clearly navigating a split-some segments are driving growth while others are seeing real softness.

The company reaffirmed its full-year 2025 net sales guidance to be between $528 million and $562 million. For context, the Q3 2025 net sales were $144.3 million.

Here's the quick math on the key customer groups based on the latest reported figures:

The strategic pivot toward high-growth areas is evident. Management increased expectations for 2026 revenue synergies from the Accu-Fab acquisition to a range of $20 million to $30 million. This Data Center & Critical Power market is projected to represent at least 20% of overall sales in 2026.

Specific details on the high-growth segment include:

• Qualified opportunity pipeline exceeding $100 million.
• $30 million in new project awards secured in Q3 2025.
• The segment saw organic net sales growth of 7.4% in Q3 2025 compared to Q3 2024.

The legacy segments show strain. For instance, Agriculture net sales declined 21.8% in Q3 2025. Commercial Vehicle net sales declined 24% year-over-year. Still, Construction & Access showed resilience in Q3 2025 with net sales of $22.1 million.

The customer base is concentrated; in 2024, the top customer accounted for 16.8% of net sales, and the top ten customers represented 70.6% of net sales. As of September 30, 2025, Mayville Engineering Company, Inc. (MEC) had net debt outstanding of $214.9 million and a net leverage ratio of 3.5x.

Mayville Engineering Company, Inc. (MEC) - Canvas Business Model: Cost Structure

You're looking at the core expenses Mayville Engineering Company, Inc. (MEC) is managing right now, especially after the recent strategic moves. The cost structure is heavily weighted toward production, but financing and integration costs are also front and center as of late 2025.

Significant costs of goods sold (COGS) from raw materials are a major component of the overall expense base. Cost of sales, which includes all direct and indirect manufacturing costs, is directly influenced by commodity prices, particularly sheet steel and aluminum. To be fair, Mayville Engineering Company, Inc. (MEC) has contractual agreements that largely pass these price variations through to customers based on market indexes, which helps mitigate the direct impact on profitability, but the volume of material spend remains substantial. The company operates a 100% domestic manufacturing base, and roughly 92% of the direct materials used are sourced domestically.

Manufacturing labor and operational costs are spread across the company's extensive footprint. As of late 2025, Mayville Engineering Company, Inc. (MEC) operates 26 plants across nine U.S. states. The operational health here is reflected in the Manufacturing Margin. For the third quarter of 2025, the manufacturing margin was $15.9 million, representing 11.0% of net sales. This margin was pressured by lower fixed cost absorption due to softer legacy demand, alongside specific non-recurring charges. Also, you see labor-related expenses reflected in the general overhead; for instance, bonuses and deferred compensation expense totaled $2.2 million in the third quarter of 2025.

Financing costs have increased due to recent activity. The interest expense for the third quarter of 2025 was $3.4 million, up from $2.7 million in the prior year period. This increase is directly tied to higher borrowings associated with the Accu-Fab acquisition. This debt load is significant; as of September 30, 2025, Mayville Engineering Company, Inc. (MEC) reported net debt outstanding of $214.9 million, resulting in a net leverage ratio of 3.5x on a pro-forma basis for the acquisition.

The integration of the Accu-Fab acquisition has also introduced specific one-time charges into the cost base. You must account for non-recurring restructuring costs and inventory step-up expenses related to this deal. These specific costs, which are part of the overall manufacturing margin pressure, totaled $1.2 million in the third quarter of 2025. Separately, other non-recurring costs, which impacted cash flow, were noted around $3.5 million in the third quarter of 2025. The company is actively working to rationalize capacity, launching a footprint optimization to consolidate facilities, which is expected to result in a total charge running somewhere in the neighborhood of $5-$7 million by the end of 2026 to achieve fixed-cost relief.

Here's a quick look at the key cost-related financial data points from the third quarter of 2025:

Other selling, general and administrative expenses were $10.5 million in the third quarter of 2025, which included $0.9 million in non-recurring costs and $1.6 million in incremental SG&A tied to the Accu-Fab acquisition. Long term, Mayville Engineering Company, Inc. (MEC) anticipates SG&A to normalize to a range of between 4.5-5.5% of net sales once end market demand recovers.

Finance: draft 13-week cash view by Friday.

Mayville Engineering Company, Inc. (MEC) - Canvas Business Model: Revenue Streams

You're looking at how Mayville Engineering Company, Inc. (MEC) brings in money as of late 2025, which is a mix of steady legacy business and significant new growth drivers. The company reaffirmed its full-year 2025 financial guidance after the third quarter, projecting total net sales to land between $528 million and $562 million.

The core of Mayville Engineering Company, Inc. (MEC)'s revenue still comes from its traditional role as a value-added manufacturing partner. This involves the sales of fabricated components and complex assemblies to OEMs across various sectors. However, you see a clear divergence in performance across these legacy markets as of Q3 2025. For instance, net sales in the Commercial Vehicle market were down 24% year-over-year, and Agriculture saw a decline of 21.8% in the same period. This softness in established areas is being counterbalanced by strategic shifts.

The major story driving the top-line growth is the revenue from the Data Center & Critical Power segment, which is definitely growing. This segment's momentum is fueled by the recent Accu-Fab acquisition. In the third quarter of 2025 alone, this specific segment delivered net sales of $22.6 million. Management is very optimistic here, increasing their 2026 revenue synergy expectation from that acquisition to a range of $20 million to $30 million. They project this high-growth vertical will represent 20% to 25% of total revenues by 2026.

To give you a snapshot of the financial context supporting these revenue streams as of the last reported quarter:

When you look at the remaining revenue sources, you see the aftermarket and service revenue, which is defintely a smaller portion of the overall mix compared to the large-scale OEM component fabrication and the burgeoning data center business. The overall Q3 2025 results show total sales up 6.6% year-over-year to $144.3 million, but this was achieved despite organic net sales declining by 9.1%, which clearly shows the importance of the new, high-growth segment to maintain the overall revenue trajectory.

Here are the key components contributing to the revenue picture:

• Net Sales to Other end markets (Q3 2025): $21.9 million, up 8.9% year-over-year, largely due to the Accu-Fab acquisition.
• Construction & Access Net Sales (Q3 2025): $22.1 million, up 10.1% versus the prior year period.
• Powersports Market Net Sales (Q2 2025 for context): $19.6 million, a decrease of 35.2% versus the prior-year period.

The revenue stream is clearly pivoting.