The following is a summary of the Mayville Engineering Company, Inc. (MEC) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Mayville Engineering reported a strong Q1 performance with net sales growth, increased adjusted EBITDA, and positive free cash flow.

• The company demonstrated a Q1 sales increase of 13.1% to $161.3 million.

• Manufacturing margin was $20.9 million, and adjusted EBITDA increased to $18.5 million.

• For 2024, the company projects full-year net sales growth of 5%-9% and growth in total free cash flow of approximately $11 million to $21 million.

• Revenue for the quarter was $124.2 million, up 2% year-over-year, supplemented by strong performance in Powersports and commercial lawn and turf markets.

• The company reported earnings per share of $0.05, indicating a substantial turnaround from the loss per share of $0.01 in the same quarter last year.

Business Progress:

• The company experienced significant success with its MBX framework and reported substantial new Q1 contract wins.

• Intends to further advance commercial reach and operational productivity, including an accentuated focus on sourcing optimization and labor utilization.

• Achieved full integration of Mid-States Aluminum into the MEC platform, contributing to year-over-year top-line growth in Q1.

• Strategic M&A remains a critical aspect of the company's multi-year growth strategy, along with debt reduction and potential share repurchases under an existing $25 million authorization.

• Plans to make high-return investments in automation, expecting to improve productivity and expand capacity.

• Anticipates the Hazel Park plant generating a revenue of $100 million by 2025, facilitated by the deployment of flexible cobots.

• Maintains a strong focus on debt reduction and free cash flow generation for 2024, as well as continuous efforts for inventory reduction.

More details: Mayville Engineering IR

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