Vertically integrated manufacturing solutions provider Mayville Engineering Company (NYSE:MEC)
will be reporting results this Tuesday after market close. Here’s what you need to know.
"You get what you pay for" often applies to expensive stocks with best-in-class business models and execution.
While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change.
Great things are happening to the stocks in this article.
They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. They are also bound to benefit from a friendlier regulatory environment with the Trump administration,
and this excitement has led to a six-month gain of 37.4% for the sector - higher than the S&P 500’s 24.7% return.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
A number of stocks jumped in the afternoon session after investors scooped up equities, shaking off the initial concerns inferred from the Fed's dot plot, with tech stocks leading the charge.
A number of stocks fell in the afternoon session after concerns about the health of the U.S. economy grew following a significant downward revision of job market data.
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on.
However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead.
They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. But their prominence also brings high exposure to the ups and downs of economic cycles.
Luckily, the tide is turning in their favor as the industry’s 18.1% return over the past six months has topped the S&P 500 by 8.9 percentage points.
Let’s dig into the relative performance of Mayville Engineering (NYSE:MEC) and its peers as we unravel the now-completed Q2 engineered components and systems earnings season.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Vertically integrated manufacturing solutions provider Mayville Engineering Company (NYSE:MEC) missed Wall Street’s revenue expectations in Q2 CY2025, with sales falling 19.1% year on year to $132.3 million. The company’s full-year revenue guidance of $545 million at the midpoint came in 8.4% below analysts’ estimates. Its non-GAAP profit of $0.10 per share was 67.4% above analysts’ consensus estimates.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
Shares of vertically integrated manufacturing solutions provider Mayville Engineering Company (NYSE:MEC)
fell 7% in the afternoon session after DA Davidson lowered its price target on the stock in response to weak second-quarter results and a reduced outlook. The investment firm cut its price expectation to $18.00 from $23.00. The move followed Mayville's report of a 19.1% sales drop in the second quarter, which resulted in a net loss of $1.1 million. The manufacturer pointed to weaker demand from customers in key markets like agriculture and construction. Compounding the negative news, the company slashed its full-year financial guidance and withdrew its 2026 financial targets, citing an uncertain economic outlook.
Shares of vertically integrated manufacturing solutions provider Mayville Engineering Company (NYSE:MEC)
fell 16.3% in the afternoon session after the company reported disappointing second-quarter results and slashed its full-year financial guidance, citing weak market demand. The manufacturing company's sales fell 19.1% from the prior year, hit by customers reducing their stockpiles across key markets like agriculture and construction. This sales slump resulted in a net loss of $1.1 million, a stark contrast to the $3.8 million profit recorded in the same quarter last year. Looking forward, the company cut its full-year revenue and earnings forecasts, pointing to continued soft demand. In a significant move that added to investor worries, Mayville also withdrew its 2026 financial targets, citing an uncertain economic outlook and weak market conditions.
Vertically integrated manufacturing solutions provider Mayville Engineering Company (NYSE:MEC) missed Wall Street’s revenue expectations in Q2 CY2025, with sales falling 19.1% year on year to $132.3 million. The company’s full-year revenue guidance of $545 million at the midpoint came in 8.4% below analysts’ estimates. Its non-GAAP profit of $0.10 per share was 67.4% above analysts’ consensus estimates.
Vertically integrated manufacturing solutions provider Mayville Engineering Company (NYSE:MEC)
will be reporting earnings this Tuesday after market hours. Here’s what investors should know.
As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the engineered components and systems industry, including Mayville Engineering (NYSE:MEC) and its peers.
