Mayville Engineering Company Announces Strategic Footprint Expansion in the Southeastern U.S.

MILWAUKEE--(BUSINESS WIRE)--Mayville Engineering Company (NYSE: MEC) (the “Company” or “MEC”), a leading value-added provider of design, prototyping and manufacturing solutions serving diverse end-markets, today announced an expansion of its Southeastern U.S. manufacturing footprint through the acquisition of a 138,000 square foot finishing facility in Thomson, Georgia. The transaction closed on October 1, 2026.

The Company expects to invest in phases a total of approximately $25 million to $30 million in the location, which includes the purchase price, facility improvements and production equipment through 2028. The planned investment will support growing demand in the Datacenter & Critical Power end market and, when fully deployed, is expected to add approximately $50 million of annual revenue capacity by 2028.

“Expanding in the Southeast is an important step in the commercial growth investments we are executing across our business,” said Jag Reddy, President and Chief Executive Officer. “Demand from our Datacenter & Critical Power customers is currently on track to outpace our available capacity, and this location gives us the platform to grow alongside where our customers are investing. A critical element of MEC’s value to our OEM partners is our proximity to them, and this expansion positions us to deepen our integration into our customers' supply chains as they meet the rapidly growing demand for Datacenter & Critical Power infrastructure.”

“This acquisition and the corresponding equipment investment are part of a broader organic growth investment we are executing, which will unlock capacity and drive higher-value revenue growth,” Reddy continued. “Consistent with our disciplined approach to capital allocation, we are focused on deploying capital into higher-value growth opportunities that will generate sustainable growth and capital returns as we capitalize on a multi-year secular growth opportunity within Datacenter & Critical Power infrastructure.”

STRATEGIC RATIONALE

• Expands capacity to serve accelerating demand in the high-value Datacenter & Critical Power end market. Consistent with MEC's stated strategy of investing in higher-value, higher-growth end markets, customer demand within the Datacenter & Critical Power end market continues to outpace the Company's available capacity. MEC's qualified opportunity pipeline in this end market exceeds $125 million, and the Company has secured approximately $90 million in new project awards during the first half of 2026. The Thomson facility adds to the already existing platform through which MEC will increase dedicated capacity to convert this pipeline into profitable growth.
• Positions capacity in close proximity to the Company's Datacenter & Critical Power customers. The facility is located near Augusta, Georgia, within the Southeastern corridor where several of MEC's current and potential Datacenter & Critical Power customers are concentrated, extending the regional footprint MEC established through its 2025 acquisition of Accu-Fab LLC. Regional proximity supports shorter lead times, lower freight costs and closer collaboration with customers as their programs scale, and adds Georgia as MEC's tenth state of operation.
• Provides a capital-efficient and accelerated path to new capacity. The acquisition secures an existing 138,000 square foot facility with operational e-coating and powder coating lines, on-site wastewater treatment and environmental permitting in place, together with an experienced workforce that MEC intends to retain in full. Acquiring and converting an established industrial site allows MEC to bring capacity online on a faster timeline and at lower cost than a greenfield alternative, while MEC's investment expands the site's finishing operations into a full fabrication and finishing facility.
• Investment held to MEC's disciplined return thresholds. MEC expects to invest a total of $25 million to $30 million in the location, inclusive of the purchase price, facility improvements and production equipment, phased across 2027 and 2028. When fully deployed, the investment is expected to support approximately $50 million of annual revenue capacity, increasing MEC's total revenue capacity beyond the approximately $850 million previously disclosed. Consistent with the framework MEC applies across its organic growth investments, the project is expected to meet the Company's return threshold of an internal rate of return of at least 15%. The Company may make additional investments in fabrication capacity at the site over time based on regional demand.
• Funded from existing liquidity with no expected material impact to 2026 results. The investment is funded with available liquidity due in part to our previous equity financing transaction. The acquisition is not expected to have a material impact on the Company's 2026 net sales, Adjusted EBITDA or Free Cash Flow. Revenue and earnings contribution is expected to begin in 2027 and build as fabrication capabilities are commissioned and customer programs ramp.

ABOUT MAYVILLE ENGINEERING COMPANY

Founded in 1945, MEC is a leading U.S.-based, vertically-integrated, value-added manufacturing partner providing a full suite of manufacturing solutions from concept to production, including design, prototyping and tooling, fabrication, aluminum extrusion, coating, assembly and aftermarket components. Our customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, datacenter & critical power, construction & access equipment, powersports, agriculture, military and other end markets. Along with process engineering and development services, MEC maintains an extensive manufacturing infrastructure with 28 facilities, of which 23 are in use, across ten states. These facilities make it possible to offer conventional and CNC (computer numerical control) stamping, shearing, fiber laser cutting, forming, drilling, tapping, grinding, tube bending, machining, welding, assembly, and logistic services. MEC also possesses a broad range of finishing capabilities including shot blasting, e-coating, powder coating, wet spray and military grade chemical agent resistant coating (CARC) painting. For more information, please visit www.mecinc.com.

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements that reflect plans, estimates and beliefs. Such statements involve risk and uncertainties. Actual results may differ materially from those contemplated by these forward-looking statements as a result of various factors. Important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements include, but are not limited to: macroeconomic conditions, including inflation, elevated interest rates, labor availability, material cost pressures trade policy uncertainty and inconsistent demand, have had, and may continue to have, a negative impact on our business, financial condition, cash flows and results of operations (including future uncertain impacts); risks relating to developments in the industries in which our customers operate; risks related to scheduling production accurately and maximizing efficiency; our ability to realize net sales represented by our awarded business; failure to compete successfully in our markets; our ability to maintain our manufacturing, engineering and technological expertise; the loss of any of our large customers or the loss of their respective market shares; risks related to entering new markets; our ability to recruit and retain our key executive officers, managers and trade-skilled personnel; macroeconomic conditions impacting datacenter & critical power end market demand; volatility in the prices or availability of raw materials critical to our business; manufacturing risks, including delays and technical problems, issues with third-party suppliers, environmental risks and applicable statutory and regulatory requirements; our ability to successfully identify or integrate acquisitions; geopolitical and economic developments, including foreign trade relations and associated tariffs; our ability to develop new and innovative processes and gain customer acceptance of such processes; risks related to our information technology systems and infrastructure; results of legal disputes, including product liability, intellectual property infringement and other claims; risks associated with our capital-intensive industry; risks related to our employee stock ownership plan’s treatment as a tax-qualified retirement plan; our ability to satisfy our current obligations under existing indebtedness and other factors described in “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, as such may be amended or supplemented in our subsequently filed Quarterly Reports on Form 10-Q. This discussion should be read in conjunction with our audited consolidated financial statements included in the Company’s previously filed Annual Report on Form 10-K for the year ended December 31, 2025. We undertake no obligation to update or revise any forward-looking statements after the date on which any such statement is made, whether as a result of new information, future events or otherwise, except as required by federal securities laws.

INVESTOR CONTACT
Stefan Neely or Brian Hawthorne
(615) 844-6248
MEC@val-adv.com