Free cash flow has shifted from a 29.4% margin in 2024Q4 to a negative 4.8% in 2026Q1, highlighting a disconnect between accounting earnings and actual cash generation.
| Cash from Operations | 27.47M | 38.56M | 89.81M | 40.36M | 52.43M | 14.46M | 36.52M | 33.4M | 36.72M | 30.8M |
| Operating CF Margin % | - | 7.06% | 15.44% | 6.86% | 9.72% | 3.18% | 10.21% | 6.43% | 10.36% | 9.83% |
| Operating CF Growth % | -323.05% | -57.06% | 122.5% | -23.01% | 262.63% | -60.42% | 9.34% | -9.02% | 19.2% | - |
| Net Income | -16.3M | -8.11M | 25.97M | 7.84M | 18.73M | -7.45M | -7.09M | -4.75M | 17.93M | 5.25M |
| Depreciation & Amortization | 36.5M | 31.57M | 37.59M | 35.08M | 29.31M | 31.78M | 32.09M | 33M | 20.47M | 20.73M |
| Stock-Based Compensation | 2.13M | 3.28M | 5.19M | 4.49M | 3.76M | 4.96M | 4.73M | 3.49M | 5.65M | 5.13M |
| Deferred Taxes | -7.23M | -5.53M | 4.22M | 0 | 0 | 0 | 0 | 11.17M | 0 | 0 |
| Other Non-Cash Items | 20.71M | 17.77M | 1.47M | -12.29M | -3.86M | 13.75M | 2.56M | -5.67M | 5.83M | 977K |
| Working Capital Changes | -8.33M | -411K | 15.37M | 5.24M | 4.49M | -28.59M | 4.24M | -3.83M | -7.52M | 3.85M |
| Change in Receivables | 3.61M | 6.04M | 8.1M | 7.79M | -2.5M | -12.67M | -2.66M | 11.85M | 1.04M | 2.57M |
| Change in Inventory | -7.35M | 77K | 13.25M | 16M | -1.63M | -27.9M | 4.25M | 8.89M | -6.87M | -2.48M |
| Change in Payables | 8.1M | 8.36M | -7.99M | -9.44M | 9.36M | 11.84M | 515K | -11.01M | 834K | 2.08M |
| Cash from Investing | -152.75M | -151.53M | -11.71M | -104.13M | -50.67M | -33.96M | -5.77M | -28.09M | -132.57M | -11.23M |
| Capital Expenditures | -12.87M | -11.65M | -12.1M | -16.6M | -58.61M | -39.31M | -7.79M | -25.8M | -17.88M | -11.26M |
| CapEx % of Revenue | 2.32% | 2.13% | 2.08% | 2.82% | 10.87% | 8.64% | 2.18% | 4.96% | 5.04% | 3.59% |
| Acquisitions | -139.94M | -139.95M | 0 | -88.59M | 0 | 0 | 0 | -2.37M | -114.7M | 24K |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 55K | 72K | 386K | 1.06M | 7.94M | 5.35M | 2.02M | 76K | 10K | 24K |
| Cash from Financing | 127.16M | 114.26M | -78.56M | 64.31M | -1.75M | 19.5M | -30.63M | -8.4M | 98.87M | -19.63M |
| Debt Issued (Net) | 134.4M | 121.27M | -69.18M | 68.18M | 3.2M | 21.54M | -27.91M | -107.57M | 108.87M | -10.51M |
| Equity Issued (Net) | -2.86M | -4.61M | -5.9M | -2.66M | -4.95M | -2.15M | -2.51M | -2.59M | -7.83M | -8.71M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -2.86M | -4.61M | -5.9M | -2.66M | -4.95M | -2.15M | -2.51M | -2.59M | -7.83M | -8.71M |
| Other Financing | -4.38M | -2.4M | -3.48M | -1.21M | 0 | 113K | -207K | 101.76M | -2.17M | -412K |
| Net Change in Cash | 1.88M | 1.3M | -466K | 545K | 9K | -3K | 120K | -3.09M | 3.01M | -67K |
| Free Cash Flow | 14.6M | 26.91M | 77.71M | 23.77M | -6.18M | -24.85M | 28.73M | 7.61M | 18.84M | 19.54M |
| FCF Margin % | 2.63% | 4.92% | 13.36% | 4.04% | -1.15% | -5.46% | 8.03% | 1.46% | 5.31% | 6.24% |
| FCF Growth % | -80.59% | -65.37% | 226.99% | 484.3% | 75.12% | -186.5% | 277.76% | -59.63% | -3.61% | - |
| FCF per Share | 0.71 | 1.31 | 3.71 | 1.15 | -0.30 | -1.19 | 1.44 | 0.44 | 0.96 | 0.99 |
| FCF Conversion (FCF/Net Income) | -0.90x | -4.75x | 3.46x | 5.15x | 2.80x | -1.94x | -5.15x | -7.03x | 2.05x | 5.87x |
| Interest Paid | 1.63M | 0 | 10.27M | 10.67M | 3.67M | 2.12M | 3.01M | 6.63M | 4.12M | 0 |
| Taxes Paid | 1.72M | 0 | 1.37M | 513K | 704K | 1.55M | 744K | 544K | 54K | 0 |
Liquidity and cyclical exposure
According to recent quarterly filings, MEC's operating cash flow to net income ratio has exhibited extreme volatility, reaching a negative 3.07 in 2025Q4, which suggests that reported accounting earnings are currently failing to capture the underlying cash burn inherent in the company's current manufacturing operations.
The persistent divergence between net income and operating cash flow indicates that non-cash charges and working capital swings are masking the true economic cost of production. Investors should monitor whether this disconnect reflects a structural inability to convert sales into cash or merely temporary timing differences in customer payments.
Based on historical financial statements, MEC's free cash flow margin has deteriorated significantly, falling from a peak of 29.4% in 2024Q4 to a negative 4.8% in 2026Q1, highlighting the company's struggle to maintain positive cash generation during the current industrial downturn.
The rapid shift from robust cash generation to negative free cash flow suggests that the company's cost structure is not sufficiently flexible to accommodate declining revenue. This trajectory warrants further investigation into whether management can stabilize cash outflows without compromising the long-term integrity of their production facilities.
As reported in recent SEC filings, working capital changes have swung from a positive $13.5 million in 2023Q4 to a negative $9.0 million in 2026Q1, indicating that the company's cash position is highly sensitive to fluctuations in inventory management and customer collection cycles.
The erratic nature of these working capital swings suggests that MEC may be struggling to align its procurement of raw materials with the actual demand from its OEM partners. This volatility appears to be a primary driver of the company's current liquidity stress, as cash is frequently tied up in operational cycles rather than being available for debt service.
Based on reported figures, MEC's capital expenditure as a percentage of revenue has remained relatively consistent, yet the 2.9% ratio observed in 2026Q1 appears disproportionately high given the company's recent revenue contraction and negative operating margins, suggesting a potential mismatch between investment and current output.
While maintaining capital investment is necessary for long-term competitiveness, the current level of spending may be unsustainable if the company cannot return to profitability. Analysts should monitor whether these expenditures are truly maintenance-focused or if they represent growth-oriented investments that may not yield returns in the current cycle.
Quick answers to the most common questions about buying MEC stock.
Mayville Engineering Company, Inc. (MEC) generated $38.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Mayville Engineering Company, Inc. (MEC) generated $26.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Mayville Engineering Company, Inc. (MEC) spent $11.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Mayville Engineering Company, Inc. (MEC) spent $4.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.