Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-38894

Mayville Engineering Company, Inc.

(Exact Name of Registrant as Specified in its Charter)

Wisconsin	39-0944729
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

135 S. 84th Street, Suite 300 Milwaukee, Wisconsin	53214
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (414) 381-2860

Securities registered pursuant to Section 12(b) of the Act:


Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, no par value		MEC		New York Stock Exchange

Title of each class

Trading

Symbol(s)

Name of each exchange

on which registered

Common Stock, no par value

MEC

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller reporting company	☒

Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 2, 2024, the registrant had 20,619,530 shares of common stock, no par value per share, outstanding.

Table of Contents

Table of Contents


		Page

PART I.	FINANCIAL INFORMATION	5

Item 1.	Financial Statements (Unaudited)	5

	Condensed Consolidated Balance Sheets	5

	Condensed Consolidated Statements of Comprehensive Income	6

	Condensed Consolidated Statements of Cash Flows	7

	Condensed Consolidated Statements of Shareholders’ Equity	9

	Notes to Unaudited Condensed Consolidated Financial Statements	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30

Item 4.	Controls and Procedures	31

PART II.	OTHER INFORMATION	32

Item 1.	Legal Proceedings	32

Item 1A.	Risk Factors	32

Item 1C.	Cybersecurity	32

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33

Item 5.	Other Information	33

Item 6.	Exhibits	34

Signatures		35

Table of Contents

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Certain matters discussed in this Quarterly Report on Form 10-Q contain forward-looking statements that involve risks and uncertainties, such as statements related to future events, business strategy, future performance, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek,” “anticipate,” “plan,” “continue,” “estimate,” “expect,” “may,” “will,” “project,” “predict,” “potential,” “targeting,” “intend,” “could,” “might,” “should,” “believe” and similar expressions or their negative. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on management’s belief, based on currently available information, as to the outcome and timing of future events. These statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed in such forward-looking statements. Mayville Engineering Company, Inc. (MEC, the Company, we, our, us or similar terms) believes the expectations reflected in the forward-looking statements contained in this Quarterly Report on Form 10-Q are reasonable, but no assurance can be given that these expectations will prove to be correct. Forward-looking statements should not be unduly relied upon.

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, those described in “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the SEC) on March 6, 2024, as such may be amended or supplemented in Part II, Item 1A of our subsequently filed Quarterly Reports on Form 10-Q (including this report) and the following:

●

Macroeconomic conditions, including inflation, elevated interest rates and recessionary concerns, as well as continuing supply chain constraints affecting some of our customers, labor availability and material cost pressures, 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;

●

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;

●

our ability to develop new and innovative processes and gain customer acceptance of such processes;

●

risks related to our information technology systems and infrastructure, including cybersecurity risks and data leakage risks;

Table of Contents

●

geopolitical and economic developments, including foreign trade relations and associated tariffs;

●

results of legal disputes, including product liability, intellectual property infringement and other claims;

●

risks associated with our capital-intensive industry;

●

risks related to our treatment as an S Corporation prior to the consummation of our initial public offering of common stock; and

●

risks related to our employee stock ownership plan’s treatment as a tax-qualified retirement plan.

These factors are not necessarily all of the important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements. Other unknown or unpredictable factors could also cause actual results or events to differ materially from those expressed in the forward-looking statements. All forward-looking statements attributable to us are qualified in their entirety by this cautionary statement. Forward-looking statements speak only as of the date hereof. 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.

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Mayville Engineering Company, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share amounts)

(unaudited)


	June 30,		December 31,
	2024		2023
ASSETS
Cash and cash equivalents	$	314	$	672
Receivables, net of allowances for doubtful accounts of $697 at June 30, 2024 and $685 at December 31, 2023		67,853		57,445
Inventories, net		60,816		67,782
Tooling in progress		6,074		5,457
Prepaid expenses and other current assets		5,155		3,267
Total current assets		140,212		134,623
Property, plant and equipment, net		168,757		175,745
Goodwill		92,650		92,650
Intangible assets, net		55,201		58,667
Operating lease assets		29,868		32,233
Other long-term assets		1,463		2,743
Total assets	$	488,151	$	496,661
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	53,963	$	46,526
Current portion of operating lease obligation		4,856		5,064
Accrued liabilities:
Salaries, wages, and payroll taxes		7,211		6,368
Profit sharing and bonus		3,275		3,107
Other current liabilities		12,523		10,644
Total current liabilities		81,828		71,709
Bank revolving credit notes		122,063		147,493
Operating lease obligation, less current maturities		26,616		28,606
Deferred compensation, less current portion		4,315		3,816
Deferred income tax liability		12,847		12,606
Other long-term liabilities		2,398		2,453
Total liabilities	$	250,067	$	266,683
Commitments and contingencies (see Note 9)
Common shares, no par value, 75,000,000 authorized, 22,077,389 shares issued at June 30, 2024 and 21,853,477 at December 31, 2023		—		—
Additional paid-in-capital		207,454		205,373
Retained earnings		41,141		34,118
Treasury shares at cost, 1,604,090 shares at June 30, 2024 and 1,542,893 at December 31, 2023		(10,511)		(9,513)
Total shareholders’ equity		238,084		229,978
Total liabilities and shareholders' equity	$	488,151	$	496,661

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

Mayville Engineering Company, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

(in thousands, except share amounts and per share data)

(unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net sales	$	163,636	$	138,980	$	324,905	$	281,626
Cost of sales		141,359		122,885		281,696		249,154
Amortization of intangible assets		1,733		1,738		3,466		3,476
Profit sharing, bonuses, and deferred compensation		4,133		2,688		7,933		5,690
Other selling, general and administrative expenses		8,261		7,396		16,030		14,363
Income from operations		8,150		4,273		15,780		8,943
Interest expense		(2,969)		(1,968)		(6,324)		(3,626)
Loss on extinguishment of debt		—		(216)		—		(216)
Income before taxes		5,181		2,089		9,456		5,101
Income tax expense		1,399		475		2,433		916
Net income and comprehensive income	$	3,782	$	1,614	$	7,023	$	4,185

Earnings per share:
Basic	$	0.18	$	0.08	$	0.34	$	0.21
Diluted	$	0.18	$	0.08	$	0.34	$	0.20

Weighted average shares outstanding:
Basic		20,602,650		20,494,437		20,544,292		20,405,383
Diluted		21,034,780		20,827,728		20,914,499		20,789,175

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

Mayville Engineering Company, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Six Months Ended
	June 30,
	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	7,023	$	4,185
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation		15,179		12,415
Amortization		3,466		3,476
Allowance for doubtful accounts		12		6
Inventory excess and obsolescence reserve		(164)		41
Stock-based compensation expense		2,495		2,420
Loss (gain) on disposal of property, plant and equipment		2		(135)
Deferred compensation		451		(17,475)
Loss on extinguishment of debt		—		216
Non-cash lease expense		2,702		2,144
Other non-cash adjustments		143		184
Changes in operating assets and liabilities:
Accounts receivable		(10,420)		(11,071)
Inventories		7,130		4,839
Tooling in progress		(617)		111
Prepaids and other current assets		(1,951)		(897)
Accounts payable		6,391		(3,061)
Deferred income taxes		1,764		638
Operating lease obligations		(2,535)		(1,986)
Accrued liabilities		2,829		(1,915)
Net cash provided by (used in) operating activities		33,900		(5,865)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment		(6,874)		(6,320)
Proceeds from sale of property, plant and equipment		107		153
Net cash used in investing activities		(6,767)		(6,167)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank revolving credit notes		273,536		347,324
Payments on bank revolving credit notes		(298,967)		(241,618)
Repayments of other long-term debt		(306)		(575)
Payments of financing costs		—		(1,248)
Shares withheld for employees' taxes		(758)		—
Purchase of treasury stock		(998)		(1,661)
Payments on finance leases		(343)		(192)
Proceeds from the exercise of stock options		345		—
Net cash provided by (used in) financing activities		(27,491)		102,030
Net increase (decrease) in cash and cash equivalents		(358)		89,998
Cash and cash equivalents at beginning of period		672		127
Cash and cash equivalents at end of period	$	314	$	90,125

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

Mayville Engineering Company, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Six Months Ended
	June 30,
	2024		2023
Supplemental disclosure of cash flow information:
Cash paid for interest	$	5,577	$	3,383
Cash paid for taxes	$	796	$	278
Non-cash property, plant & equipment, net	$	1,492	$	2,283
Non-cash 401(k) contribution of treasury stock	$	—	$	2,500

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

Mayville Engineering Company, Inc. and Subsidiaries

Condensed Consolidated Statements of Shareholders’ Equity

(in thousands)

(unaudited)


	Shareholders' Equity
	Additional		Treasury		Retained
	Paid-in-Capital		Shares		Earnings		Total
Balance as of December 31, 2023	$	205,373	$	(9,513)	$	34,118	$	229,978
Net income		—		—		3,241		3,241
Stock-based compensation		1,157		—		—		1,157
Stock options exercised net of employee tax withholding		185		—		—		185
Restricted stock units net of employee tax withholding		(524)		—		—		(524)
Balance as of March 31, 2024	$	206,191	$	(9,513)	$	37,359	$	234,037
Net income		—		—		3,782		3,782
Purchase of treasury stock		—		(998)		—		(998)
Stock-based compensation		1,338		—		—		1,338
Stock options exercised net of employee tax withholding		(75)		—		—		(75)
Balance as of June 30, 2024	$	207,454	$	(10,511)	$	41,141	$	238,084

	Shareholders' Equity
	Additional		Treasury		Retained
	Paid-in-Capital		Shares		Earnings		Total
Balance as of December 31, 2022	$	200,945	$	(9,352)	$	26,274	$	217,867
Net income		—		—		2,571		2,571
401(k) plan contribution		—		2,500		—		2,500
Purchase of treasury stock		—		(661)		—		(661)
Stock-based compensation		1,066		—		—		1,066
Balance as of March 31, 2023	$	202,011	$	(7,513)	$	28,845	$	223,343
Net income		—		—		1,614		1,614
Purchase of treasury stock		—		(1,000)		—		(1,000)
Stock-based compensation		1,354		—		—		1,354
Stock options exercised net of employee tax withholding		58		—		—		58
Balance as of June 30, 2023	$	203,423	$	(8,513)	$	30,459	$	225,369

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

Mayville Engineering Company, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

(in thousands except share amounts, per share data, years and ratios)

(unaudited)

Note 1. Basis of presentation

The interim unaudited Condensed Consolidated Financial Statements of Mayville Engineering Company, Inc. and subsidiaries (MEC, the Company, we, our, us or similar terms) presented here have been prepared in accordance with the accounting principles generally accepted in the United States of America (GAAP) and with instructions to Form 10-Q and Article 10 of Regulation S-X. They reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations and financial position for the interim unaudited periods presented. All intercompany balances and transactions have been eliminated in consolidation.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These interim unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2023, included in the Company’s Annual Report on Form 10-K. A summary of the Company’s significant accounting policies is included in the Company’s 2023 financial statements in the Annual Report on Form 10-K. The Company followed these policies in preparation of the interim unaudited Condensed Consolidated Financial Statements except for new accounting pronouncements adopted as described below.

Nature of Operations

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, construction & access equipment, powersports, agriculture, military and other end markets. Founded in 1945 and headquartered in Milwaukee, Wisconsin, we are a leading Tier I U.S. supplier of highly engineered components to original equipment manufacturer (OEM) customers with leading positions in their respective markets. The Company operates 23 facilities located in Arkansas, Michigan, Mississippi, Ohio, Pennsylvania, Virginia, and Wisconsin. Our engineering expertise and technical know-how allow us to add value through every product redevelopment cycle (generally every three to five years for our customers).

Our one operating segment focuses on producing metal components that are used in a broad range of heavy- and medium-duty commercial vehicles, construction & access equipment, powersports, agricultural, military and other products.

Recent Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Improvements to Income Tax Disclosures, amending Accounting Standards Codification (ASC) 740, Income Taxes. The amendment is intended to enhance the transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments require that on an annual basis, entities disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, the amendments require that entities disclose additional information about income taxes paid as well as additional disclosures of pretax income and income tax expense and remove the requirement to disclose certain items that are no longer considered cost beneficial or relevant. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The Company is evaluating the potential impact of adopting this guidance on the consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures, amending ASC 280, Segment Reporting. The amendment is intended to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment and contain other disclosure requirements. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and for interim periods after December 15, 2024. The Company is evaluating the potential impact of adopting this guidance on the consolidated financial statements.

Table of Contents

Note 2. Acquisition

On July 1, 2023, the Company completed its acquisition of Mid-States Aluminum (MSA). The acquisition was consummated in accordance with terms and conditions of the certain Unit Purchase Agreement, dated as of June 19, 2023, among the Company and shareholders of MSA. The purchase price of the acquisition was $95,945, subject to adjustments for the amount of cash, indebtedness, net working capital and certain expenses of MSA as of the closing. At the closing of the acquisition, the Company applied an estimate of the adjustments and paid total net consideration of $90,002. The Company financed the acquisition by borrowing under its amended and restated credit agreement, as described in Note 4 – Debt in the Notes to Condensed Consolidated Financial Statements.

Located in Fond du Lac, WI, MSA is an industry leading, vertically-integrated manufacturer of custom aluminum extrusions and fabrications that also offers related services including design, engineering, anodizing and finishing, assembly and packaging. The acquisition enables MEC to secure an attractive entry point within light-weight materials fabrication, while providing significant new cross-selling opportunities with both new and existing customers.

The aggregate purchase price has been allocated to the assets acquired and liabilities assumed based on their preliminary estimated fair values at the acquisition date. The estimate of the excess purchase price over the preliminary estimated fair value of net tangible assets acquired was allocated to identifiable intangible assets and goodwill. The Company engaged an independent third party to assist with the identification and valuation of these intangible assets. Management makes significant estimates and assumptions when determining the fair value of assets acquired and liabilities assumed. These estimates include, but are not limited to, discount rates, projected future net sales, projected future expected cash flows, useful lives, attrition rates, royalty rates and growth rates. These measures are based on significant Level 3 inputs (see Note 13) not observable in the market.

The following table is a summary of the assets acquired, liabilities assumed and net cash consideration paid for MSA during 2023:


	Opening Balance		Estimated
	Sheet Allocation		Useful Life
Cash	$	324
Accounts receivable, net		7,381
Inventory		9,698
Property, plant and equipment		41,271
Other assets		291
Intangible assets
Developed technology		4,900	7 Years
Customer relationships		17,700	17 Years
Goodwill		21,115	Indefinite
Total assets acquired		102,680
Accounts payable		(2,386)
Accrued expenses		(1,509)
Other liabilities		(1,984)
Debt		(7,884)
Total consideration	$	88,917

Inventory was valued at its estimated fair value, which is defined as expected sales price, less costs to sell, plus a reasonable margin for selling effort. The valuation resulted in an inventory fair value step-up of $891 and was fully expensed and reflected in cost of sales on the Condensed Consolidated Statements of Comprehensive Income during the three months ended September 30, 2023.

Property, plant and equipment was valued at its estimated fair value using the cost, market and sales comparison approaches. The valuation resulted in a property, plant and equipment fair value step-up of $21,157. Depreciation on property, plant and equipment is computed on a straight-line basis over the estimated useful life of the respective assets.

The Company also recorded $17,700 of customer relationships intangible assets with an estimated useful life of 17 years and $4,900 of developed technology intangible assets with an estimated useful life of 7 years. The purchase price allocated to these assets

Table of Contents

was based on management’s forecasted cash inflows and outflows and using a relief from royalty method for developed technologies and the multi-period excess earnings method for customer relationships. Amortization expense related to these intangible assets is recorded on a straight-line basis and reflected in amortization of intangible expenses on the Condensed Consolidated Statements of Comprehensive Income.

The purchase price of MSA exceeded the preliminary estimated fair value of identifiable net assets and accordingly, the difference was allocated to goodwill, which is not tax deductible.

As of December 31, 2023, the Company finalized the net working capital adjustment in conjunction with the fair value estimates for assets acquired, liabilities assumed, identifiable assets and the net income tax provision. Since its preliminary estimates, the Company adjusted the purchase price by ($1,084) related to working capital adjustments. The offsetting adjustment was primarily related to goodwill. As of June 30, 2024, the Company has finalized the estimates of assets and acquired liabilities assumed.

Pro Forma Financial Information (Unaudited)

In accordance with ASC 805, the following unaudited pro forma combined results of operations have been prepared and presented to give effect to the MSA acquisition as if it had occurred on January 1, 2023, the beginning of the comparable period, applying certain assumptions and pro forma adjustments. These pro forma adjustments primarily relate to the estimated depreciation expense associated with the fair value of the acquired property, plant and equipment, amortization of identifiable intangible assets, interest expense related to additional debt needed to fund the acquisition, and the tax impact of these adjustments. Additionally, the pro forma adjustments include non-recurring expenses related to transaction costs and the sale of stepped-up inventory. The unaudited pro forma consolidated results are provided for illustrative purposes only, are not indicative of the Company’s actual consolidated results of operations or consolidated financial position and do not reflect any revenue and operating synergies or cost savings that may result from the acquisition.


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2023		2023
Net sales	$	153,862	$	312,582
Net income	$	451	$	1,835

Note 3. Select balance sheet data

Inventory

Inventories are stated at the lower of cost, determined on the first-in, first-out method, or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Work-in-process and finished goods are valued at production costs consisting of material, labor, and overhead.

Inventories as of June 30, 2024 and December 31, 2023 consist of:


	June 30,		December 31,
	2024		2023
Finished goods and purchased parts	$	27,435	$	31,489
Raw materials		23,256		25,929
Work-in-process		10,126		10,363
Total	$	60,816	$	67,782

Table of Contents

Property, plant and equipment

Property, plant and equipment as of June 30, 2024 and December 31, 2023 consist of:


	Useful Lives		June 30,		December 31,
	Years		2024		2023
Land		Indefinite	$	2,640	$	2,640
Land improvements		15-39		4,291		4,378
Building and building improvements		15-39		82,043		79,682
Machinery, equipment and tooling		3-10		304,727		295,960
Vehicles		5		4,424		4,571
Office furniture and fixtures		3-7		22,522		21,325
Construction in progress		N/A		5,599		9,779
Total property, plant and equipment, gross				426,246		418,335
Less accumulated depreciation				257,489		242,590
Total property, plant and equipment, net			$	168,757	$	175,745

Depreciation expense was $7,658 and $6,273 for the three months ended June 30, 2024 and 2023, respectively, and $15,179 and $12,415 for the six months ended June 30, 2024 and 2023, respectively.

Goodwill

There were no changes to the goodwill balance of $92,650 between December 31, 2023 and June 30, 2024.

Intangible Assets

The following is a listing of definite-lived intangible assets, the useful lives in years (amortization period) and accumulated amortization as of June 30, 2024 and December 31, 2023:


			June 30, 2024
	Useful Lives		Gross Carrying		Accumulated
	Years		Amount		Amortization			Net
Amortizable intangible assets:
Customer relationships and contracts		9-17	$	96,040	$	55,454	$	40,586
Trade name		10		14,780		8,185		6,595
Non-compete agreements		5		8,800		8,800		—
Developed technology		7		4,900		700		4,200
Patents		19		24		15		9
Total intangible assets, net			$	124,544	$	73,154	$	51,390


			December 31, 2023
	Useful Lives		Gross Carrying		Accumulated
	Years		Amount		Amortization			Net
Amortizable intangible assets:
Customer relationships and contracts		9-17	$	96,040	$	53,078	$	42,962
Trade name		10		14,780		7,446		7,334
Non-compete agreements		5		8,800		8,800		—
Developed technology		7		4,900		350		4,550
Patents		19		24		14		10
Total intangible assets, net			$	124,544	$	69,688	$	54,856

Additionally, the Company reported an indefinite lived non-amortizable brand name asset with a balance of $3,811 as of June 30, 2024 and December 31, 2023.

Table of Contents

Changes in intangible assets between December 31, 2023 and June 30, 2024 consist of:


Balance as of December 31, 2023	$	58,667
Amortization expense		(3,466)
Balance as of June 30, 2024	$	55,201

Amortization expense was $1,733 and $1,738 for the three months ended June 30, 2024 and 2023, respectively, and $3,466 and $3,476 for the six months ended June 30, 2024 and 2023, respectively.

Future amortization expense is expected to be as followed:


Year ending December 31,
2024 (remainder)	$	3,466
2025	$	6,933
2026	$	6,933
2027	$	6,933
2028	$	6,877
Thereafter	$	20,248

Note 4. Debt

Bank Revolving Credit Notes

On June 28, 2023, we entered into an amended and restated credit agreement (the Credit Agreement) with certain lenders and Wells Fargo Bank, National Association, as administrative agent (the Agent). The Credit Agreement provides for a $250,000 revolving credit facility, with a letter of credit sub-facility, and a swingline facility in an aggregate amount of $25,000. The Credit Agreement also provides the availability of incremental facilities to the greater of $100,000 and 125% of the Company’s twelve month trailing Consolidated EBITDA through an accordion feature. All amounts borrowed under the credit agreement mature on June 28, 2028.

The Credit Agreement contains usual and customary negative covenants for agreements of this type, including, but not limited to, restrictions on our ability to, subject to certain exceptions, create, incur or assume indebtedness; create, incur, assume or suffer to exist liens; make certain investments; allow our subsidiaries to merge or consolidate with another entity; make certain asset dispositions; pay certain dividends or other distributions to shareholders; enter into transactions with affiliates; enter into sale leaseback transactions; and exceed the limits on annual capital expenditures. The Credit Agreement also requires us to satisfy certain financial covenants, including a minimum consolidated interest coverage ratio of 3.00 to 1.00 as well as a consolidated total leverage ratio not to exceed 4.00 to 1.00 (which was increased as of July 1, 2023 from 3.50 to 1.00 in connection with the acquisition of MSA). Starting July 1, 2024, the Company’s consolidated total leverage ratio will decrease to 3.50 to 1.00 as the one-year leverage increase of 0.50 due to the MSA acquisition has ended.

The Company incurred deferred financing costs of $1,248 associated with executing the Credit Agreement, which has been recorded as an other long-term asset in the Condensed Consolidated Balance Sheets and will be amortized over the duration of the agreement.

At June 30, 2024, our consolidated total leverage ratio was 1.69 to 1.00 as compared to a covenant maximum of 4.00 to 1.00 under the Credit Agreement.

At June 30, 2024, our consolidated interest coverage ratio was 4.57 to 1.00 as compared to a covenant minimum of 3.00 to 1.00 under the Credit Agreement.

Under the Credit Agreement, interest is payable quarterly at the adjusted secured overnight financing rate (SOFR) plus an applicable margin based on the current consolidated total leverage ratio. The interest rate was 7.68% and 7.71% as of June 30, 2024 and December 31, 2023, respectively. Additionally, the agreement has a fee on the average daily unused portion of the aggregate unused revolving commitments. This fee was 0.30% as of June 30, 2024 and December 31, 2023.

Table of Contents

Prior to June 28, 2023, the Company maintained a credit agreement (Former Credit Agreement) with certain lenders and the Agent. The Former Credit Agreement provided for a $200,000 revolving credit facility, with a letter of credit sub-facility in an aggregate amount not to exceed $5,000, and a swingline facility in an aggregate amount of $20,000. The Former Credit Agreement also provided for an additional $100,000 of debt capacity through an accordion feature.

The Company was in compliance with all financial covenants of its credit agreements as of June 30, 2024 and December 31, 2023. The amount borrowed on the revolving credit notes was $122,063 and $147,493 as of June 30, 2024 and December 31, 2023, respectively.

Other Debt

With the consummation of the MSA acquisition, the Company assumed a Fond du Lac County and Fond du Lac Economic Development Corporation term note (Fond du Lac Term Note). The Fond du Lac Term Note is secured by a security agreement, payable in annual installments of $500 plus interest at 2.00% and is due in full in December 2028. The balance outstanding as of June 30, 2024 and December 31, 2023 was $2,375. The short-term and long-term balance of $500 and $1,875, respectively, are recorded in other current liabilities and other long-term liabilities in the Condensed Consolidated Balance Sheets.

Note 5. Leases

The Company has real property operating leases for office and light manufacturing space. Operating leases for the Company’s personal property consist of leases for office equipment, vehicles, forklifts and storage tanks for bulk gases. The Company recognizes a right-of-use (ROU) asset and a lease liability for operating leases based on the net present value of future minimum lease payments. Lease expense for the Company’s operating leases is recognized on a straight-line basis over the lease term, including renewal periods that are considered reasonably certain.

The Company has finance leases for equipment used throughout its office and manufacturing facilities. The Company recognizes an ROU asset and a lease liability for finance leases based on the net present value of future minimum lease payments. Lease expense for the Company’s finance leases is comprised of the amortization of the ROU asset and interest expense recognized based on the effective interest method.

Variable lease expense is related to certain of the Company’s real property leases and personal property leases, and it generally consists of property tax and insurance components that are for the benefit of the lessor (real property leases) and variable overage fees (personal property leases) that are remitted as part of the Company’s lease payments.

The components of lease expense were as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Finance lease cost:
Amortization of finance lease assets	$	119	$	94	$	223	$	188
Interest on finance lease liabilities		12		10		20		21
Total finance lease expense		131		104		243		209
Operating lease expense		1,353		1,321		2,693		2,607
Short-term lease expense		159		131		311		270
Variable lease expense		60		48		112		117
Lease income ⁽¹⁾		(537)		(404)		(1,069)		(1,035)
Total lease expense	$	1,166	$	1,200	$	2,290	$	2,168

(1)	The Company subleased a portion of its Hazel Park, MI facility starting in June 2022. Lease income for the three months ended June 30, 2024 and 2023 was $537 and $404, respectively, and $1,069 and $1,035 for the six months ended June 30, 2024 and 2023, respectively.

Table of Contents

Lease related supplemental cash flow information:


	Six Months Ended
	June 30,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities for finance leases:
Operating cash flows	$	20	$	21
Financing cash flows	$	343	$	192

Cash paid for amounts included in the measurement of lease liabilities for operating leases:
Operating cash flows	$	2,980	$	2,891

Right-of-use assets obtained in exchange for recorded lease obligations:
Operating leases	$	337	$	363
Finance leases	$	383	$	—

Note 6. Employee stock ownership plan

Under the Mayville Engineering Company, Inc. Employee Stock Ownership Plan (ESOP), the Company can make annual discretionary contributions to the trust for the benefit of eligible employees in the form of cash or shares of common stock of the Company subject to the Board of Directors’ approval. The Company recorded no ESOP expense for the three and six months ended June 30, 2024 and 2023.

As of January 1, 2023, the Company amended the plan reducing the distribution period from five years to three years.

At various times following death, disability, retirement, termination of employment or the exercise of diversification rights, an ESOP participant is entitled to receive their ESOP account balance in accordance with various distribution methods as permitted under the policies adopted by the ESOP.

As of June 30, 2024 and December 31, 2023, the ESOP shares consisted of 3,474,467 and 4,062,583 in allocated shares, respectively.

Note 7. Retirement plans

The Mayville Engineering Company, Inc. 401(k) Plan (the 401(k) Plan) covers substantially all employees meeting certain eligibility requirements. The 401(k) Plan is a defined contribution plan and is intended for eligible employees to defer tax-free contributions to save for retirement. Employees may contribute up to 50% of their eligible compensation to the 401(k) Plan, subject to the limits of Section 401(k) of the Internal Revenue Code.

The Company provides a 50% match for employee contributions, up to 6%. For the three months ended June 30, 2024 and 2023, the Company’s employer match expense was $922 and $770, respectively. Total employer match expense for the six months ended June 30, 2024 and 2023 was $1,976 and $1,644, respectively. Additionally, the 401(k) Plan provides for employer discretionary profit-sharing contributions and the Board of Directors may authorize discretionary profit-sharing contributions (which are usually approved at the end of each calendar year). For the three and six months ended June 30, 2024 and 2023, the Company’s estimated discretionary profit-sharing expense was $0.

Note 8. Income taxes

On a quarterly basis, the Company estimates its effective tax rate for the full fiscal year and records a quarterly income tax provision based on the anticipated rate and adjusted for discrete taxable events that may occur in the quarter. As the year progresses, the Company will refine its estimate based on facts and circumstances by each tax jurisdiction.

Table of Contents

Income tax expense was $1,399 and $2,433, and the effective tax rate (ETR) was 27.00% and 25.73% for the three and six months ended June 30, 2024, respectively. Our ETR is different from the expected tax rate due to state taxes, non-deductible items, research and development credits and excess tax benefit associated with stock-based compensation items.

For the three and six months ended June 30, 2023, income tax expense was estimated at $475 and $916 and the ETR was 22.73% and 17.96%, respectively.

Uncertain Tax Positions

Based on the Company’s evaluation, it has been concluded that there is one unrecognized tax benefit requiring recognition in its financial statements as of June 30, 2024. The Company does not anticipate that there will be a material change in the balance of the unrecognized tax benefits in the next twelve months. Any interest and penalties related to uncertain tax positions are recorded in income tax expense. At June 30, 2024 and December 31, 2023, a total of $861 and $771 of unrecognized tax benefits would, if recognized, impact the Company’s ETR.

The Company files income tax returns in the United States federal jurisdiction and in various state and local jurisdictions. Federal tax returns for tax years beginning January 1, 2020, and state tax returns beginning January 1, 2019, are open for examination.

Note 9. Commitments and contingencies

Litigation

On August 4, 2022, the Company filed a lawsuit against Peloton Interactive, Inc. (“Peloton”) in the Supreme Court of the State of New York, New York County. The lawsuit arises from a March 2021 Supply Agreement between the parties, pursuant to which MEC was to manufacture and supply custom component parts for Peloton’s exercise bikes (the “Manufacturing Project”). In the lawsuit, the Company originally asserted two claims (1) breach and anticipatory repudiation of contract and (2) breach of the duty of good faith and fair dealing (pleaded in the alternative). In January 2023, in response to Peloton’s motion to dismiss, the court allowed the first claim to proceed and dismissed the alternative claim. In the remaining claim, MEC asserts that Peloton breached and anticipatorily repudiated the Supply Agreement by unilaterally cancelling the Manufacturing Project, and refusing to pay MEC certain monthly fixed revenue payments owed under the terms of the Supply Agreement. The parties cross-appealed the court’s order on the motion to dismiss – Peloton appealed the portion of the order that denied the motion to dismiss the claim for breach and anticipatory repudiation of contract and MEC appealed the portion of the order that dismissed the claim for breach of duty of good faith and fair dealing. On April 11, 2024, the First Department, Appellate Division issued a decision and order affirming the court’s order on the motion to dismiss and affirming the court’s dismissal of the alternate claim of good faith and fair dealing.

On November 3, 2023, Peloton filed a counterclaim alleging that Peloton was induced by fraud to enter into the Supply Agreement and seeking recission of the Supply Agreement and damages, among other forms of relief. On November 22, 2023, the Company answered Peloton’s counterclaim, denying the allegations in the counterclaim.

The total amount for damages claimed by MEC is substantial but the amount and timing of the ultimate recovery is uncertain. As a result, any recovery from this litigation or settlement of this claim is a contingent gain and will be recognized if, and when, realized or realizable.

From time to time, the Company may be involved in various claims and lawsuits, both for and against the Company, arising in the normal course of business. Although the results of litigation and claims cannot be predicted with certainty, in management’s opinion, either the likelihood of loss is remote, or any reasonably possible loss associated with the resolution of such proceedings is not expected to have a material adverse impact on the consolidated financial statements.

Note 10. Deferred compensation

The Mayville Engineering Company Deferred Compensation Plan is available for certain employees designated to be eligible to participate by the Company and approved by the Board of Directors. Eligible employees may elect to defer a portion of their compensation for any plan year and the deferral cannot exceed 50% of the participant’s base salary and may include the participant’s annual short-term cash incentive up to 100%. The participant’s election must be made prior to the first day of the plan year.

Table of Contents

An employer contribution will be made for each participant to reflect the amount of any reduced allocations to the ESOP and/or 401(k) employer contributions due solely to the participant’s deferral amounts, as applicable. In addition, a discretionary amount may be awarded to a participant by the Company.

Deferrals are assumed to be invested in an investment vehicle based on the options made available to the participant (which does not include Company stock).

The deferred compensation plan provides benefits payable upon separation of service or death. Payments are to be made 30 or 180 days after date of separation from service, either in a lump-sum payment or up to five annual installments as elected by the participant when the participant first elects to defer compensation.

The deferred compensation plan is non-funded, and all future contributions are unsecured in that the employees have the status of a general unsecured creditor of the Company and the agreements constitute a promise by the Company to make benefit payments in the future. During the three and six months ended June 30, 2024, eligible employees elected to defer compensation of $83 and $447, respectively. Eligible employees elected to defer compensation of $80 and $316 for the three and six months ended June 30, 2023, respectively. As of June 30, 2024 and December 31, 2023, the short-term portion accrued for all benefit years less than twelve months under this plan was $241 and $289, respectively. As of June 30, 2024 and December 31, 2023, the long-term portion accrued for all benefit years greater than twelve months under this plan was $4,315 and $3,816. These amounts include the initial deferral of compensation and were adjusted for changes in the value of investment options chosen by the participants. Total expense for the deferred compensation plan for the three months ended June 30, 2024 and 2023 was $53 and $169, respectively. Total expense for the deferred compensation plan for the six months ended June 30, 2024 and 2023 was $285 and $729, respectively. These expenses are included in profit-sharing, bonuses and deferred compensation on the Condensed Consolidated Statements of Comprehensive Income. Additionally, the Company made cash distributions of $286 and $17,562 for the six months ended June 30, 2024 and 2023, respectively.

Note 11. Self-Funded insurance

The Company is self-funded for the medical benefits provided to its employees and their dependents. Healthcare costs are expensed as incurred and are based upon actual claims paid, reinsurance premiums, administration fees, and estimated unpaid claims. The Company has an aggregate stop loss limit to mitigate risk. Expenses related to this were $6,382 and $5,133 for the three months ended June 30, 2024 and 2023, respectively, and $12,551 and $9,768 for the six months ended June 30, 2024 and 2023, respectively. An estimated accrued liability of $1,894 and $1,018 was recorded as of June 30, 2024 and December 31, 2023, respectively, for estimated unpaid claims and is included within other current liabilities on the Condensed Consolidated Balance Sheets.

Note 12. Segments

The Company applies the provisions of ASC 280, Segment Reporting. An operating segment is defined as a component that engages in business activities whose operating results are reviewed by the chief operating decision maker and for which discrete financial information is available. Based on the provisions of ASC 280, the Company has determined it has one operating segment. The Company does not earn revenues or have long-lived assets located in foreign countries.

Note 13. Fair value of financial instruments

Fair value provides information on what the Company may realize if certain assets were sold or might pay to transfer certain liabilities based upon an exit price. Financial assets and liabilities that are measured and reported at fair value are classified into a three-level hierarchy that prioritizes the inputs used in the valuation process. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs as follows:

●

Level 1 – Quoted prices in active markets for identical assets or liabilities.

●

Level 2 – Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar

Table of Contents

assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data. Long-term debt is classified as a Level 2 fair value input.

●

Level 3 – Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be the Company’s own data and judgements about assumptions that market participants would use in pricing the asset or liability.

The following table lists the Company’s financial assets and liabilities accounted for at fair value by the fair value hierarchy:


	Balance at		Fair Value Measurements at
	June 30,		Report Date Using
	2024		(Level 1)		(Level 2)		(Level 3)
Deferred compensation liability	$	4,556	$	4,556	$	—	$	—
Total	$	4,556	$	4,556	$	—	$	—


	Balance at		Fair Value Measurements at
	December 31,		Report Date Using
	2023		(Level 1)		(Level 2)		(Level 3)
Deferred compensation liability	$	4,105	$	4,105	$	—	$	—
Total	$	4,105	$	4,105	$	—	$	—

Fair value measurements for the Company’s cash and cash equivalents are classified based upon Level 1 measurements because such measurements are based upon quoted market prices in active markets for identical assets.

Accounts receivable, accounts payable, long-term debt and accrued liabilities are recorded in the Condensed Consolidated Balance Sheets at cost and approximate fair value.

Deferred compensation liabilities are recorded at amounts due to participants at the time of deferral. Deferrals are invested in an investment vehicle based on the options made available to the participant, considered to be Level 1 or Level 2 on the fair value hierarchy, with the current balance all as Level 1. The change in fair value is recorded in the profit-sharing, bonuses, and deferred compensation line item on the Condensed Consolidated Statements of Comprehensive Income. The short-term and long-term balances due to participants are reflected on the other current liabilities and deferred compensation, less current portion, line items, respectively, on the Condensed Consolidated Balance Sheets.

The Company’s non-financial assets such as goodwill, intangible assets and property, plant, and equipment are re-measured at fair value when there is an indication of impairment and adjusted only when an impairment charge is recognized. As of June 30, 2024, there was no impairment recognized for the year.

Note 14. Earnings Per Share

The Company computes earnings per share in accordance with ASC Topic 260, Earnings per Share. In accordance with ASC 260, outstanding options will be considered to have been exercised and outstanding as of the beginning of the period if the average market price of the common stock during the period exceeds the exercise price of the options (they are “in the money”), and the assumed exercise of the options do not have an anti-dilutive impact on earnings per share.

Table of Contents

A reconciliation of basic and diluted net income per share attributable to the Company were as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net income attributable to MEC	$	3,782	$	1,614	$	7,023	$	4,185
Average shares outstanding		20,602,650		20,494,437		20,544,292		20,405,383
Basic income per share	$	0.18	$	0.08	$	0.34	$	0.21

Average shares outstanding		20,602,650		20,494,437		20,544,292		20,405,383
Effect of dilutive stock-based compensation		432,130		333,291		370,207		383,792
Total potential shares outstanding		21,034,780		20,827,728		20,914,499		20,789,175
Diluted income per share	$	0.18	$	0.08	$	0.34	$	0.20

Options in the money that were not included in the computation of diluted earnings per share because they would have had an anti-dilutive impact on earnings per share were as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Stock options	—	219,885	—	247,278

Note 15. Revenue Recognition

Contract Assets and Contract Liabilities

The Company has contract assets and contract liabilities, which are included in tooling in progress and other current liabilities on the Condensed Consolidated Balance Sheets, respectively. Contract assets include products where the Company has satisfied its performance obligation, but receipt of payment is contingent upon delivery. Contract liabilities include deferred tooling revenue, where the performance obligation was not met. The performance obligation is satisfied when the tooling is completed and the customer signs off through the Product Part Approval Process or other documented customer acceptance. Cost of goods sold is recognized and released from the balance sheet when control of the tooling promised under contract is transferred to the customer.

The Company’s contracts with customers are short-term in nature; therefore, revenue is typically recognized, billed and collected within a twelve-month period. The following table reflects the changes in our contract assets and liabilities during the six months ended June 30, 2024:


	Contract		Contract
	Assets		Liabilities
As of December 31, 2023	$	5,457	$	3,635
Net activity		617		(573)
As of June 30, 2024	$	6,074	$	3,062

Disaggregated Revenue

The following tables represent a disaggregation of revenue by product category and end market:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
Product Category	2024		2023		2024		2023
Outdoor sports	$	2,205	$	2,379	$	4,364	$	4,684
Fabrication		87,201		84,172		178,115		171,174
Performance structures		47,795		26,846		93,564		53,521
Tube		19,846		19,468		38,921		39,820
Tank		12,625		11,070		23,701		22,189
Total		169,672		143,935		338,665		291,388
Intercompany sales elimination		(6,036)		(4,955)		(13,760)		(9,762)
Total, net sales	$	163,636	$	138,980	$	324,905	$	281,626

Table of Contents


	Three Months Ended				Six Months Ended
	June 30,				June 30,
End Market	2024		2023		2024		2023
Commercial vehicle	$	62,130	$	56,075	$	121,084	$	115,230
Construction & access		27,230		26,522		55,676		53,029
Powersports		30,306		23,995		60,597		48,093
Agriculture		14,639		13,444		29,597		27,895
Military		6,579		8,910		14,530		17,479
Other		22,752		10,033		43,421		19,899
Total, net sales	$	163,636	$	138,980	$	324,905	$	281,626

Note 16. Concentration of major customers

The following customers accounted for 10% or greater of the Company’s recorded net sales or net trade receivables:


	Net Sales				Net Sales				Accounts Receivable
	Three Months Ended				Six Months Ended				As of		As of
	June 30,				June 30,				June 30,		December 31,
	2024		2023		2024		2023		2024		2023
Customer
A	16.2	%	15.6	%	16.4	%	15.5	%	11.9	%	<10	%
B	13.0	%	15.6	%	13.5	%	15.6	%	10.7	%	12.6	%
C	11.0	%	11.5	%	10.4	%	11.8	%	<10	%	<10	%
D	<10	%	<10	%	<10	%	<10	%	13.1	%	12.7	%

Note 17. Stock-based compensation

The Mayville Engineering Company, Inc. 2019 Omnibus Incentive Plan provided the Company the ability to grant monetary payments based on the value of its common stock, up to 2,000,000 shares.

On April 20, 2021, shareholders of the Company approved an amendment to the 2019 Omnibus Incentive Plan increasing the number of shares of common stock authorized for issuance by 2,500,000 shares.

The Company recognizes stock-based compensation using the fair value provisions prescribed by ASC 718, Compensation – Stock Compensation. Accordingly, compensation costs for awards of stock-based compensation settled in shares are determined based on the fair value of the stock-based instrument at the time of grant and are recognized as expense over the vesting period of the stock-based instrument. Our stock-based compensation consists of stock options, restricted stock units (RSUs) and performance stock units (PSUs). For all types of units, fair value is equivalent to the adjusted closing stock price at the date of the grant. The Black-Scholes option pricing model is utilized to determine fair value for options.

The actual number of PSUs, if any, to be earned by the award recipients is determined after the end of a performance measurement period. The performance measures include Adjusted EBITDA, which represents net income before interest expense, provision for income taxes, depreciation, amortization, stock-based compensation, legal costs due to the former fitness customer and adjusted for items to be determined unusual in nature or infrequent in occurrence, for the year ended December 31, 2026, and the average annual return on invested capital (ROIC), for the three-years ended December 31, 2024, 2025 and 2026, respectively. ROIC represents net operating profit after taxes divided by invested capital for an annual period. These performance targets are subject to adjustments or exclusions as deemed appropriate to account for extraordinary or unanticipated events that do not reflect the core business of the Company, and have been set for each of the minimum, target and maximum levels with the actual performance amount received determined by the Compensation Committee of the Board of Directors.

Cancellations and forfeitures are accounted for as incurred.

Table of Contents

During the six months ended June 30, 2024, 214,643 RSUs vested. For the same period, 206,524 options vested with a weighted average strike price of $13.54. During the six months ended June 30, 2023, 219,343 RSUs vested. For the same period, 195,264 options vested with a strike price of $11.67.

As of June 30, 2024, 1,302,558 options remained outstanding with a weighted average strike price of $11.79 and a weighted average contractual life of 6.54 years remaining.

The Company’s stock-based compensation expense by award type is summarized as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
RSU awards	$	962	$	874	$	1,752	$	1,589
PSU awards		119		—		138		—
Option awards		257		480		605		831
Stock-based compensation expense, net of tax	$	1,338	$	1,354	$	2,495	$	2,420

A roll-forward of unrecognized stock-based compensation expense is displayed in the table below. Unrecognized stock-based compensation expense as of June 30, 2024 will be expensed over the remaining requisite service period from which individual award values relate, up to June 17, 2027.


	RSUs		PSUs		Options		Total
Balance as of December 31, 2023	$	2,304	$	—	$	1,513	$	3,817
Grants		4,423		1,423		—		5,846
Forfeitures		(32)		—		—		(32)
Expense		(789)		(20)		(348)		(1,157)
Balance as of March 31, 2024	$	5,906		1,403	$	1,165	$	8,474
Grants		1,115		—		—		1,115
Forfeitures		(283)		—		(33)		(316)
Expense		(962)		(119)		(257)		(1,338)
Balance as of June 30, 2024	$	5,776		1,284	$	875	$	7,935

Note 18. Common Equity

At June 30, 2024 the authorized stock of the Company consisted of 75,000,000 shares of common stock without par value.

Changes in outstanding common shares are summarized as follows:


		Shares
		Outstanding
Shares as of December 31, 2022		20,172,746
Treasury stock purchases		(100,726)
Common stock issued (including stock-based compensation impact)		298,778
Balance as of June 30, 2023		20,370,798

		Shares
		Outstanding
Balance as of December 31, 2023		20,310,584
Treasury stock purchases		(61,197)
Common stock issued (including stock-based compensation impact)		223,912
Balance as of June 30, 2024		20,473,299

Table of Contents

Note 19. Subsequent events

The Company has evaluated subsequent events since June 30, 2024, the date of these financial statements. There were no material events or transactions discovered during this evaluation that requires recognition or disclosure in the financial statements.

Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to assist in the understanding and assessing the trends and significant changes in our results of operations and financial condition. Historical results may not be indicative of future performance. This discussion includes forward-looking statements that reflect our plans, estimates and beliefs. Such statements involve risks and uncertainties. Our actual results may differ materially from those contemplated by these forward-looking statements as a result of various factors, including those set forth in “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023 and “Cautionary Statement Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q. This discussion should be read in conjunction with our audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023 and our unaudited Condensed Consolidated Financial Statements and the notes thereto included in Part I, Item I of this Quarterly Report on Form 10-Q. In this discussion, we use certain non-GAAP financial measures. Explanation of these non-GAAP financial measures and reconciliation to the most directly comparable GAAP financial measures are included in this Management Discussion and Analysis of Financial Condition and Results of Operations. Investors should not consider non-GAAP financial measures in isolation or as substitutes for financial information presented in compliance with GAAP.

All amounts are presented in thousands except share amounts, per share data, years and ratios.

Overview

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, construction & access equipment, powersports, agriculture, military and other end markets. We have developed long-standing relationships with our blue-chip customers based upon our commitment to “Unmatched Excellence”.

Macroeconomic Conditions

The broader market dynamics over the past few years have resulted in impacts to the Company, including supply chain constraints affecting some of our customers, material cost inflation and inflationary pressures on wages and benefits due to labor availability. The Company expects some of these dynamics to continue in 2024 and could continue to have an impact on demand, material costs and labor.

How We Assess Performance

Net Sales. Net sales reflect sales of our components and products net of allowances for returns and discounts. In addition to the current macroeconomic conditions, several factors affect our net sales in any given period, including weather, timing of acquisitions and the production schedules of our customers. Net sales are recognized at the time of shipment or at delivery to the customer.

Manufacturing Margins. Manufacturing margins represents net sales less cost of sales. Cost of sales consists of all direct and indirect costs used in the manufacturing process, including raw materials, labor, equipment costs, depreciation, lease expenses, subcontract costs and other directly related overhead costs. Our cost of sales is directly affected by the fluctuations in commodity prices, primarily sheet steel and aluminum, but these changes are largely mitigated by contractual agreements with our customers that allow us to pass through these price variations based upon certain market indexes.

Depreciation and Amortization. We carry property, plant and equipment on our balance sheet at cost, net of accumulated depreciation. Depreciation on property, plant and equipment is computed on a straight-line basis over the estimated useful life of the asset. The periodic expense related to leasehold improvements and intangible assets is depreciation and amortization expense, respectively. Leasehold improvements are depreciated over the lesser of the life of the underlying asset or the remaining lease term. Our intangible assets were recognized as a result of certain acquisitions and are generally amortized on a straight-line basis over the estimated useful lives of the assets.

Table of Contents

Other Selling, General, and Administrative Expenses. Other selling, general and administrative expenses consist primarily of salaries and personnel costs for our sales and marketing, finance, human resources, information systems, administration and certain other managerial employees and certain corporate level administrative expenses such as incentive compensation, audit, accounting, legal and other consulting and professional services, travel, and insurance.

Other Key Performance Indicators

EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin

EBITDA represents net income before interest expense, provision for income taxes, depreciation and amortization. EBITDA Margin represents EBITDA as a percentage of net sales for each period.

Adjusted EBITDA represents EBITDA before stock-based compensation expense, loss on extinguishment of debt, MSA acquisition related costs, field replacement claim and legal costs due to the former fitness customer. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of net sales for each period. These metrics are supplemental measures of our operating performance that are neither required by, nor presented in accordance with, GAAP. These measures should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP as an indicator of our operating performance. We present EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin as management uses these measures as key performance indicators, and we believe they are measures frequently used by securities analysts, investors and other parties to evaluate companies in our industry. These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP.

Our calculation of EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin may not be comparable to the similarly named measures reported by other companies. Potential differences between our measures of EBITDA and Adjusted EBITDA compared to other similar companies’ measures of EBITDA and Adjusted EBITDA may include differences in capital structure and tax positions.

The following table presents a reconciliation of net income and comprehensive income, the most directly comparable measure calculated in accordance with GAAP, to EBITDA and Adjusted EBITDA, and the calculation of EBITDA Margin and Adjusted EBITDA Margin for each of the periods presented.


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Net income and comprehensive income	$	3,782		$	1,614		$	7,023		$	4,185
Interest expense		2,969			1,968			6,324			3,626
Provision for income taxes		1,399			475			2,433			916
Depreciation and amortization		9,391			8,011			18,645			15,891
EBITDA		17,541			12,068			34,425			24,618
Loss on extinguishment of debt ⁽¹⁾		—			216			—			216
MSA acquisition related costs ⁽²⁾		—			899			—			899
Stock-based compensation expense ⁽³⁾		1,338			1,354			2,495			2,420
Field replacement claim ⁽⁴⁾		—			490			—			490
Legal costs due to former fitness customer ⁽⁵⁾		760			272			1,239			495
Adjusted EBITDA	$	19,639		$	15,299		$	38,159		$	29,138
Net sales	$	163,636		$	138,980		$	324,905		$	281,626
EBITDA Margin		10.7	%		8.7	%		10.6	%		8.7	%
Adjusted EBITDA Margin		12.0	%		11.0	%		11.7	%		10.3	%

(1)	Unamortized debt issue costs written off from the prior five-year credit agreement attributable to lenders that are no longer included in the amended and restated credit agreement or decreased their capacity in the amended and restated credit agreement.

(2)	Transaction costs, primarily legal and professional services, related to the acquisition of MSA.

(3)	Non-cash employee compensation based on the value of common stock issued pursuant to the 2019 Omnibus Incentive Plan.

Table of Contents

(4)

Represents a one-time charge related to a COVID related sourcing issue that caused the company to change suppliers and ultimately lead to a product being produced outside of customer specifications. These costs are not expected to be incurred on an ongoing basis and therefore are not indicative of ongoing operations.

(5)	Legal costs associated with the enforcement of the Company’s supply contract with the former fitness customer.

Consolidated Results of Operations

Three Months Ended June 30, 2024 Compared to Three Months Ended June 30, 2023


	Three Months Ended June 30,
	2024				2023				Increase (Decrease)
			% of Net				% of Net		Amount
	Amount		Sales		Amount		Sales		Change		% Change
Net sales	$	163,636	100.0	%	$	138,980	100.0	%	$	24,656	17.7	%
Cost of sales		141,359	86.4	%		122,885	88.4	%		18,474	15.0	%
Manufacturing margins		22,277	13.6	%		16,095	11.6	%		6,182	38.4	%
Amortization of intangible assets		1,733	1.1	%		1,738	1.3	%		(5)	(0.3)	%
Profit sharing, bonuses and deferred compensation		4,133	2.5	%		2,688	1.9	%		1,445	53.8	%
Other selling, general and administrative expenses		8,261	5.0	%		7,396	5.3	%		865	11.7	%
Income from operations		8,150	5.0	%		4,273	3.1	%		3,877	90.7	%
Interest expense		(2,969)	1.8	%		(1,968)	1.4	%		1,001	50.9	%
Loss on extinguishment of debt		—	—	%		(216)	0.2	%		216	N/A
Provision for income taxes		1,399	0.9	%		475	0.3	%		924	194.5	%
Net income and comprehensive income	$	3,782	2.3	%	$	1,614	1.2	%	$	2,168	134.3	%
EBITDA	$	17,541	10.7	%	$	12,068	8.7	%	$	5,473	45.4	%
Adjusted EBITDA	$	19,639	12.0	%	$	15,299	11.0	%	$	4,340	28.4	%

Net Sales. Net sales were $163,636 for the three months ended June 30, 2024 as compared to $138,980 for the three months ended June 30, 2023, an increase of $24,656, or 17.7%. This increase was primarily driven by the acquisition of MSA in the third quarter of 2023 and increased organic sales volumes within our commercial vehicle, construction & access and powersports end markets, partially offset by softening demand in our legacy agriculture end market and the expected roll-off of certain military aftermarket programs at the end of 2023.

Manufacturing Margins. Manufacturing margins were $22,277 for the three months ended June 30, 2024 as compared to $16,095 for the three months ended June 30, 2023, an increase of $6,182, or 38.4%. The increase was primarily driven by the increased organic sales volumes, MSA acquisition, MEC Business Excellence (MBX) initiatives and commercial pricing actions.

Manufacturing margin percentages were 13.6% for the three months ended June 30, 2024, as compared to 11.6% for the three months ended June 30, 2023, an increase of 2.0%. The increase was attributable to the items discussed in the preceding paragraph.

Amortization of Intangibles Assets. Amortization of intangible assets were $1,733 for the three months ended June 30, 2024 as compared to $1,738 for the three months ended June 30, 2023, a decrease of $5, or 0.3%. The slight decrease was due to the full amortization of certain intangible assets in prior periods, offset by the amortization expense associated with the identifiable intangible assets from the MSA acquisition. Refer to Note 2 – Acquisition of the Condensed Consolidated Financial Statements for additional information related to the MSA identifiable intangible assets.

Profit Sharing, Bonuses and Deferred Compensation Expenses. Profit-sharing, bonuses, and deferred compensation expenses were $4,133 for the three months ended June 30, 2024 as compared to $2,688 for the three months ended June 30, 2023, an increase of $1,445, or 53.8%. The increase was primarily due to the additional plan participants as a result of the MSA acquisition and higher bonus accruals aligning with Company financial performance.

Other Selling, General and Administrative Expenses. Other selling, general and administrative expenses were $8,261 for the three months ended June 30, 2024 as compared to $7,396 for the three months ended June 30, 2023, an increase of $865, or 11.7%.

Table of Contents

The increase was predominantly attributable to higher legal costs associated with the litigation against the former fitness customer, incremental costs associated with the MSA acquisition and higher costs related to compliance requirements.

Interest Expense. Interest expense was $2,969 for the three months ended June 30, 2024 as compared to $1,968 for the three months ended June 30, 2023, an increase of $1,001, or 50.9%. The change is due to an increase in borrowings. The increase in borrowings relative to the prior year period is due to the acquisition of MSA, which closed on July 1, 2023.

Provision for Income Taxes. Income tax expense was $1,399 for the three months ended June 30, 2024 as compared to $475 for the three months ended June 30, 2023. The increase of $924 is primarily due to higher net income and comprehensive income and tax rate in the current year period. Refer to Note 8 – Income Taxes of the Condensed Consolidated Financial Statements for further details.

Due to the factors described in the preceding paragraphs, net income, comprehensive income, EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin increased during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023.

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023


	Six Months Ended June 30,
	2024				2023				Increase (Decrease)
			% of Net				% of Net		Amount
	Amount		Sales		Amount		Sales		Change		% Change
Net sales	$	324,905	100.0	%	$	281,626	100.0	%	$	43,279	15.4	%
Cost of sales		281,696	86.7	%		249,154	88.5	%		32,542	13.1	%
Manufacturing margins		43,209	13.3	%		32,472	11.5	%		10,737	33.1	%
Amortization of intangible assets		3,466	1.1	%		3,476	1.2	%		(10)	(0.3)	%
Profit sharing, bonuses and deferred compensation		7,933	2.4	%		5,690	2.0	%		2,243	39.4	%
Other selling, general and administrative expenses		16,030	4.9	%		14,363	5.1	%		1,667	11.6	%
Income from operations		15,780	4.9	%		8,943	3.2	%		6,837	76.5	%
Interest expense		(6,324)	1.9	%		(3,626)	1.3	%		2,698	74.4	%
Loss on extinguishment of debt		—	0.0	%		(216)	0.1	%		(216)	N/A
Provision for income taxes		2,433	0.7	%		916	0.3	%		1,517	165.6	%
Net income and comprehensive income	$	7,023	2.2	%	$	4,185	1.5	%	$	2,838	67.8	%
EBITDA	$	34,425	10.6	%	$	24,618	8.7	%	$	9,807	39.8	%
Adjusted EBITDA	$	38,159	11.7	%	$	29,138	10.3	%	$	9,021	31.0	%

Net Sales. Net sales were $324,905 for the six months ended June 30, 2024 as compared to $281,626 for the six months ended June 30, 2023 for an increase of $43,279, or 15.4%. The increase was primarily driven by the acquisition of MSA in third quarter of the prior year and increased organic sales volume within our commercial vehicle, construction & access and powersports end markets. These items were slightly offset by softening demand in our legacy agriculture and the foreseen roll-off of certain military aftermarket programs at the end of 2023.

Manufacturing Margin. Manufacturing margins were $43,209 for the six months ended June 30, 2024 as compared to $32,472 for the six months ended June 30, 2023, an increase of $10,737, or 33.1%. The increase was primarily driven by the increased organic sales volumes, MSA acquisition, MBX initiatives and commercial pricing actions.

Manufacturing margin percentages were 13.3% for the six months ended June 30, 2024 as compared to 11.5% for the six months ended June 30, 2023, an increase of 1.8%. This increase was attributable to the items discussed in the preceding paragraph.

Amortization of Intangibles Assets. Amortization of intangible assets were $3,466 for the six months ended June 30, 2024 as compared to $3,476 for the six months ended June 30, 2023, a decrease of $10. The marginal decrease was due to the full amortization of certain intangible assets in prior periods, offset by the amortization expense associated with the identifiable intangible assets from

Table of Contents

the MSA acquisition. Refer to Note 2 – Acquisition of the Condensed Consolidated Financial Statements for additional information related to the MSA identifiable intangible assets.

Profit Sharing, Bonuses and Deferred Compensation Expenses. Profit-sharing, bonuses, and deferred compensation expenses were $7,933 for the six months ended June 30, 2024 as compared to $5,690 for the six months ended June 30, 2023, an increase of $2,243, or 39.4%. The increase was primarily due to the addition of plan participants as a result of the MSA acquisition and higher bonus accruals aligning with Company financial performance.

Other Selling, General and Administrative Expenses. Other selling, general and administrative expenses were $16,030 for the six months ended June 30, 2024 as compared to $14,363 for the six months ended June 30, 2023, an increase of $1,667 or 11.6%. The increase was predominantly attributable to legal costs associated with the litigation against the former fitness customer, incremental costs associated with the acquisition of MSA, higher costs related to compliance requirements and annual wage inflation.

Interest Expense. Interest expense was $6,324 for the six months ended June 30, 2024 as compared to $3,626 for the six months ended June 30, 2023, an increase of $2,698, or 74.4%. The change is due to higher interest rates and average debt levels as compared to the prior year period. The increase in debt level is due to the acquisition of MSA, which closed July 1, 2023.

Provision for Income Taxes. Income tax expense was $2,433 for the six months ended June 30, 2024 as compared to $916 for the six months ended June 30, 2023. The increase of $1,517 is primarily due to higher net income and comprehensive income and tax rate in the current year period. Refer to Note 8 – Income Taxes of the Condensed Consolidated Financial Statements for further details.

Due to the factors described in the preceding paragraphs, net income, comprehensive income, EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin increased during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023.

Liquidity and Capital Resources

Cash Flows Analysis


	Six Months Ended
	June 30,				Increase (Decrease)
	2024		2023		$ Change		% Change
Net cash provided by (used in) operating activities	$	33,900	$	(5,865)		39,765	NM
Net cash used in investing activities		(6,767)		(6,167)		(600)	(10)	%
Net cash provided by (used in) financing activities		(27,491)		102,030		(129,521)	NM
Net change in cash	$	(358)	$	89,998	$	(90,356)	NM

Operating Activities. Cash provided by operating activities was $33,900 for the six months ended June 30, 2024, as compared to cash used by operating activities of $5,865 for the six months ended June 30, 2023. Of the $39,765 increase in operating cash flows, $17,562 is due to a payout of deferred compensation to a retired Company executive made in the prior year period. The remaining increase of $22,203 was primarily due to the favorable impact of higher earnings and changes in net working capital items. The primary favorable changes in working capital include, decreased inventory due to improved inventory efficiencies, increase in accounts payable due to the timing of payments and an increase in general reserves such as bonus, healthcare and payroll.

Investing Activities. Cash used in investing activities was $6,767 for the six months ended June 30, 2024, as compared to $6,167 for the six months ended June 30, 2023. The $600 increase in cash used in investing activities is driven by a marginal increase in capital expenditures, prioritizing investments in high-return, capital-light growth and automation advancements.

Financing Activities. Cash used in financing activities was $27,491 for the six months ended June 30, 2024, as compared to cash provided by financing activities of $102,030 for the six months ended June 30, 2023. The $129,521 decrease is mainly due to the debt repayments in excess of borrowings during the current year period and the withdrawal of funds used to purchase MSA held in escrow as of the end of the prior year period. Additionally, under our share repurchase program, the Company purchased $998 of common stock in the first six months of 2024 as compared to $1,661 of its common stock in the first six months of 2023. The Company’s decision to repurchase additional shares in 2024 will depend on business conditions, free cash flow generation, other cash

Table of Contents

requirements and stock price. Refer to Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds for additional information regarding share repurchases.

Amended and Restated Credit Agreement

On June 28, 2023, we entered into an amended and restated credit agreement (the Credit Agreement) with certain lenders and Wells Fargo Bank, National Association, the Agent. The Credit Agreement provides for a $250,000 revolving credit facility, with a letter of credit sub-facility, and a swingline facility in an aggregate amount of $25,000. The Credit Agreement also provides for the availability of incremental facilities to the greater of $100,000 and 125% of the Company’s twelve month trailing Consolidated EBITDA through an accordion feature. All amounts borrowed under the credit agreement mature on June 28, 2028.

Borrowings under the Credit Agreement bear interest at a fluctuating secured overnight financing rate (SOFR) plus an applicable margin based on the current consolidated total leverage ratio (which may be adjusted for certain reserve requirements), plus 1.25% to 2.75% depending on the current Consolidated Total Leverage Ratio (as defined in the Credit Agreement). Under certain circumstances, we may not be able to pay interest based on SOFR. If that happens, we will be required to pay interest at the Base Rate, which is the sum of (a) the higher of (i) the Prime Rate (as publicly announced by the Agent from time to time), (ii) the Federal Funds Rate plus 0.50%, and (iii) Adjusted Term SOFR for a one-month tenor in effect on such day plus 1.00%. The Credit Agreement also includes provisions for determining a replacement rate when SOFR is no longer available.

At June 30, 2024, the interest rate on outstanding borrowings under the Revolving Loan was 7.68%. We had availability of $127,937 under the revolving credit facility at June 30, 2024.

We must pay a commitment fee of 0.20% to 0.35% per annum on the average daily unused portion of the aggregate unused revolving commitments under the Credit Agreement. We must also pay fees as specified in the Fee Letter (as defined in the Credit Agreement) and with respect to any letters of credit issued under the Credit Agreement.

The Credit Agreement contains usual and customary negative covenants for agreements of this type, including, but not limited to, restrictions on our ability to, subject to certain exceptions, create, incur or assume indebtedness; create, incur, assume or suffer to exist liens; make certain investments; allow our subsidiaries to merge or consolidate with another entity; make certain asset dispositions; pay certain dividends or other distributions to shareholders; enter into transactions with affiliates; enter into sale leaseback transactions; and exceed the limits on annual capital expenditures. The Credit Agreement also requires us to satisfy certain financial covenants, including a minimum interest coverage ratio of 3.00 to 1.00. At June 30, 2024, our interest coverage ratio was 4.57 to 1.00. The Credit Agreement also requires us to maintain a consolidated total leverage ratio not to exceed 4.00 to 1.00 (which was increased as of July 1, 2023 from 3.50 to 1.00 in connection with the acquisition of MSA). Starting July 1, 2024, the Company’s consolidated total leverage ratio will decrease to 3.50 to 1.00 as the one-year leverage increase of 0.50 due to the MSA acquisition has ended. As of June 30, 2024, our consolidated total leverage ratio was 1.69 to 1.00.

The Credit Agreement includes customary events of default, including, among other things, payment default, covenant default, breach of representation or warranty, bankruptcy, cross-default, material ERISA events, material money judgments, and failure to maintain subsidiary guarantees. If an event of default occurs, the Agent will be entitled to take various actions, including the acceleration of amounts due under the Credit Agreement, termination of the credit facility, and all other actions permitted to be taken by a secured creditor.

Other Debt

With the consummation of the MSA acquisition, the Company assumed a Fond du Lac County and Fond du Lac Economic Development Corporation term note (Fond du Lac Term Note). The Fond du Lac Term Note is secured by a security agreement, payable in annual installments of $500 plus interest at 2.00% and is due in full in December 2028. The balance outstanding as of June 30, 2024 was $2,375, with the short-term and long-term balance of $500 and $1,875, respectively, recorded in other current liabilities and other long-term liabilities in the Condensed Consolidated Balance Sheets.

Table of Contents

Capital Requirements and Sources of Liquidity

During the six months ended June 30, 2024 and 2023, our capital expenditures were $6,874 and $6,320 respectively. The increase of $554 was driven by continued investments in technology and automation. Capital expenditures for the full year 2024 are expected to be between $15,000 and $20,000.

We have historically relied upon cash available through credit facilities, in addition to cash from operations, to finance our working capital requirements and to support our growth. At June 30, 2024, we had immediate availability of $127,937 through our revolving credit facility and the availability of incremental facilities to the greater of $100,000 and 125% of the Company’s twelve month trailing Consolidated EBITDA through an accordion feature under our Credit Agreement, subject to the covenants under the Credit Agreement. We regularly monitor potential capital sources, including equity and debt financings, in an effort to meet our planned capital expenditures and liquidity requirements. Our future success will be highly dependent on our ability to access outside sources of capital. We will continue to have access to the availability currently provided under the Credit Agreement as long as we remain compliant with the financial covenants. Based on our estimates at this time, we expect to be in compliance with these financial covenants through 2024 and the foreseeable future.

We believe that our operating cash flow and available borrowings under the Credit Agreement are sufficient to fund our operations for 2024 and beyond. However, future cash flows are subject to a number of variables, and additional capital expenditures will be required to conduct our operations. There can be no assurance that operations and other capital resources will provide cash in sufficient amounts to maintain planned or future levels of capital expenditures. In the event we make one or more acquisitions and the amount of capital required is greater than the amount we have available for acquisitions at that time, we could be required to reduce the expected level of capital expenditures and/or seek additional capital. If we seek additional capital, we may do so through borrowings under the Credit Agreement, joint ventures, asset sales, offerings of debt or equity securities or other means. We cannot guarantee that this additional capital will be available on acceptable terms or at all. If we are unable to obtain the funds we need, we may not be able to complete acquisitions that may be favorable to us or finance the capital expenditures necessary to conduct our operations.

Contractual Obligations

The following table presents our obligations and commitments to make future payments under contracts and contingent commitments at June 30, 2024:


			Payments Due by Period
	Total		2024 (Remainder)		2025 – 2026		2027 – 2028		Thereafter
Long-term debt principal payment obligations ⁽¹⁾	$	124,438	$	500	$	1,000	$	122,938	$	—
Forecasted interest on debt payment obligations ⁽²⁾		26,344		4,316		12,890		9,138		—
Finance lease obligations ⁽³⁾		1,012		284		642		86		—
Operating lease obligations ⁽³⁾		34,922		2,945		10,259		9,976		11,742
Total	$	186,716	$	8,045	$	24,791	$	142,138	$	11,742

(1)	Principal payments under the Company’s Credit Agreement, which expires in 2028 and the Fond du Lac Term Note, which is due in full in December 2028.

(2)	Forecasted interest on debt obligations are based on the debt balance, interest rate, and unused fee of the Company’s revolving credit facility and debt balance and interest rate of the Company’s Fond due Lac Term Note.

(3)	See Note 5 – Leases in the Notes to Condensed Consolidated Financial Statements for additional information

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are exposed to market risk from changes in customer forecasts, interest rates, and to a lesser extent, commodities. To reduce such risks, we selectively use financial instruments and other proactive management techniques.

Table of Contents

Customer Forecasts

The use and consumption of our components, products and services fluctuates depending on order forecasts we receive from our customers. These order forecasts can change dramatically from quarter-to-quarter dependent upon the respective markets that our customers provide products in.

Interest Rate Risk

We are exposed to interest rate risk on certain of our short- and long-term debt obligations used to finance our operations and acquisitions. We have SOFR-based floating rate borrowings under the Credit Agreement, which exposes us to variability in interest payments due to changes in the referenced interest rates.

The amount borrowed under the revolving credit facility under the Credit Agreement was $122.1 million with an interest rate of 7.68% as of June 30, 2024. Please see “Liquidity and Capital Resources – Amended and Restated Credit Agreement” in Part I, Item 2 and Note 4 in the Notes to the Unaudited Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q for more specifics.

A hypothetical 100-basis-point increase in interest rates would have resulted in an additional $0.7 million of interest expense based on our variable rate debt at June 30, 2024. We do not use derivative financial instruments to manage interest risk or to speculate on future changes in interest rates. A rise in interest rates could negatively affect our cash flow.

Commodity Risk

We source a wide variety of materials and components from a network of suppliers. Commodity raw materials, such as steel, aluminum, copper, paint and paint chemicals, and other production costs are subject to price fluctuations, which could have a negative impact on our results. We strive to pass along such commodity price increases to customers to avoid profit margin erosion and in many cases utilize contracts with those customers to mitigate the impact of commodity raw material price fluctuations. As of June 30, 2024, we did not have any commodity hedging instruments in place.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934, as amended (the Exchange Act), is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure. In designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired objectives.

Our management, under the supervision of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q and has concluded that, as of the end of such period, the Company’s disclosure controls and procedures were effective at the reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Table of Contents

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we may be a party to litigation and subject to claims incident to the ordinary course of business. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. See Note 9 – Commitments and contingencies in the Notes to the Condensed Consolidated Financial Statements for additional information.

Item 1A. Risk Factors

There have been no material changes to the risk factors previously disclosed in Part I, Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on March 6, 2024.

Item 1C. Cybersecurity

During the quarter ended June 30, 2024, the Company made enhancements to its cybersecurity oversight with the hiring of the newly created Chief Information Officer (CIO) position. The CIO, whom reports to the Chief Financial Officer (CFO), manages the Company's information security program and whose team is responsible for leading the enterprise-wide cybersecurity strategy, policy, standards, architecture and processes. Our CIO has over 25 years of experience, which includes leading robust cybersecurity functions and transformational initiatives. The CIO periodically briefs the Company’s Audit Committee of our Board of Directors (Audit Committee), who supports the Company’s Board of Directors oversight of cybersecurity risk, Chief Executive Officer (CEO), CFO, and other members of the Board of Directors and senior management as appropriate. In the event of a potentially material cybersecurity incident, the CIO will meet with the Company's Audit Committee, CEO, CFO, legal counsel and any other members of senior management as appropriate to review the cybersecurity event, perform a materiality analysis and, if appropriate, identify any information required to be disclosed in a Current Report on Form 8-K. For further information, please refer to our Annual Report on Form 10-K for the year ended December 31, 2023 which was filed with the SEC on March 6, 2024.

Table of Contents

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The table below sets forth information with respect to purchases we made of shares of our common stock during the quarter ended June 30, 2024:


				Total Number	Dollar Value of
				of Shares	Shares that
	Total			Purchased as	May Yet Be
	Number			Part of Publicly	Purchased
	of Shares	Average Price		Announced Plans	Under the Plans
Period	Purchased	Paid per Share		or Programs⁽¹⁾	or Programs⁽¹⁾
April 2024	—	$	—	—	$	25,000,000
May 2024	—	$	—	—	$	25,000,000
June 2024	61,197	$	16.31	61,197	$	24,002,119
Total	—			—

(1)	On October 26, 2023, the Board of Directors approved a new share repurchase program of up to $25 million of shares through 2026. The new share repurchase program replaced the prior program.

Item 5. Other Information

During the three months ended June 30, 2024, no director or Section 16 officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

Table of Contents

Item 6. Exhibits.

The exhibits listed in the Exhibit Index below are filed as part of this Quarterly Report on Form 10-Q.

EXHIBIT INDEX


Exhibit Number		Description

31.1		Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32		Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		Inline XBRL Instance Document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	MAYVILLE ENGINEERING COMPANY, INC.

Date: August 7, 2024	By:	/s/ Jagadeesh A. Reddy
		Jagadeesh A. Reddy
		President & Chief Executive Officer

	By:	/s/ Todd M. Butz
		Todd M. Butz
		Chief Financial Officer

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jagadeesh A. Reddy, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Mayville Engineering Company, Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


Date: August 7, 2024	By:	/s/ Jagadeesh A. Reddy
		Jagadeesh A. Reddy
		President & Chief Executive Officer

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Todd M. Butz, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Mayville Engineering Company, Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(a)

(b)

(c)

(d)

5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


Date: August 7, 2024	By:	/s/ Todd M. Butz
		Todd M. Butz
		Chief Financial Officer

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Mayville Engineering Company, Inc. (the “Company”) for the period ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Jagadeesh A. Reddy, as President and Chief Executive Officer of the Company, and Todd M. Butz, as Chief Financial Officer of the Company, each hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

(1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date: August 7, 2024	By:	/s/ Jagadeesh A. Reddy
		Jagadeesh A. Reddy
		President & Chief Executive Officer

	By:	/s/ Todd M. Butz
		Todd M. Butz
		Chief Financial Officer

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2024	Aug. 02, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-38894
Entity Registrant Name	Mayville Engineering Company, Inc.
Entity Incorporation, State or Country Code	WI
Entity Tax Identification Number	39-0944729
Entity Address, Address Line One	135 S. 84th Street, Suite 300
Entity Address, City or Town	Milwaukee
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53214
City Area Code	414
Local Phone Number	381-2860
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	MEC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		20,619,530
Entity Central Index Key	0001766368
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
ASSETS
Cash and cash equivalents	$ 314	$ 672
Receivables, net of allowances for doubtful accounts of $697 at June 30, 2024 and $685 at December 31, 2023	67,853	57,445
Inventories, net	60,816	67,782
Tooling in progress	6,074	5,457
Prepaid expenses and other current assets	5,155	3,267
Total current assets	140,212	134,623
Property, plant and equipment, net	168,757	175,745
Goodwill	92,650	92,650
Intangible assets, net	55,201	58,667
Operating lease assets	29,868	32,233
Other long-term assets	1,463	2,743
Total assets	488,151	496,661
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	53,963	46,526
Current portion of operating lease obligation	4,856	5,064
Accrued liabilities:
Salaries, wages, and payroll taxes	7,211	6,368
Profit sharing and bonus	3,275	3,107
Other current liabilities	12,523	10,644
Total current liabilities	81,828	71,709
Bank revolving credit notes	122,063	147,493
Operating lease obligation, less current maturities	26,616	28,606
Deferred compensation, less current portion	4,315	3,816
Deferred income tax liability	12,847	12,606
Other long-term liabilities	2,398	2,453
Total liabilities	250,067	266,683
Commitments and contingencies (see Note 9)
Common shares, no par value, 75,000,000 authorized, 22,077,389 shares issued at June 30, 2024 and 21,853,477 at December 31, 2023
Additional paid-in-capital	207,454	205,373
Retained earnings	41,141	34,118
Treasury shares at cost, 1,604,090 shares at June 30, 2024 and 1,542,893 at December 31, 2023	(10,511)	(9,513)
Total shareholders' equity	238,084	229,978
Total liabilities and shareholders' equity	$ 488,151	$ 496,661

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Condensed Consolidated Balance Sheets
Allowances for doubtful accounts	$ 697	$ 685
Common shares, no par value	$ 0	$ 0
Common shares, shares authorized	75,000,000	75,000,000
Common shares, Shares, issued	22,077,389	21,853,477
Treasury stock at cost	1,604,090	1,542,893

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Condensed Consolidated Statements of Comprehensive Income
Net sales	$ 163,636	$ 138,980	$ 324,905	$ 281,626
Cost of sales	141,359	122,885	281,696	249,154
Amortization of intangible assets	1,733	1,738	3,466	3,476
Profit sharing, bonuses, and deferred compensation	4,133	2,688	7,933	5,690
Other selling, general and administrative expenses	8,261	7,396	16,030	14,363
Income from operations	8,150	4,273	15,780	8,943
Interest expense	(2,969)	(1,968)	(6,324)	(3,626)
Loss on extinguishment of debt		(216)		(216)
Income before taxes	5,181	2,089	9,456	5,101
Income tax expense	1,399	475	2,433	916
Net income and comprehensive income	$ 3,782	$ 1,614	$ 7,023	$ 4,185
Earnings per share:
Basic	$ 0.18	$ 0.08	$ 0.34	$ 0.21
Diluted	$ 0.18	$ 0.08	$ 0.34	$ 0.20
Weighted average shares outstanding:
Basic	20,602,650	20,494,437	20,544,292	20,405,383
Diluted	21,034,780	20,827,728	20,914,499	20,789,175

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 7,023	$ 4,185
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	15,179	12,415
Amortization	3,466	3,476
Allowance for doubtful accounts	12	6
Inventory excess and obsolescence reserve	(164)	41
Stock-based compensation expense	2,495	2,420
Loss (gain) on disposal of property, plant and equipment	2	(135)
Deferred compensation	451	(17,475)
Loss on extinguishment of debt		216
Non-cash lease expense	2,702	2,144
Other non-cash adjustments	143	184
Changes in operating assets and liabilities:
Accounts receivable	(10,420)	(11,071)
Inventories	7,130	4,839
Tooling in progress	(617)	111
Prepaids and other current assets	(1,951)	(897)
Accounts payable	6,391	(3,061)
Deferred income taxes	1,764	638
Operating lease obligations	(2,535)	(1,986)
Accrued liabilities	2,829	(1,915)
Net cash provided by (used in) operating activities	33,900	(5,865)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(6,874)	(6,320)
Proceeds from sale of property, plant and equipment	107	153
Net cash used in investing activities	(6,767)	(6,167)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank revolving credit notes	273,536	347,324
Payments on bank revolving credit notes	(298,967)	(241,618)
Repayments of other long-term debt	(306)	(575)
Payments of financing costs		(1,248)
Shares withheld for employees' taxes	(758)
Purchase of treasury stock	(998)	(1,661)
Payments on finance leases	(343)	(192)
Proceeds from the exercise of stock options	345
Net cash provided by (used in) financing activities	(27,491)	102,030
Net increase (decrease) in cash and cash equivalents	(358)	89,998
Cash and cash equivalents at beginning of period	672	127
Cash and cash equivalents at end of period	314	90,125
Supplemental disclosure of cash flow information:
Cash paid for interest	5,577	3,383
Cash paid for taxes	796	278
Non-cash property, plant & equipment, net	$ 1,492	2,283
Non-cash 401(k) contribution of treasury stock		$ 2,500

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Additional Paid-in Capital [Member]	Treasury Stock, Common [Member]	Retained Earnings [Member]	Total
Beginning, Balance at Dec. 31, 2022	$ 200,945	$ (9,352)	$ 26,274	$ 217,867
Net income			2,571	2,571
401(k) contribution		2,500		2,500
Purchase of treasury stock		(661)		(661)
Stock-based compensation	1,066			1,066
Ending, Balance at Mar. 31, 2023	202,011	(7,513)	28,845	223,343
Beginning, Balance at Dec. 31, 2022	200,945	(9,352)	26,274	217,867
Net income				4,185
Ending, Balance at Jun. 30, 2023	203,423	(8,513)	30,459	225,369
Beginning, Balance at Mar. 31, 2023	202,011	(7,513)	28,845	223,343
Net income			1,614	1,614
Purchase of treasury stock		(1,000)		(1,000)
Stock-based compensation	1,354			1,354
Stock options exercised net of employee tax withholding	58			58
Ending, Balance at Jun. 30, 2023	203,423	(8,513)	30,459	225,369
Beginning, Balance at Dec. 31, 2023	205,373	(9,513)	34,118	229,978
Net income			3,241	3,241
Stock-based compensation	1,157			1,157
Stock options exercised net of employee tax withholding	185			185
Restricted stock units net of employee tax withholding	(524)			(524)
Ending, Balance at Mar. 31, 2024	206,191	(9,513)	37,359	234,037
Beginning, Balance at Dec. 31, 2023	205,373	(9,513)	34,118	229,978
Net income				7,023
Ending, Balance at Jun. 30, 2024	207,454	(10,511)	41,141	238,084
Beginning, Balance at Mar. 31, 2024	206,191	(9,513)	37,359	234,037
Net income			3,782	3,782
Purchase of treasury stock		(998)		(998)
Stock-based compensation	1,338			1,338
Stock options exercised net of employee tax withholding	(75)			(75)
Ending, Balance at Jun. 30, 2024	$ 207,454	$ (10,511)	$ 41,141	$ 238,084

Basis of presentation

6 Months Ended

Jun. 30, 2024

Basis of presentation

Basis of presentation

Note 1. Basis of presentation

Nature of Operations

Recent Accounting Pronouncements

Acquisitions

6 Months Ended

Jun. 30, 2024

Acquisitions

Acquisitions

Note 2. Acquisition

The following table is a summary of the assets acquired, liabilities assumed and net cash consideration paid for MSA during 2023:


	Opening Balance		Estimated
	Sheet Allocation		Useful Life
Cash	$	324
Accounts receivable, net		7,381
Inventory		9,698
Property, plant and equipment		41,271
Other assets		291
Intangible assets
Developed technology		4,900	7 Years
Customer relationships		17,700	17 Years
Goodwill		21,115	Indefinite
Total assets acquired		102,680
Accounts payable		(2,386)
Accrued expenses		(1,509)
Other liabilities		(1,984)
Debt		(7,884)
Total consideration	$	88,917

The purchase price of MSA exceeded the preliminary estimated fair value of identifiable net assets and accordingly, the difference was allocated to goodwill, which is not tax deductible.

Pro Forma Financial Information (Unaudited)


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2023		2023
Net sales	$	153,862	$	312,582
Net income	$	451	$	1,835

Select balance sheet data

6 Months Ended

Jun. 30, 2024

Select balance sheet data

Select balance sheet data

Note 3. Select balance sheet data

Inventory

Inventories as of June 30, 2024 and December 31, 2023 consist of:


	June 30,		December 31,
	2024		2023
Finished goods and purchased parts	$	27,435	$	31,489
Raw materials		23,256		25,929
Work-in-process		10,126		10,363
Total	$	60,816	$	67,782

Property, plant and equipment

Property, plant and equipment as of June 30, 2024 and December 31, 2023 consist of:


	Useful Lives		June 30,		December 31,
	Years		2024		2023
Land		Indefinite	$	2,640	$	2,640
Land improvements		15-39		4,291		4,378
Building and building improvements		15-39		82,043		79,682
Machinery, equipment and tooling		3-10		304,727		295,960
Vehicles		5		4,424		4,571
Office furniture and fixtures		3-7		22,522		21,325
Construction in progress		N/A		5,599		9,779
Total property, plant and equipment, gross				426,246		418,335
Less accumulated depreciation				257,489		242,590
Total property, plant and equipment, net			$	168,757	$	175,745

Depreciation expense was $7,658 and $6,273 for the three months ended June 30, 2024 and 2023, respectively, and $15,179 and $12,415 for the six months ended June 30, 2024 and 2023, respectively.

Goodwill

There were no changes to the goodwill balance of $92,650 between December 31, 2023 and June 30, 2024.

Intangible Assets

The following is a listing of definite-lived intangible assets, the useful lives in years (amortization period) and accumulated amortization as of June 30, 2024 and December 31, 2023:


			June 30, 2024
	Useful Lives		Gross Carrying		Accumulated
	Years		Amount		Amortization			Net
Amortizable intangible assets:
Customer relationships and contracts		9-17	$	96,040	$	55,454	$	40,586
Trade name		10		14,780		8,185		6,595
Non-compete agreements		5		8,800		8,800		—
Developed technology		7		4,900		700		4,200
Patents		19		24		15		9
Total intangible assets, net			$	124,544	$	73,154	$	51,390


			December 31, 2023
	Useful Lives		Gross Carrying		Accumulated
	Years		Amount		Amortization			Net
Amortizable intangible assets:
Customer relationships and contracts		9-17	$	96,040	$	53,078	$	42,962
Trade name		10		14,780		7,446		7,334
Non-compete agreements		5		8,800		8,800		—
Developed technology		7		4,900		350		4,550
Patents		19		24		14		10
Total intangible assets, net			$	124,544	$	69,688	$	54,856

Additionally, the Company reported an indefinite lived non-amortizable brand name asset with a balance of $3,811 as of June 30, 2024 and December 31, 2023.

Changes in intangible assets between December 31, 2023 and June 30, 2024 consist of:


Balance as of December 31, 2023	$	58,667
Amortization expense		(3,466)
Balance as of June 30, 2024	$	55,201

Amortization expense was $1,733 and $1,738 for the three months ended June 30, 2024 and 2023, respectively, and $3,466 and $3,476 for the six months ended June 30, 2024 and 2023, respectively.

Future amortization expense is expected to be as followed:


Year ending December 31,
2024 (remainder)	$	3,466
2025	$	6,933
2026	$	6,933
2027	$	6,933
2028	$	6,877
Thereafter	$	20,248

Debt

6 Months Ended

Jun. 30, 2024

Debt

Debt

Note 4. Debt

Bank Revolving Credit Notes

At June 30, 2024, our consolidated total leverage ratio was 1.69 to 1.00 as compared to a covenant maximum of 4.00 to 1.00 under the Credit Agreement.

At June 30, 2024, our consolidated interest coverage ratio was 4.57 to 1.00 as compared to a covenant minimum of 3.00 to 1.00 under the Credit Agreement.

Other Debt

Leases

6 Months Ended

Jun. 30, 2024

Leases

Leases

Note 5. Leases

The components of lease expense were as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Finance lease cost:
Amortization of finance lease assets	$	119	$	94	$	223	$	188
Interest on finance lease liabilities		12		10		20		21
Total finance lease expense		131		104		243		209
Operating lease expense		1,353		1,321		2,693		2,607
Short-term lease expense		159		131		311		270
Variable lease expense		60		48		112		117
Lease income ⁽¹⁾		(537)		(404)		(1,069)		(1,035)
Total lease expense	$	1,166	$	1,200	$	2,290	$	2,168

(1)	The Company subleased a portion of its Hazel Park, MI facility starting in June 2022. Lease income for the three months ended June 30, 2024 and 2023 was $537 and $404, respectively, and $1,069 and $1,035 for the six months ended June 30, 2024 and 2023, respectively.

Lease related supplemental cash flow information:


	Six Months Ended
	June 30,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities for finance leases:
Operating cash flows	$	20	$	21
Financing cash flows	$	343	$	192

Cash paid for amounts included in the measurement of lease liabilities for operating leases:
Operating cash flows	$	2,980	$	2,891

Right-of-use assets obtained in exchange for recorded lease obligations:
Operating leases	$	337	$	363
Finance leases	$	383	$	—

Employee stock ownership plan

6 Months Ended

Jun. 30, 2024

Employee stock ownership plan

Employee stock ownership plan

Note 6. Employee stock ownership plan

As of January 1, 2023, the Company amended the plan reducing the distribution period from five years to three years.

As of June 30, 2024 and December 31, 2023, the ESOP shares consisted of 3,474,467 and 4,062,583 in allocated shares, respectively.

Retirement plans

6 Months Ended

Jun. 30, 2024

Retirement plans

Retirement plans

Note 7. Retirement plans

Income taxes

6 Months Ended

Jun. 30, 2024

Income taxes

Income taxes

Note 8. Income taxes

For the three and six months ended June 30, 2023, income tax expense was estimated at $475 and $916 and the ETR was 22.73% and 17.96%, respectively.

Uncertain Tax Positions

Commitments and contingencies

6 Months Ended

Jun. 30, 2024

Commitments and contingencies

Commitments and contingencies

Note 9. Commitments and contingencies

Litigation

Deferred compensation

6 Months Ended

Jun. 30, 2024

Deferred compensation

Deferred compensation

Note 10. Deferred compensation

Deferrals are assumed to be invested in an investment vehicle based on the options made available to the participant (which does not include Company stock).

Self-Funded insurance

6 Months Ended

Jun. 30, 2024

Self-Funded insurance

Self-Funded insurance

Note 11. Self-Funded insurance

Segments

6 Months Ended

Jun. 30, 2024

Segments

Segments

Note 12. Segments

Fair value of financial instruments

6 Months Ended

Jun. 30, 2024

Fair value of financial instruments

Fair value of financial instruments

Note 13. Fair value of financial instruments

●

Level 1 – Quoted prices in active markets for identical assets or liabilities.

●

The following table lists the Company’s financial assets and liabilities accounted for at fair value by the fair value hierarchy:


	Balance at		Fair Value Measurements at
	June 30,		Report Date Using
	2024		(Level 1)		(Level 2)		(Level 3)
Deferred compensation liability	$	4,556	$	4,556	$	—	$	—
Total	$	4,556	$	4,556	$	—	$	—


	Balance at		Fair Value Measurements at
	December 31,		Report Date Using
	2023		(Level 1)		(Level 2)		(Level 3)
Deferred compensation liability	$	4,105	$	4,105	$	—	$	—
Total	$	4,105	$	4,105	$	—	$	—

Accounts receivable, accounts payable, long-term debt and accrued liabilities are recorded in the Condensed Consolidated Balance Sheets at cost and approximate fair value.

Earnings Per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share

Earnings Per Share

Note 14. Earnings Per Share

A reconciliation of basic and diluted net income per share attributable to the Company were as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net income attributable to MEC	$	3,782	$	1,614	$	7,023	$	4,185
Average shares outstanding		20,602,650		20,494,437		20,544,292		20,405,383
Basic income per share	$	0.18	$	0.08	$	0.34	$	0.21

Average shares outstanding		20,602,650		20,494,437		20,544,292		20,405,383
Effect of dilutive stock-based compensation		432,130		333,291		370,207		383,792
Total potential shares outstanding		21,034,780		20,827,728		20,914,499		20,789,175
Diluted income per share	$	0.18	$	0.08	$	0.34	$	0.20

Options in the money that were not included in the computation of diluted earnings per share because they would have had an anti-dilutive impact on earnings per share were as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Stock options	—	219,885	—	247,278

Revenue Recognition

6 Months Ended

Jun. 30, 2024

Revenue Recognition

Revenue Recognition

Note 15. Revenue Recognition

Contract Assets and Contract Liabilities


	Contract		Contract
	Assets		Liabilities
As of December 31, 2023	$	5,457	$	3,635
Net activity		617		(573)
As of June 30, 2024	$	6,074	$	3,062

Disaggregated Revenue

The following tables represent a disaggregation of revenue by product category and end market:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
Product Category	2024		2023		2024		2023
Outdoor sports	$	2,205	$	2,379	$	4,364	$	4,684
Fabrication		87,201		84,172		178,115		171,174
Performance structures		47,795		26,846		93,564		53,521
Tube		19,846		19,468		38,921		39,820
Tank		12,625		11,070		23,701		22,189
Total		169,672		143,935		338,665		291,388
Intercompany sales elimination		(6,036)		(4,955)		(13,760)		(9,762)
Total, net sales	$	163,636	$	138,980	$	324,905	$	281,626


	Three Months Ended				Six Months Ended
	June 30,				June 30,
End Market	2024		2023		2024		2023
Commercial vehicle	$	62,130	$	56,075	$	121,084	$	115,230
Construction & access		27,230		26,522		55,676		53,029
Powersports		30,306		23,995		60,597		48,093
Agriculture		14,639		13,444		29,597		27,895
Military		6,579		8,910		14,530		17,479
Other		22,752		10,033		43,421		19,899
Total, net sales	$	163,636	$	138,980	$	324,905	$	281,626

Concentration of major customers

6 Months Ended

Jun. 30, 2024

Concentration of major customers

Concentration of major customers

Note 16. Concentration of major customers

The following customers accounted for 10% or greater of the Company’s recorded net sales or net trade receivables:


	Net Sales				Net Sales				Accounts Receivable
	Three Months Ended				Six Months Ended				As of		As of
	June 30,				June 30,				June 30,		December 31,
	2024		2023		2024		2023		2024		2023
Customer
A	16.2	%	15.6	%	16.4	%	15.5	%	11.9	%	<10	%
B	13.0	%	15.6	%	13.5	%	15.6	%	10.7	%	12.6	%
C	11.0	%	11.5	%	10.4	%	11.8	%	<10	%	<10	%
D	<10	%	<10	%	<10	%	<10	%	13.1	%	12.7	%

Stock-based compensation

6 Months Ended

Jun. 30, 2024

Stock-based compensation

Stock-based compensation

Note 17. Stock-based compensation

The Mayville Engineering Company, Inc. 2019 Omnibus Incentive Plan provided the Company the ability to grant monetary payments based on the value of its common stock, up to 2,000,000 shares.

On April 20, 2021, shareholders of the Company approved an amendment to the 2019 Omnibus Incentive Plan increasing the number of shares of common stock authorized for issuance by 2,500,000 shares.

Cancellations and forfeitures are accounted for as incurred.

As of June 30, 2024, 1,302,558 options remained outstanding with a weighted average strike price of $11.79 and a weighted average contractual life of 6.54 years remaining.

The Company’s stock-based compensation expense by award type is summarized as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
RSU awards	$	962	$	874	$	1,752	$	1,589
PSU awards		119		—		138		—
Option awards		257		480		605		831
Stock-based compensation expense, net of tax	$	1,338	$	1,354	$	2,495	$	2,420


	RSUs		PSUs		Options		Total
Balance as of December 31, 2023	$	2,304	$	—	$	1,513	$	3,817
Grants		4,423		1,423		—		5,846
Forfeitures		(32)		—		—		(32)
Expense		(789)		(20)		(348)		(1,157)
Balance as of March 31, 2024	$	5,906		1,403	$	1,165	$	8,474
Grants		1,115		—		—		1,115
Forfeitures		(283)		—		(33)		(316)
Expense		(962)		(119)		(257)		(1,338)
Balance as of June 30, 2024	$	5,776		1,284	$	875	$	7,935

Common Equity

6 Months Ended

Jun. 30, 2024

Common Equity

Common Equity

Note 18. Common Equity

At June 30, 2024 the authorized stock of the Company consisted of 75,000,000 shares of common stock without par value.

Changes in outstanding common shares are summarized as follows:


		Shares
		Outstanding
Shares as of December 31, 2022		20,172,746
Treasury stock purchases		(100,726)
Common stock issued (including stock-based compensation impact)		298,778
Balance as of June 30, 2023		20,370,798

		Shares
		Outstanding
Balance as of December 31, 2023		20,310,584
Treasury stock purchases		(61,197)
Common stock issued (including stock-based compensation impact)		223,912
Balance as of June 30, 2024		20,473,299

Subsequent events

6 Months Ended

Jun. 30, 2024

Subsequent events

Subsequent events

Note 19. Subsequent events

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 3,782	$ 3,241	$ 1,614	$ 2,571	$ 7,023	$ 4,185

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false	false
Non-Rule 10b5-1 Arrangement Adopted	false	false
Rule 10b5-1 Arrangement Terminated	false	false
Non-Rule 10b5-1 Arrangement Terminated	false	false

Basis of presentation (Policies)	6 Months Ended
Basis of presentation (Policies)	Jun. 30, 2024
Basis of presentation
Nature of Operations	Nature of Operations 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, construction & access equipment, powersports, agriculture, military and other end markets. Founded in 1945 and headquartered in Milwaukee, Wisconsin, we are a leading Tier I U.S. supplier of highly engineered components to original equipment manufacturer (OEM) customers with leading positions in their respective markets. The Company operates 23 facilities located in Arkansas, Michigan, Mississippi, Ohio, Pennsylvania, Virginia, and Wisconsin. Our engineering expertise and technical know-how allow us to add value through every product redevelopment cycle (generally every three to five years for our customers). Our one operating segment focuses on producing metal components that are used in a broad range of heavy- and medium-duty commercial vehicles, construction & access equipment, powersports, agricultural, military and other products.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Improvements to Income Tax Disclosures, amending Accounting Standards Codification (ASC) 740, Income Taxes. The amendment is intended to enhance the transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments require that on an annual basis, entities disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, the amendments require that entities disclose additional information about income taxes paid as well as additional disclosures of pretax income and income tax expense and remove the requirement to disclose certain items that are no longer considered cost beneficial or relevant. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The Company is evaluating the potential impact of adopting this guidance on the consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures, amending ASC 280, Segment Reporting. The amendment is intended to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment and contain other disclosure requirements. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and for interim periods after December 15, 2024. The Company is evaluating the potential impact of adopting this guidance on the consolidated financial statements.

Acquisitions (Tables)

6 Months Ended

Jun. 30, 2024

Business Acquisition [Line Items]

Schedule of Pro Forma Financial Information


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2023		2023
Net sales	$	153,862	$	312,582
Net income	$	451	$	1,835

Mid-States Aluminum [Member]

Business Acquisition [Line Items]

Schedule of assets acquired, liabilities assumed and net cash consideration paid

The following table is a summary of the assets acquired, liabilities assumed and net cash consideration paid for MSA during 2023:


	Opening Balance		Estimated
	Sheet Allocation		Useful Life
Cash	$	324
Accounts receivable, net		7,381
Inventory		9,698
Property, plant and equipment		41,271
Other assets		291
Intangible assets
Developed technology		4,900	7 Years
Customer relationships		17,700	17 Years
Goodwill		21,115	Indefinite
Total assets acquired		102,680
Accounts payable		(2,386)
Accrued expenses		(1,509)
Other liabilities		(1,984)
Debt		(7,884)
Total consideration	$	88,917

Select balance sheet data (Tables)

6 Months Ended

Jun. 30, 2024

Select balance sheet data

Schedule of Inventories


	June 30,		December 31,
	2024		2023
Finished goods and purchased parts	$	27,435	$	31,489
Raw materials		23,256		25,929
Work-in-process		10,126		10,363
Total	$	60,816	$	67,782

Schedule of Property, Plant and Equipment


	Useful Lives		June 30,		December 31,
	Years		2024		2023
Land		Indefinite	$	2,640	$	2,640
Land improvements		15-39		4,291		4,378
Building and building improvements		15-39		82,043		79,682
Machinery, equipment and tooling		3-10		304,727		295,960
Vehicles		5		4,424		4,571
Office furniture and fixtures		3-7		22,522		21,325
Construction in progress		N/A		5,599		9,779
Total property, plant and equipment, gross				426,246		418,335
Less accumulated depreciation				257,489		242,590
Total property, plant and equipment, net			$	168,757	$	175,745

Schedule of Listing of Intangible Assets


			June 30, 2024
	Useful Lives		Gross Carrying		Accumulated
	Years		Amount		Amortization			Net
Amortizable intangible assets:
Customer relationships and contracts		9-17	$	96,040	$	55,454	$	40,586
Trade name		10		14,780		8,185		6,595
Non-compete agreements		5		8,800		8,800		—
Developed technology		7		4,900		700		4,200
Patents		19		24		15		9
Total intangible assets, net			$	124,544	$	73,154	$	51,390


			December 31, 2023
	Useful Lives		Gross Carrying		Accumulated
	Years		Amount		Amortization			Net
Amortizable intangible assets:
Customer relationships and contracts		9-17	$	96,040	$	53,078	$	42,962
Trade name		10		14,780		7,446		7,334
Non-compete agreements		5		8,800		8,800		—
Developed technology		7		4,900		350		4,550
Patents		19		24		14		10
Total intangible assets, net			$	124,544	$	69,688	$	54,856

Schedule of Changes In Intangible Assets


Balance as of December 31, 2023	$	58,667
Amortization expense		(3,466)
Balance as of June 30, 2024	$	55,201

Schedule of Future Amortization Expense


Year ending December 31,
2024 (remainder)	$	3,466
2025	$	6,933
2026	$	6,933
2027	$	6,933
2028	$	6,877
Thereafter	$	20,248

Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases

Summary of components of lease expense


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Finance lease cost:
Amortization of finance lease assets	$	119	$	94	$	223	$	188
Interest on finance lease liabilities		12		10		20		21
Total finance lease expense		131		104		243		209
Operating lease expense		1,353		1,321		2,693		2,607
Short-term lease expense		159		131		311		270
Variable lease expense		60		48		112		117
Lease income ⁽¹⁾		(537)		(404)		(1,069)		(1,035)
Total lease expense	$	1,166	$	1,200	$	2,290	$	2,168

(1)	The Company subleased a portion of its Hazel Park, MI facility starting in June 2022. Lease income for the three months ended June 30, 2024 and 2023 was $537 and $404, respectively, and $1,069 and $1,035 for the six months ended June 30, 2024 and 2023, respectively.

Schedule of Supplemental cash flow information


	Six Months Ended
	June 30,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities for finance leases:
Operating cash flows	$	20	$	21
Financing cash flows	$	343	$	192

Cash paid for amounts included in the measurement of lease liabilities for operating leases:
Operating cash flows	$	2,980	$	2,891

Right-of-use assets obtained in exchange for recorded lease obligations:
Operating leases	$	337	$	363
Finance leases	$	383	$	—

Fair value of financial instruments (Tables)

6 Months Ended

Jun. 30, 2024

Fair value of financial instruments

Schedule of financial assets and liabilities accounted for at fair value by fair value hierarchy


	Balance at		Fair Value Measurements at
	June 30,		Report Date Using
	2024		(Level 1)		(Level 2)		(Level 3)
Deferred compensation liability	$	4,556	$	4,556	$	—	$	—
Total	$	4,556	$	4,556	$	—	$	—


	Balance at		Fair Value Measurements at
	December 31,		Report Date Using
	2023		(Level 1)		(Level 2)		(Level 3)
Deferred compensation liability	$	4,105	$	4,105	$	—	$	—
Total	$	4,105	$	4,105	$	—	$	—

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share

Schedule of earnings per share


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net income attributable to MEC	$	3,782	$	1,614	$	7,023	$	4,185
Average shares outstanding		20,602,650		20,494,437		20,544,292		20,405,383
Basic income per share	$	0.18	$	0.08	$	0.34	$	0.21

Average shares outstanding		20,602,650		20,494,437		20,544,292		20,405,383
Effect of dilutive stock-based compensation		432,130		333,291		370,207		383,792
Total potential shares outstanding		21,034,780		20,827,728		20,914,499		20,789,175
Diluted income per share	$	0.18	$	0.08	$	0.34	$	0.20

Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share


	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Stock options	—	219,885	—	247,278

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2024

Revenue Recognition

Schedule of changes in contract assets and liabilities


	Contract		Contract
	Assets		Liabilities
As of December 31, 2023	$	5,457	$	3,635
Net activity		617		(573)
As of June 30, 2024	$	6,074	$	3,062

Schedule of disaggregation of revenue by product category and end market


	Three Months Ended				Six Months Ended
	June 30,				June 30,
Product Category	2024		2023		2024		2023
Outdoor sports	$	2,205	$	2,379	$	4,364	$	4,684
Fabrication		87,201		84,172		178,115		171,174
Performance structures		47,795		26,846		93,564		53,521
Tube		19,846		19,468		38,921		39,820
Tank		12,625		11,070		23,701		22,189
Total		169,672		143,935		338,665		291,388
Intercompany sales elimination		(6,036)		(4,955)		(13,760)		(9,762)
Total, net sales	$	163,636	$	138,980	$	324,905	$	281,626


	Three Months Ended				Six Months Ended
	June 30,				June 30,
End Market	2024		2023		2024		2023
Commercial vehicle	$	62,130	$	56,075	$	121,084	$	115,230
Construction & access		27,230		26,522		55,676		53,029
Powersports		30,306		23,995		60,597		48,093
Agriculture		14,639		13,444		29,597		27,895
Military		6,579		8,910		14,530		17,479
Other		22,752		10,033		43,421		19,899
Total, net sales	$	163,636	$	138,980	$	324,905	$	281,626

Concentration of major customers (Tables)

6 Months Ended

Jun. 30, 2024

Concentration of major customers

Schedules of Major Customer Concentrations


	Net Sales				Net Sales				Accounts Receivable
	Three Months Ended				Six Months Ended				As of		As of
	June 30,				June 30,				June 30,		December 31,
	2024		2023		2024		2023		2024		2023
Customer
A	16.2	%	15.6	%	16.4	%	15.5	%	11.9	%	<10	%
B	13.0	%	15.6	%	13.5	%	15.6	%	10.7	%	12.6	%
C	11.0	%	11.5	%	10.4	%	11.8	%	<10	%	<10	%
D	<10	%	<10	%	<10	%	<10	%	13.1	%	12.7	%

Stock-based compensation (Tables)

6 Months Ended

Jun. 30, 2024

Stock-based compensation

Summary of Stock-based Compensation Expenses


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
RSU awards	$	962	$	874	$	1,752	$	1,589
PSU awards		119		—		138		—
Option awards		257		480		605		831
Stock-based compensation expense, net of tax	$	1,338	$	1,354	$	2,495	$	2,420

Schedule of Unrecognized Stock-based Compensation Expense


	RSUs		PSUs		Options		Total
Balance as of December 31, 2023	$	2,304	$	—	$	1,513	$	3,817
Grants		4,423		1,423		—		5,846
Forfeitures		(32)		—		—		(32)
Expense		(789)		(20)		(348)		(1,157)
Balance as of March 31, 2024	$	5,906		1,403	$	1,165	$	8,474
Grants		1,115		—		—		1,115
Forfeitures		(283)		—		(33)		(316)
Expense		(962)		(119)		(257)		(1,338)
Balance as of June 30, 2024	$	5,776		1,284	$	875	$	7,935

Common Equity (Tables)

6 Months Ended

Jun. 30, 2024

Common Equity

Summary of changes in outstanding common shares


		Shares
		Outstanding
Shares as of December 31, 2022		20,172,746
Treasury stock purchases		(100,726)
Common stock issued (including stock-based compensation impact)		298,778
Balance as of June 30, 2023		20,370,798

		Shares
		Outstanding
Balance as of December 31, 2023		20,310,584
Treasury stock purchases		(61,197)
Common stock issued (including stock-based compensation impact)		223,912
Balance as of June 30, 2024		20,473,299

Basis of presentation (Details)	6 Months Ended
Basis of presentation (Details)	Jun. 30, 2024 segment facility
Basis Of Presentation [Line Items]
Number of facilities operated \| facility	23
Number of Operating Segments \| segment	1
Maximum [Member]
Basis Of Presentation [Line Items]
The length of the product redevelopment cycle.	5 years
Minimum [Member]
Basis Of Presentation [Line Items]
The length of the product redevelopment cycle.	3 years

Acquisitions (Details) - Mid-States Aluminum [Member] $ in Thousands	Jun. 19, 2023 USD ($)
Business Acquisition [Line Items]
Purchase price of the acquisition	$ 95,945
Total net consideration	$ 90,002

Acquisitions - Assets acquired, liabilities assumed (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jul. 01, 2023
Business Acquisition [Line Items]
Goodwill	$ 92,650	$ 92,650
Developed Technology Rights [Member]
Business Acquisition [Line Items]
Estimated useful life	7 years	7 years	7 years
Customer Relationships [Member]
Business Acquisition [Line Items]
Estimated useful life			17 years
Mid-States Aluminum [Member]
Business Acquisition [Line Items]
Cash			$ 324
Accounts receivable, net			7,381
Inventory			9,698
Property, plant and equipment			41,271
Other assets			291
Goodwill			21,115
Total assets acquired			102,680
Accounts payable			(2,386)
Accrued expenses			(1,509)
Other liabilities			(1,984)
Debt			(7,884)
Total consideration			88,917
Mid-States Aluminum [Member] \| Developed Technology Rights [Member]
Business Acquisition [Line Items]
Intangibles			$ 4,900
Estimated useful life			7 years
Mid-States Aluminum [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangibles			$ 17,700
Estimated useful life			17 years

Acquisitions - Assets (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
Acquisitions - Assets (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Business Acquisition [Line Items]
Operating income		$ 8,150	$ 4,273	$ 15,780	$ 8,943
Developed Technology Rights [Member]
Business Acquisition [Line Items]
Estimated useful life	7 years	7 years		7 years		7 years
Customer Relationships [Member]
Business Acquisition [Line Items]
Estimated useful life	17 years
Mid-States Aluminum [Member]
Business Acquisition [Line Items]
Inventory fair value step-up	$ 891
Property, plant and equipment fair value step-up	21,157
Purchase price adjustment						$ (1,084)
Mid-States Aluminum [Member] \| Developed Technology Rights [Member]
Business Acquisition [Line Items]
Intangibles	$ 4,900
Estimated useful life	7 years
Mid-States Aluminum [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangibles	$ 17,700
Estimated useful life	17 years

Acquisitions - Pro Forma Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Acquisitions
Net sales	$ 153,862	$ 312,582
Net income	$ 451	$ 1,835

Select balance sheet data - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Select balance sheet data
Finished goods and purchased parts	$ 27,435	$ 31,489
Raw materials	23,256	25,929
Work-in-process	10,126	10,363
Total	$ 60,816	$ 67,782

Select balance sheet data - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	$ 426,246	$ 418,335
Less accumulated depreciation	257,489	242,590
Total property, plant and equipment, net	168,757	175,745
Land [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	2,640	2,640
Land Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	$ 4,291	4,378
Land Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment useful lives	15 years
Land Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment useful lives	39 years
Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	$ 82,043	79,682
Building and Building Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment useful lives	15 years
Building and Building Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment useful lives	39 years
Machinery Equipment And Tooling [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	$ 304,727	295,960
Machinery Equipment And Tooling [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment useful lives	3 years
Machinery Equipment And Tooling [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment useful lives	10 years
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	$ 4,424	4,571
Property, plant and equipment useful lives	5 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	$ 22,522	21,325
Furniture and Fixtures [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment useful lives	3 years
Furniture and Fixtures [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment useful lives	7 years
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	$ 5,599	$ 9,779

Select balance sheet data - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Select balance sheet data
Depreciation	$ 7,658	$ 6,273	$ 15,179	$ 12,415
Amortization expense	$ 1,733	$ 1,738	$ 3,466	$ 3,476

Select balance sheet data - Schedule of Changes In Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Select balance sheet data
Change in goodwill carrying amount	$ 0
Goodwill	$ 92,650	$ 92,650

Select balance sheet data - Schedule of Listing of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jul. 01, 2023
Amortizable intangible assets [Abstract]
Amortizable intangible assets, gross	$ 124,544	$ 124,544
Accumulated amortization	73,154	69,688
Total amortizable intangible assets, net	51,390	54,856
Total intangible assets, net	55,201	58,667
Customer Relationships And Contracts [Member]
Amortizable intangible assets [Abstract]
Amortizable intangible assets, gross	96,040	96,040
Accumulated amortization	55,454	53,078
Total amortizable intangible assets, net	$ 40,586	$ 42,962
Trade Names [Member]
Amortizable intangible assets [Abstract]
Intangible assets useful Lives	10 years	10 years
Amortizable intangible assets, gross	$ 14,780	$ 14,780
Accumulated amortization	8,185	7,446
Total amortizable intangible assets, net	$ 6,595	$ 7,334
Noncompete Agreements [Member]
Amortizable intangible assets [Abstract]
Intangible assets useful Lives	5 years	5 years
Amortizable intangible assets, gross	$ 8,800	$ 8,800
Accumulated amortization	$ 8,800	$ 8,800
Developed Technology Rights [Member]
Amortizable intangible assets [Abstract]
Intangible assets useful Lives	7 years	7 years	7 years
Amortizable intangible assets, gross	$ 4,900	$ 4,900
Accumulated amortization	700	350
Total amortizable intangible assets, net	$ 4,200	$ 4,550
Patents [Member]
Amortizable intangible assets [Abstract]
Intangible assets useful Lives	19 years	19 years
Amortizable intangible assets, gross	$ 24	$ 24
Accumulated amortization	15	14
Total amortizable intangible assets, net	9	10
Non Amortizable Brand Name [Member]
Amortizable intangible assets [Abstract]
Total intangible assets, net	$ 3,811	$ 3,811
Minimum [Member] \| Customer Relationships And Contracts [Member]
Amortizable intangible assets [Abstract]
Intangible assets useful Lives	9 years	9 years
Maximum [Member] \| Customer Relationships And Contracts [Member]
Amortizable intangible assets [Abstract]
Intangible assets useful Lives	17 years	17 years

Select balance sheet data - Schedule of Changes In Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Select balance sheet data
Balance			$ 58,667
Amortization expense	$ (1,733)	$ (1,738)	(3,466)	$ (3,476)
Balance	$ 55,201		$ 55,201

Select balance sheet data - Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Select balance sheet data
Amortization expense	$ 1,733	$ 1,738	$ 3,466	$ 3,476

Select balance sheet data - Schedule of Future Amortization Expense (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Select balance sheet data
2024 (remainder)	$ 3,466
2025	6,933
2026	6,933
2027	6,933
2028	6,877
Thereafter	$ 20,248

Debt - Credit Agreements (Details) - USD ($) $ in Thousands				6 Months Ended	12 Months Ended
Debt - Credit Agreements (Details) - USD ($) $ in Thousands	Jul. 01, 2024	Jun. 30, 2023	Jun. 28, 2023	Jun. 30, 2024	Dec. 31, 2023	Jun. 27, 2023
Line Of Credit Facility [Line Items]
Revolving credit notes				$ 122,063	$ 147,493
Amended And Restated Credit Agreement [Member]
Line Of Credit Facility [Line Items]
Minimum interest coverage ratio				3.00%
Maximum consolidated leverage ratio		3.50%		4.00%
Deferred financing costs				$ 1,248
Consolidated leverage ratio				1.69%
Interest coverage ratios				4.57%
Interest rate at end of period				7.68%	7.71%
Amended And Restated Credit Agreement [Member] \| Lenders And Wells Fargo Bank National Association Administrative Agent [Member]
Line Of Credit Facility [Line Items]
Credit agreement additional borrowing capacity through accordion feature			$ 100,000			$ 100,000
Line of credit facility additional borrowing capacity percentage through accordion feature			125.00%
Line of credit facility additional borrowing capacity period through accordion feature			12 months
Credit agreement maturity date			Jun. 28, 2028
Amended And Restated Credit Agreement [Member] \| Subsequent Event [Member]
Line Of Credit Facility [Line Items]
Leverage increase	0.50%
Second Amendment Credit Agreement [Member] \| Subsequent Event [Member]
Line Of Credit Facility [Line Items]
Maximum consolidated leverage ratio	3.50%
Revolving Credit Facility [Member]
Line Of Credit Facility [Line Items]
Revolving credit notes				$ 122,063	$ 147,493
Revolving Credit Facility [Member] \| Amended And Restated Credit Agreement [Member]
Line Of Credit Facility [Line Items]
Revolving commitments fee percentage				0.30%	0.30%
Revolving Credit Facility [Member] \| Amended And Restated Credit Agreement [Member] \| Lenders And Wells Fargo Bank National Association Administrative Agent [Member]
Line Of Credit Facility [Line Items]
Credit agreement borrowing capacity			$ 250,000			200,000
Letter of Credit [Member]
Line Of Credit Facility [Line Items]
Credit agreement borrowing capacity						5,000
Swingline Facility [Member] \| Amended And Restated Credit Agreement [Member] \| Lenders And Wells Fargo Bank National Association Administrative Agent [Member]
Line Of Credit Facility [Line Items]
Credit agreement borrowing capacity			$ 25,000			$ 20,000

Debt - Other Debt (Details) - Mid-States Aluminum [Member] - Fond du Lac County and Fond du Lac Economic Development Corporation Term Note [Member] - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Monthly installment	$ 500
Interest rate (as a percent)	2.00%
Balance outstanding	$ 2,375	$ 2,375
Other Current Liabilities [Member]
Line of Credit Facility [Line Items]
Short-term balance	500
Other Noncurrent Liabilities [Member]
Line of Credit Facility [Line Items]
Long-term balance	$ 1,875

Leases - Components of lease expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases
Amortization of finance lease assets	$ 119	$ 94	$ 223	$ 188
Interest on finance lease liabilities	12	10	20	21
Total finance lease expense	131	104	243	209
Operating lease expense	1,353	1,321	2,693	2,607
Short-term lease expense	159	131	311	270
Variable lease expense	60	48	112	117
Lease income	(537)	(404)	(1,069)	(1,035)
Total lease expense	$ 1,166	$ 1,200	$ 2,290	$ 2,168

Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Leases
Cash paid for amounts included in the measurement of lease liabilities for finance leases: Operating cash flows	$ 20	$ 21
Cash paid for amounts included in the measurement of lease liabilities for finance leases: Financing cash flows	343	192
Cash paid for amounts included in the measurement of lease liabilities for operating leases: Operating cash flows	2,980	2,891
Right-of-use assets obtained in exchange for recorded lease obligations: Operating leases	337	$ 363
Right-of-use assets obtained in exchange for recorded lease obligations: Finance leases	$ 383

Employee stock ownership plan - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 01, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2023
Employee stock ownership plan
Distribution period	3 years					5 years
Shares in ESOP		3,474,467		3,474,467			4,062,583
Employee Stock Option [Member]
Employee stock ownership plan
Employee stock ownership plan (ESOP), (income) expense		$ 0	$ 0	$ 0	$ 0

Retirement plans - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		18 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024
Retirement plans
Percentage of employee contribution of eligible compensation plan			50.00%
Employer match percentage			50.00%
Percent of employee contributions eligible for employer match			6.00%
Employer match expense	$ 922	$ 770	$ 1,976	$ 1,644
Profit sharing expense					$ 0

Income taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Income taxes
Income tax expense	$ 1,399	$ 475	$ 2,433	$ 916
Effective income tax rate	27.00%	22.73%	25.73%	17.96%
Unrecognized tax benefits that would impact effective tax rate	$ 861		$ 861		$ 771

Commitments and contingencies (Details)	Aug. 04, 2022 claim
Litigation
Number of claims	2

Deferred compensation - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Deferred compensation
Description of deferred compensation arrangements			The Mayville Engineering Company Deferred Compensation Plan is available for certain employees designated to be eligible to participate by the Company and approved by the Board of Directors.
Deferred compensation arrangements			50.00%
Annual short term cash incentive			100.00%
Deferred compensation plan (Income) expense	$ 4,133	$ 2,688	$ 7,933	$ 5,690
Deferred compensation cash-based arrangements liability, Current	241		241		$ 289
Deferred compensation cash-based arrangements liability, Non current	4,315		4,315		$ 3,816
Deferred compensation, distributions paid			286	17,562
Deferred Profit Sharing [Member]
Deferred compensation
Deferred compensation plan (Income) expense	53	169	285	729
Employees [Member]
Deferred compensation
Deferred compensation plan (Income) expense	$ 83	$ 80	$ 447	$ 316

Self-Funded insurance - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Self-Funded insurance
Health care self-insurance expense	$ 6,382	$ 5,133	$ 12,551	$ 9,768
Estimated accrued liability	$ 1,894		$ 1,894		$ 1,018

Segments - Additional Information (Details)	6 Months Ended
Segments - Additional Information (Details)	Jun. 30, 2024 segment
Segments
Number of operating segments	1

Fair value of financial instruments - Assets and Liabilities at Fair Value (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair value of financial instruments
Total	$ 4,556	$ 4,105
Fair Value, Inputs, Level 1 [Member]
Fair value of financial instruments
Total	4,556	4,105
Deferred Compensation, Share-Based Payments [Member]
Fair value of financial instruments
Total	4,556	4,105
Deferred Compensation, Share-Based Payments [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair value of financial instruments
Total	$ 4,556	$ 4,105

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share, Basic [Abstract]
Net Income (Loss)	$ 3,782	$ 3,241	$ 1,614	$ 2,571	$ 7,023	$ 4,185
Average shares outstanding	20,602,650		20,494,437		20,544,292	20,405,383
Basic income per share	$ 0.18		$ 0.08		$ 0.34	$ 0.21
Earnings Per Share, Diluted, Other Disclosure [Abstract]
Average shares outstanding	20,602,650		20,494,437		20,544,292	20,405,383
Effect of dilutive stock-based compensation	432,130		333,291		370,207	383,792
Total potential shares outstanding	21,034,780		20,827,728		20,914,499	20,789,175
Diluted income per share	$ 0.18		$ 0.08		$ 0.34	$ 0.20

Earnings Per Share - Antidilutive Securities (Details) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Earnings Per Share
Antidilutive securities excluded from computation of diluted earnings per share	219,885	247,278

Revenue Recognition - Schedule of Changes in Contract Assets and Liabilities (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Revenue Recognition
Contract asset, beginning balance	$ 5,457
Net activity	617
Contract asset, ending balance	6,074
Contract liability, beginning balance	3,635
Net activity	(573)
Contract liability, ending balance	$ 3,062

Revenue Recognition - Schedule of Disaggregation of Revenue by Product Category (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue Recognition
Total, net sales	$ 163,636	$ 138,980	$ 324,905	$ 281,626
Operating Segments [Member]
Revenue Recognition
Total, net sales	169,672	143,935	338,665	291,388
Intersegment Eliminations [Member]
Revenue Recognition
Total, net sales	(6,036)	(4,955)	(13,760)	(9,762)
Outdoor Sports [Member]
Revenue Recognition
Total, net sales	2,205	2,379	4,364	4,684
Fabrication [Member]
Revenue Recognition
Total, net sales	87,201	84,172	178,115	171,174
Performance Structures [Member]
Revenue Recognition
Total, net sales	47,795	26,846	93,564	53,521
Tubes [Member]
Revenue Recognition
Total, net sales	19,846	19,468	38,921	39,820
Tank [Member]
Revenue Recognition
Total, net sales	$ 12,625	$ 11,070	$ 23,701	$ 22,189

Revenue Recognition - Schedule of Disaggregation of Revenue by End Market (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue Recognition
Total, net sales	$ 163,636	$ 138,980	$ 324,905	$ 281,626
Commercial Vehicle [Member]
Revenue Recognition
Total, net sales	62,130	56,075	121,084	115,230
Construction And Access [Member]
Revenue Recognition
Total, net sales	27,230	26,522	55,676	53,029
Powersports [Member]
Revenue Recognition
Total, net sales	30,306	23,995	60,597	48,093
Agriculture [Member]
Revenue Recognition
Total, net sales	14,639	13,444	29,597	27,895
Military [Member]
Revenue Recognition
Total, net sales	6,579	8,910	14,530	17,479
Other Market [Member]
Revenue Recognition
Total, net sales	$ 22,752	$ 10,033	$ 43,421	$ 19,899

Concentration of major customers - Schedule of Major Customer Concentrations (Details) - Customer Concentration Risk [Member]	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Customer A [Member] \| Revenue Benchmark [Member]
Concentration Risk [Line Items]
Concentration risk percentage	16.20%	15.60%	16.40%	15.50%
Customer A [Member] \| Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk percentage			11.90%
Concentration risk percentage					<10
Customer B [Member] \| Revenue Benchmark [Member]
Concentration Risk [Line Items]
Concentration risk percentage	13.00%	15.60%	13.50%	15.60%
Customer B [Member] \| Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk percentage			10.70%		12.60%
Customer C [Member] \| Revenue Benchmark [Member]
Concentration Risk [Line Items]
Concentration risk percentage	11.00%	11.50%	10.40%	11.80%
Customer C [Member] \| Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk percentage			<10		<10
Customer D [Member] \| Revenue Benchmark [Member]
Concentration Risk [Line Items]
Concentration risk percentage	<10	<10	<10	<10
Customer D [Member] \| Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk percentage			13.10%		12.70%

Stock-based compensation - Additional Information (Details) - $ / shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Apr. 20, 2021	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options, issued and outstanding number	1,302,558
Options, issued and outstanding weighted average exercise price	$ 11.79
Weighted average contractual life remaining	6 years 6 months 14 days
Unrecognized stock-based compensation recognition period	Jun. 17, 2027
Omnibus Incentives Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Payments based on the value of its common stock				2,000,000
Number of shares authorized			2,500,000
Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of units, vested	214,643	219,343
Employee Stock Option [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options vested (in shares)	206,524	195,264
Weighted average strike price	$ 13.54	$ 11.67

Stock-based compensation - Summary of Stock-based Compensation Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation expense, net of tax	$ 1,338	$ 1,354	$ 2,495	$ 2,420
Option Award [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation expense, net of tax	257	480	605	831
Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation expense, net of tax	962	$ 874	1,752	$ 1,589
Performance Stock Units (PSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation expense, net of tax	$ 119		$ 138

Stock-based compensation - Schedule of Unrecognized Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Mar. 31, 2024
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Beginning Balance	$ 8,474	$ 3,817
Grants	1,115	5,846
Forfeitures	(316)	(32)
Expense	(1,338)	(1,157)
Ending Balance	7,935	8,474
Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Beginning Balance	5,906	2,304
Grants	1,115	4,423
Forfeitures	(283)	(32)
Expense	(962)	(789)
Ending Balance	5,776	5,906
Performance Stock Units (PSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Beginning Balance	1,403	0
Grants		1,423
Expense	(119)	(20)
Ending Balance	1,284	1,403
Employee Stock Option [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Beginning Balance	1,165	1,513
Forfeitures	(33)
Expense	(257)	(348)
Ending Balance	$ 875	$ 1,165

Common Equity (Details) - shares	Jun. 30, 2024	Dec. 31, 2023
Common Equity
Common shares, shares authorized	75,000,000	75,000,000

Common Equity - Changes in outstanding common shares (Details) - Common Stock [Member] - shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Beginning balance	20,310,584	20,172,746
Treasury stock purchases	(61,197)	(100,726)
Common stock issued (including stock-based compensation impact)	223,912	298,778
Ending balance	20,473,299	20,370,798