Mayville Engineering Company to Introduce Strategy Update & Multi-Year Financial Targets at 2023 Investor Day - Seite 2

Organic Growth Acceleration. MEC intends to further leverage commercial expansion opportunities provided by reshoring/outsourcing megatrends within its vertical markets, while leveraging existing production capacity at Hazel Park and related manufacturing facilities. The Company anticipates these actions will result in net sales growth of $170 to $240 million between year-end 2023 and year-end 2026.

Ratable Margin Expansion. During the next three years, MEC intends to drive significant margin expansion through a combination of sustained volume growth; value-based pricing; improved asset optimization; and process improvements. These initiatives, in combination with continued normalization in supply chain and further optimization of the Hazel Park facility, are expected to result in between 14% to 16% Adjusted EBITDA Margin, or 300 to 400 basis points of margin expansion, between year-end 2023 and year-end 2026.

Significant Free Cash Flow Generation. Between year-end 2023 and year-end 2026, the Company anticipates that it will generate approximately $200 million in free cash flow. The Company is committed to maximizing shareholder value through a reduction in debt outstanding; investments in high-return, accretive acquisition opportunities; and through a programmatic share repurchase program.

REITERATING FULL-YEAR 2023 FINANCIAL GUIDANCE

Today, MEC is reiterating its full-year 2023 financial guidance, as outlined below:

	Low-End	High End
Full-Year 2023 Net Sales ($MM)	$580	$610
Full-Year 2023 Adjusted EBITDA ($MM)	$66	$71
Full-Year 2023 Capital Expenditures ($MM)	$15	$20

INTRODUCING FULL-YEAR 2026 FINANCIAL TARGETS

Today, MEC is introducing full-year 2026 financial targets, as outlined below:

	Low-End	High End
Full-Year 2026 Net Sales ($MM)	$750	$850
Full-Year 2026 Adjusted EBITDA ($MM)