Monitor Q2 2026 results for margin improvement as data center programs transition to full production; elevated debt and negative FCF could pressure equity if trends persist.
Price Chart
Executive Summary
MEC reported Q1 2026 GAAP EPS of -$0.40, missing consensus of -$0.35 by 14.3%, with a net loss of $8.2M and negative free cash flow of -$6.9M. While revenue grew 6.8% YoY to $144.8M, driven by a 470% surge in Data Center & Critical Power, launch costs and legacy end-market softness compressed margins and profitability.
Key Financial Metrics
Key Facts
- GAAP diluted EPS -$0.40 vs consensus -$0.35 (14.3% miss)
- Net loss $8.2M vs prior-year net income $20K
- Revenue $144.8M, +6.8% YoY
- Data Center & Critical Power sales $23.6M, +470.2% YoY
- Adjusted EBITDA $6.5M vs $12.2M YoY, margin 4.5% vs 9.0%
- Free cash flow -$6.9M vs +$5.4M YoY
- Net debt/EBITDA 4.4x, net debt $219.2M
- Raised low end of FY2026 sales guidance to $590M (from $580M) and Adj. EBITDA to $52M (from $50M)
Financial Impact
GAAP EPS -$0.40 missed by $0.05; net loss widened by $8.2M; negative FCF of $6.9M
Risk Factors
- Debt/EBITDA at 4.4x, limiting financial flexibility
- Negative free cash flow and working capital investment needs
- Persistent launch costs in Data Center & Critical Power
- Legacy end-market softness (Commercial Vehicle -23.8%, Military -32.0%)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-055669 |
| Document: tmb-20260505x8k.htm | 0001104659-26-055669 |
| Document: 0001104659-26-055669-index-headers.html | 0001104659-26-055669 |
| Document: 0001104659-26-055669-index.html | 0001104659-26-055669 |
| Document: 0001104659-26-055669.txt | 0001104659-26-055669 |
| 8-K Data (Synthetic) | 0001104659-26-055669 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 2, 2026 20w ago | Insider Cluster | $32.55 $20.34 | ▲ +37.51% | ▲ +40.01% | $13.85 (+57.47%) |
May 27, 2026 21w ago | Insider Cluster | $26.11 $21.73 | ▲ +16.78% | ▲ +18.51% | $13.85 (+46.97%) |
May 21, 2026 22w ago | 8-K | $23.13 $24.50 | ▼ −5.92% | ▼ −1.62% | $13.85 (+40.14%) |
May 19, 2026 22w ago | 424B5 | $23.95 $24.09 | ▼ −0.58% | ▲ +4.42% | $13.85 (+42.19%) |
May 5, 2026 24w ago | 8-K | $23.35 $25.67 | ▼ −9.94% | ▼ −7.87% | $13.85 (+40.71%) |
US Market Status
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