Robert Samuel Karlov's questions to Mayville Engineering Company Inc (MEC) leadership • Q4 2024
Question
Robert Samuel Karlov of Robert W. Baird & Co. inquired about the 2025 margin guidance, specifically asking for an update on MBX initiatives from Q4 and how potential tariffs might impact the company's various end markets.
Answer
Executive Todd Butz stated that Q4 represented a low point for margins and that the company anticipates $1-3 million in improvements from MBX and pricing in 2025, net of inflation, with benefits becoming more substantial in the second half of the year. Executive Jagadeesh Reddy added that MEC is a primarily domestic manufacturer with over 95% of inputs sourced in the U.S., so the direct impact of announced tariffs is expected to be limited, as key commodity costs like steel and aluminum are passed through to customers.