Mayville Engineering Company reported third-quarter 2024 net sales of $135.4 million, a decrease of 14.4% compared to the prior-year period. This decline was primarily driven by reduced customer demand and channel inventory de-stocking across all key end markets.
Despite the sales decrease, manufacturing margin improved by 60 basis points year-over-year to 12.6% of net sales, reaching $17.1 million, due to MBX initiatives, pricing actions, and a 12% reduction in the labor force. Net income for the quarter was $3.0 million, or $0.14 per diluted share, up from $1.4 million, or $0.07 per diluted share, in the prior-year period.
The company significantly reduced its full-year 2024 net sales guidance by 7% and Adjusted EBITDA guidance by 13% at the midpoint, now expecting net sales between $580 million and $590 million and Adjusted EBITDA between $63 million and $66 million. Management also announced the permanent closure of its Wautoma manufacturing facility in the fourth quarter, anticipating $1.0 million to $3.0 million in annualized cost savings.
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