Mayville Engineering Gains After Q1 Data Center Revenue Surge, Margin Pressure Persists

Mayville Engineering Co. (MEC) shares rose to $27.21 from $22.75 before its first-quarter earnings release, as investors weighed a 71% year-over-year increase in data center and critical power revenue against continued margin pressure. CEO Jag Reddy said growth was driven by new program launches and cross-selling opportunities following the AccuFab acquisition. He said several data center and critical power programs moved from launch phase into full production late in the quarter, supporting stronger performance. Management said weakness persisted in legacy end markets, including commercial vehicles and powersports, while launch costs continued to weigh on profitability. Investors are watching whether data center demand, facility optimization and capital spending can translate into sustained margin improvement and cash flow discipline.