Mayville Engineering Company, Inc. Revenue Disclosure
Note 14. Revenue recognition
Contract Assets and Contract Liabilities
The Company has contract assets and contract liabilities, which are included in tooling in progress and other current liabilities on the Consolidated Balance Sheets, respectively. Contract assets primarily consist of capitalized costs related to customer-owned tooling contracts, wherein the Company has not yet met performance obligations. Contract liabilities include deferred tooling revenue, where the performance obligation was not met. The performance obligation is satisfied when the tooling is completed and the
customer signs off through the Product Part Approval Process or other documented customer acceptance, either at a point in time or over a period of time is when revenue is recognized. Cost of goods sold is recognized and released from the balance sheet when control of the tooling promised under contract is transferred to the customer.
The Company’s contracts with customers are short-term in nature; therefore, revenue is typically recognized, billed and collected within a 12-month period. The following table reflects the changes in our contract assets and liabilities during the twelve months ended December 31, 2025, 2024 and 2023.
Contract | Contract | |||||
| Assets | | Liabilities | |||
As of December 31, 2022 | $ | 7,938 | 6,141 | |||
Net activity | (2,481) | (2,506) | ||||
As of December 31, 2023 | 5,457 | 3,635 | ||||
Net activity | (696) | (173) | ||||
As of December 31, 2024 | $ | 4,761 | $ | 3,462 | ||
Net activity | (15) | (147) | ||||
As of December 31, 2025 | $ | 4,746 | $ | 3,315 | ||
Revenue recognized from deferred revenue that was recorded as a contract liability at the beginning of the fiscal year was $2,883, $2,559 and $4,856 in 2025, 2024 and 2023, respectively.
Disaggregated Revenue
The following tables represents a disaggregation of revenue by product category and end market:
Twelve Months Ended | |||||||||
December 31, | |||||||||
Product Category | | 2025 | | 2024 | | 2023 | |||
Outdoor sports | $ | 7,418 | $ | 7,904 | $ | 9,017 | |||
Fabrication | 281,868 | 307,548 | 342,689 | ||||||
Performance structures | 168,123 | 172,923 | 136,819 | ||||||
Tube | 71,176 | 70,004 | 76,322 | ||||||
Tank | 33,244 | 44,171 | 43,947 | ||||||
Total | 561,829 | 602,550 | 608,794 | ||||||
Intercompany sales elimination | (15,342) | (20,946) | (20,369) | ||||||
Total, net sales | $ | 546,487 | $ | 581,604 | $ | 588,425 | |||
Twelve Months Ended | |||||||||
December 31, | |||||||||
End Market | 2025 | 2024 | 2023 | ||||||
Commercial vehicle | 177,663 | 219,911 | 225,252 | ||||||
Construction & access |
| 81,033 | 92,757 | 105,228 | |||||
Powersports |
| 85,706 | 99,616 | 97,788 | |||||
Data center & critical power | 52,143 | 17,468 | 7,716 | ||||||
Agriculture |
| 35,941 |
| 47,615 | 57,231 | ||||
Military | 30,936 | 28,906 | 37,311 | ||||||
Other | 83,065 | 75,331 | 57,899 | ||||||
Total, net sales | $ | 546,487 | $ | 581,604 | 588,425 | ||||
In connection with the acquisition of Accu-Fab, the Company added a new end market category, data center & critical power to its revenue disaggregation. As a result, revenue previously reported within other has been reclassified to data center & critical power for all periods presented. Specifically $17,468 and $7,716 of revenue for the twelve months ended December 31, 2024 and 2023, respectively, were reclassified from other to data center & critical power to conform to the current period presentation.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Mar 6, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 2, 2022 | |
| 2020 | Mar 5, 2021 | |
| 2019 | Mar 2, 2020 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.