What McNally Industries does

McNally Industries, LLC is a privately held U.S. precision systems manufacturer founded in 1940 and headquartered in Grantsburg, Wisconsin. The company provides design engineering, complex machining, certified welding, assembly and testing, and maintenance/repair/overhaul (MRO) services to the U.S. Department of Defense and to defense prime contractors worldwide. Its offerings span ordnance components and mortar bipod assemblies, ammunition handling systems (notably the Mk45 5" gun / Mk6 hoist with 1,500+ part numbers), specialty gear pumps for combat ground vehicles and naval weapon systems, military ground support equipment (including the RUPHIS/Big RUPHIS blade clamp systems for UH-60 and CH-47 helicopters, with 500+ units delivered), and value engineering plus reverse engineering services targeting Diminishing Manufacturing Sources and Material Shortages (DMSMS). Operations are anchored in a 50,000 sq ft main facility plus a 17,500 sq ft assembly and test facility completed in 2019, using CNC equipment from DMG MORI, Mazak, and Haas, supplemented by FARO 3D scanning, Polyworks, GeoMagic, and 3D printing.

The business model is built on long-cycle, qualification-gated defense contract revenue earned through three primary channels: direct contracts with DoD Program Offices (Army, Navy, Air Force, Marine Corps, DLA), first-tier supply relationships with named primes including BAE Systems, Lockheed Martin, General Dynamics, Boeing, Raytheon, Northrop Grumman, L-3 Harris, Elbit Systems of America, and Moog, and consortium-based Other Transaction Agreements (OTAs) accessed via memberships in seven defense consortia. The company holds AS9100 Rev D (including ISO 9001:2015), NADCAP, ITAR approval, U.S./Canada Joint Certification Office approval, and Important Naval Nuclear Supplier classification. McNally is the sole-source supplier on the Mk45 ammunition handling system since 1987 and has produced over 1,000 Mk6 hoist systems, evidencing deeply embedded, switching-cost-laden positions. The company is privately owned with no recorded venture capital or private equity backing; leadership includes CEO Jim Segelstrom (25+ years), COO Lori Oachs (30+ years), VP Engineering Bret Torgerson, and SVP Business Development Jay Annis (joined 2021), with former Marine Corps Commandant General Robert B. Neller and Dionel M. Aviles added to the board in 2020.

Name

McNally Industries

Legal name

McNally Industries, LLC

Website

https://mcnally-industries.com

Company type

Private

Founded year

1940

Operating status

Operating

Headcount range

51–100 employees

Short description

McNally Industries is a U.S. precision defense manufacturer providing design engineering, machining, assembly and testing, and MRO services to the Department of Defense and major defense prime contractors worldwide.

Ownership category

akta.pro rank

Product category

Defense Manufacturing

NAICS

Aerospace Product and Parts Manufacturing (33641)

SIC

Ordnance & Accessories, (No Vehicles/Guided Missiles) (3480)

akta.pro primary industry

Combat & Auxiliary Naval Vessel Systems (IMABAKAA)

akta.pro secondary industries

Ordnance Components & Subassemblies (Casings, Liners, Guidance Sections) (IMABAHAL), Submarine Systems & Components (Pressure Hull, Ballast, Life Support) (IMABAKAL)

Keywords

• Precision defense manufacturing
• Ordnance systems engineering
• Ammunition handling systems
• Military ground support equipment
• Aerospace machining services

Headquarters

HQ city

Grantsburg

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Personnel, Operations, Infrastructure, Supply Chain, Technology or R&D, Marketing or Sales

Revenue model

1. Defense Manufacturing Services: Contract manufacturing of precision components, assemblies, and systems for Department of Defense programs. Revenue is generated through long-term contracts with DoD Program Offices and Prime Contractors for products including ordnance systems, ammunition handling systems, pump and fluid control systems, ground support equipment, and related MRO services.
2. Engineering Services: Value engineering, new product design, re-engineering, reverse engineering, prototype manufacturing, and program management services provided to defense customers.
3. MRO Services: Maintenance, Repair, and Overhaul services ranging from descoped functionality upgrades to refurbishment of F condition carcasses into class A condition fully tested and ready to field units.

Go-to-market motion1 record

Distribution channels3 records

Marketing channels2 records

Core offering

McNally Industries designs, engineers, and manufactures precision defense hardware and subsystems for the U.S. Department of Defense and major defense prime contractors, including ammunition handling systems (e.g., Mk45/Mk6), proprietary military gear pumps, ordnance and mortar components, helicopter blade clamp ground support equipment, and mechanized cable pulling tools for naval ship construction. The company also delivers value engineering, reverse engineering, precision CNC machining, complex assembly and testing, and Maintenance, Repair, and Overhaul (MRO) services under AS9100 Rev D and ISO 9001:2015 quality systems.

Product overview

McNally Industries is a defense manufacturing company offering a portfolio of physical products and engineering services for the Department of Defense and prime contractors. The core products include ordnance systems (fuze assemblies, weapon components, mortar bipods), ammunition handling systems (Mk45 5" gun systems with 1,500+ part numbers), pump and fluid control systems (transmission pumps, cooling pumps, solenoid valves), military ground support equipment (RUPHIS blade clamp tools for helicopters, cable pulling tools), and value engineering/DMSMS services. These are supported by internal engineering services (design, reverse engineering, CAD, prototyping, program management) and manufacturing capabilities (precision machining, assembly and testing, MRO). The product portfolio centers on enabling Warfighters to perform duties more efficiently and safely by increasing functionality, operating performance, and MTBF of legacy defense systems.

Differentiator

Problem solved

Functional benefit

Products and services

• Defense Engineering Services Product development and re-engineering services for Department of Defense programs, including new product design, re-engineering, reverse engineering, CAD modeling, prototype manufacturing, and program management, with depth in DMSMS and obsolescence management.
• Precision Machining Services Full-service AS9100/ISO 9001-certified close tolerance CNC machining using DMG MORI, Mazak, and Haas equipment, including certified welding, complex assembly integration, and process control for defense hardware production.
• Assembly and Testing Services Assembly and testing services for electro-mechanical and hydro-mechanical systems ranging from subassemblies with a few parts to major system assemblies with hundreds of parts, supported by custom-designed test stands and procedures.
• Maintenance, Repair, and Overhaul (MRO) Services Complete MRO services for defense systems, ranging from descoped functionality upgrades to full refurbishment of systems from F condition to class A condition, including installation, repair, and upgrade support.
• Ordnance Systems Production of critical components and subassemblies for small and medium caliber weapon systems, large caliber guided munitions, artillery projectiles, and mortar bipod assemblies for 60mm, 81mm, and 120mm weapon systems, supplied to U.S. and allied forces.
• Ammunition Handling Systems Manufacture of ammunition handling systems, notably the Mk45 5-inch gun ammunition handling system (with over 1,500 part numbers) and the Mk6 Ammunition Hoist, serving the U.S. Navy and allied navies worldwide.
• Pump & Fluid Control Systems Proprietary gear pumps and fluid control valves for military applications, including transmission pumps for combat ground vehicles (e.g., HMPT-800 pumps for Bradley and Paladin modernization), electrical cooling pumps for Naval Close-In Weapon Systems, and coolant charging pumps for nuclear vessels.
• Military Ground Support Equipment Special application tools and ground support equipment including the RUPHIS (Rotor Universal Positioning Handling Integrated System) and Big RUPHIS blade clamp tools used as primary tools for removing and installing main rotor blades on UH-60 Black Hawk and CH-47 Chinook helicopters, plus Peculiar Ground Support Equipment Deployment Support Kits.
• Mechanized Cable Pulling Tools Licensed manufacture of specialized mechanized cable installation tools (Cable Pullers) developed under a Naval Research Manufacturing Technology Program, used in U.S. Navy ship construction and modernization.
• Technical Data Package Development Development of Level III Technical Data Packages (TDPs) for mechanical and electrical systems using state-of-the-art CAD tools, advanced Geometric Dimensioning and Tolerancing (GD&T), 6-sigma tolerance analysis, and applied manufacturing knowledge.
• Value Engineering Services & DMSMS Support Disciplined value engineering and DMSMS (Diminishing Manufacturing Sources and Material Shortages) services applicable to all program phases, including new product design, redesign, modernization, and reverse engineering to address obsolescence and to recreate legacy systems no longer supported by their Original Equipment Manufacturer (OEM).

Quantifiable outcome

• Delivered over 500 RUPHIS/Big RUPHIS Blade Clamp tools to Services and Allies worldwide
• +3 more outcomes

Named customers12 records

Segments3 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature6 records

Partnerships

Twelve partnerships are on record, tiered core and minor.

• General Dynamics and NavantiacoreStrategic or Co-development Partner · 10 June 2016Partnership with General Dynamics and Navantia (Spain) to support the DORNA Fire Control System for US Navy LCS class combat ships. McNally functions as Navantia's product support partner for the US and supports General Dynamics with their 10-year LCS maintenance contract.
• Alliant Techsystems (ATK)minorStrategic or Co-development Partner · 1 February 2013Teamed with ATK to secure BAE Hagglunds 7.62mm chain gun contract for 110 systems. McNally is exclusive manufacturer of key components of the Bushmaster 7.62mm chain gun for ATK.
• Profense LLCminorStrategic or Co-development Partner · 23 July 2012Strategic partnering agreement for joint business development and manufacturing of the M134 mini-gun system for US Department of Defense and international markets.
• Joint Venture Yulista & SES (JVYS)coreStrategic or Co-development Partner · 10 February 2011Cooperation agreement with JVYS to provide engineering services and alternative source of supply for sustainment of legacy military systems. Enables government-to-government contract placement in less than two weeks.
• Pacific Aero TechminorOthers · 21 September 2010Acquired operating assets of Pacific Aero Tech, Inc., headquartered in Denver, Colorado, as part of McNally's strategy to expand presence in the commercial aerospace aftermarket. McNally maintains operations in Grantsburg, Wisconsin and Albuquerque, New Mexico.
• Cornerstone OTAcoreStrategic or Co-development PartnerMember of Cornerstone Other Transaction Agreement for U.S. Industrial Base Resiliency and Assurance, enabling McNally to deliver high technology solutions as a prime contractor to the Department of Defense.
• National Armaments Consortium / Defense Ordnance Technology ConsortiumcoreStrategic or Co-development PartnerMember consortium enabling McNally to access OTAs for defense ordnance technology programs.
• National Advanced Mobility ConsortiumcoreStrategic or Co-development PartnerMember consortium for advanced mobility defense technology programs.
• Aviation and Missile Technology ConsortiumcoreStrategic or Co-development PartnerMember consortium for aviation and missile technology programs.
• Consortium for Energy, Environment and DemilitarizationcoreStrategic or Co-development PartnerMember consortium for energy, environment and demilitarization programs.
• Naval Surface Technology and Innovation ConsortiumcoreStrategic or Co-development PartnerMember consortium for naval surface technology and innovation programs.
• Naval Aviation Systems ConsortiumcoreStrategic or Co-development PartnerMember consortium for naval aviation systems programs.

Scale indicators6 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• Loar Holdings Inc. Loar Holdings is a niche manufacturer of complex aerospace and defense components, often proprietary sole-source positions on legacy platforms. Highly comparable business model to McNally: precision components, sole-source franchises, primarily defense end-markets, certified supplier to primes.
• Ducommun Incorporated: Ducommun is a precision aerospace and defense components manufacturer supplying structural assemblies, electronics, and machined parts to defense primes and the DoD. Highly comparable to McNally as a tier-1/tier-2 supplier serving the same customer base (Boeing, Raytheon, Lockheed) with similar contract-manufacturing economics, though at significantly larger scale.
• Doncasters Group: Doncasters is a precision-engineered components manufacturer serving aerospace, defense, and industrial markets with complex cast and machined parts. Comparable to McNally in precision-manufacturing-for-defense-primes profile, with similar certifications and customer overlap.
• CPI Aerostructures: CPI Aerostructures is a small-cap precision aerospace structures and assemblies manufacturer serving U.S. defense primes and the DoD. Comparable scale and business model to McNally: close-tolerance machining, structural assemblies, defense prime supplier relationships.

Broad incumbents

• HEICO Corporation: HEICO is a major aerospace and defense components supplier, particularly FAA-approved aircraft replacement parts. While much larger and more commercially oriented, it shares the model of acquiring niche sole-source aerospace parts franchises — a relevant strategic reference for McNally's franchise-style positioning.
• Kaman Aerospace (Kaman Corporation): Kaman Aerospace manufactures aerospace and defense components including bearings, fuzes, and missile/ordnance subsystems. Directly comparable to McNally in ordnance components and subassemblies, and serves similar DoD and prime customers, though at significantly larger scale.
• Triumph Group: Triumph Group manufactures complex aerospace and defense components, assemblies, and systems for military and commercial aviation. Overlaps with McNally in structural and mechanical components for defense platforms, but operates at substantially larger scale across a broader portfolio.
• Curtiss-Wright Corporation: Curtiss-Wright is a long-standing member of the defense industrial base providing engineered systems, sensors, and precision components across naval, ground, and aerospace platforms. It competes in adjacent niches (defense electronics, naval systems) and overlaps with McNally on shipboard and ground-vehicle subsystems, but at much greater scale and breadth.
• Mercury Systems Inc. Mercury Systems is a defense electronics and mission-critical subsystems supplier to primes and the DoD, particularly in naval, avionics, and C4I applications. Comparable defense-industrial-base supplier model to McNally, but focused on electronics rather than mechanical/ordnance components.
• Kratos Defense & Security Solutions: Kratos is a mid-sized defense manufacturer specializing in unmanned systems, missiles, and tactical products. Overlaps with McNally in defense manufacturing for naval and ground platforms, but with a much larger portfolio spanning production programs and proprietary platforms.

Market position

Strengths5 records

Weaknesses1 record

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/mcnally-industries

Compliance5 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Subsidiaries1 record

Funding overview

Funding rounds1 record

Investors1 record

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M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about McNally Industries