Myers Industries Inc. announced results for the third quarter ended Sept. 30.
- Net sales increased 10.4% excluding the impact from our decision to exit approximately $3 million low-margin products with the idling of two rotational molding facilities in the fourth quarter of 2025. Infrastructure grew 38% and Food & Beverage grew 12%. Sales were flat in the Industrial, Vehicle and Consumer end markets.
- Gross profit and Operating income decreased due to higher resin costs, unfavorable mix and unplanned maintenance costs, partially offset by higher volume and pricing actions.
- EPS from continuing operations decreased 23.5% and adjusted EPS from continuing operations improved 3.2%. Lower interest expense and tax expense offset the decrease in operating income; GAAP EPS also reflects the non-cash extinguishment loss from amending the credit agreement.
Myers Industries President and CEO Aaron Schapper said, “Our Focused Transformation initiatives continued to drive commercial excellence across our growth platforms, resulting in a year-over-year increase in revenue. At the same time, a significant spike in resin cost and unfavorable product mix pressured gross margins in the quarter. Resin costs have since declined and stabilized from their recent peak, while our pricing actions remain in place and continue to support margin recovery. With the completion of our sale of Myers Tire Supply, we have further focused our portfolio on our core specialty engineered products and are driving operational productivity and disciplined cost control to offset the inflationary environment. We expect significant sequential margin improvement in the fourth quarter and the outlook for our end markets remains favorable.”
Balance Sheet & Cash Flow
- Total liquidity was $254.7 million, including $201.2 million of availability under the revolving credit facility and $53.5 million in cash on hand.
- Cash flow from operations was $17.4 million, free cash flow was $11.5 million, and capital expenditures were $5.9 million.
- Net debt as defined by the credit agreement was reduced by $28.5 million while the net leverage ratio improved to 1.86x from 1.94x from the second quarter.
