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MYERS INDUSTRIES INC (MYE)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 results were mixed: net sales fell 4.8% year-over-year to $209.6M and GAAP diluted EPS was $0.26; adjusted EPS was $0.31 as lower pricing/volume in Vehicle and Automotive Aftermarket offset strength in Industrial (military) and free cash flow improved sharply .
  • The company announced a strategic review of Myers Tire Supply (MTS; TTM revenue $189M) and plans to idle two rotational molding facilities, targeting at least $3M annualized savings and remaining on track for $20M SG&A savings by year-end 2025 .
  • Backlog increased in Industrial, Infrastructure, and Consumer, underpinning management’s confidence in year-over-year growth in Q3; adjusted EBITDA margin was 15.7% and free cash flow was $24.7M in the quarter .
  • Near-term stock catalysts: portfolio simplification via MTS strategic review, operational consolidation to improve utilization, and backlog-driven 2H setup (including expectation that military product sales exceed $40M in FY2025) .

What Went Well and What Went Wrong

What Went Well

  • Free cash flow generation improved substantially: $24.7M in Q2 (+$14.8M YoY), driven by working capital timing, especially receivables; management highlighted “significant improvements in free cash flow, generating $25 million during the quarter” .
  • Material Handling margin resilience: operating income rose YoY to $29.5M with margin up to 18.6% on favorable material costs and lower SG&A (including a $3.2M reserve reversal) despite lower volume .
  • Cost actions on track: $15M run-rate savings achieved by June with line of sight to $20M by year-end; announced production footprint consolidation expected to add savings (≥$3M annualized) .

What Went Wrong

  • Top-line pressure: net sales declined 4.8% YoY to $209.6M, with softness across Vehicle and Automotive Aftermarket; adjusted EBITDA fell to $32.9M from $38.9M YoY .
  • Distribution segment underperformed: net sales down 6% YoY, operating income negative (-$0.5M), and adjusted EBITDA margin contracted to 4.8% on lower pricing/volume .
  • Tariff-related timing impacted Infrastructure exports (Signature), delaying orders; management expects normalization as tariff resolutions progress in Europe/Canada .

Financial Results

Consolidated metrics across recent quarters (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$203.9 $206.8 $209.6
GAAP Diluted EPS ($)$0.11 $0.18 $0.26
Adjusted EPS ($)$0.19 $0.22 $0.31
Gross Margin (%)32.3% 33.4% 33.7%
Operating Income ($USD Millions)$14.6 $16.7 $20.0
Adjusted EBITDA ($USD Millions)$27.5 $28.6 $32.9

Q2 YoY and vs Estimates

MetricQ2 2024 ActualQ2 2025 ActualWall St ConsensusΔ vs ConsensusYoY Change
Revenue ($USD Millions)$220.2 $209.6 $220.6*MISS: -$11.0*-4.8%
GAAP Diluted EPS ($)$0.28 $0.26 0.32*MISS: -$0.06*-7.1%
Adjusted EPS ($)$0.39 $0.31 0.32*MISS: -$0.01*-20.5%
EBITDA ($USD Millions)$38.9 $30.8 (EBITDA)*/$32.9 (Adj) $34.2*MISS: -$3.4*-15.5% (Adj)

Values retrieved from S&P Global.*

Segment Breakdown (Q2 2025 vs Q2 2024)

SegmentNet Sales ($USD Millions)Operating Income ($USD Millions)Op Margin (%)Adjusted EBITDA ($USD Millions)Adj EBITDA Margin (%)
Material Handling (Q2 2025)$158.6 $29.5 18.6% $38.0 23.9%
Material Handling (Q2 2024)$166.0 $28.7 17.3% $41.5 25.0%
Distribution (Q2 2025)$51.0 -$0.5 -1.1% $2.4 4.8%
Distribution (Q2 2024)$54.3 $2.2 4.0% $3.8 6.9%

KPIs and Balance Sheet

KPIQ2 2025
Cash from Operations ($USD Millions)$28.3
Free Cash Flow ($USD Millions)$24.7
Capex ($USD Millions)$3.6
Liquidity ($USD Millions)$281.0 (incl. $239.7 revolver availability, $41.3 cash)
Total Debt (End of Q2) ($USD Millions)~$379
Net Leverage (x)2.8x
Share Repurchases ($USD Millions)$0.5 in Q2; $8.5 remaining authorization

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Formal Annual GuidanceFY 2025Suspended (initiated Q4 2024) Still suspended; end-market outlook maintained Maintained
End-Market Outlook – IndustrialFY 2025Moderate growth Moderate growth Maintained
End-Market Outlook – InfrastructureFY 2025Strong growth Strong growth Maintained
End-Market Outlook – VehicleFY 2025Down (shifted from “Stable to Down” in Q1) Down Maintained
End-Market Outlook – ConsumerFY 2025Stable (hurricane-dependent) Stable (hurricane-dependent) Maintained
End-Market Outlook – Food & BeverageFY 2025Stable Stable Maintained
End-Market Outlook – Auto Aftermarket DistributionFY 2025Slightly down Slightly down Maintained
Cost Savings Target (SG&A)FY 2025$20M by YE 2025 On track; $15M run-rate achieved by June; ≥$3M annual from plant idling Reaffirmed; execution update
Military Products SalesFY 2025Not previously quantifiedExpect >$40M sales in 2025 New quantitative detail
DividendQ2/Q3 2025$0.135 per share (Q2) $0.135 per share (Q3) Maintained
Share Repurchase Program2025$10M authorization effective Mar 10 $1.5M YTD repurchased; $8.5M remaining Execution update
Portfolio Action2025N/AStrategic review of Myers Tire Supply (TTM revenue $189M) New action

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Portfolio SimplificationLaunch of “Focused Transformation”; $20M SG&A savings target; $10M buyback Strategic review of MTS; idling two rotational molding plants to improve utilization Acceleration of restructuring
Tariffs/MacroMinimal direct tariff impact expected; >90% MH revenue manufactured in U.S. Export timing delays (Europe/Canada) affecting Infrastructure; resolution expected to reduce noise Near-term timing headwinds; improving clarity
Backlog/VisibilityNot emphasizedBacklog strength in Industrial (military) and Infrastructure supports 2H growth, Q3 YoY up Improving visibility
Product PerformanceSeed box cyclicality depressed Q4/Q1 Seed boxes expected to rebound in 2H; military products robust 2H improvement expected
Signature IntegrationSignature drove Q4 margin expansion Signature adds operational talent and growth engine in Infrastructure Positive integration narrative
Capital Allocation$10M buyback authorized; debt reduction $13M debt reduction in Q2; liquidity strong; opportunistic repurchases to continue Continued discipline

Management Commentary

  • “Our backlog increased in the second quarter for the Industrial, Infrastructure, and Consumer end markets, giving us confidence in achieving year-over-year growth in the third quarter.”
  • “Our Board of Directors has approved launching a strategic review of our Myers Tire Supply business…This will simplify our portfolio, narrow our strategic focus.”
  • “We are consolidating rotational molding production capacity…These actions will result in annualized savings of at least $3 million.”
  • “We are on track to deliver our $20 million cost savings goal by the end of this year.”
  • “We are proud to report strong free cash flow generation of $25 million in the quarter.”

Q&A Highlights

  • Backlog visibility: Large project backlogs in Infrastructure (composite matting) and growing military demand drive confidence into the back half; other businesses are more book-and-bill .
  • Free cash flow seasonality: Strong Q2 FCF reflects timing; historically stronger back-half cash generation; EBITDA mix by segment guides FCF expectations with/without MTS .
  • Tariff impact mechanics: Input costs largely unaffected; customers delayed purchases amid uncertainty, particularly exports to Europe/Canada; resolution expected to reduce timing noise; Canada risk not deemed material .
  • Capacity rationalization: Two leased rotational molding plants to be idled; current footprint has excess capacity; options retained for future if demand warrants .
  • Seed boxes and Signature: Seed boxes seasonally stronger in 2H; Signature integration adds operational best practices and expands Infrastructure opportunities .

Estimates Context

  • Q2 2025 vs consensus: Revenue $209.6M vs $220.6M* (MISS); GAAP diluted EPS $0.26 vs $0.32* (MISS); EBITDA $30.8M (EBITDA)* vs $34.2M* (MISS). Adjusted EPS $0.31 vs 0.32* (slight MISS). Coverage is thin (one estimate for revenue and EPS), which may temper signal strength for “beats/misses.” Values retrieved from S&P Global.*
  • Q1 2025 vs consensus: Revenue broadly in line ($206.8M* vs $206.8M* actual $206.75M); EPS $0.22 vs $0.19* (BEAT); EBITDA $27.3M* vs $27.1M* (in line). Values retrieved from S&P Global.*
  • FY 2025 consensus: Revenue $824.7M*, EPS $1.01*, EBITDA $119.9M*, may need revision to reflect Q2 miss, MTS strategic review, and Infrastructure backlog shaping 2H. Values retrieved from S&P Global.*

Key Takeaways for Investors

  • 2H setup improving: Backlog in Industrial (military) and Infrastructure supports management’s call for Q3 YoY growth; watch execution against backlog and tariff resolution timing .
  • Strategic pivot: MTS strategic review plus plant idling represent meaningful portfolio/footprint simplification aimed at margin and ROIC improvement; monitor potential divestiture terms and proceeds .
  • Margin discipline: SG&A actions tracking to $20M by YE; consolidation should aid utilization and cost structure; Material Handling margin resilient despite mix headwinds .
  • Distribution stabilization: Pricing/volume pressure persists; actions from 2024 (DC consolidation) and cost initiatives are starting to show; strategic review could materially change segment profile .
  • Cash generation and deleveraging: Strong free cash flow, $13M debt reduction, ample liquidity provide flexibility for buybacks and organic investment; net leverage at 2.8x .
  • End-market lens: Vehicle remains down; consumer stable but storm-dependent; Infrastructure strong; seed boxes expected to rebound in 2H—positioning matters for mix and pricing .
  • Watch estimate resets: Given Q2 revenue/EPS shortfall vs consensus and evolving portfolio actions, expect estimates and target prices to adjust as visibility improves. Values retrieved from S&P Global.*

Additional Relevant Q2 2025 Press Releases

  • Reporting date/Call logistics: Announced July 31, 2025 release and call details .
  • Product/Innovation: Elkhart Plastics introduced Schwig’s Garden Box for Connect-Ease in July (category innovation; small impact) .