Myers Industries Q2 Results: Launches Strategic Review of Myers Tire Supply

Myers Industries Inc. (NYSE: MYE), a leading manufacturer of products that protect the world from the ground up, today announced results for the second quarter ended June 30, 2025.

Myers Industries President and CEO Aaron Schapper commented, “Second-quarter sales decreased as Industrial growth in Scepter military products was offset by soft demand in certain end markets, specifically Vehicle and Automotive Aftermarket. SG&A expenses were lower as we made progress on reducing costs across our organization. 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. We made significant improvements in free cash flow, generating $25 million during the quarter.

“In addition to second quarter results, today we are announcing actions that will significantly accelerate progress on our Focused Transformation program. 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, and enable us to prioritize core businesses that align with our mission of protecting the world from the ground up. In addition, we are consolidating rotational molding production capacity to better utilize our production assets. Finally, as we are taking these actions to set us up for improved financial performance, we remain on track to deliver our $20 million cost savings goal by the end of this year. Individually, each of these actions moves us forward; collectively, they place us on a clear path to become a stronger company that delivers consistent financial results and enhanced shareholder value.”

Second Quarter 2025 Financial Summary

• Net sales: Lower demand in Vehicle and Automotive Aftermarket was partially offset by growth in the Industrial end market, particularly military products.

• Gross profit and Operating income: Decreased due to lower pricing and volume, partially offset by lower material cost and SG&A.

Second Quarter 2025 Segment Results (Dollar amounts in the segment tables below are reported in millions)

Material Handling

• Operating income: Increased as lower volume was more than offset by favorable material costs and lower SG&A, which included a $3.2 million reserve reversal for a fully collected long-term note.

• Adjusted EBITDA: Decreased due to lower volume, partially offset by favorable material costs and SG&A.

Distribution

• Operating income and Adjusted EBITDA: Decreased due to lower pricing, partially offset by favorable SG&A.

Balance Sheet & Cash Flow

• Total liquidity of $281.0 million, including $239.7 million of availability under the revolving credit facility and cash on hand of $41.3 million.
• Cash flow from operations was $28.3 million. Free cash flow was $24.7 million, up $14.8 million versus prior year, due to improvements in working capital timing, particularly accounts receivable. Capital expenditures were $3.6 million.
• Total debt was reduced by $13 million with a net leverage ratio of 2.8x.
• Repurchased $0.5 million shares in the second quarter; expect to make additional opportunistic repurchases with $8.5 million remaining under the 2025 Share Repurchase Program.

Accelerating Progress on Focused Transformation

Strategic Review of Myers Tire Supply Business

The company announced that its Board of Directors has approved launching a strategic review of the Myers Tire Supply business. Revenue from this business was $189 million over the last 12 months, ending June 30, 2025. Myers Tire Supply is a well-recognized brand with a long history in the Automotive Aftermarket sector. The outcome of this review is to ensure the continued growth and success of the business.

“One of our Focused Transformation program objectives is to create clear strategies to improve the profitability of our overall portfolio,” stated Mr. Schapper. “The strategic review process we are launching will enable us to achieve this, as well as streamline and focus our resources on core businesses that align with our mission of protecting the world from the ground up. It has become clear to me, the Board, and the entire executive team that this is the right decision to improve the long-term earnings profile of Myers.”

F. Jack Liebau Jr., Chairman of the Board, added “As a Board, we are confident in this management team and unanimously support the strategic review of Myers Tire Supply. If the review results in the divestiture of MTS, we believe Myers will be a simplified, more profitable company better able to create long-term shareholder value.”

Myers does not intend to disclose developments or provide updates on the progress or status of the review until further disclosure is appropriate or required.

Consolidating Rotational Molding Production Capacity

Today, Myers also announced plans to idle two Rotational Molding production facilities located in Alliance, Ohio. Production from these facilities will be consolidated into other Myers locations, aligning the Company’s operations with end markets served. These actions will result in annualized savings of at least $3 million.

Tracking to Achieve $20 Million in Cost Savings by End of 2025

The Company is on track to deliver on its commitment to achieve $20 million in cost savings, primarily in SG&A, by the end of 2025. Through the first six months, the Company took action to realize $15 million in annualized savings with a line of sight to achieve its goal. …

Source: Myers Industries