Myers Industries Announces Second Quarter 2025 Results and Launches Strategic Review of Myers Tire Supply

Growth in Industrial Sales Due to Strength in Scepter Military Products Offset by Softness in Vehicle and Automotive Aftermarket, Resulting in Year-over-Year Sales Decline

Significant Free Cash Flow Improvement Year-over-Year

Launching Strategic Review of Myers Tire Supply Business to Accelerate Focused Transformation Program

Idling Two Rotational Molding Production Facilities to Improve Asset Utilization

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

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.

2025 End Market Outlook

The following table presents the Company's current 2025 outlook for each of its end markets. The 2025 end market outlook is unchanged from the outlook provided on May 1, 2025.

Conference Call Details

The Company will host an earnings conference call and webcast for investors and analysts on Thursday, July 31, 2025, at 8:30 a.m. ET. The call is anticipated to last less than one hour and may be accessed using the following online participation registration link: https://www.netroadshow.com/events/login?show=fb31e386&confId=85182. Upon registering, each participant will be provided with call details and a registrant ID. Reminders will also be sent to registered participants via email. Alternatively, the conference call will be available via a live webcast. To access the live webcast or a replay, visit the Company's website www.myersindustries.com and click on the Investor Relations tab. An archived replay of the call will also be available on the site shortly after the event. To listen to the telephone replay, callers should dial: (U.S. Local) 1-929-458-6194 or (U.S. Toll-Free) 1-866-813-9403 and use access code 139592.

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP measures in this release. Adjusted gross profit, adjusted gross margin, adjusted operating income (loss), adjusted operating income margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA margin, adjusted net income, adjusted earnings per diluted share (adjusted EPS), and free cash flow are non-GAAP financial measures and are intended to serve as a supplement to results provided in accordance with accounting principles generally accepted in the United States. Myers Industries believes that such information provides an additional measurement and consistent historical comparison of the Company's performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.

About Myers Industries

Myers Industries Inc., based in Akron, Ohio, is a leading manufacturer of sustainable plastic and metal products that protect the world from the ground up for Consumer, Vehicle, Food & Beverage, Industrial, Infrastructure, and Automotive Aftermarket end markets. Myers Industries has a rich history that is built on strong brands and innovative products. Through years of continuous product development and strategic acquisitions, we have established ourselves as a leading diversified industrial company. We provide critical solutions to our customers, delivering exceptional value. Visit www.myersindustries.com to learn more.

Caution on Forward-Looking Statements

Statements in this release include "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including information regarding the Company's financial outlook, future plans, objectives, business prospects and anticipated financial performance. Forward-looking statements can be identified by words such as "will," "believe," "anticipate," "expect," "estimate," "intend," "plan," or variations of these words, or similar expressions. These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, these statements inherently involve a wide range of uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. The Company's actual actions, results, and financial condition may differ materially from what is expressed or implied by the forward-looking statements.

Specific factors that could cause such a difference on our business, financial position, results of operations and/or liquidity include, without limitation, raw material availability, increases in raw material costs, or other production costs; risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; changes in the markets for the Company's business segments; changes in trends and demands in the markets in which the Company competes; operational problems at our manufacturing facilities or unexpected failures at those facilities; future economic and financial conditions in the United States and around the world, including the impacts of U.S. and foreign tariff policies; inability of the Company to meet future capital requirements; claims, litigation and regulatory actions against the Company; changes in laws and regulations affecting the Company; unforeseen events, including natural disasters, unusual or severe weather events and patterns, public health crises, geopolitical crises, and other catastrophic events; and other risks and uncertainties detailed from time to time in the Company's filings with the SEC, including without limitation, the risk factors disclosed in Item 1A, "Risk Factors," in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Given these factors, as well as other variables that may affect our operating results, readers should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, nor use historical trends to anticipate results or trends in future periods. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. The Company expressly disclaims any obligation or intention to provide updates to the forward-looking statements and the estimates and assumptions associated with them.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

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MYERS INDUSTRIES, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

ADJUSTED OPERATING INCOME, ADJUSTED EBITDA AND FREE CASH FLOW (UNAUDITED)

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