Myers Industries, Inc.

First-quarter 2026 net sales increased 1.8% year over year; excluding the impact of exiting low-margin products and idling two rotational molding facilities, net sales would have increased 5%. Adjusted gross margin was 34.7%, adjusted operating margin was 15.7%, and adjusted EBITDA margin was 21.3%, up 420 basis points year over year. Adjusted EPS was $0.44, up 57.1% year over year. Free cash flow was $23.9 million, operating cash flow was $26.7 million, and CapEx was $2.8 million. The company ended the quarter with $44.6 million of cash, $289.3 million of total liquidity, reduced net debt by $18.3 million, and reported a net leverage ratio of 2.2x. For 2026, CapEx is expected to be 3.5% of sales, and management reaffirmed the March 5 outlook. They continue to expect moderate growth in industrial, stronger military demand, infrastructure growth supported by data centers and composite matting, stable consumer sales, stable vehicle demand overall with commercial vehicle recovery in the second half, and slightly down food and beverage sales. Management also said Q2 gross margins should face pressure from higher resin costs, with margin recovery targeted in the second half of the year.

Aaron Schapper framed the quarter as a strong start to the year and said the company is building on momentum from 2025. He emphasized the focused transformation program, especially simplifying the portfolio through the planned sale of MTS, improving operating efficiency, and using the manufacturing footprint more effectively. He also highlighted growth platforms such as composite matting and military applications, and said the company is creating a path to sustainable profitable growth.

Samantha Rutty focused on the numbers and reporting changes, noting that MTS is now treated as discontinued operations and that shipping and handling costs were reclassified from SG&A into cost of sales with no operating income impact. She cited 1.8% revenue growth, 34.7% adjusted gross margin, 21.3% adjusted EBITDA margin, and $0.44 adjusted EPS, plus $44.6 million of cash, $289.3 million of liquidity, $23.9 million of free cash flow, and 2.2x leverage. On capital allocation, she said CapEx was $2.8 million in Q1 and is expected to be 3.5% of sales for the full year, with spending aimed at infrastructure capacity, automation, molds and press replacements, while also planning to reduce debt further in 2026.

Analysts pressed on infrastructure capacity, Signature pricing, and whether recent sales levels near a $140 million run rate are a fair baseline; management said capacity is being addressed through footprint optimization and added Orlando capacity, and that they expect to grow year over year each quarter for the rest of 2026. On resin inflation, management said HD polyethylene and related material costs have risen sharply, Q2 gross margin will feel pressure because of contract timing and index lags, but supply is secure and margins should recover in the second half. Questions on MTS drew a cautious response: management said the sale process is progressing and the timing is hard to predict, while confirming the remaining distribution business being folded into other reporting is Patch Rubber. The CFO also said debt paydown remains the first priority for cash, followed by organic growth investment, then opportunistic M&A.