Myers Industries (MYE) Q1 2026 earnings summary

Executive summary

• Net sales reached $164.6 million in Q1 2026, up 1.8% year-over-year, with strong growth in Infrastructure and Consumer segments and sequential gains across key businesses.

• Adjusted EPS rose 57.1% year-over-year to $0.44, and adjusted EBITDA increased 27%, reflecting margin expansion from cost structure improvements and transformation initiatives.

• Transitioned to a single-segment structure after the announced sale of Myers Tire Supply, streamlining operations and focusing on core manufacturing.

• Productivity improvements and cost efficiency initiatives resulted in a more agile organization, with free cash flow up 28.5% sequentially to $23.9 million.

• Portfolio simplification and investments in high-return growth platforms are underway to drive sustainable shareholder value.

Financial highlights

• Net sales for Q1 2026 were $164.6 million, up 1.8% year-over-year; excluding exited low-margin products, sales increased 5%.

• Adjusted gross margin rose to 34.7%, with adjusted operating margin at 15.7% and adjusted EBITDA margin at 21.3%, up 420 bps.

• Operating income rose 44.5% year-over-year to $24.9 million; adjusted EBITDA was $35.1 million.

• Free cash flow reached $23.9 million, up from $2.2 million in Q1 2025, driven by higher net income and improved working capital.

• Ended Q1 with $44.6 million cash and $289.3 million total liquidity; net leverage ratio improved to 2.2x.

Outlook and guidance

• Reaffirmed 2026 outlook, projecting moderate growth in Industrial, strong growth in Infrastructure, stable Consumer and Food & Beverage, and slightly down Vehicle markets.

• Margin pressure expected in Q2 due to resin cost increases, with recovery anticipated in the second half.

• Management believes liquidity and borrowing capacity are sufficient to meet business requirements and navigate macroeconomic uncertainty.

• Risks and opportunities remain for both revenue and margin, with actions underway to mitigate resin cost and tariff impacts.

• Full-year 2026 capital expenditures expected to be approximately 3.5% of revenue.