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 improved profitability from cost initiatives and portfolio simplification.

• Operating income margin expanded by 450 bps and adjusted EBITDA margin by 420 bps year-over-year, driven by transformation and cost efficiency programs.

• Myers Tire Supply was classified as discontinued operations, with the sale process underway and historical data adjusted accordingly.

• Transitioned to a single-segment structure, streamlining operations and focusing on core manufacturing businesses.

Financial highlights

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

• Free cash flow reached $23.9 million, up 28.5% sequentially, and net debt was reduced by $18.3 million.

• Cash balance at quarter-end was $44.6 million, with total liquidity of $289.3 million and $244.7 million available under the credit facility.

• Operating income rose 44.5% year-over-year to $24.9 million; adjusted income from continuing operations was $16.7 million, up 57.9%.

• Net sales increased 5% year-over-year excluding the exit of $5 million in low-margin products and idling of two facilities.

Outlook and guidance

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

• Margin pressure expected in Q2 due to resin cost increases, with recovery anticipated in H2.

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

• 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 mitigation actions underway for resin cost and tariff impacts.