Myers Industries (MYE) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales declined 4.8% year-over-year to $209.6M, with strong military and industrial sales offset by weakness in Vehicle and Automotive Aftermarket segments; gross profit fell 6.4% to $70.7M.

• Strategic review of Myers Tire Supply (MTS) business launched, with plans to consolidate two rotational molding facilities and progress toward $20M in cost reductions by year-end 2025.

• Focused Transformation program aims to streamline operations, improve profitability, and optimize the business portfolio.

• Free cash flow improved to $24.7M, up $14.8M year-over-year, supporting strong liquidity and capital allocation flexibility.

• Substantial backlog in Industrial and Infrastructure segments supports a positive outlook for the second half of 2025.

Financial highlights

• Q2 2025 net sales: $209.6M (down 4.8%); gross profit: $70.7M (down 6.4%); gross margin: 33.7% (vs. 34.3% prior year); operating income: $20.0M (down 15.8%).

• Adjusted gross margin: 33.9%; adjusted operating income: $22.8M (10.9% margin); adjusted EBITDA: $32.9M (15.7% margin); adjusted EPS: $0.31.

• Net income: $9.7M (down 5.6%); diluted EPS: $0.26 (down 7.1%).

• Free cash flow: $24.7M, up $14.8M year-over-year; net cash from operations for H1 2025: $38.4M.

• SG&A expenses reduced due to transformation initiatives; net interest expense for Q2: $7.4M (down 18.2%).

Outlook and guidance

• Full-year 2025 outlook unchanged, with positive expectations for Industrial and Infrastructure segments and continued weakness in Vehicle and Automotive Aftermarket.

• Military product sales expected to exceed $40M for the year; backlog supports Q3 growth.

• $20M in annualized cost savings targeted by year-end 2025, with $15M already realized.

• CapEx expected at approximately 3% of revenue; additional annual savings of at least $3M anticipated from facility consolidations.

• Tariff and macroeconomic uncertainties persist, but strong balance sheet and product diversity support resilience.