Myers Industries (NYSE:MYE) reported fourth-quarter results that were “essentially flat” on sales, while highlighting margin expansion and cost reductions tied to its focused transformation program. Management also reiterated that 2025 marked an inflection point for the company, citing both execution against transformation initiatives and the decision to sell Myers Tire Supply (MTS) as key strategic moves intended to enhance long-term growth and profitability.
Fourth-quarter performance: flat sales, higher margins
In the fourth quarter, Myers posted net sales of $204 million, which CFO Samantha Rutty said was essentially flat year-over-year. CEO Aaron Schapper noted that results were affected by the company’s decision to exit low-margin products, including the idling of two rotational molding facilities. Excluding that impact, management said sales would have been up 3%, supported by growth in infrastructure, industrial, and food and beverage markets, partially offset by softer consumer and vehicle demand.
Segment trends: Material Handling and Distribution
Within the Material Handling segment, fourth-quarter net sales decreased $0.4 million. However, Rutty said that excluding the impact of idling the rotational molding facilities, sales increased 3.4%. Growth in food and beverage, infrastructure, and industrial markets was offset by weaker consumer and vehicle demand. Material Handling adjusted EBITDA margin was 25.6%, expanding 290 basis points on transformation savings, improved mix, and higher volume, partially offset by unfavorable pricing.
In Distribution, fourth-quarter net sales increased 0.9%, and adjusted EBITDA margin improved 160 basis points, according to Rutty.
Full-year 2025: higher profitability and stronger cash generation
For the full year, Myers reported net sales of $825.7 million, down 1.3% year-over-year. Excluding the impact from idling the two rotational molding facilities, Rutty said sales decreased 0.6%. Management characterized the year as one where Material Handling growth was offset by Distribution softness, with industrial and infrastructure strength countered by lower consumer and vehicle demand.
Despite the sales decline, Rutty said adjusted gross margin increased 30 basis points to 33.7%, driven by lower material costs, favorable cost productivity, and favorable mix. Adjusted operating margin improved 30 basis points to 10.3%, reflecting benefits from the focused transformation program.
Schapper emphasized that 2025 included $20 million in annualized cost savings, “primarily in SG&A,” and pointed to actions such as exiting low-margin products and idling two of the company’s nine rotational molding facilities to improve utilization and reduce costs. He also described updates to incentive plans, revised core values, and broader lean process emphasis as part of a push for execution and accountability.
Cash flow, balance sheet, and capital allocation
Myers generated fourth-quarter operating cash flow of $22.6 million and spent $3.6 million in CapEx, resulting in free cash flow of $18.9 million. For the full year, free cash flow improved 23% to $67.2 million.
Rutty said the company reduced net debt by $44.2 million in 2025 and ended the year with a net leverage ratio of 2.4, within its stated target range of 1.5 to 2.5. Myers finished the year with a cash balance of $45.1 million and total liquidity of $289.8 million. Working capital as a percentage of sales increased slightly, which Rutty attributed primarily to higher receivables tied to infrastructure project delivery timing, partially offset by lower inventory.
On capital allocation, management reiterated a framework aimed at balancing organic investment, potential acquisitions, and shareholder returns:
- 2025 CapEx of $19.6 million, or approximately 2.4% of sales
- 2026 CapEx expected to be close to the company’s 3% of sales target
- $23 million returned to shareholders in 2025 via dividends and share repurchases
Rutty added the company is open to “opportunistic acquisitions” with a disciplined approach, now that leverage is within the target range.
2026 market outlook and MTS divestiture considerations
Looking ahead, management provided a market outlook for 2026 but said it is not providing an outlook for automotive aftermarket due to the planned divestiture of MTS. Rutty said MTS is expected to qualify for discontinued operations accounting treatment beginning in the first quarter.
The 2026 outlook discussed on the call also excluded impacts from the fourth-quarter exit of low-margin products and idling of two rotational molding facilities in Alliance, Ohio. Rutty said those actions represented approximately $5 million in revenue per quarter, primarily in industrial and consumer markets, with a “favorable impact to earnings.”
By end market, management’s expectations included:
- Industrial: moderate growth, with a modest recovery in manufacturing capex trends; increased demand for military products as inventories are replenished
- Infrastructure: strong growth, supported by large construction and utility projects and conversion from wood to composite matting; Rutty said matting backlog is the largest in the business’s history
- Vehicle: stable overall with mixed indicators; flat RV/marine, commercial vehicle recovery expected in the second half of 2026, and automotive OEM launches expected to support component packaging demand
- Consumer: stable, with Q1 benefit from winter storms increasing fuel can demand; the company planned for an average of three “landed storms” in the continental U.S.
- Food and beverage: slightly down, reflecting agriculture at the low end of its cycle
During the Q&A, Schapper and Rutty discussed industrial market exposure across product lines, noting that some demand tracks broad manufacturing activity, while other areas are more tied to specific end markets such as automotive, construction, utilities, data centers, and agriculture. Management also addressed defense-related demand, stating the company sells both to the U.S. military and to NATO-related customers, and sees opportunities tied to munitions consumption and rearmament efforts. When asked about the durability of margin improvement, Rutty cited transformation savings, the benefits of facility actions, and mix, while noting that the company continues to monitor risks such as material costs, including resin pricing.
Schapper closed by saying the company is encouraged by its trajectory, pointing to improving margins and increasing cash flow, and reiterated that Myers is working to align operations with higher-return, growing markets as it continues to simplify its portfolio.
About Myers Industries (NYSE:MYE)
Myers Industries, Inc is a diversified manufacturer of polymer products serving industrial, commercial and consumer markets. The company designs, produces and markets a broad range of molded and fabricated plastic components, including pallets, bulk containers, tanks and drums used in material handling and storage applications. Myers Industries leverages proprietary polymer technologies to provide durable, reusable solutions that help customers optimize supply chain efficiency and reduce environmental impact.
Myers operates primarily through two business segments.
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