Myers Industries reported higher third-quarter sales but weaker operating results as a sharp rise in resin costs, an unfavorable product mix and unplanned maintenance squeezed margins. The Akron-based manufacturer said resin prices have since retreated from their recent peak and expects a significant sequential improvement in fourth-quarter margins, supported by pricing actions.
The company also said it has completed the sale of Myers Tire Supply, further narrowing its portfolio toward specialty engineered products. It did not provide sale proceeds or other transaction terms in the announcement.
Third-quarter results
- Net sales rose 8.1% to $171.3 million from $158.5 million a year earlier. Excluding about $3 million of low-margin products Myers exited after idling two rotational-molding facilities in late 2025, sales increased 10.4%.
- Growth was concentrated in infrastructure and food and beverage. Infrastructure revenue climbed 38% to $40.8 million, while food and beverage sales rose 12% to $19.3 million. Industrial, vehicle and consumer sales were essentially flat, at $68.4 million, $22.7 million and $20.1 million, respectively.
- Gross profit fell 5.0% to $46.8 million, and gross margin contracted 3.8 percentage points to 27.3%. Myers attributed the decline to higher resin costs, product mix and unplanned maintenance, partly offset by higher volume and pricing actions.
- Operating income declined 11.2% to $14.8 million, with operating margin down to 8.7% from 10.5%. Adjusted operating income fell 9.9% to $17.9 million; adjusted operating margin was 10.4%, versus 12.5% a year earlier.
- Diluted earnings per share from continuing operations were 13 cents, down from 17 cents. Adjusted earnings per share from continuing operations increased to 32 cents from 31 cents. The company said lower interest and tax expenses helped offset the drop in operating income; the reported result also included a non-cash loss tied to an amendment to its credit agreement.
- Adjusted income from continuing operations was $12.2 million, up 5.5%. Adjusted EBITDA was $26.6 million, down 8.2%, and its margin fell to 15.5% from 18.3%.
Cash, portfolio and outlook
- Myers ended the quarter with $254.7 million in total liquidity: $53.5 million in cash and $201.2 million available under its revolving credit facility.
- Cash from operations was $17.4 million. Free cash flow was $11.5 million, after $5.9 million in capital expenditures.
- The company said selling Myers Tire Supply simplifies its portfolio and allows it to concentrate on its core specialty engineered products and growth platforms. The announcement did not specify the sale’s financial terms or provide the divested business’s contribution to prior-period results.
- Myers said selling, general and administrative expense declined as a percentage of revenue year over year, which it described as evidence of continued transformation savings alongside investment in growth.
- Management expects a significant sequential improvement in fourth-quarter margins, citing pricing actions and the stabilization of resin costs. It also described the outlook for its end markets as favorable.
What changes for investors: The quarter showed a split between sales growth and profitability: revenue advanced, but resin inflation and other cost pressures reduced reported and adjusted operating margins. The completed divestiture further focuses the business on its remaining product platforms; management’s near-term margin outlook rests in part on pricing holding as resin costs stabilize.