MYERS INDUSTRIES INC
For the period ended Jun 30, 2026. Filed Jul 30, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 30, 2026
MYE$26.95+0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001193125-26-210311
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-30.
0001193125-26-324876
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 41 previous paragraphs and 58 current paragraphs.
28 unchanged; 13 reworded; 12 added; 0 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 4 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Net sales for the quarter ended June 30, 2026 were $179.2 million, an increase of $16.0 million or 9.8% compared to the quarter ended June 30, 2025. Net sales increased due to higher volume of $14.4 million, higher pricing of $1.5 million and the effect of favorable currency translation of $0.1 million. During the second quarter of 2026, the Company also began production and made initial shipments of military ammunition containers in Europe through Scepter International Poland sp z o.o. Military ammunition containers are included within the Industrial market. The expansion supports the Company’s ability to serve customers in the European market and is part of a broader growth strategy.
Current report
The Company’s effective tax rate was 24.7% and 22.9% for the quarter ended June 30, 2026 and 2025, respectively. The increase in the effective tax rate is driven by a non-recurring prior year benefit related to the termination of the Company's pension plan.
Current report
Comparison of the Six Months Ended June 30, 2026 to the Six Months Ended June 30, 2025
Current report
Gross profit increased $16.7 million, or 16.5%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, due to higher volume and pricing as described under Net Sales above, in addition to favorable mix and cost productivity, partially offset by higher material costs. Gross margin was 34.3% for the six months ended June 30, 2026 compared with 31.2% for the six months ended June 30, 2025.
Current report
Net Interest Expense:
Current report
Net interest expense for the six months ended June 30, 2026 was $13.0 million, a decrease of $1.8 million, or 12.1%, compared with $14.8 million for the six months ended June 30, 2025. The lower net interest expense was due to lower average outstanding borrowings for the six months ended June 30, 2026.
Current report
Income Taxes:
Current report
Discontinued Operations:
Current report
Credit Sources - subsequent events
Current report
Second Amendment to Loan Agreement
Current report
On July 28, 2026, the Company entered into Amendment No. 2 to the Seventh Amended and Restated Loan Agreement (“Amendment No. 2”), which amended and restated the Amended Loan Agreement as described in Note 11. Amendment No. 2, among other things, extended the revolving credit facilities for five years and replaces Term Loan A with a new five-year, $250 million term loan (“Term Loan”). The revolving credit facility and the Term Loan both mature on July 28, 2031. Amendment No. 2 reduces and harmonizes the applicable spread for interest charged on both the revolving credit facility and the Term Loan. The reduction of the $316 million balance on Term Loan A to the initial $250 million balance on the Term Loan under Amendment No. 2 was funded with borrowings on the revolving credit facility. Amendment No. 2 maintained the two most restrictive financial covenants: 1) the Interest Coverage Ratio with an unchanged minimum level of 3.00 to 1; and 2) the Net Leverage Ratio with an increased maximum level of 3.50 to 1 and providing for the Company's option to elect a four quarter holiday of 4.00 to 1 following a Material Acquisition as defined in the Amended Loan Agreement, inclusive of Amendment No. 2.
Current report
Borrowings under the Amended Loan Agreement inclusive of Amendment No. 2 continue to bear interest at the Term SOFR, RFR, SONIA, EURIBOR and CORRA-based borrowing rates. Amounts borrowed under the credit facility are secured by pledges to all of the Company's assets, except with respect to certain assets that are customarily excluded for the incurrence of such liens and except for assets related to Myers Tire Supply, unless the sale of the Myers Tire Supply business is not completed by January 27, 2027.
Reworded paragraphs (13)
Previous wording
The Company’s results of operations for the quarter ended March 31, 2026 are discussed below. The current economic environment includes heightened risks from tariffs, inflation, interest rates, banking liquidity, volatile commodity costs, supply chain disruptions and labor availability stemming from the broader economic effects of the international geopolitical climate, including rapidly changing regulations which has increased volatility in global commodity markets, including oil (a component of many plastic resins), energy and agricultural commodities. Some of our businesses have been and may continue to be affected by these broader economic effects, including customer demand for our products, supply chain disruptions, labor availability, tariffs and inflation. The Company believes it is well-positioned to manage through this uncertainty as it has a strong balance sheet with sufficient liquidity and borrowing capacity as well as a diverse product offering and customer base.
Current wording
The Company’s results of operations for the quarter and six months ended June 30, 2026 are discussed below. The current economic environment includes heightened risks from tariffs, inflation, interest rates, banking liquidity, volatile commodity costs, supply chain disruptions and labor availability stemming from the broader economic effects of the international geopolitical climate, including rapidly changing regulations which has increased volatility in global commodity markets, including oil (a component of many plastic resins), energy and agricultural commodities. Some of our businesses have been and may continue to be affected by these broader economic effects, including customer demand for our products, supply chain disruptions, labor availability, tariffs and inflation. The Company believes it is well-positioned to manage through this uncertainty as it has a strong balance sheet with sufficient liquidity and borrowing capacity as well as a diverse product offering and customer base.
Previous wording
The following discussion is of our consolidated results of operations. As described in Note 1, effective January 1, 2026, the Company changed its method of accounting for the classification of shipping and handling costs. Under the new method of accounting, the Company includes shipping and handling costs in Cost of sales, whereas previously, these costs were included in operating costs and expenses within Selling, general and administrative for internal costs and Freight outfor external costs. This change has been applied retrospectively to all periods presented in the table below.
Current wording
The following discussion is of our consolidated results of operations. As described in Note 1, effective January 1, 2026, the Company changed its method of accounting for the classification of shipping and handling costs. Under the new method of accounting, the Company includes shipping and handling costs in Cost of sales, whereas previously, these costs were included in operating costs and expenses within Selling, general and administrative for internal costs and Freight outfor external costs. This change has been applied retrospectively to all periods presented in the tables below.
Previous wording
Gross profit increased $6.3 million, or 12.6%, for the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025, due to higher volume, favorable mix, lower material costs and favorable cost productivity, partially offset by lower pricing as described under Net Sales above. Gross margin was 34.4% for the quarter ended March 31, 2026 compared with 31.1% for the quarter ended March 31, 2025.
Current wording
Gross profit increased $10.4 million, or 20.4%, for the quarter ended June 30, 2026 compared to the quarter ended June 30, 2025, due to higher volume and pricing as described under Net Sales above, in addition to favorable mix and cost productivity, partially offset by higher material costs. Gross margin was 34.3% for the quarter ended June 30, 2026 compared with 31.3% for the quarter ended June 30, 2025.
Previous wording
Selling, general and administrative (“SG&A”) expenses for the quarter ended March 31, 2026 were $28.0 million, a decrease of $1.3 million or 4.4% compared to the same period in the prior year. Decreases in SG&A expenses for the quarter ended March 31, 2026 were primarily due to $0.9 million of lower salaries and benefits, $0.6 million of lower legal and professional fees, $0.1 million of lower incentive compensation and $1.1 million of lower restructuring costs as described in Note 4, partially offset by $1.0 million of higher variable selling expenses. Environmental matters, as described in Note 10 resulted in a net $0.4 million of charges for the quarter ended March 31, 2026.
Current wording
Selling, general and administrative (“SG&A”) expenses for the quarter ended June 30, 2026 were $26.6 million, a decrease of $0.8 million or 2.9% compared to the same period in the prior year. Decreases in SG&A expenses for the quarter ended June 30, 2026 were primarily due to $0.5 million of lower salaries and benefits, $0.1 million of lower legal and professional fees, and a $2.0 million non-income tax reserve release related to the Signature acquisition, partially offset by $1.0 million of higher incentive compensation, $0.4 million of higher commissions, $0.3 million of higher variable selling expenses and $0.1 million of higher facilities costs.
Previous wording
Net interest expense for the quarter ended March 31, 2026 was $6.7 million, a decrease of $0.7 million, or 9.4%, compared with $7.4 million for the quarter ended March 31, 2025. The lower net interest expense was due to lower average outstanding borrowings, partially offset by a higher weighted-average borrowing rate for the quarter ended March 31, 2026.
Current wording
Net interest expense for the quarter ended June 30, 2026 was $6.3 million, a decrease of $1.1 million, or 14.9%, compared with $7.4 million for the quarter ended June 30, 2025. The lower net interest expense was due to lower average outstanding borrowings for the quarter ended June 30, 2026.
Previous wording
Net sales for the quarter ended March 31, 2026 were $164.6 million, an increase of $2.9 million or 1.8% compared to the quarter ended March 31, 2025. Net sales increased due to higher volume of $3.9 million and the effect of favorable currency translation of $0.5 million, partially offset by lower pricing of $1.5 million.
Current wording
Net sales for the six months ended June 30, 2026 were $343.8 million, an increase of $18.9 million or 5.8% compared to the six months ended June 30, 2025. Net sales increased due to higher volume of $18.2 million, higher pricing of $0.1 million and the effect of favorable currency translation of $0.6 million.
Previous wording
The Company’s effective tax rate was 24.0% and 26.8% for the quarter ended March 31, 2026 and 2025, respectively. The decrease in the effective tax rate is driven by higher fixed non-deductible expenses in the prior year.
Current wording
The Company’s effective tax rate was 24.4% and 24.6% for the six months ended June 30, 2026 and 2025, respectively. The decrease in the effective tax rate is driven by higher fixed non-deductible expenses in the prior year.
Previous wording
Loss from discontinued operations, net of income taxes was $15.6 million and $0.4 million for the quarter ended March 31, 2026 and 2025, respectively. The higher loss from discontinued operations, net of income taxes, in the current year was mainly due to impairment charges of $19.5 million ($14.8 million, net of tax) recognized on the classification of assets held for sale, as more fully described in Note 3 and $1.7 million of costs related to the sales process.
Current wording
Loss from discontinued operations, net of income taxes was $14.3 million and $0.3 million for the six months ended June 30, 2026 and 2025, respectively. The higher loss from discontinued operations, net of income taxes, in the current year was mainly due to impairment charges of $19.5 million ($14.8 million, net of tax) recognized on the classification of assets held for sale, as more fully described in Note 3, partially offset by favorable mix, price and cost productivity in the current year.
Previous wording
The Company’s primary sources of liquidity are cash on hand, cash generated from operations and availability under the Amended Loan Agreement (defined below). At March 31, 2026, the Company had $44.6 million of cash, $244.7 million available under the Amended Loan Agreement and outstanding debt of $339.2 million, including the finance lease liability of $7.8 million. Based on this liquidity and borrowing capacity, the Company believes it is well-positioned to manage through the working capital demands and the heightened uncertainty in the current macroeconomic environment. The Company believes that cash on hand, cash flows from operations and available capacity under its Amended Loan Agreement will be sufficient to meet expected business requirements including capital expenditures, dividends, working capital, debt service, and to fund future growth.
Current wording
The Company’s primary sources of liquidity are cash on hand, cash generated from operations and availability under the Amended Loan Agreement (defined below). At June 30, 2026, the Company had $47.6 million of cash, $244.7 million available under the Amended Loan Agreement and outstanding debt of $319.6 million, including the finance lease liability of $7.7 million. Based on this liquidity and borrowing capacity, the Company believes it is well-positioned to manage through the working capital demands and the heightened uncertainty in the current macroeconomic environment. The Company believes that cash on hand, cash flows from operations and available capacity under its Amended Loan Agreement will be sufficient to meet expected business requirements including capital expenditures, dividends, working capital, debt service, and to fund future growth.
Previous wording
Net cash provided by operating activities from continuing operations, including intercompany cash flows, was $26.7 million for the quarter ended March 31, 2026, compared to $10.3 million in the same period in 2025. The increase was primarily due to higher net income from continuing operations in the current period and changes in working capital. In the first quarter of 2026, accounts receivable was a use of $8.6 million, which was more than offset by $9.9 million and $2.1 million provided by accounts payable and inventory, respectively. This compares to the first quarter of 2025, where accounts receivable and inventory were uses of $20.7 million and $6.6 million, respectively, partially offset by $18.7 million provided by accounts payable. The company views changes in working capital to be related to volume and timing. In total, cash generated from working capital was $4.4 million for the quarter ended March 31, 2026, compared to cash used for working capital of $8.2 million in the prior year to date period.
Current wording
Net cash provided by operating activities from continuing operations, including intercompany cash flows, was $58.8 million for the six months ended June 30, 2026, compared to $37.9 million in the same period in 2025. The increase was primarily due to higher net income from continuing operations in the current period and changes in working capital. For the six months ended June 30, 2026, accounts receivable and inventories were a use of $8.5 million and $9.7 million, respectively, which was more than offset by $1.4 million and $23.3 million provided by prepaid expenses and other current assets and accounts payable, respectively. This compares to the six months ended June 30, 2025, where prepaid expenses and other current assets and inventories were uses of $4.9 million and $2.6 million, respectively, partially offset by $4.8 million and $2.3 million provided by accounts receivable and accounts payable, respectively. The company views changes in working capital to be related to volume and timing. In total, cash generated from working capital was $6.4 million for the six months ended June 30, 2026, compared to cash used for working capital of $0.5 million in the prior year to date period.
Previous wording
Net cash used for investing activities from continuing operations was $2.4 million for the quarter ended March 31, 2026 compared to cash used of $8.0 million for the same period in 2025. Capital expenditures were $2.8 million and $8.0 million for the quarter ended March 31, 2026 and 2025, respectively. Full year 2026 capital expenditures are expected to be approximately 3.5% of revenue.
Current wording
Net cash used for investing activities from continuing operations was $6.8 million for the six months ended June 30, 2026 compared to cash used of $11.4 million for the same period in 2025. Capital expenditures were $8.4 million and $11.6 million for the six months ended June 30, 2026 and 2025, respectively. Full year 2026 capital expenditures are expected to be approximately 3.5% of revenue.
Previous wording
Cash used by financing activities from continuing operations was $20.7 million for the quarter ended March 31, 2026 compared to cash provided by financing activities from continuing operations of $1.0 million for the same period in 2025. Net borrowings (repayments) of the Company's revolving credit facility were $0.0 million and $13.0 million for the quarter ended March 31, 2026 and 2025, respectively. The Company also made repayments of the Term Loan A totaling $15.0 million and $5.0 million for the quarter ended March 31, 2026 and 2025, respectively. Net proceeds from the issuance of common stock in connection with incentive stock option exercises were $0.3 million for both the quarter ended March 31, 2026 and 2025. Cash paid for tax withholdings on vesting of stock compensation totaled $0.7 million and $0.8 million for the quarter ended March 31, 2026 and 2025, respectively. The Company also used $1.0 million for the repurchase of its common stock, for the quarter ended March 31, 2025. The Company also used cash to pay dividends of $5.1 million and $5.3 million for the quarter ended March 31, 2026 and 2025, respectively.
Current wording
Cash used by financing activities from continuing operations was $45.8 million for the six months ended June 30, 2026 compared to cash used of $17.5 million for the same period in 2025. Net borrowings (repayments) of the Company's revolving credit facility were $0.0 million and $5.0 million for the six months ended June 30, 2026 and 2025, respectively. The Company also made repayments of the Term Loan A totaling $35.0 million and $10.0 million for the six months ended June 30, 2026 and 2025, respectively. Net proceeds from the issuance of common stock in connection with incentive stock option exercises were $0.6 million for both the six months ended June 30, 2026 and 2025. Cash paid for tax withholdings on vesting of stock compensation totaled $0.7 million and $0.9 million for the six months ended June 30, 2026 and 2025, respectively. The Company also used $1.5 million for the repurchase of its common stock, for the quarter ended June 30, 2025. The Company also used cash to pay dividends of $10.3 million and $10.4 million for the six months ended June 30, 2026 and 2025, respectively.
Previous wording
On May 2, 2024, the Company entered into an interest rate swap agreement to mitigate the variable interest rate risk of borrowings under the Amended Loan Agreement. The swap has a beginning notional value of $200.0 million, which reduces proportionately with scheduled Term Loan A amortization payments, and has a final maturity date of January 31, 2029. At March 31, 2026, the remaining notional value of the Company's interest rate swap totaled $180.0 million. The swap is designated as a cash flow hedge and effectively results in a fixed rate of 4.606% plus the applicable margin for the hedged debt, as described in Notes 1 and 11.
Current wording
On May 2, 2024, the Company entered into an interest rate swap agreement to mitigate the variable interest rate risk of borrowings under the Amended Loan Agreement. The swap has a beginning notional value of $200.0 million, which reduces proportionately with scheduled Term Loan A amortization payments, and has a final maturity date of January 31, 2029. At June 30, 2026, the remaining notional value of the Company's interest rate swap totaled $175.0 million. The swap is designated as a cash flow hedge and effectively results in a fixed rate of 4.606% plus the applicable margin for the hedged debt, as described in Notes 1 and 11.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Income from discontinued operations, net of income taxes was $1.3 million and $0.1 million for the quarter ended June 30, 2026 and 2025, respectively. The higher income from discontinued operations, net of income taxes, in the current year was mainly due to favorable mix, price, cost productivity and lower overall SG&A, partially offset by lower net sales.
Current report — wording carried from elsewhere
Selling, general and administrative (“SG&A”) expenses for the six months ended June 30, 2026 were $54.6 million, a decrease of $2.1 million or 3.7% compared to the same period in the prior year. Decreases in SG&A expenses for the six months ended June 30, 2026 were primarily due to $1.4 million of lower salaries and benefits, $0.7 million of lower legal and professional fees, and a $2.0 million non-income tax reserve release related to the Signature acquisition, partially offset by $0.9 million of higher incentive compensation, $0.4 million of higher commissions, $1.1 million of higher variable selling expenses and $0.1 million of higher facility costs.
Current report — wording carried from elsewhere
Additionally, environmental matters, as described in Note 10 resulted in a net $0.4 million of charges for the six months ended June 30, 2026.
Current report — wording carried from elsewhere
Depreciation and amortization, exclusive of amounts within Cost of sales, decreased $0.2 million to $7.4 million for the six months ended June 30, 2026 as compared to $7.5 million for the six months ended June 30, 2025. The decrease was primarily related to asset disposals in the prior year.
Current report — wording carried from elsewhere
(Gain) loss on disposal of fixed assets was not significant during both the six months ended June 30, 2026 and June 30, 2025.