Myers Industries Q2 Earnings Call Highlights

Myers Industries Q2 Earnings Call Highlights Written by MarketBeat July 31, 2026

Strong second-quarter performance: Revenue rose 9.8% year over year, while adjusted EPS increased 60.6% to $0.53 and adjusted EBITDA grew 30.6%. Infrastructure and food-and-beverage revenue climbed 52% and 48%, respectively. Margins improved and leverage declined: Adjusted operating margin expanded to 16.7%, while free cash flow reached $26.5 million. Myers reduced net debt by $21.2 million, lowering net leverage to 1.9 times. Growth opportunities remain balanced with near-term risks: European military ammunition packaging is expanding, with revenue expected to grow 10%–15% annually through 2028. However, infrastructure demand may moderate seasonally, and higher resin costs are expected to pressure third-quarter margins.

Myers Industries NYSE: MYE reported second-quarter 2026 revenue growth of 9.8% year over year, supported by strength in infrastructure and food and beverage markets, while adjusted margins and earnings also improved as the company advanced its Focused Transformation program. President and Chief Executive Officer Aaron Schapper said the quarter reflected progress in strengthening the business through improved operating efficiency, cost management, pricing actions and investments in selected growth platforms. Adjusted earnings per share rose 60.6% from the prior year to $0.53, while adjusted EBITDA increased 30.6%.

Infrastructure revenue increased 52% during the quarter, driven by utility-related projects supporting data-center construction and demand for composite ground protection products on large construction projects. Schapper said some construction customers are converting from wood to composite ground matting, which is designed to provide stable work surfaces and reduce potential environmental remediation costs. Signature’s turf protection products were also used at multiple FIFA World Cup events, increasing awareness of the company’s offerings, Schapper said. Chief Financial Officer Samantha Rutty said demand connected to the World Cup contributed to a particularly strong second quarter for the infrastructure business, though the company expects turf protection demand to moderate after the event concluded. Food and beverage revenue rose 48%, led by demand for seed boxes and intermediate bulk containers, or IBCs. Myers raised its full-year outlook for the food and beverage end market to moderate growth from a prior expectation of a slight decline. Rutty said the update reflected both second-quarter performance and continued quoting activity and backlog, particularly for IBC products. Net sales would have increased 13% year over year excluding the impact of Myers’ fourth-quarter 2025 decision to exit low-margin products and idle two rotational molding facilities in Alliance, Ohio, according to Rutty. The actions represent approximately $5 million of quarterly revenue, primarily in industrial and consumer markets, but were expected to benefit earnings.

Adjusted gross margin expanded 310 basis points to 34.6%, driven by volume, product mix, pricing and lower manufacturing costs despite higher resin costs. Adjusted operating margin increased 410 basis points to 16.7%, while adjusted EBITDA margin rose 350 basis points to 21.8%. Second-quarter operating cash flow was $32.1 million, and capital expenditures totaled $5.6 million, resulting in free cash flow of $26.5 million, up 10.5% from the first quarter. Myers ended the quarter with $47.6 million in cash and total liquidity of $292.3 million. The company reduced net debt by $21.2 million during the quarter, lowering its net leverage ratio to 1.9 times from 2.8 times a year earlier. Rutty said Myers ...