Myers Industries Inc. Reports Third Quarter 2025 Results
Myers Industries Inc. (NYSE: MYE), a leading global manufacturer of engineered polymer products and materials that “protect the world from the ground up,” today released its financial results for the third quarter ended September 30, 2025.
Strong Operational Performance
President and Chief Executive Officer Aaron Schapper commented on the quarter, “I am encouraged by the higher gross profit and free cash flow this quarter, indicating Myers’ ability to generate value from our core businesses and strengthen operations. We achieved growth in gross profit due to favorable product mix. Infrastructure and Industrial growth was offset by continued softness in Vehicle and Automotive Aftermarket.
Scepter’s Industrial sales growth more than compensated for the lower weather-driven fuel container sales in the Consumer end market. We made significant improvements in free cash flow, generating $21.5 million during the quarter compared to $10.1 million in the third quarter of 2024. With the idling of two rotational molding production facilities, we have identified $19 million in structural cost reductions, and we remain on track to deliver annualized cost savings of $20 million, primarily in SG&A, by the end of 2025.”
Balance Sheet and Cash Flow Highlights
- Total liquidity stood at $292.7 million, comprising $48.0 million in cash on hand and $244.7 million available under the company’s revolving credit facility.
- Cash flow from operations for the quarter totaled $25.8 million, and free cash flow reached $21.5 million, representing an increase of $11.4 million versus the same quarter a year ago (which was $10.1 million).
- Capital expenditures in the quarter were modest at $4.2 million, reflecting disciplined investment.
- Debt reduction also advanced, with total debt down by $10.0 million, and the company’s net leverage ratio reaching 2.6×.
- During the quarter, Myers repurchased $0.5 million of its shares. Under the company’s 2025 Share Repurchase Program, roughly $8.0 million remains available for further buybacks.
Strategic Initiatives and Business Review
As part of the strategic review announced in the second quarter of the year, Myers has formally initiated a sale process for its Myers Tire Supply business line. The company secured KeyBanc Capital Markets as its financial advisor to assist in the divestiture process, underscoring its commitment to sharpening its focus on higher-value, industrial-grade polymer solutions.
From a segment standpoint, the company saw robust growth in Infrastructure and Industrial end markets, driven by favorable product mix and strong demand in engineered solutions. However, this positive offset was partially moderated by softness in the Vehicle and Automotive Aftermarket segment. On the Consumer side, while weather-driven fuel container sales for Scepter were down, Scepter’s Industrial business saw enough growth to more than offset the decline, leading to overall positive Consumer segment results. The idling of two rotational-molding facilities further supports the cost-reduction efforts and production-footprint optimization.
Outlook for 2025 End Markets
Myers Industries also provided an updated outlook for its 2025 end-markets. The table included in the release (not reproduced here) reflects the company’s revised expectations as of September 30, 2025, taking into account the latest business trends, macro-economic conditions and ongoing strategic initiatives. The updated outlook replaces the guidance provided on July 31, 2025. Management remains confident in its ability to deliver the announced annualized cost savings of $20 million by the end of the year, primarily through SG&A reductions and production-site rationalizations.
Use of Non-GAAP Financial Measures
As a reminder, Myers Industries uses certain non-GAAP financial measures — including adjusted gross profit, adjusted gross margin, adjusted operating income (or loss), adjusted operating income margin, adjusted EBITDA and adjusted EBITDA margin, adjusted net income, adjusted earnings per diluted share (adjusted EPS), and free cash flow — to supplement its GAAP-based results. The company believes these non-GAAP measures provide additional insight and consistency when comparing its performance historically and across business cycles. The release indicates that a reconciliation between such non-GAAP measures and the comparable GAAP measures is available in the full earnings release.
Summary and Looking Forward
In summary, the third quarter of 2025 was a strong period for Myers Industries from a profitability, cash-flow and strategic-execution standpoint. The company’s ability to improve gross profit via favorable product mix, generate substantial free cash flow and identify meaningful structural cost savings positions it well for the remainder of the year. While pockets of softness remain—particularly in the Vehicle and Automotive Aftermarket segment and weather-sensitive Consumer products—the company’s diversified end-market exposure and proactive cost-structure initiatives provide confidence in its path forward.
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