Key Highlights

  • Net sales of USD 171.34 million rose 8.1% year over year, beating the consensus estimate of USD 163.80 million.
  • EPS of USD 0.32 missed the consensus estimate of USD 0.45, while GAAP continuing diluted EPS was USD 0.13.
  • Gross Margin narrowed to 27.3% from 31.1% on higher material costs, unfavorable mix and unplanned maintenance costs.
  • Net loss of USD 0.9 million followed a USD 5.6 million discontinued operations loss tied to the Tire Supply sale.

Myers Industries, Inc. (NYSE:MYE) reported third quarter 2026 net sales of USD 171.3 million, an increase of 8.1% from USD 158.5 million and above the consensus estimate of USD 163.80 million. EPS of USD 0.32 came in below the consensus estimate of USD 0.45. On a GAAP basis, Diluted Earnings per Share from continuing operations were USD 0.13 versus USD 0.17 a year earlier, and net loss per share was USD 0.02.

Sales growth came from higher Volume of USD 8.9 million and higher pricing of USD 4.2 million, partly offset by USD 0.2 million of unfavorable currency translation. Operating Income from continuing operations fell 11.2% to USD 14.8 million, and income from continuing operations was USD 4.7 million against USD 6.3 million a year ago.

Margin Pressure and Portfolio Changes

Gross profit declined 5.0% to USD 46.8 million as cost of sales rose 14.1%. The company attributed the pressure to higher material costs, unfavorable mix and unplanned maintenance costs, partly offset by volume and pricing. Selling, general and administrative expense eased 1.0% to USD 28.4 million, helped by USD 1.7 million of lower legal and professional fees, though incentive compensation rose USD 2.6 million.

The company sold the North American domestic tire supply businesses of Myers Tire Supply during the quarter, and the unit is reported as discontinued operations. That produced a loss from discontinued operations of USD 5.6 million, including a net USD 5.4 million loss on the sale, and a consolidated net loss of USD 0.9 million versus Net Income of USD 7.1 million a year earlier. Since the second quarter, Scepter International Poland has also begun shipping military ammunition containers in Europe.

Debt Refinancing and Liquidity

Net interest expense dropped 30.7% to USD 5.2 million as average borrowings fell 15.5% to USD 324.8 million and the weighted average rate eased to 6.70% from 8.04%. Under Amendment No. 2 to its Loan agreement, the company took a USD 3.5 million loss on Debt extinguishment in the quarter. For the nine months it received USD 250 million under a new term loan and repaid USD 351 million of Term Loan A, including USD 316 million with Amendment No. 2.

At September 30, 2026 the company held USD 53.5 million of cash, had USD 201.2 million available under its amended loan agreement, and carried USD 299.5 million of debt including a USD 7.5 million finance Lease liability. Operating Cash Flow from continuing operations was USD 76.2 million for nine months, up from USD 63.9 million. Capital spending is projected near 3.5% of Revenue for 2026, and dividends paid were USD 15.4 million for the nine months.

Figures to Follow in Coming Filings

The gross margin comparison is the first item, at 27.3% against 31.1% in the quarter and 32.0% for nine months versus 31.1% a year earlier. The tax rate of 23.8% against 31.8% is another, as are net interest expense of USD 5.2 million under the new loan terms and nine month operating cash flow of USD 76.2 million. The ammunition container ramp at the Polish Facility and the USD 201.2 million of loan availability round out the list of company specific measures.