Filing update · Myers Industries (MYE)

Myers Industries: the turnaround is showing in margins, and its growth engine has a legal cloud

Myers grew second-quarter 2026 sales 9.8% to $179.2 million and lifted operating margin to 17.4% from 12.2% as cost cuts landed. Growth rests on Infrastructure, up 52%, the matting business whose subsidiary lost a trade-secret verdict of up to $15 million, while Vehicle and Consumer shrank.

Published
October 24, 2026
Data through
June 30, 2026
Latest filing used
October 23, 2026
Key numbers
Net sales, Q2 2026
$179.2M
Up 9.8% from a year earlier [3]
Operating margin
17.4%
Up 520 basis points [3]
Infrastructure sales
+52%
Now 23% of sales [3]
Net leverage
1.9x
From 2.2x a quarter earlier [3]
What changed

Myers Industries, the maker of containers, matting and protective products, is a year into a turnaround, and the second quarter of 2026 was the clearest evidence yet that it is working.

  • Net sales grew 9.8% to $179.2 million [3].
  • Operating margin widened 520 basis points to 17.4%; adjusted EBITDA margin reached 21.8% [3].
  • EPS from continuing operations was $0.50 against $0.26, and adjusted EPS $0.53 against $0.33 [3].
  • Free cash flow was $26.5 million, and net leverage fell to 1.9 times [3].
  • Refinancing: a new $250 million term loan and revolver both now run to July 2031 [2].
  • Since then: on October 23 Myers filed a report under the item for director and officer changes [1].

Because Myers Tire Supply is being sold and is now reported separately [5], only the first two quarters of 2026 are on the new continuing-operations basis, so this note compares quarters with their prior-year equivalents rather than showing a five-quarter trend.

Margins

Every margin line improved, though gross margin is affected by a cost reclassification.

Chart: Margins, second quarter
Margins, second quarter
0%10%20%30%40%Gross margin: Q2 2025 31.3%, Q2 2026 34.3%34.3%Gross marginOperating margin: Q2 2025 12.2%, Q2 2026 17.4%17.4%Operating marginAdjusted EBITDA margin: Q2 2025 18.3%, Q2 2026 21.8%21.8%Adjusted EBITDA margin
As Myers reported them [3]. Gross margin is affected by a reclassification of freight and SG&A costs into cost of sales [2], so operating margin is the better like-for-like measure.
Show the numbers
ItemQ2 2025Q2 2026
Gross margin31.3%34.3%
Operating margin12.2%17.4%
Adjusted EBITDA margin18.3%21.8%
Where the growth comes from

Infrastructure is doing the heavy lifting; Vehicle and Consumer are going the other way.

Chart: Net sales by end market, second quarter
Net sales by end market, second quarter
$0M$20M$40M$60MInfrastructure: Q2 2025 $32M, Q2 2026 $49M$49MInfrastructureVehicle: Q2 2025 $25M, Q2 2026 $21M$21MVehicleConsumer: Q2 2025 $26M, Q2 2026 $23M$23MConsumer
As Myers reported them [3]. Industrial (40% of sales) and Food & Beverage (12%) are not shown; Food & Beverage grew 48% [3].
Show the numbers
ItemQ2 2025Q2 2026
Infrastructure$32M$49M
Vehicle$25M$21M
Consumer$26M$23M
Debt coming down

Strong cash flow continues to reduce debt.

Chart: Outstanding debt
Outstanding debt
$0M$100M$200M$300M$400MDec 2025: $354M$354MDec 2025Mar 2026: $339M$339MMar 2026
Including finance lease liabilities, as reported [6] [4]. In the second quarter net debt as defined by the credit agreement fell a further $21.2 million [3].
Show the numbers
ItemPeriod end
Dec 2025$354M
Mar 2026$339M
Anomalies worth a closer look

Five things in the filings that complicate the turnaround story.

Anomalies (5)
Two ways to read it

The same filings support two different conclusions. We set out both; this is not a view on whether to buy or sell the stock.

The two readings

The case that Myers has become a leaner, better business

On this reading the cost programme and portfolio pruning are working and the balance sheet is improving fast.

  1. 01
    Margins are up sharply
    Operating margin rose 520 basis points to 17.4% and adjusted EBITDA margin 350 basis points to 21.8% [3].
  2. 02
    Costs came out as promised
    Myers delivered its commitment to cut $20 million of annualized costs [7].
  3. 03
    Cash is strong
    Second-quarter free cash flow was $26.5 million [3], after $67.2 million for 2025 [7].
  4. 04
    Leverage is falling
    Net leverage improved to 1.9 times from 2.2 times in one quarter [3].
  5. 05
    Infrastructure demand is strong
    Infrastructure grew 52% [3] after 26% in the first quarter [5].

The case that the improvement is narrow and exposed

On this reading one legally challenged business is carrying a portfolio that is otherwise shrinking.

  1. 01
    Concentrated growth
    Vehicle and Consumer fell 19% and 14% [3]; Infrastructure did most of the growing.
  2. 02
    Legal exposure
    Signature faces damages of up to $15 million plus interest and fees and an injunction on its DiamondTrack mat [6].
  3. 03
    Environmental liabilities
    Buckhorn carries an $11.2 million reserve for the New Idria Mine and $4.4 million for the New Almaden Mine [2].
  4. 04
    Restructuring is not finished
    Myers expects up to $9.4 million of restructuring costs to complete its facility consolidation [2].
  5. 05
    Competitive pressure
    Myers warns that industry consolidation creates better-resourced competitors and may force price cuts [6].
Hypotheses: short, medium and long term

Testable statements, each with what would support or contradict it and when the next evidence arrives. Thresholds marked "our marker" are ours, not Myers'.

Hypotheses (3)
  1. Short termH1
    Next quarter: Q3 2026 results

    Operating margin holds above 15% as Infrastructure keeps growing

    Operating margin was 15.1% in the first quarter [5] and 17.4% in the second [3].
    What would support it
    Third-quarter operating margin above 15% (our marker) and Infrastructure growth still in double digits (our marker).
    What would contradict it
    Margin back near the 12% of last year's second quarter [3], or Infrastructure slowing sharply after the injunction.
    Next check: Q3 2026 results, likely late October 2026 (last year's came on October 30 [9]).
  2. Medium termH2
    Next 12 months

    The Signature case and the Tire Supply sale resolve without denting the turnaround

    No loss is accrued for the Signature case [4], and the Tire Supply sale is still in progress [4].
    What would support it
    A final order with damages largely covered by insurance [2], and a completed sale that reduces debt.
    What would contradict it
    Damages above the insurance cover, a lasting DiamondTrack ban, or a sale at a loss.
    Next check: Each quarterly report until the case and the sale are resolved.
  3. Long termH3
    Three years and more

    A smaller Myers earns structurally higher margins

    Myers is focusing on its core "products that protect" businesses after exiting low-margin products and idling two plants [5] [2].
    What would support it
    Operating margin sustained above 15% (our marker) through a downturn in Vehicle and Consumer, with net leverage below 2 times.
    What would contradict it
    Margins falling back toward 2025 levels once Infrastructure growth normalises.
    Next check: Each annual report.
Risks and contrary evidence
  • Litigation. The Signature verdict and DiamondTrack injunction are unresolved [6] [4].
  • Environmental. Mine remediation reserves at Buckhorn total about $15.6 million (calculated from [2]).
  • Economy. Myers flags heightened risks from tariffs, inflation, interest rates, commodity costs and supply chains [4].
  • Interest rates. The unhedged part of its variable-rate debt raises interest costs if rates rise [6].
  • Ownership. One holder, Gamco, owned about 14.4% of the shares at the end of 2025 [6].
What would change the view
  • A final Signature ruling with damages above insurance cover, or a lasting DiamondTrack ban.
  • Infrastructure growth falling to single digits (our marker) with Vehicle and Consumer still declining.
  • Operating margin slipping back below 15% (our marker).
Next check

Third-quarter 2026 results. Last year's came on October 30, 2025 [9], so expect the next update in late October 2026.

How this report was made

Every figure comes from Myers Industries' own SEC filings, listed below; no market prices or third-party data were used. Statements were extracted from the filings with the help of an AI model, each quoted passage was matched against the filing text, and this report was written by Claude (Anthropic) from that evidence. Every figure was checked against the quoted filing text before publication. Figures marked "calculated" are simple arithmetic on reported numbers.

AI-Inflect screen

The deterministic screen's current reading for this company, market data through October 23, 2026. It is separate from the filing analysis above and can change daily; it is not a view on the stock. Open in AI-Inflect

Stage and setup
Stage
Developing Inflection
Fundamentals
Strong
Inflection type
Profitability inflection
Technical setup
Breakout attempt
Sector
Industrials materials
Condition matrix · 10 true, 7 false, 0 unknown
  • Revenue growth positiveTrue
  • Revenue growth improvingTrue
  • Revenue growth acceleratingTrue
  • Revenue zero-crossing (loss→growth)False
  • Revenue improved 2 straight qtrsTrue
  • Revenue improved 3 straight qtrsFalse
  • Revenue improved 4 straight qtrsFalse
  • EPS improvingTrue
  • EPS loss→profit crossingTrue
  • Earnings acceleratingFalse
  • Gross margin expandingFalse
  • Operating margin expandingTrue
  • Operating leverageTrue
  • FCF improvingTrue
  • FCF negative→positive crossingFalse
  • FCF margin expandingTrue
  • Cash conversion improvingFalse
Sources

Company filings with the U.S. Securities and Exchange Commission (SEC).

  1. [1]Current report (items 5.02, 9.01), October 2026 · Form 8-K, filed October 23, 2026 · accession 0001193125-26-430415
  2. [2]Quarterly report, quarter ended June 30, 2026 · Form 10-Q, filed July 30, 2026 · accession 0001193125-26-324876
  3. [3]Second-quarter 2026 earnings release and loan amendment · Form 8-K, filed July 30, 2026 · accession 0001193125-26-324868
  4. [4]Quarterly report, quarter ended March 31, 2026 · Form 10-Q, filed May 7, 2026 · accession 0001193125-26-210311
  5. [5]First-quarter 2026 earnings release · Form 8-K, filed May 7, 2026 · accession 0001193125-26-210296
  6. [6]Annual report for 2025 · Form 10-K, filed March 5, 2026 · accession 0001193125-26-092521
  7. [7]Fourth-quarter 2025 earnings release · Form 8-K, filed March 5, 2026 · accession 0001193125-26-092509
  8. [8]Quarterly report, quarter ended September 30, 2025 · Form 10-Q, filed October 30, 2025 · accession 0001193125-25-258507
  9. [9]Third-quarter 2025 earnings release · Form 8-K, filed October 30, 2025 · accession 0001193125-25-257389

This report is general information and education, not a recommendation to buy or sell any security and not personalised financial advice. It follows our editorial principles: every figure traces to the sources above, and figures we calculated are marked as such.

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