Myers Industries Inc. (NYSE:MYE) shares rose 1.55% in premarket trading Thursday, even as the company reported third-quarter earnings that came in just below analyst expectations.
The polymer products manufacturer posted adjusted earnings per share of $0.26, missing the $0.28 consensus forecast, while revenue totaled $205.4 million, slightly under the expected $206.4 million.
Solid Operational Gains Offset Modest Miss
Despite the small shortfall, revenue grew 0.2% year-on-year, and adjusted EPS increased 4% from $0.25 in the prior-year quarter.
Gross profit rose 5.3% to $68.6 million, while adjusted operating income edged up 1.8% to $20.9 million, reflecting resilient margins and continued cost discipline.
The Material Handling segment, which accounts for roughly three-quarters of total sales, delivered 1.9% revenue growth, supported by robust demand in Infrastructure and Industrial markets, which helped offset softer performance in Vehicle and Consumer segments.
Meanwhile, the Distribution segment saw a 4.4% decline in sales due to lower demand in aftermarket and consumer channels.
Cost Savings and Strategic Transformation
President and CEO Aaron Schapper reaffirmed the company’s ongoing efficiency drive: “We remain on track to deliver $20 million targeted cost reductions, primarily in SG&A, by end of 2025,” he said.
“We’re making steady progress on our ‘Focused Transformation’ with intent to sell Myers Tire Supply.”
Cash Flow and Outlook
Myers Industries generated $21.5 million in free cash flow during the quarter — more than double the $10.1 million posted a year earlier.
The company also reduced total debt by $10 million, lowering its net leverage ratio to 2.6x.
Looking ahead, Myers maintained its 2025 end-market outlook, expecting steady growth in Industrial markets, strong expansion in Infrastructure, and continued weakness in Vehicle, Consumer, and Automotive Aftermarket segments.
The company said its performance highlights “operational resilience and disciplined execution” amid shifting market dynamics.