Myers Industries Reports 1.8% Net Sales Increase and 12.6% Gross Profit Growth in Q1 2026

Myers Industries, Inc. reported a net sales increase of 1.8% for the first quarter of 2026, reaching $164.6 million compared to $161.7 million in the same period of 2025. The growth was attributed to a higher volume of sales, which contributed $3.9 million, and favorable currency translation effects of $0.5 million, although this was partially offset by a decrease in pricing of $1.5 million. Gross profit for the quarter rose by 12.6% to $56.5 million, resulting in a gross margin of 34.4%, up from 31.1% a year earlier. This improvement was driven by lower material costs, a favorable product mix, and enhanced cost productivity.

In terms of profitability, the company reported an operating income of $24.9 million, a significant increase of 44.5% from $17.2 million in the prior year. This was achieved despite a decrease in selling, general, and administrative (SG&A) expenses, which fell by 4.4% to $28.0 million, primarily due to lower salaries, legal fees, and restructuring costs. However, the company experienced a net loss of $1.8 million for the quarter, largely due to a $15.6 million loss from discontinued operations related to the Myers Tire Supply business, which included impairment charges of $19.5 million.

Operationally, Myers Industries has undergone significant changes, including a strategic realignment into a single-segment structure effective March 31, 2026, following the decision to divest the Myers Tire Supply business. This restructuring aims to enhance agility and improve productivity. The company has also implemented a new accounting method for shipping and handling costs, which has been applied retrospectively and did not affect operating income or net income.

As of March 31, 2026, Myers Industries reported total assets of $836.7 million, a decrease from $852.6 million at the end of 2025. Current assets increased to $300.0 million, driven by higher cash and trade accounts receivable. The company’s long-term debt decreased to $291.9 million from $311.2 million, reflecting repayments made during the quarter. The company maintained a strong liquidity position with $44.6 million in cash and $244.7 million available under its amended loan agreement.

Looking ahead, Myers Industries remains focused on managing through economic uncertainties, including inflation and supply chain disruptions. The company believes its strong balance sheet and diverse product offerings position it well for future growth. The divestiture of the Myers Tire Supply business is expected to streamline operations and enhance profitability, aligning with the company's mission of providing sustainable products.