Myers Industries Reports Slight Decline in Net Sales, Increased Net Income in Q1 2025

Myers Industries, Inc. reported a slight decline in net sales for the first quarter of 2025, totaling $206.8 million, down 0.2% from $207.1 million in the same period last year. The decrease was attributed to lower pricing, which accounted for a $6.0 million reduction, and unfavorable currency translation effects of $0.6 million. However, this was partially offset by an increase of $6.4 million in sales from the acquisition of Signature Systems, which was completed in February 2024. The Material Handling segment saw a 3.6% increase in sales, while the Distribution segment experienced a 10.3% decline.

The company's gross profit increased by 7.5% to $69.1 million, compared to $64.3 million in the prior year, resulting in a gross margin of 33.4%, up from 31.0%. This improvement was driven by the benefits of the Signature acquisition, a favorable product mix, and lower material costs. Selling, general and administrative (SG&A) expenses decreased by 5.0% to $44.8 million, primarily due to lower acquisition-related costs and variable selling expenses. The company reported an operating income of $16.7 million, significantly higher than the $10.9 million recorded in the previous year.

Myers Industries also noted a substantial increase in net income, which rose to $6.8 million, or $0.18 per share, compared to $3.5 million, or $0.09 per share, in the first quarter of 2024. This increase was attributed to improved operational efficiency and the impact of the Signature acquisition. The company’s interest expense increased to $7.4 million from $6.1 million, reflecting higher average outstanding borrowings due to the acquisition financing.

In terms of operational developments, Myers Industries reported a total asset value of $883.8 million as of March 31, 2025, up from $860.8 million at the end of 2024. The company’s cash position improved to $35.3 million, and it had $231.7 million available under its amended loan agreement. The company is focused on a 'Focused Transformation' initiative aimed at achieving $20 million in annualized cost savings by the end of 2025, which includes restructuring efforts and operational efficiencies.

Looking ahead, Myers Industries remains optimistic about its growth prospects, supported by a strong balance sheet and diverse product offerings. The company anticipates that its liquidity and borrowing capacity will be sufficient to meet future business requirements, including capital expenditures and potential growth initiatives. However, it acknowledges the ongoing challenges posed by inflation, supply chain disruptions, and other macroeconomic factors that could impact its operations.