Breaking Down Myers Industries, Inc. (MYE) Financial Health: Key Insights for Investors

You're looking at Myers Industries, Inc. (MYE) Q3 2025 results and seeing a classic mixed bag, which can make your investment decision defintely murky. The headline numbers tell a story of operational discipline starting to pay off, but you still have to dig into the segment performance to see the real risk. For the quarter ending September 30, 2025, the company delivered adjusted earnings per share (EPS) of $0.26, and more impressively, their free cash flow doubled to $21.5 million compared to the prior year, a direct win from better working capital management. Here's the quick math: net sales were only slightly up to $205.4 million, because while the core Material Handling segment grew 1.9% to $153.5 million on strong military product demand, the Distribution segment fell 4.4% to $52.0 million due to softness in the automotive aftermarket. The management team is serious about their Focused Transformation, aiming for $20 million in annualized cost savings by year-end 2025, and that's the pivot you need to watch, but honestly, the uneven demand in their end markets means this isn't a simple 'buy' or 'sell' call yet.

Revenue Analysis

You're looking for a clear picture of where Myers Industries, Inc. (MYE) is actually making its money in a mixed market, and honestly, the 2025 numbers show a story of two very different businesses under one roof. The overall revenue growth is nearly flat, but that hides a significant shift in segment performance.

For the full fiscal year 2025, the consensus revenue estimate is around $814.20 million, which suggests a modest annual growth rate forecast of just 0.8%. That's a slow-and-steady pace, but the real action is in the core product lines.

Segment Contribution and Primary Sources

Myers Industries operates through two main segments: Material Handling and Distribution. The Material Handling segment, which focuses on manufacturing sustainable plastic and metal products for various markets, is your growth engine. The Distribution segment, which historically included the Myers Tire Supply business, is facing headwinds and is in a period of strategic change.

In the third quarter of 2025 (Q3 2025), the company reported net sales of $205.4 million, a marginal 0.2% increase year-over-year. Here's the quick math on how the segments contributed to that Q3 revenue:

• Material Handling: Contributed $153.5 million, or about 74.7% of Q3 sales.
• Distribution: Contributed $52.0 million, or about 25.3% of Q3 sales.

The Material Handling segment's products serve diverse end markets like Consumer, Vehicle, Food & Beverage, Industrial, and Infrastructure. More than 90% of the Material Handling revenue in 2025 is expected to be manufactured right here in the U.S. That domestic focus is defintely a supply chain advantage.

Year-Over-Year Growth and Revenue Shifts

The overall year-over-year (YOY) revenue growth for the trailing twelve months ending September 30, 2025, was only 0.26%. But when you look closer, you see a clear divergence between the two segments that tells you where management is focusing its energy.

The Material Handling segment's net sales grew by 1.9% in Q3 2025, driven by strong performance in the Infrastructure and Industrial markets, including military applications through its Scepter brand. On the flip side, the Distribution segment's net sales declined by 4.4% in Q3 2025. This decline is a key reason for the overall flat revenue number.

The most significant change is the strategic decision to sell the Myers Tire Supply business, which is a big part of that Distribution segment. This move aims to simplify the business and focus resources on the higher-margin, growing Material Handling side. What this estimate hides is the potential for a cleaner, more profitable revenue stream once that divestiture (selling off a business unit) is complete. For a deeper look at the company's long-term goals, you can review its Mission Statement, Vision, & Core Values of Myers Industries, Inc. (MYE).

Here is a snapshot of the Q3 2025 segment performance versus the prior year:

The takeaway is simple: Material Handling is carrying the load. The growth is there, just concentrated. The challenge now is to execute the Distribution segment sale efficiently and accelerate growth in the core manufacturing business.

Next step: Finance: Model the 2026 revenue forecast without the Distribution segment's historical contribution by end of next week.

Profitability Metrics

You're looking for a clear picture of Myers Industries, Inc. (MYE) financial health, and the 2025 numbers show a company actively managing costs to protect its gross margin, but still navigating a volatile net profit landscape. The direct takeaway is that operational efficiency is improving, but a significant one-time event has masked the underlying recovery in net income.

Myers Industries' profitability in the third quarter of 2025 (Q3 2025) demonstrated a notable turnaround in core operations. Net sales for the quarter were $205.4 million, a slight increase year-over-year, which is a solid base to build margins on. The company's strategic focus on cost management is clearly visible in its gross and operating figures.

Here's the quick math on the key Q3 2025 margins:

• Gross Profit Margin: 33.4% (Gross Profit of $68.6 million on $205.4 million in sales).
• Operating Profit Margin: 8.6% (Operating Income of $17.7 million).
• Net Profit Margin: 3.5% (Net Income of $7.1 million).

The Gross Profit Margin of 33.4% in Q3 2025 is an improvement from the prior year, driven by a favorable product mix and cost productivity, which is a great sign for pricing power and cost-of-goods-sold control. That 33.4% margin is exactly in line with the Q1 2025 Gross Margin.

Trends in Profitability and Operational Efficiency

The trend over the first three quarters of 2025 shows a stabilization and slight improvement in operating leverage. The Operating Profit Margin moved from 8.1% in Q1 2025 (Operating Income of $16.650 million) to 8.6% in Q3 2025. This is defintely a result of their 'Focused Transformation' program, which aims for $20 million in annualized cost savings, primarily in selling, general, and administrative (SG&A) expenses, by the end of 2025.

The real story, however, is the difference between the quarterly Net Profit Margin and the Trailing Twelve Months (TTM) Net Profit Margin. While Q3 2025 hit 3.5%, the TTM Net Profit Margin as of October 2025 was only 1.2%. What this estimate hides is a significant one-off loss of $25.9 million that weighed down the twelve-month figure. So, the recent quarterly performance is a much better indicator of the company's current operating health.

The Material Handling segment, which is the company's largest, showed a strong operating income margin of 17.3% in Q3 2025, while the Distribution segment lagged significantly with a margin of just 1.6%. This disparity is why the strategic divestiture of the Myers Tire Supply business, which is part of the Distribution segment, is expected to streamline operations and boost overall portfolio profitability.

Industry Comparison and Investor Action

When you compare Myers Industries, Inc. (MYE) to its peers in the global packaging industry, the valuation metrics tell a cautious tale. The company's high price-to-earnings (P/E) ratio of 63.5x is well above the global packaging industry average of 15.9x and its peer group's average of 21.5x. This suggests investors are pricing in a significant future leap in profit margin, which analysts forecast could jump from the current TTM 1.2% to 19.1% in three years. That's a bold assumption.

The high valuation despite the recent earnings slump means execution risk on the cost-saving plan is central. You need to monitor their progress on the $20 million cost-saving goal and the successful sale of the Myers Tire Supply business. This is the only way to justify the current stock price. For a deeper dive into the company's strategic positioning, you can read the full analysis at Breaking Down Myers Industries, Inc. (MYE) Financial Health: Key Insights for Investors.

Next Step: Portfolio Manager: Set a trigger to review the Q4 2025 earnings release for confirmation of the $20 million cost-savings target achievement and any updates on the divestiture by February 2026.

Debt vs. Equity Structure

You want to know how Myers Industries, Inc. (MYE) is paying for its growth, and the answer is clear: the company relies more on debt than its peers, but it's actively working to bring that leverage down. As of the second quarter of 2025, the company's Debt-to-Equity (D/E) ratio sits around 1.30, meaning for every dollar of shareholder equity, there is $1.30 in total debt financing.

This is a notable step up from historical levels, largely due to the strategic acquisition of Signature Systems, which was a capital-intensive move. To put this in perspective, the average D/E ratio for the Paper & Plastic Packaging Products & Materials industry is closer to 1.083, according to early 2025 data. Myers Industries, Inc. is defintely running a higher financial leverage profile than the industry benchmark, which increases risk but can also amplify returns if the acquired assets perform well.

Here's the quick math on the balance sheet structure from the Q2 2025 financial reports:

• Total Debt: Approximately $370.8 million.
• Total Shareholders' Equity: $284.6 million.

The total debt is split between short-term and long-term obligations. The majority of the debt is long-term, which is typical for a capital-intensive manufacturer.

What's important is the direction of travel. Management is prioritizing debt reduction. In the second quarter of 2025, the company reduced its total debt by $13 million, and followed that up by reducing it another $10 million in the third quarter of 2025. This focus has helped improve the net leverage ratio-a key metric for lenders-to 2.6x by Q3 2025. That's a solid deleveraging action.

Myers Industries, Inc. balances its financing with a commitment to returning capital to shareholders, which is a form of equity funding management. They are executing a $10 million 2025 Share Repurchase Program. This dual approach-paying down debt while also buying back shares-signals confidence in future cash flow generation, even as they navigate a higher-than-average D/E ratio. The company is clearly using operating cash flow to fund both debt reduction and equity enhancement, rather than issuing new debt or equity. You can read more about who holds the equity in Exploring Myers Industries, Inc. (MYE) Investor Profile: Who's Buying and Why?.

Liquidity and Solvency

You want to know if Myers Industries, Inc. (MYE) has enough cash to cover its near-term bills, and the short answer is yes, with a solid, albeit slightly declining, liquidity position as of the third quarter of 2025. The company is managing its working capital well, but keep an eye on capital expenditures as they ramp up.

Current and Quick Ratios: A Healthy Buffer

A look at the balance sheet for the quarter ending September 30, 2025, shows Myers Industries, Inc.'s liquidity (the ability to pay short-term debts) is comfortable. The Current Ratio-a key measure of current assets divided by current liabilities-stood at 1.67. This means the company has $1.67 in current assets for every dollar of current liabilities, which is a healthy buffer and generally above the 1.0 minimum we like to see.

The Quick Ratio (or Acid-Test Ratio), which strips out inventory-the least liquid current asset-is also strong. Here's the quick math: using the Q3 2025 Current Assets of $286.79 million and Current Liabilities of $171.75 million, and the Q2 2025 inventory of $101.97 million, the Quick Ratio is approximately 1.08. A ratio over 1.0 suggests the company can cover its immediate obligations even if it can't sell any more product. That's defintely a green light.

• Current Ratio (Q3 2025): 1.67
• Quick Ratio (Estimated Q3 2025): 1.08
• A ratio of 1.08 means they have enough cash and receivables to pay all short-term debt.

Working Capital Trends and Efficiency

The company's focus on its 'Focused Transformation' strategy is clearly yielding results in working capital management. Working Capital (Current Assets minus Current Liabilities) was approximately $115.04 million as of Q3 2025. More importantly, management noted that working capital as a percentage of trailing twelve-month sales was down to 12.6% in Q3 2025, a sign of improved operational efficiency and inventory optimization. They are using less capital to generate the same level of sales, which is a positive trend.

This is a critical point: they are generating more cash from operations by getting paid faster and holding less inventory. They are on track to deliver $20 million in annualized cost savings by the end of 2025, which will further bolster this efficiency.

Cash Flow Statement Overview: Where the Money Moves

The cash flow statement for Myers Industries, Inc. (MYE) through the first nine months of 2025 (Q3 YTD) shows a healthy inflow from the core business and a disciplined approach to capital allocation. This is where you see the real-world impact of their liquidity ratios.

The company generated substantial cash from operations, which is the lifeblood of any manufacturing business. Also, the financing activities show a net paydown of debt, a sign of financial strength.

The company's Free Cash Flow (FCF) generation is particularly noteworthy, with Q3 2025 FCF coming in at a strong $21.5 million, which was double the amount from the prior year's period. This robust FCF is what allowed them to reduce total debt by $10 million in Q3 alone and lower their net leverage ratio to 2.6x.

Liquidity Strengths and Actionable Insights

The biggest strength here is the combination of a high current ratio (1.67) and the significant Free Cash Flow generation. This FCF is being used for debt reduction and returning capital to shareholders, including $1 million in share repurchases in Q1 2025 and another $0.5 million in Q2 2025. They have $8.5 million remaining under the 2025 Share Repurchase Program. The total liquidity, including cash on hand of $48.0 million and revolving credit availability, is a substantial $292.7 million.

The only potential risk is the ongoing strategic review of the Myers Tire Supply business, which generated $189 million in revenue over the last 12 months. The outcome of that review will affect the future composition of the balance sheet, but the goal is to simplify the portfolio and prioritize core, higher-margin businesses. So, overall, the liquidity position is excellent, and the cash flow trends are improving.

For a deeper dive into the valuation and strategy, you can read the full post: Breaking Down Myers Industries, Inc. (MYE) Financial Health: Key Insights for Investors.

Your next step: Monitor the Q4 2025 results for the final cash flow figures and any updates on the Myers Tire Supply divestiture.

Valuation Analysis

Is Myers Industries, Inc. (MYE) overvalued or undervalued? The quick answer is that while its trailing valuation multiples look rich, the forward-looking metrics and Wall Street consensus suggest the stock is fairly valued with a clear upside, especially if their cost-saving transformation pays off. You're looking at a company that has already seen a significant run-up, but still has room to grow into its expected 2025 earnings.

The Multiples: Rich Trailing, Attractive Forward

When you look at the core valuation multiples (what we call the 'comps'), Myers Industries, Inc. appears expensive on a trailing basis. The current Price-to-Earnings (P/E) ratio sits at 23.62, which is defintely higher than you'd want for a manufacturing and distribution business. But here is the critical distinction: the Forward P/E ratio drops dramatically to just 12.87. That's a huge difference, and it tells you the market is pricing in a major jump in earnings for the coming year.

The Enterprise Value-to-EBITDA (EV/EBITDA) ratio, a better measure for capital-intensive companies, is a more reasonable 8.84. This ratio suggests a valuation of roughly $1.0 billion for the entire business, including debt, relative to its Last Twelve Months (LTM) EBITDA of $120 million as of October 2025. The Price-to-Book (P/B) ratio is 2.27, which is a healthy premium over book value, but not excessive for a company with a strong brand portfolio.

Stock Performance and Analyst Outlook

The stock has had a great run. As of November 2025, the Myers Industries, Inc. stock price of around $17.09 represents a massive 45.34% increase over the last year. The 52-week range tells the story: the stock climbed from a low of $9.06 to a high of $18.24. The market has rewarded the company's strategic moves, like its 'Focused Transformation' program which aims for $20 million in annualized cost savings by the end of 2025.

Wall Street analysts are generally optimistic, but cautious. The consensus rating from analysts is a 'Hold', though some firms rate it a 'Moderate Buy'. They see the value, but they want to see the execution. The average 12-month price target is a uniform $21.00, which forecasts an upside of over 22% from the current price. That's a strong signal that the market believes the earnings growth is real.

Dividend Health and Payout

For income investors, Myers Industries, Inc. is a reliable dividend payer. The annual dividend is currently $0.54 per share, giving you a yield of about 3.10%. This yield is actually higher than the US industry average of 2.91%.

The dividend payout ratio is the key to sustainability. In 2025, the payout ratio is approximately 73%, meaning the company is paying out about three-quarters of its earnings as dividends. This is a sustainable level, but it doesn't leave huge room for massive dividend increases without significant earnings growth. You can dive deeper into the shareholder base by Exploring Myers Industries, Inc. (MYE) Investor Profile: Who's Buying and Why?

• Annual Dividend: $0.54 per share
• Forward Dividend Yield: About 3.10%
• Payout Ratio: Approximately 73%

Risk Factors

You're looking at Myers Industries, Inc. (MYE) and seeing a company in the middle of a major overhaul, which always means higher risk. The core takeaway here is that while management has a clear plan, the execution risk on their transformation, combined with external market softness, is a serious near-term headwind. You need to weigh the potential for their $20 million in cost savings against the reality of declining revenue in key segments.

The biggest external risk is the economic uncertainty hitting their end markets, especially the Vehicle and Automotive Aftermarket sectors. This isn't just a vague macro risk; it directly impacted their third-quarter (Q3) 2025 results. For instance, the Distribution segment's net sales fell to $52.0 million in Q3 2025, a 4.4% drop from the prior year, primarily due to lower volume. That's a clear signal of demand softness that their Material Handling segment, despite its growth, can't fully overcome.

On the internal side, the primary risk is execution. The company is pursuing a Focused Transformation program, including the consolidation of its rotational molding production and the strategic review of the Myers Tire Supply business. This kind of portfolio simplification is defintely necessary, but it introduces operational disruption. Here's the quick math on the strategic challenge:

• Distribution Segment Headwind: The Myers Tire Supply business, currently under strategic review for a potential sale, generated $189 million in revenue over the 12 months ending June 30, 2025.
• Operational Cost: Costs related to idling two rotational molding facilities are expected to be up to $14 million, including about $1 million in cash costs. That's a one-time hit.
• Valuation Pressure: The stock trades at a high Price-to-Earnings (P/E) ratio of 63.5x as of October 2025, significantly above the global packaging industry average of 15.9x. This high valuation means any stumble in their transformation execution will be punished severely by the market.

The good news is the company has clear mitigation strategies. They are on track to achieve $20 million in annualized cost savings, mostly in selling, general, and administrative (SG&A) expenses, by the end of 2025, with $19 million already identified by Q3 2025. Plus, the strength in military product sales-expected to exceed $40 million for the full year 2025-provides a strong, stable counter-cyclical revenue stream.

Still, you need to keep a close eye on the financial metrics that show the immediate pressure. The Q3 2025 adjusted Earnings Per Share (EPS) of $0.26 missed the analyst forecast of $0.28. That 7.14% negative surprise tells you that even with cost cuts, the revenue pressures are real. The one-off loss of $25.9 million over the last twelve months also weighs on the net profit margin, which dropped steeply from 4.8% a year prior to just 1.2% (as of October 2025). The net leverage ratio of 2.6x (Q3 2025) is manageable, but any further earnings contraction will make that debt load feel heavier.

For a deeper dive into the company's valuation and strategic frameworks, you can check out the full post at Breaking Down Myers Industries, Inc. (MYE) Financial Health: Key Insights for Investors.

Here's a snapshot of the operational risks and their mitigation:

Action: Track the announcement regarding the Myers Tire Supply sale; its value and structure will defintely be the next big catalyst or risk.

Growth Opportunities

You're looking for a clear path to growth for Myers Industries, Inc. (MYE), and the story is one of strategic pruning and focused investment. The direct takeaway is that Myers Industries is pivoting away from lower-margin distribution to concentrate on its higher-growth, polymer-based Material Handling segment, a shift that is defintely showing up in their 2025 projections.

The company's 'Focused Transformation' initiative is the engine here, committing to $20 million in annualized cost savings, primarily in selling, general, and administrative (SG&A) expenses, by the end of 2025. This isn't just cutting fat; it's funding their future. This focus is already generating results, with the Material Handling segment-about 75% of total sales-delivering a 1.9% increase in net sales in the third quarter of 2025. They're getting leaner to grow faster.

Key Growth Drivers and Strategic Actions

The core of Myers Industries' near-term growth is built on a few concrete pillars. The strategic divestiture of the Myers Tire Supply business, which generated $189 million in revenue over the 12 months ending June 30, 2025, will streamline the portfolio, allowing for a sharper focus on their polymer manufacturing core. This portfolio optimization is critical for improving overall profitability.

The 2024 acquisition of Signature Systems is a major financial lever for 2025. Here's the quick math: this acquisition is projected to contribute substantial earnings per share (EPS) accretion of $0.20 to $0.30 in 2025, plus annualized operational and cost synergies expected to reach $12 million. That's a huge boost to the bottom line from a single deal.

• Accelerate growth in Infrastructure and Industrial markets.
• Drive $12 million in annualized synergies from the Signature Systems acquisition.
• Consolidate rotational molding capacity for better efficiency.

Future Revenue and Earnings Estimates

While the market is soft in the Vehicle and Consumer segments, the company's focus markets are expected to offset these headwinds. Full-year 2025 consensus estimates project total revenue of $814.20 million and earnings per share (EPS) of $0.92. What this estimate hides is the underlying strength in their niche markets, which will drive the 2026 recovery.

The Industrial segment (30% of sales) is seeing sustained demand for its Scepter military products, with sales expected to exceed $40 million for the full year 2025. Also, the Infrastructure segment (14% of sales) is projected for strong growth, largely driven by the conversion of construction matting from wood to their more durable composite products. This is a clear competitive advantage: a superior, more sustainable product.

The jump in the 2026 EPS projection to $1.47 per share shows the market expects the full benefit of the cost savings and the Signature Systems integration to fully materialize next year. If you want to dive deeper into who is betting on this turnaround, you can read Exploring Myers Industries, Inc. (MYE) Investor Profile: Who's Buying and Why?