Myers (MYE) Q2 Revenue Falls 5%

Core Insights - Myers Industries reported Q2 2025 GAAP revenue of $209.6 million and adjusted non-GAAP EPS of $0.31, missing analyst expectations of $220.6 million in revenue [1][5] - Both revenue and earnings declined compared to the same period last year, reflecting persistent demand softness in key end markets [1][5] - Free cash flow increased significantly to $24.7 million, a 149.5% rise year-over-year, indicating improved cash management despite revenue declines [1][10] Financial Performance - Q2 2025 non-GAAP EPS was $0.31, down 20.5% from $0.39 in Q2 2024 [2][6] - GAAP revenue decreased by 4.8% from $220.2 million in Q2 2024 [2][5] - Adjusted operating income fell 20.9% to $22.8 million, while adjusted EBITDA decreased by 15.5% to $32.9 million [2][6] Segment Performance - Material Handling segment reported GAAP revenue of $158.6 million, a decline of 4.4%, but operating income improved by 2.7% due to favorable raw material costs [7] - Distribution segment generated $51.0 million in GAAP revenue, a 6.0% decline year-over-year, and recorded an operating loss of $0.5 million [8] - The company is reviewing the Myers Tire Supply business, which generated $189 million in revenue over the last twelve months, to simplify its portfolio [9][12] Strategic Focus - The company emphasizes sustainability and operational efficiency, with ongoing cost savings and process improvements [4][11] - Strategic acquisitions, such as Signature Systems, are aimed at broadening engineered product offerings [4][11] - The company is targeting $20 million in annualized cost savings by year-end, having already achieved $15 million in the first half of 2025 [9] Market Outlook - Management expects moderate to strong growth in industrial and infrastructure sectors, which accounted for 43% of revenue as of Q1 2025 [13] - Vehicle and automotive aftermarket markets are anticipated to remain weak, while consumer and food & beverage markets are projected to be stable [13] - No formal quantitative guidance for revenue or earnings was provided for the next quarter or full year, but management expressed confidence in achieving year-over-year growth in Q3 2025 [14]