Aaron Schapper President and Chief Executive Officer Dan Hoehn Vice President and Corporate Controller, Interim Chief Financial Officer Q2 2025 Results Protecting the World from the Ground Up July 31, 2025 1 Today's Speakers Meghan Beringer Sr. Director, Investor Relations 2 Safe Harbor Statement & Non-GAAP Measures Statements in this presentation contain "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including info ...

Company Overview - Myers Industries' net sales reached $836 million, with an adjusted EBITDA of $126 million and an adjusted EBITDA margin of 15%[9] - The company's adjusted EPS stands at $105[9] - Material Handling segment accounts for 75% of the company's end market, while Distribution represents 25%[9] Segment Performance (TTM) - Material Handling segment's net sales were $627 million, representing 75% of net revenue, with an adjusted EBITDA of $146 million and a 23% adjusted EBITDA margin[12,13,14] - Distribution segment's net sales were $209 million, accounting for 25% of net revenue, with an adjusted EBITDA of $7 million and a 3% adjusted EBITDA margin[17] Q1 2025 Financial Results - Net sales were $2068 million, a slight decrease of 02% year-over-year[37,39] - Adjusted operating income increased by 122% to $187 million[37,39] - Diluted adjusted EPS increased by 48% to $022[37,39] - Adjusted EBITDA increased by 137% to $286 million, with an adjusted EBITDA margin of 138%[39] Q1 2025 Segment Results - Material Handling net sales increased by 36% to $1577 million, with an adjusted EBITDA margin of 230%[48] - Distribution net sales decreased by 103% to $492 million, with an adjusted EBITDA margin of 09%[50] Balance Sheet and Cash Flow - Free cash flow generated in Q1 2025 was $20 million[53] - Net leverage ratio increased to 28x[53] - Working capital as a percentage of TTM sales was 141%[53]

Financial Performance - Net sales were $206.8 million, a slight decrease of 0.2% year-over-year[8, 28] - Gross profit increased by 7.5% to $69.1 million[8] - Adjusted operating income increased by 12.2% to $18.7 million[8, 28] - Adjusted net income increased by 5.5% to $8.4 million[8] - Diluted adjusted EPS increased by 4.8% to $0.22[8, 28] - Free cash flow was $2.0 million in Q1[42] Segment Results - Material Handling net sales increased by 3.6% to $157.7 million[37] - Distribution net sales decreased by 10.3% to $49.2 million[39] Strategic Initiatives - The company is targeting $20 million in annualized cost savings by year-end 2025, primarily in SG&A[13, 49] - The company repurchased $1 million in shares in Q1 as part of a $10 million share repurchase authorization[13, 46]

Core Insights - Myers Industries, based in Akron, Ohio, is viewed as a compelling investment opportunity due to a recent surge in share price following a stronger-than-expected Q4 earnings report, consistent dividend payouts, and the launch of its "Focused Transformation" program aimed at growth and efficiency [1][5][15] Financial Performance - The Q4 2024 earnings report revealed adjusted earnings per share (EPS) of 19 cents and GAAP EPS of 11 cents, both exceeding the estimated 10 cents [2] - Net sales increased by 6.7% to $203.9 million, slightly above the projected $203.10 million, with gross margin expanding to 32.3% and adjusted EBITDA rising by 26.2% to $27.5 million, indicating improved operational efficiency [3] - The Material Handling segment saw a 20.3% increase in net sales to $152.7 million, while the Distribution segment experienced a 20.2% decline to $51.2 million due to volume and pricing pressures [4] Strategic Initiatives - The "Focused Transformation" program aims to enhance long-term performance, optimize business structure, improve cost competitiveness, and enable sustainable growth, targeting a $20 million reduction in SG&A expenses by 2025 [6][7] - A comprehensive business portfolio review is underway to identify value creation opportunities, with a focus on high-value opportunities and disciplined cost optimization [7] Dividend and Shareholder Value - Myers Industries has a consistent commitment to returning value to shareholders, with a current dividend yield of approximately 4.40% and an annual dividend of $0.54 per share [8][9] - The trailing dividend payout ratio is high at approximately 125%, but analysts project it to decrease to around 46.2% as earnings grow, enhancing sustainability [10] Market Reaction and Analyst Outlook - Following the positive earnings release, the stock price surged by approximately 27%, indicating strong investor confidence in the company's strategic initiatives [12] - Analysts maintain a Hold rating on the stock, with a consensus price target of $22.00, suggesting a potential upside of over 75% [13][14]