Myers Accelerated Sales Growth as Infrastructure and Food Sales Climbed
Second-quarter net sales rose 9.8% to $179.2 million.
Myers Industries (MYE), a maker of polymer products, posted faster second-quarter sales and adjusted earnings growth as infrastructure and food-and-beverage demand strengthened.
The quarter marked a broader acceleration from the first three months of the year. Sales growth increased from 1.8% in the first quarter, while growth excluding low-margin products exited in late 2023 rose to 13% from 5%.
Adjusted diluted earnings from continuing operations rose 60.6% to $0.53 a share, after increasing 57.1% in the prior quarter. Revenue advanced from $164.6 million sequentially, while operating margin widened to 17.4% from 15.1%.
Infrastructure led the improvement, with revenue rising 52% from a year earlier after growing 26% in the first quarter. Food-and-beverage sales increased 48%, reversing a 12% decline, while industrial sales grew 2%.
Consumer and vehicle demand remained a drag. Consumer sales fell 14% from a year earlier after rising 14% in the first quarter, and vehicle sales declined 19%, deepening from a 14% drop.
Profit gains reflected improved volume and mix, pricing and lower manufacturing costs, partly offset by higher material costs. Gross margin held nearly steady from the prior quarter at 34.3%, while adjusted EBITDA margin increased to 21.8% from 21.3%.
Free cash flow increased to $26.5 million from $23.9 million, helping Myers reduce net debt by another $21.2 million and lower net leverage to 1.9 times. After the quarter ended, the company refinanced its credit facilities with a new $250 million revolver and $250 million term loan, extending both maturities to 2031.