The sharp margin expansion and cash flow generation signal that the cost-saving initiatives are paying off. Watch for completion of the Myers Tire Supply sale, which will remove the discontinued ops drag and simplify the story. The stock should re-rate higher if these margins sustain.
Price Chart
Executive Summary
Myers Industries reported strong Q1 2026 results driven by margin expansion and cost savings from its Focused Transformation program. Income from continuing operations surged 92% YoY to $13.8M, and adjusted EPS grew 57% to $0.44, well above the prior year. The company also generated $23.9M in free cash flow and reduced leverage to 2.2x. However, a large discontinued operations loss from the Myers Tire Supply divestiture resulted in a net loss of $1.8M.
Key Financial Metrics
Key Facts
- Q1 2026 revenue from continuing operations $164.6M, up 1.8% YoY (5% excluding exited low-margin products)
- Gross margin expanded 330 bps to 34.4%; operating margin expanded 450 bps to 15.1%
- Adjusted EPS from continuing ops $0.44, up 57.1% YoY
- Free cash flow from continuing ops $23.9M, up from $2.2M in Q1 2025
- Net leverage reduced to 2.2x; total liquidity $289.3M
- Myers Tire Supply reclassified as discontinued operations; loss of $15.6M from discontinued ops
Financial Impact
Strong operational leverage: operating income up 44.5% on 1.8% revenue growth. Adjusted EBITDA margin up 420 bps to 21.3%.
Risk Factors
- Continued losses from discontinued operations (Myers Tire Supply) could weigh on reported net income
- Sales growth still modest (1.8% reported, 5% adjusted); end-market softness in Vehicle and Food & Beverage
- Execution risk on portfolio transformation and divestiture timing
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-210296 |
| Document: mye-20260507.htm | 0001193125-26-210296 |
| Document: 0001193125-26-210296-index-headers.html | 0001193125-26-210296 |
| Document: 0001193125-26-210296-index.html | 0001193125-26-210296 |
| Document: 0001193125-26-210296.txt | 0001193125-26-210296 |
| 8-K Data (Synthetic) | 0001193125-26-210296 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 31, 2026 4w ago | 8-K | $31.20 $30.77 | ▼ −1.38% | ▼ −1.70% | $31.63 (+1.38%) |
Jul 30, 2026 9w ago | 8-K | $32.97 $33.29 | ▲ +0.97% | ▼ −2.99% | $31.63 (−4.06%) |
May 7, 2026 21w ago | 8-K | $22.40 $23.08 | ▲ +3.04% | ▼ −0.10% | $31.63 (+41.21%) |
Mar 5, 2026 30w ago | 8-K | $22.63 $21.09 | ▼ −6.82% | ▼ −3.03% | $31.63 (+39.75%) |
US Market Status
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