Myers Industries Q2 2025: Navigating Tariff Challenges and Cash Flow Contradictions

Tariffs and alternative suppliers, free cash flow expectations, tariff impact and mitigation strategies, distribution business challenges and recovery, strategic review of MTS and infrastructure integration are the key contradictions discussed in Myers Industries' latest 2025Q2 earnings call.



Second Quarter Financial Performance:
- Myers Industries reported net sales of $209.6 million for the second quarter, down 4.8% from the previous year.
- The decline was primarily due to lower sales in the vehicle and automotive aftermarket segments, despite strong performance in the industrial segment, particularly in military products.

Focused Transformation Initiatives:
- Myers initiated a strategic review of its Myers Tire Supply (MTS) business, which accounts for significant historical contributions.
- The company also announced the consolidation of rotational molding capacity by idling 2 of 9 facilities, expected to yield at least $3 million in annual savings.

Financial and Operational Efficiency:
- The company achieved a 5% reduction in adjusted SG&A expenses, keeping them flat as a percentage of sales.
- Myers is on track to achieve a targeted $20 million in cost reductions, primarily from SG&A, by the end of 2025.

Cash Flow and Capital Allocation:
- Myers generated $25 million in free cash flow for the quarter, with an improving operating cash flow of $28.3 million.
- The company continues to focus on opportunistic share repurchases and debt reduction, with total debt reduced by $13 million in the second quarter.