Myers Industries stock faces margin pressure after Q3
Published on 10/30/2026 at 01:26 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSQuarterly growth meets margin pressure
- Infrastructure and food and beverage were the strongest end markets in the quarter.
- Management expects significant sequential margin improvement in the fourth quarter.
- The sale of Myers Tire Supply further focuses the portfolio on specialty engineered products.
Myers Industries reported third-quarter results on October 29, 2026, showing solid sales growth but weaker profitability as resin costs and product mix pressured margins. The company said it expects significant sequential margin improvement in the fourth quarter. The results were reported in a company release published by Morningstar.
Revenue growth led by infrastructure
Net sales for the quarter ended September 30 rose 8.1% year over year to USD 171.34 million. Infrastructure revenue increased 38% to USD 40.81 million, while Food & Beverage revenue rose 12% to USD 19.30 million. Industrial, Vehicle and Consumer sales were flat.
Excluding the effect of exiting roughly USD 3 million of low-margin products after idling two rotational molding facilities in the fourth quarter of 2025, Myers said sales growth would have been 10.4%. The company described the underlying demand environment as favorable across several end markets.
Resin costs weigh on profitability
Gross profit declined 5.0% to USD 46.78 million, and reported gross margin fell to 27.3% from 31.1% a year earlier. Operating income decreased 11.2% to USD 14.84 million. Myers attributed the pressure to higher resin costs, an unfavorable product mix and unplanned maintenance expenses, partly offset by higher volume and pricing actions.
Adjusted income from continuing operations increased 5.5% to USD 12.23 million, or USD 0.32 per diluted share, although adjusted EBITDA fell 8.2% to USD 26.58 million. The company also reported a USD 5.58 million loss from discontinued operations, contributing to a quarterly net loss of USD 0.02 per share.
Management points to fourth-quarter recovery
Myers said resin costs have declined and stabilized from their recent peak while pricing actions remain in place. Its full-year end-market outlook calls for strong growth in Infrastructure and Food & Beverage, moderate growth in Industrial and Consumer, and a decline in Vehicle.
The completed sale of Myers Tire Supply simplifies the portfolio and leaves the company focused on specialty engineered products. Total liquidity stood at USD 254.7 million at quarter-end, including USD 53.5 million in cash.
Myers Industries at a glance
- Company: Myers Industries, Inc.
- Ticker: MYE
- Exchange: New York Stock Exchange
- Reporting period: Quarter ended September 30, 2026
- Net sales: USD 171.34 million, up 8.1% year over year
- Adjusted diluted EPS: USD 0.32
- Adjusted EBITDA: USD 26.58 million
Investors are weighing stronger demand in key growth markets against the near-term effect of raw-material inflation and lower margins. The company’s expected fourth-quarter recovery depends on resin stabilization and the continued effect of pricing actions.
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