Myers Industries (MYE) Q2 FY26 earnings call: guidance and Q&A

Details on the European expansion, including existing manufacturing presence outside the US and whether contracts were lined up.

The military business historically exported to Europe, but changing geopolitical situations made customers prioritize local production. Myers partnered with Scepter International Poland, supplying raw materials, tooling, engineering expertise, and specifications, with minimal capital outlay. First local shipments from Poland occurred in April, meeting customer needs for quick local supply.

“And so for us was, both Sam and our background on the international side, we really looked at what is the most optimal structure for us to really get our products closer to our customer and decided that's really kind of working a new footprint there with a Poland partner, it was the best way to do it.”

asked by William Dezellem · answered by Aaron Schapper

Timing of anticipated benefits from new automotive models, specifically for passenger vehicles.

The automotive market is a tale of two industries: commercial vehicles are performing better, while the normal consumer vehicle side has been tough. New program launches have been announced, and some signs of life are expected in Q4 for the automotive side. Tariff uncertainties, particularly regarding parts between North America and Canada, still need to be resolved.

“So we're hoping for signs of life in the back half of the year, more specifically in Q4, on our automotive side to see a little bit of revival in that business.”

asked by William Dezellem · answered by Aaron Schapper

Clarification on first half vs. second half dynamics, potential pull-forward in Q2, and whether Q2 performance was structural.

Q2 was strong, with a particularly strong backlog in Signature for infrastructure, partly due to FIFA World Cup demand. Q3 infrastructure is expected to be softer than Q2 due to seasonality and the World Cup spike, but still strong year-over-year. Some pull-forward was seen in seed due to resin price increases, but full-year seed is still expected to be flat. The performance is largely structural, with typical seasonality expected.

“We still have a very strong backlog going into Q3 although it's a little bit down to Q2 for Signature just because we had that significant demand for the FIFA World Cup and a real spike in demand. And Q2 tends to be one of their highest quarters for that business if you look at their history.”

asked by Christian Zyla · answered by Samantha Rutty

How much of Q2's strong performance was due to market dynamics versus unlocking throughput from capacity shifts, and future plans for capacity optimization.

The ability to shift capacity between food and beverage (Buckhorn) and Signature brands helped accelerate performance. The company will continue to look for opportunities to leverage its injection molding capacity across multiple sites to maximize footprint and capital. With Jeff Condino as President of Operations, there will be a consistent focus on identifying and executing such opportunities to meet demand spikes.

“I mean I do think Q2 having the ability to make that capacity move between food and beverage side for Buckhorn and our Signature brand did help us, I would say, accelerate faster and we'll continue to look for opportunities.”

asked by Christian Zyla · answered by Samantha Rutty

Parsing out one-time effects in Q2, specifically from the World Cup and any other one-time orders.

The company did not provide a specific number for the World Cup impact. The strong bottom-line performance was primarily due to volume and mix, leveraging footprint for throughput. Aside from a small pull-forward in seed, there were very few unusual one-time activities; it was mainly a factor of business mix and volume.

“I wouldn't say there was any other particular onetimers other than a little bit of pull forward, as I mentioned, in the seed. But from the rest of the P&L perspective, there was very little in terms of unusual onetime activity. It's really a factor of business mix and their volume.”

asked by Edward Nakamura · answered by Samantha Rutty

Quick update on the sale of MTS.

The company is diligently working on internal schedules and the project plan to move the sales process forward as fast as possible. No definitive timelines can be offered at this stage, but management is acting with urgency and will provide updates when possible.

“So we're working the internal schedules and the project plan on it and we're working diligently to get the sales process to move as fast as possible. As you know, I can't offer any definitive timelines at this stage, but we are acting with urgency.”

asked by Edward Nakamura · answered by Aaron Schapper

Whether the updated food and beverage guidance is driven by Q2 performance or ongoing orders/conversations, and if it signals an exit from the trough.

The guidance raise is a combination of strong Q2 performance and confidence from quoting activity and backlog. It suggests a go-forward raise, indicating consistent growth for the second half, though perhaps not at the same level as Q2. The growth in IBCs (Intermediate Bulk Containers) was specifically highlighted as a strong driver.

“I'd say it's a combination of both. I think Q2 obviously was really strong in that business as well. But quoting activity and backlog have given us confidence that we're seeing that go forward.”

asked by Christian Zyla · answered by Samantha Rutty