Myers Industries swings to Q3 profit on cost cuts, reusable packaging gains

USA – Akron, Ohio-based Myers Industries Inc. reported a third-quarter profit of US$3.1 million for the period ending October 31, 2025, a sharp turnaround from a US$1.2 million loss in the same quarter last year. 

The improvement came after the company closed two underperforming plants earlier this year, which helped trim operating costs by 15%. 

Net sales dipped slightly to US$196.5 million from US$201.8 million, but gross margins climbed to 22.4% from 19.7%, driven by higher pricing and efficiency in its Material Handling segment.

According to the company’s earnings release, the Material Handling division, which focuses on reusable plastic containers and bulk transport solutions, saw sales rise 4% to US$122.4 million.

This growth offset a 7% drop in the Distribution segment to US$74.1 million, where tire service equipment sales softened amid slower automotive aftermarket demand. 

Myers attributed the profit boost to disciplined inventory management and reduced scrap rates in production.

“We executed well on our cost-saving initiatives, delivering stronger results despite market headwinds,” said Mike McGaugh, president and CEO, during an earnings call.

 He noted that the plant closures in Ohio and Texas, completed in August, eliminated US$8 million in annual expenses without disrupting key customer supply chains.

The results highlight Myers’ emphasis on sustainable packaging innovations, a core area for the company. 

Its Reusable Packaging Products (RPP) line, including recyclable intermediate bulk containers, now accounts for 60% of Material Handling revenue. 

In a statement, Myers outlined plans to expand production of bio-based totes by mid-2026, targeting food and beverage clients seeking lower-carbon alternatives to single-use plastics.

This follows a 24% reincorporation rate of manufacturing scrap into new products across operations, as detailed in the firm’s latest environmental update.

Adding to the momentum, the global returnable packaging market is projected to expand at a 6.2% compound annual growth rate through 2030, with Myers listed among top players like CHEP Inc. and ORBIS Corporation in a recent industry analysis. 

The report points to rising demand for durable, eco-friendly solutions amid stricter recycling mandates in Europe and North America. 

For instance, California’s extended producer responsibility laws are expected to drive US$2 billion in annual investments from consumer goods firms by 2027, creating opportunities for suppliers like Myers.

Samantha Rutty, the newly appointed executive vice president and CFO since September, added that adjusted earnings per share reached US$0.15, up from a US$0.02 loss. 

She indicated the company would return US$5 million to shareholders via dividends this quarter, signaling confidence in cash flow stability.

Looking ahead, Myers forecasts full-year sales between US$780 million and US$800 million, with EBITDA margins holding at 10-11%. 

McGaugh emphasized ongoing investments in automation at its Ohio facility to meet surging orders for reusable crates from e-commerce logistics providers. 

These moves position the firm to capture more share in the US$45 billion reusable packaging sector, where biodegradable materials are cutting reliance on virgin plastics by up to 30% in new designs.

The earnings come as broader industry trends favor circular economy practices. 

The Consumer Brands Association noted that major food companies are accelerating shifts to recyclable formats, though some have adjusted 2025 recycled content targets downward due to supply chain hurdles. 

Myers, however, reported exceeding its internal goal of 25% post-consumer resin use in totes, aiding compliance with upcoming U.S. packaging standards.

Investors reacted positively, with shares climbing 3.2% to US$16.45 in after-hours trading.

The company will host its next investor update in January, focusing on expansion into Asia-Pacific markets for sustainable bulk handling gear.

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