ITEM 7. Management’s Discussion and Analysis of Results of Financial Condition and Operations
Executive Overview
The Company conducts its business activities in two reportable segments: The Material Handling Segment and the Distribution Segment.
The Company designs, manufactures, and markets a variety of plastic, metal and rubber products. The Material Handling Segment manufactures a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, composite ground protection matting, consumer fuel containers and tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally molded, compression molded or blow molded. The Distribution Segment is engaged in the distribution of tools, equipment and supplies used for tire, wheel and under vehicle service on passenger, heavy truck and off-road vehicles, as well as the manufacturing of tire repair and retreading products.
The Company’s results of operations for the year ended December 31, 2025 compared with the year ended December 31, 2024 are discussed below. The current economic environment includes heightened risks from tariffs, inflation, interest rates, banking liquidity, volatile commodity costs, supply chain disruptions and labor availability stemming from the broader economic effects of the international geopolitical climate, including rapidly changing regulations which has increased volatility in global commodity markets, including oil (a component of many plastic resins), energy and agricultural commodities. Some of our businesses have been and may continue to be affected by these broader economic effects, including customer demand for our products, supply chain disruptions, labor availability, tariffs and inflation. The Company believes it is well-positioned to manage through this uncertainty as it has a strong balance sheet with sufficient liquidity and borrowing capacity as well as a diverse product offering and customer base.
Results of Operations: 2025 Compared with 2024
Net Sales:
(dollars in thousands)
Year Ended December 31,
Segment
Change
% Change
Material Handling
Distribution
Inter-company sales
Total net sales
Net sales for the year ended December 31, 2025 were $825.7 million, a decrease of $10.5 million or 1.3% compared to the prior year. Net sales decreased due to lower pricing of $14.5 million, lower volume of $1.6 million and the effect of unfavorable currency translation of $0.8 million. The decrease in net sales was partially offset by $6.4 million of incremental sales in the Material Handling Segment from the acquisition of Signature on February 8, 2024. Signature's annual sales were approximately $110 million at the time of the acquisition.
Net sales in the Material Handling Segment increased $0.5 million or 0.1% for the year ended December 31, 2025 compared to the prior year. Net sales increased due to $6.4 million of incremental sales from the acquisition of Signature on February 8, 2024 and higher volume of $8.7 million, partially offset by lower pricing of $13.8 million and the effect of unfavorable currency translation of $0.8 million.
Net sales in the Distribution Segment decreased $10.9 million or 5.1% in the year ended December 31, 2025 compared to the prior year, primarily due to lower volume of $10.2 million and lower pricing of $0.7 million.
Cost of Sales & Gross Profit:
Year Ended December 31,
(dollars in thousands)
Change
% Change
Cost of sales
Gross profit
Gross profit as a percentage of sales
Gross profit increased $5.2 million, or 1.9%, for the year ended December 31, 2025 compared to the prior year due to the benefits of the acquisition of Signature on February 8, 2024, favorable cost productivity, lower material costs and favorable mix, partially offset by
lower volume and pricing as described under Net Sales above. Gross margin was 33.4% for the year ended December 31, 2025 compared to 32.4% for the same period in 2024.
Selling, General and Administrative Expenses:
Year Ended December 31,
(dollars in thousands)
Change
% Change
SG&A expenses
SG&A expenses as a percentage of sales
Selling, general and administrative (“SG&A”) expenses for the year ended December 31, 2025 were $172.4 million, a decrease of $1.6 million or 0.9% compared to the prior year. Decreases in SG&A expenses in 2025 were primarily due to $3.9 million of lower salaries and benefits, $1.6 million of lower facility costs, $1.6 million of lower variable selling expenses, $1.5 million of lower legal and professional fees and $0.5 million of lower commissions, partially offset by $6.5 million of higher incentive compensation and $3.1 million of incremental SG&A from the acquisition of Signature on February 8, 2024. SG&A expenses also decreased as compared to prior year due to $4.6 million of lower acquisition and integration costs due to the Signature acquisition as described in Note 3 to the consolidated financial statements, in addition to a $3.2 million recovery of purchased credit deteriorated assets that was recognized in the current year as a reduction to bad debt expense, partially offset by $5.3 million of higher restructuring costs as described in Note 6 to the consolidated financial statements. Environmental matters described in Note 9 to the consolidated financial statements resulted in a net $0.2 million of charges for the year ended December 31, 2025, which compared to $0.2 million of income in the year ended December 31, 2024.
Depreciation and amortization:
Depreciation and amortization, exclusive of amounts within Cost of sales , decreased $0.6 million to $17.4 million for the year ended December 31, 2025 as compared to $18.1 million for the year ended December 31, 2024. The decrease was primarily related to lower intangible amortization related to prior acquisitions and lower depreciation related to asset disposals in conjunction with the facility consolidations, as described in Note 6.
Freight out:
Freight out costs decreased $1.0 million to $11.0 million for the year ended December 31, 2025 as compared to $12.0 million for the year ended December 31, 2024. The decrease was primarily related to lower overall sales volume, as discussed above.
(Gain) loss on disposal of fixed assets:
During the year ended December 31, 2025 the Company recognized $0.6 million of net losses on the disposal of fixed assets primarily related to fixed asset disposals and write-downs recognized in conjunction with the previously announced facility consolidations as described in Note 6, partially offset by a gain on the sale of fixed assets. During the year ended December 31, 2024 the Company recognized $0.2 million of losses on the disposal of fixed assets primarily related to the sale of fixed assets.
Impairment Charges:
During the year ended December 31, 2024, the Company recorded a $22.0 million non-cash impairment charge, for the full carrying value of goodwill in the rotational molding reporting unit, included in the Material Handling Segment, as discussed in Note 4 to the consolidated financial statements.
Net Interest Expense:
Year Ended December 31,
(dollars in thousands)
Change
% Change
Net interest expense
Average outstanding borrowings, net
Weighted-average borrowing rate
Net interest expense for the year ended December 31, 2025 was $29.4 million compared to $30.9 million during 2024. The lower net interest expense was due to a lower weighted-average borrowing rate in the current year, partially offset by higher average outstanding borrowings as a result of the acquisition of Signature, which was funded through an amendment and restatement of Myers' existing loan agreement discussed below.
Income Taxes:
Year Ended December 31,
(dollars in thousands)
Income before income taxes
Income tax expense
Effective tax rate
The Company's effective tax rate was 22.6% for the year ended December 31, 2025 compared to 46.8% in the prior year. The decrease in the effective tax rate is driven by fixed non-deductible expenses, including expenses related to the Signature acquisition in the prior year on lower income before income taxes plus the tax effect of prior year impairment charges.
Financial Condition & Liquidity and Capital Resources
The Company’s primary sources of liquidity are cash on hand, cash generated from operations and availability under the Amended Loan Agreement (defined below). At December 31, 2025, the Company had $45.1 million of cash, $244.7 million available under the Amended Loan Agreement and outstanding debt of $353.8 million, including the finance lease liability of $8.0 million. At December 31, 2025, our primary contractual obligations relate to our debt and lease arrangements as described in Notes 10 and 13 to the consolidated financial statements. The Company believes that cash on hand, cash flows from operations and available capacity under its Amended Loan Agreement will be sufficient to meet expected business requirements including capital expenditures, dividends, working capital, debt service, and to fund future growth.
Operating Activities
Cash provided by operating activities was $86.8 million and $79.3 million for the years ended December 31, 2025 and 2024, respectively. Cash generated from working capital was $5.0 million for the year ended December 31, 2025, compared to cash generated from working capital of $9.6 million in the prior year, primarily due to increases in accounts receivable, partly offset by reductions in inventory.
Investing Activities
Net cash used by investing activities was $18.9 million for the year ended December 31, 2025 compared to cash used of $372.5 million for the year ended December 31, 2024. In 2024, the Company paid $348.3 million to acquire Signature, net of cash acquired and working capital adjustments, as discussed in Note 3 to the consolidated financial statements. Capital expenditures were $19.6 million and $24.4 million for the years ended December 31, 2025 and 2024, respectively.
Financing Activities
Net cash used by financing activities was $54.5 million for the year ended December 31, 2025 compared to cash provided by $295.1 million for the year ended December 31, 2024. Net borrowings (repayments) of the Company's revolving credit facility for the year ended December 31, 2025 and December 31, 2024 were $0.0 million and $(20.0) million, respectively. The Company also made repayments of the Term Loan A totaling $31.0 million and $18.0 million for the years ended December 31, 2025 and December 31, 2024, respectively. Net proceeds from the issuance of common stock in connection with incentive stock option exercises were $1.1 million and $3.3 million in 2025 and 2024, respectively. Cash paid for tax withholdings on vesting of stock compensation totaled $1.0 million and $2.1 million in 2025 and 2024, respectively. The Company also used $2.5 million for the repurchase of its common stock during the year ended December 31, 2025, as described in Note 5 to the consolidated financial statements. In connection with the Signature acquisition in 2024, the Company received proceeds of $400 million under a new term loan facility and repaid $38.0 million of senior unsecured notes, including $26.0 million of senior unsecured notes that matured in January 2024 and the prepayment of $12.0 million of senior unsecured notes in conjunction with the amendment and restatement to the Loan Agreement described below. Fees paid for the amendment and restatement to the Loan Agreement in February 2024 totaled $9.2 million. The Company also used cash to pay dividends of $20.5 million and $20.4 million in 2025 and 2024, respectively.
Credit Sources
Repayment and termination of Senior Unsecured Notes
On January 12, 2024, the Company repaid $26.0 million of senior unsecured notes upon maturity using cash on hand and availability under the Loan Agreement. On February 6, 2024, in connection with the first amendment and restatement to the Loan Agreement described below, the Company prepaid the remaining $12.0 million face value of senior unsecured notes, which were due January 15, 2026, using availability under the revolving credit facility under the Loan Agreement. After giving effect to the payment in full, all outstanding senior unsecured notes under the Note Purchase Agreement have been paid and the Note Purchase Agreement has been terminated. In conjunction with the termination the Company recognized a loss on debt extinguishment of $0.1 million, primarily representing the make-whole fees on the senior unsecured notes and the unamortized value of the original issuance discount.
First Amendment to Loan Agreement
On February 8, 2024, the Company entered into Amendment No. 1 to the Seventh Amended and Restated Loan Agreement (“Amendment No. 1”), which amended the Seventh Amended and Restated Loan Agreement (the "Loan Agreement” – see also Note 10) dated September 29, 2022 (collectively, the “Amended Loan Agreement”). Amendment No. 1, among other things, permitted the acquisition of Signature Systems and provided a new 5-year $400 million term loan facility (“Term Loan A”). Term Loan A will amortize in eight quarterly installment payments of $5 million beginning June 30, 2024, quarterly installment payments of $10 million thereafter, and any remaining balance due upon maturity. Term Loan A may be voluntarily prepaid at any time, in whole or in part, without penalty or premium, however, all amounts repaid or prepaid in respect of Term Loan A may not be reborrowed.
Amendment No. 1 did not change the existing revolving credit facility’s maturity date or $250 million borrowing limit, which includes a letter of credit subfacility and swingline subfacility. In connection with Amendment No. 1, the Company incurred deferred financing fees of $9.2 million.
On May 2, 2024, the Company entered into an interest rate swap agreement to mitigate the variable interest rate risk of borrowings under the Amended Loan Agreement. The swap has a beginning notional value of $200.0 million, which reduces proportionately with scheduled Term Loan A amortization payments, and has a final maturity date of January 31, 2029. At December 31, 2025, the remaining notional value of the Company's interest rate swap totaled $182.5 million. The swap is designated as a cash flow hedge and effectively results in a fixed rate of 4.606% plus the applicable margin for the hedged debt, as described in Notes 1 and 10 to the consolidated financial statements.
As of December 31, 2025, $244.7 million was available under the Amended Loan Agreement, after borrowings and the Company had $5.3 million of letters of credit issued related to insurance and other financing contracts in the ordinary course of business. Borrowings under the Amended Loan Agreement bear interest at the Term SOFR, RFR, SONIA, EURIBOR and CORRA-based borrowing rates.
As of December 31, 2025, the Company was in compliance with all of its debt covenants. The most restrictive financial covenants for all of the Company’s debt are a net leverage ratio (defined as net debt divided by earnings before interest, taxes, depreciation and amortization, as adjusted) and an interest coverage ratio (defined as earnings before interest, taxes, depreciation and amortization, as adjusted, divided by interest expense). The ratios as of and for the period ended December 31, 2025 are shown in the following table:
Required Level
Actual Level
Interest Coverage Ratio
3.00 to 1 (minimum)
Net Leverage Ratio
3.25 to 1 (maximum)
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements that have, or are reasonably expected to have, a material current or future effect on its financial condition, results of operations, liquidity, capital expenditures or capital resources at December 31, 2025.
Critical Accounting Policies and Estimates
The discussion and analysis of the Company’s financial condition and results of operations are based on the accompanying consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). As indicated in the Summary of Significant Accounting Policies included in the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K, the amount of assets, liabilities, revenue and expenses reported are affected by estimates and judgments that are necessary to comply with U.S. GAAP. The Company bases its estimates on prior experience and other assumptions that they consider reasonable to their circumstances. The Company believes the following matters may involve a high degree of judgment and complexity.
Contingencies — In the ordinary course of business, the Company is involved in various legal proceedings and contingencies, including environmental matters. When a loss arising from these matters is probable and can reasonably be estimated, the most likely amount of the estimated probable loss is recorded, or if a range of probable loss can be estimated and no amount within the range is a better estimate than any other amount, the minimum amount in the range is recorded. Disclosure of contingent losses is also provided when there is a reasonable possibility that the ultimate loss could exceed the recorded provision or if such probable loss cannot be reasonably estimated. As additional information becomes available, any potential liability related to these contingent matters is assessed and the estimates are revised, if necessary. The actual resolution of these contingencies may differ from these estimates, and it is possible that future earnings could be affected by changes in estimated outcomes of these contingencies. If a contingency were settled for an amount greater than our estimate, a future charge to income would result. Likewise, if a contingency were settled for an amount that is less than our estimate, a future credit to income would result. See disclosure of contingencies in Note 9 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K.
Business Combinations – The Company uses the acquisition method of accounting to allocate costs of acquired businesses to the assets acquired and liabilities assumed based on their estimated fair values at the dates of acquisition. The excess costs of acquired businesses over the fair values of the assets acquired and liabilities assumed are recognized as goodwill. The valuations of the acquired assets and liabilities will impact the determination of future operating results. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, revenue growth rates, discount rates, customer attrition rates, royalty rates, asset lives, contributory asset charges, and market multiples, among other items. The Company determines the fair values of intangible assets acquired generally in consultation with third-party valuation advisors. See disclosure of acquisitions in Note 3 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K.
Goodwill – The Company performs its goodwill impairment test annually as of October 1 and in the interim only when impairment indicators are present. A quantitative assessment requires the Company to estimate the fair value of the reporting unit (Level 3 measurement), which the Company does using a combination of a discounted cash flow analysis and market-based approach. Estimating fair value requires the exercise of significant judgment, including judgment about appropriate discount rates, long-term growth rates and the amount and timing of expected future cash flows. The cash flows employed in the discounted cash flow analyses are based on the most recent budget and long-term forecast. The discount rates used in the discounted cash flow analyses are intended to reflect the risks inherent in the future cash flows of the respective reporting units. The market-based approach estimates fair value using market multiples of various financial measures compared to a set of comparable public companies and recent comparable transactions. The fair value of the reporting unit is then compared to the carrying value, and any excess carrying value of the reporting unit above the fair value would indicate impairment. See disclosure of goodwill in Note 4 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K.
Recent Accounting Pronouncements
Information regarding the recent accounting pronouncements is contained in the Summary of Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
Year Ended December 31, 2024 Compared to Year Ended December 31, 2023
For a comparison of the Company’s results of operations for the fiscal years ended December 31, 2024 and December 31, 2023, see “Part II, Item 7. Management’s Discussion and Analysis of Results of Operations and Financial Condition” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 6, 2025.
ITEM 7A. Quantitative and Qualitat ive Disclosures About Market Risk
Market Risk and Derivative Financial Instruments
Interest Rate Risk
The Company has certain financing arrangements that require interest payments based on floating interest rates, and to that extent, the Company’s financial results are subject to changes in the market rate of interest. Borrowings under the Amended Loan Agreement bear interest at the Term SOFR, RFR, SONIA, EURIBOR and CORRA-based borrowing rates. Based on current debt levels at December 31, 2025, if market interest rates decrease or increase one percent, the Company’s annual variable interest expense would change by approximately $1.7 million.
The Company has entered into an interest rate swap agreement to mitigate the variable interest rate risk under the Amended Loan Agreement, which effectively results in a fixed rate debt on a portion of its outstanding borrowings. Based on current debt levels at December 31, 2025, if market interest rates decrease or increase one percent, the Company's annual fixed rate interest expense on the fair value of the interest rate swap would change by approximately $4.7 million.
Foreign Currency Exchange Risk
Some of the Company’s subsidiaries operate in foreign countries and their financial results are subject to exchange rate movements. The Company has operations in Canada and Europe with foreign currency exposure, primarily due to U.S. dollar sales made from businesses in Canada and Europe to customers in the United States. The Company manages its exposure to foreign currency risk by promptly converting funds to U.S. dollars. At December 31, 2025, the Company had no foreign currency arrangements or contracts in place.
Commodity Price Risk
The Company uses certain commodity raw materials, primarily plastic resins, and other commodities, such as natural gas, in its operations. The cost of operations can be affected by changes in the market for these commodities, particularly plastic resins. The Company currently has no derivative contracts to hedge changes in raw material pricing. The Company may from time to time enter into forward buy positions for certain utility costs, which were not material at December 31, 2025. Significant future increases in the cost of plastic resin or other adverse changes in the general economic environment could have a material adverse impact on the Company’s financial position, results of operations or cash flows.
ITEM 8. Financial Statemen ts and Supplementary Data
Report of Independent Regist ered Public Accounting Firm
To the Shareholders and the Board of Directors of Myers Industries, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated statements of financial position of Myers Industries, Inc. and subsidiaries (the Company) as of December 31, 2025, and 2024, the related consolidated statements of operations, comprehensive income (loss), shareholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control--Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated March 5, 2026 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
New Idria Mercury Mine (New Idria Mine) Environmental Liability
Description of the Matter
As discussed in Note 9 of the consolidated financial statements, in 2015, the U.S. Environmental Protection Agency (“EPA”) informed a subsidiary of the Company that it considers it to be a potentially responsible party (“PRP”) in connection with the New Idria Mine. At December 31, 2025, the Company has recorded liabilities for the estimated cost primarily to execute a Remedial Investigation/Feasibility Study (“RI/FS”) work plan being developed with the EPA associated with the New Idria Mine. The Company has not accrued for remediation costs associated with this site because the amount of such costs or a range of reasonably possible costs cannot be estimated at this time.
Auditing the determination of the amount of the RI/FS liability (“the Liability”) involved a high degree of subjectivity as estimates performed by the Company’s third-party consultant that impact the determination of the Liability were based on factors unique to the affected site and subject to various laws and regulations governing the protection of the applicable environment.
How We Addressed the Matter in Our Audit
We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company’s controls over the determination of the Liability. Our audit procedures included, among others, testing controls over management’s determination of the estimated costs to perform the RI/FS.
To test the Liability, we performed audit procedures that included, among others, inquiring of senior management, senior internal counsel, and management’s third-party consultant to understand recent activity in the RI/FS process, inspecting written communications from the EPA to corroborate the anticipated scope of work under the RI/FS, and testing management’s accrual determination by comparing to the cost estimates provided by the third-party consultant. Further, we, with the assistance of our environmental specialists, compared the cost estimates used by management to historical data and trends, including historical costs for work previously completed by the EPA and trends for cost of RI/FS work performed in similar areas for similar sized sites, as well as notifications or decisions from regulatory agencies. In addition, we evaluated the competency and objectivity of management’s third-party consultant, and we obtained written representations from senior internal counsel and external counsel. We assessed the adequacy of the disclosures in the consolidated financial statements related to the New Idria Mine.
/s/ Ernst & Young LLP
We have served as the Company’s auditor since 2011.
Akron, Ohio
March 5, 2026
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statem ents of Operations
For the Years Ended December 31, 2025, 2024, and 2023
(Dollars in thousands, except per share data)
For the Year Ended December 31,
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Depreciation and amortization
Freight out
(Gain) loss on disposal of fixed assets
Impairment charges
Operating income
Interest expense, net
Income before income taxes
Income tax expense
Net income
Net income per common share:
Basic
Diluted
Dividends declared per share
The accompanying notes are an integral part of these statements.
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of C omprehensive Income (Loss)
For the Years Ended December 31, 2025, 2024, and 2023
(Dollars in thousands)
For the Year Ended December 31,
Net income
Other comprehensive income (loss):
Foreign currency translation adjustment
Unrealized gain (loss) on interest rate swap contracts (1)
Realized (gain) loss on interest rate swap contracts reclassified to interest expense
Unrealized gain (loss) on pension liability, net of tax expense of $ 0 , $ 54 and $ 40 , respectively
Realized (gain) loss on pension liability reclassified to earnings (2)
Total other comprehensive income (loss)
Comprehensive income
(1) Amounts shown net of tax expense (benefit) of $( 598 ) and $( 843 ) for the years ended December 31, 2025 and 2024, respectively.
(2) Amounts reclassified to Selling, general and administrative expenses net of tax expense (benefit) of $( 399 ) for the year ended December 31, 2025.
The accompanying notes are an integral part of these statements.
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Financial Position
As of December 31, 2025 and 2024
(Dollars in thousands)
December 31,
December 31,
Assets
Current Assets
Cash
Trade accounts receivable, less allowances of $ 4,572 and $ 5,234 , respectively
Other accounts receivable, net
Income tax receivable
Inventories, net
Prepaid expenses and other current assets
Total Current Assets
Property, plant, and equipment, net
Right of use asset - operating leases
Goodwill
Intangible assets, net
Deferred income taxes
Other
Total Assets
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable
Accrued employee compensation
Income taxes payable
Accrued taxes payable, other than income taxes
Accrued interest
Other current liabilities
Operating lease liability - short-term
Finance lease liability - short-term
Long-term debt - current portion
Total Current Liabilities
Long-term debt
Operating lease liability - long-term
Finance lease liability - long-term
Other liabilities
Deferred income taxes
Total Liabilities
Shareholders’ Equity
Serial Preferred Shares (authorized 1,000,000 shares; none issued and outstanding)
Common Shares, without par value (authorized 60,000,000 shares;
outstanding 37,381,741 and 37,262,566 ; net of treasury shares
of 5,170,716 and 5,289,891 , respectively)
Additional paid-in capital
Accumulated other comprehensive loss
Retained deficit
Total Shareholders’ Equity
Total Liabilities and Shareholders’ Equity
The accompanying notes are an integral part of these statements.
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Shareholders’ Equity
For the Years Ended December 31, 2025, 2024 and 2023
(Dollars in thousands, except share data)
Common Shares
Additional
Paid-In
Accumulated
Other
Comprehensive
Retained
Total
Shareholders'
Number
Amount
Capital
Income (Loss)
Deficit
Equity
Balance at January 1, 2023
Net income
Issuances under option plans
Dividend reinvestment plan
Restricted stock vested
Stock compensation expense
Shares withheld for employee taxes on
equity awards
Foreign currency translation adjustment
Declared dividends - $ 0.54 per share
Pension liability, net of tax of $ 40
Balance at December 31, 2023
Net income
Issuances under option plans
Dividend reinvestment plan
Restricted stock vested
Stock compensation expense
Shares withheld for employee taxes on
equity awards
Foreign currency translation adjustment
Declared dividends - $ 0.54 per share
Interest rate swap, net of tax of ($ 843 )
Pension liability, net of tax of $ 54
Balance at December 31, 2024
Net income
Issuances under option plans
Dividend reinvestment plan
Restricted stock vested
Stock compensation expense
Shares withheld for employee taxes on
equity awards
Repurchase of common stock
Foreign currency translation adjustment
Declared dividends - $ 0.54 per share
Interest rate swap, net of tax of ($ 598 )
Pension liability, net of tax of ($ 399 )
Balance at December 31, 2025
The accompanying notes are an integral part of these statements.
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statem ents of Cash Flows
For the Years Ended December 31, 2025, 2024 and 2023
(Dollars in thousands)
For the Year Ended December 31,
Cash Flows From Operating Activities
Net income
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Depreciation and amortization
Amortization of deferred financing costs
Amortization of acquisition-related inventory step-up
Non-cash stock-based compensation expense
(Gain) loss on disposal of fixed assets
Impairment charges
Deferred taxes
Other
Cash flows provided by (used for) working capital
Accounts receivable - trade and other, net
Inventories
Prepaid expenses and other current assets
Accounts payable and accrued expenses
Net cash provided by (used for) operating activities
Cash Flows From Investing Activities
Capital expenditures
Acquisition of business, net of cash acquired
Proceeds from sale of property, plant and equipment
Net cash provided by (used for) investing activities
Cash Flows From Financing Activities
Borrowings on revolving credit facility
Repayments on revolving credit facility
Proceeds from Term Loan A
Repayments of Term Loan A
Repayments of senior unsecured notes
Payments on finance lease
Cash dividends paid
Proceeds from issuance of common stock
Shares withheld for employee taxes on equity awards
Repurchase of common stock
Deferred financing fees
Net cash provided by (used for) financing activities
Foreign exchange rate effect on cash
Net increase (decrease) in cash
Cash at January 1
Cash at December 31
Supplemental Disclosures of Cash Flow Information
Cash paid during the year for:
Interest
Income taxes
The accompanying notes are an integral part of these statements.
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Dollars in thousands, except where otherwise indicated)
1. Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements include the accounts of Myers Industries, Inc. and all wholly owned subsidiaries (collectively, the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. All subsidiaries that are not wholly owned and are not included in the consolidated operating results of the Company are immaterial investments which have been accounted for under the equity or cost method. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the timing and amount of assets, liabilities, equity, revenues, and expenses recorded and disclosed. Actual results could differ from those estimates.
In the first quarter of 2025, the Company updated its presentation of Depreciation and amortization expenses and third-party Freight out costs previously included in Selling, general and administrative expenses. Prior year amounts have been updated to conform to the current presentation as shown in the Consolidated Statements of Operations.
Accounting Standards Adopted
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This ASU is intended to enhance the transparency and decision usefulness of income tax disclosures to provide information to better assess how an entity's operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The amendments within this ASU were applied on a retrospective basis. The Company adopted this standard effective December 15, 2025. Refer to Note 11 for further information.
Accounting Standards Not Yet Adopted
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU is intended to improve the disclosures about an entity's expenses and requires disaggregation of certain expense captions into specified categories to provide more detailed information about the types of expenses commonly presented. For the Company, this ASU is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments within this ASU should be applied prospectively to financial statements issued for reporting periods after the effective date of this update or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.
Translation of Foreign Currencies
All asset and liability accounts of consolidated foreign subsidiaries are translated at the current exchange rate as of the end of the accounting period and income statement items are translated monthly at an average currency exchange rate for the period. The resulting foreign currency translation adjustment is recorded in other comprehensive income (loss) as a separate component of shareholders’ equity.
Fair Value Measurement
Fair value is the price to hypothetically sell an asset or transfer a liability in an orderly manner in the principal market for that asset or liability. Accounting standards prioritize the use of observable inputs in measuring fair value. The level of a fair value measurement is determined entirely by the lowest level input that is significant to the measurement. The three levels are (from highest to lowest):
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2: Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs that are observable either directly or indirectly.
Level 3: Unobservable inputs for which there is little or no market data or which reflect the entity’s own assumptions.
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
The Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments approximates carrying value due to the nature and relative short maturity of these assets and liabilities.
The fair value of the Company’s revolving credit facility, as defined in Note 10, approximates carrying value due to the floating rates and the relative short maturity (less than 90 days) of any revolving borrowings under this agreement. The carrying value of the unhedged portion of the Company’s term loan, as defined in Note 10, approximates fair value given that the underlying interest rate applied to such amounts outstanding is currently based upon floating market rates and the Company has the ability to repay the outstanding principal at par value at any time under the terms of this agreement.
The Company has also entered into an interest rate swap contract to reduce its exposure to fluctuations in variable interest rates for future interest payments, as defined in Note 10. The Company uses significant other observable market data or assumptions (Level 2 inputs) in determining the fair value of its interest rate swap that we believe market participants would use in pricing similar assets or liabilities, including assumptions about counterparty risk. The fair value estimates reflect an income approach based on the terms of the interest rate swap contract and inputs corroborated by observable market data including interest rate curves. Refer to the derivative instruments section below for further information regarding the fair value measurements for the interest rate swap.
The purchase price allocations associated with the February 8, 2024 acquisition of Signature CR Intermediate Holdco, Inc. ("Signature" or "Signature Systems"), as described in Note 3, required fair value measurements using unobservable inputs which are considered Level 3 inputs. The fair value of the acquired intangible assets was determined using an income approach.
Impairment testing of goodwill and indefinite-lived intangible assets as described in Note 4 involves determination of fair value using unobservable inputs, which are considered Level 3 inputs. The fair values of the reporting units in accordance with the goodwill impairment test were determined using the income and/or market approaches.
Derivative Instruments
On May 2, 2024, the Company entered into an interest rate swap agreement to limit its exposure to changes in interest rates on a portion of its floating rate indebtedness. The interest rate swap agreement is designated as a cash flow hedge that qualifies for hedge accounting. The swap has a beginning notional value of $ 200.0 million, which reduces proportionately with scheduled Term Loan A amortization payments, and has a final maturity date of January 31, 2029 . The interest rate swap effectively results in a fixed rate of 4.606 % plus the applicable margin for the hedged debt, as described in Note 10. The reset dates and all other critical terms on the term loans perfectly match with the interest rate swap and accordingly there were no amounts excluded from the measurement of hedge effectiveness.
At December 31, 2025 , the remaining notional value of the Company's interest rate swap totaled $ 182.5 million and the net fair value of the Company's interest rate swap contract was estimated to be an unrealized loss of $ 5.7 million, of which $ 2.0 million and $ 3.7 million is included in the Consolidated Statements of Financial Position within Other current liabilities and Other liabilities (long-term), respectively. Fair value adjustments are recorded as a component of Accumulated Other Comprehensive Income (Loss) ('AOCI') in the Consolidated Statements of Financial Position and balances in AOCI are reclassified into earnings when transactions related to the underlying risk are settled. The pre-tax balance of interest rate swap gain (loss) in AOCI for the years ended December 31, 2025 and 2024 was $( 2.5 ) million and $( 3.2 ) million, respectively. As of December 31, 2025 , $ 2.0 million of net interest rate swap losses recorded in AOCI are expected to be reclassified into earnings within the next twelve months; however, the actual amount that will be reclassified will vary based on changes in interest rates.
Concentration of Credit Risk
Financial instruments that potentially subject the Company to concentration of credit risk primarily consist of trade accounts receivable. The concentration of accounts receivable credit risk is generally limited based on the Company’s diversified operations, with customers spread across many industries and countries. In 2025 , there were no customers that accounted for more than ten percent of net sales. The Company does not have a material concentration of sales in any country outside of the United States.
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
Allowance for Credit Losses
Management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the collectability of accounts receivable based on a combination of factors. The Company reviews historical trends for credit loss as well as current economic conditions in determining an estimate for its allowance for credit losses. Additionally, in circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for credit losses is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably expects will be collected. Expense related to bad debts was approximately $ 0.5 million, $ 1.9 million and $ 1.8 million for 2025, 2024 and 2023, respectively, and is recorded within Selling, general and administrative expenses in the Consolidated Statements of Operations. Deductions from the allowance for doubtful accounts, net of recoveries, were approximately $ 0.9 million, $ 0.7 million and $ 1.1 million for 2025, 2024 and 2023, respectively.
The changes in the allowance for credit losses included within Trade accounts receivable for the years ended December 31, 2025 and 2024 were as follows:
Balance at January 1
Provision for expected credit loss, net of recoveries
Write-offs and other
Balance at December 31
Allowance for credit losses pertaining to the purchased credit deteriorated assets acquired in conjunction with the acquisition of Signature, as described in Note 3, are not included in the reported amounts above. These amounts totaled $ 3.2 million as of December 31, 2024 and are included net within Other accounts receivable and Other assets – long-term . As more fully described in Note 3, the purchased credit deteriorated assets were fully repaid during the year ended December 31, 2025 and the $ 3.2 million allowance for credit loss was reversed and recognized as a reduction to bad debt expense included in Selling, general and administrative in the Consolidated Statements of Operations .
Inventories
Inventories are valued at the lower of cost or market for last-in, first-out (“LIFO”) inventory and lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. Approximately 30 percent of our inventories are valued using the LIFO method of determining cost. All other inventories are valued at the FIFO method of determining cost.
Inventories at December 31 consist of the following:
December 31,
December 31,
Finished and in-process products
Raw materials and supplies
If the FIFO method of inventory cost valuation had been used exclusively by the Company, inventories would have been $ 8.5 million and $ 7.6 million higher than reported at December 31, 2025 and 2024, respectively. Cost of sales decreased by $ 0.2 million, $ 0.5 million and $ 0.2 million in 2025, 2024 and 2023 , respectively, as a result of the liquidation of LIFO inventories.
Property, Plant and Equipment
Property, plant and equipment are carried at cost less accumulated depreciation and amortization. The Company provides for depreciation and amortization on the basis of the straight-line method over the estimated useful lives of the assets as follows:
Buildings
20 to 40 years
Machinery and equipment
3 to 10 years
Leasehold improvements
5 to 10 years
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
The Company’s property, plant and equipment by major asset class at December 31 consists of:
December 31,
December 31,
Land
Buildings and leasehold improvements
Machinery and equipment
Less allowances for depreciation and amortization
Depreciation expense was $ 24.3 million , $ 23.0 million and $ 16.2 million in the years ended December 31, 2025, 2024 and 2023 , respectively.
Long-Lived Assets
The Company reviews its long-lived assets and identifiable intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Determination of potential impairment related to assets to be held and used is based upon undiscounted future cash flows resulting from the use and ultimate disposition of the asset and related asset group. For assets held for sale, the amount of potential impairment may be based upon appraisal of the asset, estimated market value of similar assets or estimated cash flow from the disposition of the asset.
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss) were as follows:
Foreign
Currency
Interest Rate Swap (1)
Defined Benefit
Pension Plans (3)
Total
Balance at January 1, 2023
Other comprehensive income (loss) before reclassifications (2)
Reclassification to (earnings) loss
Net current-period other comprehensive income (loss)
Balance at December 31, 2023
Other comprehensive income (loss) before reclassifications (2)
Reclassification to (earnings) loss
Net current-period other comprehensive income (loss)
Balance at December 31, 2024
Other comprehensive income (loss) before reclassifications (2)
Reclassification to (earnings) loss
Net current-period other comprehensive income (loss)
Balance at December 31, 2025
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $( 0.6 ) million and $( 0.8 ) million for the years ended December 31, 2025 and 2024, respectively.
The accumulated other comprehensive income (loss) components related to defined benefit pension plans are included in the computation of net periodic pension cost. See Note 12, Retirement Plans for additional details.
Reclassification to (earnings) loss, net of tax expense (benefit) of $( 0.4 ) million for the year ended December 31, 2025 .
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
Stock Based Compensation
The Company has stock incentive plans that provide for the granting of stock-based compensation to employees and directors. Shares issued for option exercises, restricted stock units and performance units may be either from authorized, but unissued shares or treasury shares. For equity-classified awards, the fair value is determined on the date of the grant and not remeasured. The fair value of restricted stock units without a relative Total Shareholder Return ("rTSR") modifier are determined using the closing price of the Company’s common stock on the grant date (Level 1 measurement). The fair value of performance units with a rTSR modifier is determined using a Monte Carlo simulation, which determines the probability of satisfying the market condition included in the award using market-based inputs (Level 2 measurement). For these awards, the performance-based vesting requirements determine the number of shares that ultimately vest, which can vary from 0 % to 250 % of target depending on the level of achievement of established performance and market criteria, where applicable. Th e fair value of options is determined using a binomial lattice option pricing model which uses market-based inputs (Level 2 measurement) as well as inputs based on historical employee behavior. When awards contain a required holding period after vesting, the fair value is discounted to reflect the lack of marketability. Expense for restricted stock units and stock options is recognized on a straight-line basis over the requisite service period, which is generally equivalent to the vesting term. Compensation expense for performance units is recognized over the requisite service period subject to adjustment based on the probable number of shares expected to vest under the performance condition. result in reversal of previously recognized expenses for unvested shares and are recognized in the period in which the occurs.
Income Taxes
Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to be received or settled. Any effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period the change is enacted.
Deferred tax assets are reduced by a valuation allowance, if based on all available evidence, it is more likely than not that the deferred tax asset will not be realized. The Company evaluates the recovery of its deferred tax assets by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income inherently rely heavily on estimates.
In the ordinary course of business, there is inherent uncertainty in quantifying certain income tax positions. The Company evaluates uncertain tax positions for all years subject to examination based upon management’s evaluations of the facts, circumstances and information available at the reporting date. Income tax positions must meet a more-likely-than-not recognition threshold at the reporting date to be recognized. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense.
Cash and Cash Equivalents
The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value.
Capital expenditures in the Consolidated Statement of Cash Flows excludes accrued, but unpaid, capital expenditures. Changes in the amount accrued increased (reduced) cash used for capital expenditures by $ 2.8 million, $( 1.2 ) million and $ 0.7 million in 2025, 2024 and 2023 , respectively.
2. Revenue Recognition
Revenue is recognized when obligations under the terms of a contract with customers are satisfied. In both the Distribution and Material Handling segments, this generally occurs with the transfer of control of the Company’s products. This transfer of control may occur at either the time of shipment from a Company facility, or at the time of delivery to a designated customer location. Obligations under contracts with customers are typically fulfilled within 90 days of receiving a purchase order from a customer, and generally no other future obligations are required to be performed. The Company generally does not enter into contracts with customers for longer than one year. Based on the nature of the Company’s products and customer contracts, no deferred revenue has been recorded with the exception of cash advances or deposits received from customers prior to transfer of control of the product. These advances are typically fulfilled within the 90 day time frame mentioned above.
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products. Certain contracts with customers include variable consideration, such as rebates or discounts. The Company recognizes estimates of this variable consideration each period, primarily based on the most likely level of consideration to be paid to the customer under the specific terms of the underlying programs. While the Company’s contracts with customers do not generally include explicit rights to return product, the Company will in practice allow returns in the normal course of business and as part of the customer relationship. Expected returns allowances are recognized each period based on an analysis of historical experience, and when physical recovery of the product from returns occurs, an estimated right to return asset is also recorded based on the approximate cost of the product.
Amounts included in the Consolidated Statements of Financial Position related to revenue recognition include:
December 31,
December 31,
Statement of Financial
Position
Classification
Returns, discounts and other allowances
Trade accounts receivable
Right of return asset
Inventories, net
Customer deposits
Other current liabilities
Accrued rebates
Other current liabilities
Sales, value added, and other taxes collected with revenue from customers are excluded from net sales. The cost for shipments to customers is recognized when control over products has transferred to the customer. Costs for shipments to customers are classified as Freight out expenses for the Company’s manufacturing business and as Cost of sales for the Company’s distribution business in the accompanying Consolidated Statements of Operations. The Company incurred costs for shipments to customers of approximately $ 11.0 million , $ 12.0 million and $ 10.8 million in Freight out for the years ended December 31, 2025, 2024 and 2023, respectively, and $ 10.6 million , $ 11.0 million and $ 13.0 million in Cost of sales for the years ended December 31, 2025, 2024 and 2023, respectively.
Based on the short-term nature of contracts described above, contract acquisition costs are not significant. These costs, as well as other incidental items that are immaterial in the context of the contract, are recognized as expense as incurred. See Note 14, Segments for additional details on the Company's revenue by major market.
3. Acquisitions
Signature
On February 8, 2024, the Company acquired the stock of Signature Systems, a manufacturer and distributor of composite matting ground protection for industrial applications, stadium turf protection and temporary event flooring, which is included in the Material Handling Segment. The Signature acquisition aligns with the Company's long-term strategic plan to transform the Company into a high-growth, customer-centric innovator of value-added engineered plastic solutions. Cash consideration was $ 348.3 million, net of $ 4.3 million of cash acquired. Total cash consideration also includes the working capital settlement, which was finalized in June 2024. The Company funded the acquisition of Signature through an amendment and restatement of Myers’ existing loan agreement, as described in Note 10.
Transaction costs related to the acquisition are included within Selling, general and administrative on the Consolidated Statements of Operations and totaled $ 7.2 million, of which $ 4.6 million and $ 2.6 million were incurred for the years ended December 31, 2024 and 2023, respectively. The acquisition of Signature was accounted for using the acquisition method, whereby all of the assets acquired and liabilities assumed were recognized at their fair value on the acquisition date, with any excess of the purchase price over the estimated fair value recorded as goodwill. Goodwill represents the future economic benefits arising from other assets acquired that could not be individually and separately recognized. Goodwill acquired in this transaction will not be tax deductible.
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
The purchase accounting has been finalized and the final allocation of consideration for the Signature acquisition is as follows:
Initial Allocation of Consideration
Measurement Period Adjustments (1)
Final Allocation
Assets acquired:
Accounts receivable
Inventories
Prepaid expenses
Other assets - long-term
Property, plant and equipment
Right of use asset - operating leases
Intangible assets
Goodwill
Assets acquired
Liabilities assumed:
Accounts payable
Accrued expenses
Operating lease liability - short-term
Operating lease liability - long-term
Deferred income taxes
Total liabilities assumed
Net acquisition cost
(1) The Company's preliminary purchase price allocation changed due to additional information and further analysis.
Included in Accounts receivable and Other assets (long-term) of the table above are long term notes receivable with face value of $ 11.4 million and estimated fair value of $ 7.0 million based on a risk-adjusted income approach, of which $ 1.9 million was classified as current as of the date of acquisition. The long term notes receivable acquired were considered purchased credit deteriorated assets. At the acquisition date, the Company established a $ 3.2 million allowance for credit loss, which has been added to the fair value of the loan to determine its amortized cost basis. The $ 1.2 million difference between the amortized cost basis and unpaid principal represents a noncredit discount that will be amortized into interest income over the remaining lives of the long term notes receivable through their maturities in August 2026 .
In May 2025, subsequent to the acquisition date and final allocation of consideration for the Signature acquisition, the customer prepaid the remaining balance of the outstanding long term notes receivable for $ 8.3 million. The $ 3.2 million allowance for credit loss was reversed and recognized as a reduction to bad debt expense included in Selling, general and administrative and the remaining noncredit discount of $ 0.3 million was accelerated into interest income included in Interest expense in the Consolidated Statements of Operations.
Intangible assets consist of Signature’s technology, customer relationships and the Signature Systems indefinite-lived trade name, and are summarized in the table below:
Fair Value
Weighted Average
Estimated
Useful Life
Customer relationships
10.0 years
Technology
12.0 years
Total amortizable intangible assets
Intangible assets not subject to amortization:
Trademarks and trade names
Indefinite
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
The following unaudited pro forma results of operations for the year ended December 31, 2024 and 2023, respectively, assumes the Signature acquisition was completed on January 1, 2023. The following pro forma results include adjustments to reflect acquisition related costs, additional interest expense, amortization of intangibles associated with the acquisition, amortization of acquisition-related inventory step-up costs and the effects of adjustments made to the carrying value of certain assets.
For the Year Ended December 31,
Net sales
Net income
The unaudited pro forma results may not be indicative of the results that would have been obtained had the acquisition occurred at the beginning of the periods presented, nor is it intended to be a projection of future results.
4. Goodwill and Intangible Assets
The Company tests goodwill and indefinite-lived intangible assets for impairment annually and between annual tests if impairment indicators are present. Such indicators may include, but are not limited to, significant changes in economic and competitive conditions, the impact of the economic environment on the Company’s customer base or its businesses, or a material negative change in its relationships with significant customers.
The Company’s annual goodwill impairment assessment as of October 1 for all of its reporting units found no impairment at any of the Company's reporting units in 2025. During 2025, management performed a qualitative assessment for five of its seven reporting units and quantitative assessments were performed for the Signature Systems and Distribution reporting units. Based on the five qualitative analyses, we determined that it was more-likely-than-not that the fair values of the reporting units were greater than their carrying amounts and no impairment was indicated. Based on the quantitative analysis of the Signature Systems and Distribution reporting units, the estimated fair value of the reporting units were in excess of carrying value and no impairment was identified.
The fair value of the Company's Signature Systems and Distribution reporting units was determined using the income and market approaches. The income approach employs the discounted cash flow method reflecting projected cash flows expected to be generated by market participants and then adjusted for time value of money factors and requires management to make significant estimates and assumptions related to forecasts of future revenues, earnings before interest, taxes, depreciation, and amortization (EBITDA), and discount rates. The market approach utilizes an analysis of comparable publicly traded companies and requires management to make significant estimates and assumptions related to the forecasts of future revenues, EBITDA, and multiples that are applied to management’s forecasted revenues and EBITDA estimates.
The techniques used in the Company's impairment test have incorporated a number of assumptions that the Company believes to be reasonable and to reflect known market conditions at the measurement date. The variables and assumptions used, all of which are Level 3 fair value inputs, include the projections of future revenues and expenses, working capital, terminal values, discount rates and long-term growth rates. The estimate of the fair value, and the related goodwill, could change over time based on a variety of factors, including the aggregate market value of the Company’s common stock, actual operating performance of the underlying businesses or the impact of future events on the cost of capital and the related discount rates used.
Quantitative impairment assessments were performed for all reporting units in 2024, and they indicated that the fair value of the Company's seven reporting units all had adequate cushion above the carrying value on the assessment date, except for the rotational molding reporting unit, which was fully impaired as of September 30, 2024, as described below. The 2024 annual goodwill impairment assessments performed as of October 1, indicated no impairment for all of the Company's reporting units.
During the quarter ended September 30, 2024, the Company’s rotational molding reporting unit continued to experience further declining market conditions including overall lower volume and uncertainty regarding the reporting unit's longer range outlook, primarily due to the current macroeconomic environment reducing expected demand for its products. Due to these potential indicators of impairment identified during the quarter ended September 30, 2024, the Company conducted an interim quantitative impairment test of the goodwill at its rotational molding reporting unit and compared the reporting unit's fair value to its carrying value as required by ASC 350. The Company's quantitative analysis identified that the estimated fair value of the rotational molding reporting unit was below the carrying value and accordingly, the Company recorded a $ 22.0 million non-cash impairment charge, for the full carrying value of the goodwill
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
associated with the rotational molding reporting unit. The goodwill impairment charge was recorded within Impairment charges in the Consolidated Statements of Operations.
The circumstances leading to the interim goodwill assessment as described above also triggered an evaluation for long-lived assets as of September 30, 2024, for which the Company has first performed an ASC 360-10-35 recoverability test of other long-lived assets, including intangible assets for the rotational molding asset group. With respect to the asset group, future cash flows were estimated over the expected remaining life of the assets, and the Company determined that, on an undiscounted basis, expected cash flows exceeded the carrying value of the asset group, and no impairment was indicated .
The changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024 were as follows:
Distribution
Material
Handling
Total
January 1, 2024
Acquisition
Impairment charges
Foreign currency translation
December 31, 2024
Foreign currency translation
December 31, 2025
Intangible assets were established in connection with acquisitions. These intangible assets, other than goodwill and certain indefinite lived trade names, are amortized over their estimated useful lives. The Company performed a quantitative annual impairment assessment for the indefinite lived trade names as of October 1, 2025, 2024 and 2023, with the exception of certain indefinite lived trade names which had more than adequate cushion above carrying value, for which a qualitative assessment was performed. In performing these assessments, the Company determined the estimated fair value of all indefinite lived trade names exceeded the carrying value and accordingly, no impairment was indicated. Refer to Note 3 for the intangible assets acquired through the Signature acquisition during 2024.
Intangible assets at December 31, 2025 and 2024 consisted of the following:
Weighted Average
Remaining Useful
Life (years)
Gross
Accumulated
Amortization
Net
Gross
Accumulated
Amortization
Net
Trade names - indefinite lived
Trade names
Customer relationships
Technology
Non-competition agreements
Patents
Intangible amortization expense was $ 14.9 million , $ 15.5 million and $ 6.6 million in 2025, 2024 and 2023, respectively. Estimated annual amortization expense for intangible assets with finite lives for the next five years is: $ 14.2 million in 2026; $ 13.9 million in 2027; $ 13.7 million in 2028; $ 13.6 million in 2029 and $ 13.4 million in 2030.
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
5. Stockholders' Equity
Net Income Per Common Share
Net income per common share , as shown on the accompanying Consolidated Statements of Operations, is determined on the basis of the weighted average number of common shares outstanding during the periods as follows:
For the Year Ended December 31,
Weighted average common shares outstanding basic
Dilutive effect of stock options and restricted stock
Weighted average common shares outstanding diluted
The dilutive effect of stock options and restricted stock was computed using the treasury stock method. Options to purchase 6,973 , 10,290 and 101,406 shares of common stock that were outstanding at December 31, 2025, 2024 and 2023, respectively, were not included in the computation of diluted earnings per share as the exercise prices of these options was greater than the average market price of common shares and were therefore anti-dilutive.
Share Repurchases
On February 27, 2025, the Company's Board of Directors authorized the repurchase of up to $ 10.0 million in shares of its Common Stock effective March 10, 2025 (the “2025 Repurchase Program”). The 2025 Repurchase Program replaces the Company’s previously authorized 2013 repurchase program, which is hereby terminated, and will end on the first to occur of reaching the maximum amount of $ 10.0 million in repurchases or December 31, 2025 . Repurchases under the 2025 repurchase program may be made in the open market at prevailing market prices, through accelerated share repurchases, through privately negotiated transactions, in block trades, and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations and the Company’s insider trading policy.
Under the 2025 Repurchase Program t he Company repurchased a total of 176,221 shares for $ 2.5 million at an average cost of $ 14.19 per share, exclusive of commissions and excise tax during the year ended December 31, 2025. No new share repurchases may be made under the 2025 Repurchase Program after December 31, 2025 .
6. Restructuring
On March 6, 2025, the Company announced the launch of a 'Focused Transformation' initiative with a target to implement $ 20 million of annualized cost savings, primarily in SG&A, by year-end 2025. In conjunction with the program the Company incurred $ 3.3 million of restructuring charges during the year ended December 31, 2025 . Accrued and unpaid restructuring expenses were $ 0.6 million at December 31, 2025.
On July 31, 2025, the Company announced as part of its Focused Transformation initiatives, a plan to idle two of its rotational molding production facilities and to consolidate that production into other facilities. In conjunction with this initiative the Company incurred $ 2.6 million of restructuring charges during the year ended December 31, 2025 . Accrued and unpaid restructuring expenses were no t significant at December 31, 2025 and the Company expects to incur up to $ 11 million in restructuring costs to complete the initiative, including costs related to machine moves, asset impairments and costs related to the long-term facility leases.
In conjunction with the Company's previously announced restructuring plan to improve the Company’s organizational structure and operational efficiency within the Distribution Segment, the Company incurred $ 2.5 million and $ 1.4 million of restructuring charges during the years ended December 31, 2025 and 2024, respectively . The Company also entered into termination agreements to exit two of its idled lease facilities, in conjunction with the restructuring plan, for which the original leases extended through 2028, and total termination charges of $ 1.6 million, included in the totals above, for the year ended December 31, 2025 , were recorded to satisfy all remaining obligations under the original lease agreements. Accrued and unpaid restructuring expenses totaled $ 0.3 million at December 31, 2025 and the Company does not expect to incur any further costs related to this initiative which is now complete.
On July 23, 2025, the Company's Board of Directors approved launching a strategic review of Myers Tire Supply, which is included in the Distribution segment. As a result of the strategic review announced in the second quarter of this year, the company has now initiated a sale process to divest the business, however there can be no assurance that a sale will be completed on terms acceptable to the Company, or at all . Revenue from this business was $ 187 million for the year ended December 31, 2025 , which represents approximately 92 % of total revenue from the Distribution segment .
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
In August 2024, the Company announced the consolidation of its Atlantic, Iowa rotational molding facility into other rotational molding facilities to reduce the cost structure within the Material Handling segment. In December 2024, the Company reduced the scope of the consolidation to keep open its Atlantic, Iowa rotational molding facility as a result of increased demand for certain products produced in that facility. Total restructuring costs for these actions incurred were approximately $ 0.9 million during the year ended December 31, 2024. Accrued and unpaid restructuring expenses were not significant at December 31, 2024.
In conjunction with the Company's previously announced Ameri-Kart plan, the Company incurred $ 2.3 million and $ 1.0 million of restructuring charges during the years ended December 31, 2024 and 2023. On May 7, 2024, the Company entered into a termination agreement to exit the idled lease facility, in conjunction with the Ameri-Kart plan, for which the original lease extended through 2026 and a termination payment of $ 1.8 million was recorded to satisfy all remaining obligations under the original lease. The Ameri-Kart plan is now complete and there were no remaining accrued and unpaid restructuring expenses at December 31, 2024.
Charges from other restructuring initiatives to reduce and streamline overhead costs during the years ended December 31, 2025 , 2024 and 2023 totaled $ 2.8 million, $ 2.9 million and $ 1.5 million, respectively . Accrued and unpaid restructuring expenses were $ 0.2 million and $ 0.9 million at December 31, 2025 and December 31, 2024, respectively.
The restructuring charges noted above for the years ended December 31, 2025, 2024 and 2023 are presented in the Consolidated Statements of Operations as follows:
For the Year Ended December 31,
Segment
Cost of
Sales
SG&A and Other (1)
Total
Cost of
Sales
Total
Cost of
Sales
Total
Material Handling
Distribution
Corporate
Total
(1) Amounts included in SG&A and Other, for the year ended December 31, 2025 include a $ 1.0 million charge related to the facility consolidations, discussed above, that is classified within (Gain) loss on disposal of fixed assets on the Consolidated Statements of Operations.
Restructuring liabilities are included in other current liabilities on the Consolidated Balance Sheets. The change in other current liabilities for the year ended December 31, 2025 was as follows:
Employee
Reduction
Facility Consolidations
Other Exit Costs (1)
Total
Balance at December 31, 2024
Charges to expense
Cash payments
Non-cash activity
Balance at December 31, 2025
(1) Other exit costs consist primarily of executive transition and other related costs.
7. Other Liabilities
The balance of Other current liabilities is comprised of the following:
December 31,
December 31,
Customer deposits and accrued rebates
Dividends payable
Accrued litigation, claims and professional fees
Current portion of environmental reserves
Hedge contract liability
Other accrued expenses
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
The balance of Other liabilities (long-term) is comprised of the following:
December 31,
December 31,
Environmental reserves
Supplemental executive retirement plan liability
Pension liability
Hedge contract liability
Other long-term liabilities
8. Stock Compensation
The Company’s 2021 Long-Term Incentive Plan (the “2021 Plan”) was adopted by the Board of Directors on March 4, 2021, amended by the Board of Directors on April 20, 2021, and approved by shareholders in the annual shareholder meeting on April 29, 2021. The 2021 Plan authorizes the Compensation and Management Development Committee of the Board of Directors (“Compensation Committee”) to issue up to 2,000,000 additional various stock awards including stock options, performance stock units, restricted stock units and other forms of equity-based awards to key employees and directors. No new awards may be issued under the 2021 Plan after March 16, 2024.
The Company’s 2024 Long-Term Incentive Plan (the “2024 Plan”) was adopted by the Board of Directors on February 29, 2024, and approved by shareholders in the annual shareholder meeting on April 25, 2024. The 2024 Plan authorizes the Compensation Committee to issue up to 2,500,000 additional various stock awards including stock options, performance stock units, restricted stock units and other forms of equity-based awards to key employees and directors.
Stock compensation expense was approximately $ 3.5 million , $ 1.7 million and $ 6.7 million for the years ended December 31, 2025, 2024 and 2023, respectively, and is included in Selling, general and administrative expenses . Changes in expected performance under performance share award arrangements can cause volatility in stock compensation expense. Total unrecognized compensation cost related to non-vested share-based compensation arrangements at December 31, 2025 was approximately $ 5.3 million , which will be recognized over the next three years , as such compensation is earned. Outstanding options expire, if unexercised, ten year s from the date of grant.
Options granted in 2025 are shown in the table below. There were no options granted in 2024 and 2023.
Year
Options
Exercise
Price
Options exercised in 2024 and 2023 are shown in the table below. There were no options exercised in 2025.
Year
Options Exercised
Exercised
Price
In addition, options totaling 3,317 , 20 and 43,729 expired or were forfeited during the years ended December 31, 2025, 2024 and 2023, respectively.
Options outstanding and exercisable at December 31, 2025, 2024 and 2023 were as follows:
Year
Outstanding
Range of Exercise
Prices
Exercisable
Weighted Average
Exercise Price
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
The fair value of options granted is estimated using an option pricing model based on the assumptions set forth in the following table. The Company uses historical data to estimate employee exercise and departure behavior. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and through the expected term. The dividend yield rate is based on the Company’s historical dividend yield. The expected volatility is derived from historical volatility of the Company’s shares and those of similar companies measured against the market as a whole. The Company uses the binomial lattice option pricing model based on the assumptions set forth in the following table.
Risk free interest rate
Expected dividend yield
Expected life of award (years)
Expected volatility
Fair value per option
The following table provides a summary of stock option activity for the period ended December 31, 2025:
Shares
Average
Exercise
Price
Weighted
Average
Life (in Years)
Outstanding at December 31, 2024
Options granted
Options exercised
Canceled or forfeited
Expired
Outstanding at December 31, 2025
Exercisable at December 31, 2025
The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. There were no options exercised in 2025. The intrinsic value of stock options exercised in 2024 and 2023 was $ 0.1 million and $ 0.4 million , respectively. The intrinsic value of stock options outstanding at December 31, 2025 was $ 1.0 million.
The following table provides a summary of restricted stock units, including performance-based restricted stock units, and restricted stock activity for the year ended December 31, 2025:
Shares
Average
Grant-Date
Fair Value
Unvested shares at December 31, 2024
Granted
Vested
Canceled or forfeited
Unvested shares at December 31, 2025
Restricted stock units are rights to receive shares of common stock, subject to forfeiture and other restrictions, which vest over a one to three year period. Restricted stock units are considered to be non-vested shares under the accounting guidance for share-based payment and are not reflected as issued and outstanding shares until the restrictions lapse. At that time, the shares are released to the grantee and the Company records the issuance of the shares. At December 31, 2025, restricted stock awards had vesting periods through October 2028. Included in the December 31, 2025 unvested shares are 562,353 performance-based restricted stock units.
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
9. Contingencies
The Company is a defendant in various lawsuits and a party to various other legal proceedings arising in the ordinary course of business, some of which are covered in whole or in part by insurance. When a loss arising from these matters is probable and can reasonably be estimated, the most likely amount of the estimated probable loss is recorded, or if a range of probable loss can be estimated and no amount within the range is a better estimate than any other amount, the minimum amount in the range is recorded. As additional information becomes available, any potential liability related to these matters is assessed and the estimates are revised, if necessary.
Based on current available information, management believes that the ultimate outcome of these matters, including those described below, will not have a material adverse effect on our financial position, cash flows or overall trends in our results of operations. However, these matters are subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the financial position and results of operations of the period in which the ruling occurs, or in future periods.
New Idria Mercury Mine
In September 2015, the U.S. Environmental Protection Agency (“EPA”) informed a subsidiary of the Company, Buckhorn, Inc. (“Buckhorn”) via a notice letter and related documents (the “Notice Letter”) that it considers Buckhorn to be a potentially responsible party (“PRP”) in connection with the New Idria Mercury Mine site (“New Idria Mine”). New Idria Mining & Chemical Company (“NIMCC”), which owned and/or operated the New Idria Mine through 1976, was merged into Buckhorn Metal Products Inc. in 1981, which was subsequently acquired by Myers Industries, Inc. in 1987. As a result of the EPA Notice Letter, Buckhorn and the Company entered into an Administrative Order of Consent (“AOC”) with the EPA for the Remedial Investigation/Feasibility Study (“RI/FS”) to determine the extent of remediation necessary and the screening of alternatives. The AOC and related Statement of Work (“SOW”) were effective as of November 27, 2018, the date that it was executed by the EPA. The AOC requires a $ 2 million letter of credit to be provided for the duration of the RI/FS as assurance of Buckhorn's performance obligations.
All reasonably estimable costs related to the environmental remediation are accrued. These costs are comprised primarily of estimates to perform the RI/FS, identification of possible other PRPs, EPA oversight fees, past cost claims made by the EPA, periodic monitoring, and responses to demands issued by the EPA under the AOC. It is possible that adjustments to the aforementioned reserves will be necessary as new information is obtained, including after finalization and EPA approval of the work plan for the RI/FS. Estimates of Buckhorn’s liability are based on current facts, laws, regulations and technology. Estimates of Buckhorn’s environmental liabilities are further subject to uncertainties regarding the nature and extent of site contamination, the range of remediation alternatives available, evolving remediation standards, imprecise engineering evaluation and cost estimates, the extent of remedial actions that may be required, the extent of oversight by the EPA and the number and financial condition of other PRPs that may be named, as well as the extent of their responsibility for the remediation. Beginning in late 2021 and continuing through the current period, Buckhorn and the EPA continue to actively discuss the scope of the activities in the work plan for the RI/FS, resulting in changes to the estimated costs to perform the RI/FS work plan from time to time. Cost estimates will continue to be refined as the work plans for the RI/FS and the ultimate remediation are finalized and as the activities are performed over a period expected to last several years.
In 2022, Buckhorn reached an agreement with respect to certain insurance coverage related to defense costs, which is expected to apply to a substantial portion of the estimated RI/FS costs. Recovery of accrued costs are recorded as a receivable to the extent such recovery is determined to be probable under this agreement. Estimates of cost recoveries will continue to be refined as the RI/FS work plan is finalized and the activities are performed over a period expected to last several years. Buckhorn may also have opportunity for cost recovery under other insurance policies.
Since October 2011, when the New Idria Mine was added to the Superfund National Priorities List by the EPA, Buckhorn has recognized $ 27.6 million of cumulative charges, made cumulative payments of $ 17.0 million and received insurance recoveries of $ 8.5 million
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
through December 31, 2025 . For the years ended December 31, 2025, 2024 and 2023, the following undiscounted activity was recorded in connection with the New Idria Mercury Mine:
For the Year Ended December 31,
Beginning reserve balance
Changes in estimated environmental liability
Payments made (3)
Ending reserve balance (1)
Beginning receivable balance
Changes in estimated insurance recovery
Insurance recovery reimbursements
Ending receivable balance (2)
(1) As of December 31, 2025 , Buckhorn has a total ending reserve balance of $ 12.5 million related to the New Idria Mine, of which $ 8.8 million is classified in Other current liabilities, $ 3.3 million in Other liabilities (long-term) and $0.4 million in Accounts payable .
(2) As of December 31, 2025 , Buckhorn has a total receivable balance related to the probable insurance recovery of $ 8.3 million, of which $ 5.2 million is classified in Other accounts receivable and $ 3.1 million is classified in Other assets (long-term).
(3) Payments made for the year ended December 31, 2023 include a $ 1.9 million payment related to a settlement agreement with the EPA to resolve the past costs claim, which Buckhorn paid in the first quarter of 2023.
Given the circumstances referred to above, including the fact that the final remediation strategy has not yet been determined, Buckhorn has not accrued for remediation costs in connection with this site as it is unable to estimate the range of a reasonably possible liability for remediation costs.
New Almaden Mine
A number of parties, including the Company and its subsidiary, Buckhorn (as successor to NIMCC), were alleged by trustee agencies of the United States and the State of California to be responsible for natural resource damages due to environmental contamination of areas comprising the historical New Almaden mercury mines located in the Guadalupe River Watershed region in Santa Clara County, California (“County”). In 2005, Buckhorn and the Company, without admitting liability or chain of ownership of NIMCC, resolved the trustees’ claim against them through a consent decree that required them to contribute financially to the implementation by the County of an environmentally beneficial project within the impacted area. Buckhorn and the Company negotiated an agreement with the County ("Cost Sharing Agreement"), whereby Buckhorn and the Company agreed to reimburse one-half of the County’s costs of implementing the project. A detailed estimate was received from the County in 2016, and estimated costs for implementing the project to range between $ 3.3 million and $ 4.4 million. In 2022, the County informed the Company that it may begin implementation of the project in 2023 and that costs were expected to be higher. In January 2023, the County informed Buckhorn that the project will commence in 2023 and that it had accepted a bid to complete the project for approximately $ 9.0 million. The Company and Buckhorn intend to vigorously , under the terms of the Cost Sharing Agreement, their responsibility to share in the entirety of the project cost increases. No additional costs were incurred related to New Almaden in the years ended December 31, 2025, 2024 and 2023 and payments of $ 0.1 million were made for the year ended December 31, 2023. As of December 31, 2025 , Buckhorn has a total reserve of $ 4.4 million related to the New Almaden Mine, of which $ 0.3 million is classified in Other current liabilities and $ 4.1 million is classified in Other liabilities (long-term).
It is possible that adjustments to the aforementioned reserves will be necessary to reflect new information. In addition, the Company may have claims against and defenses to claims by the County under the 2005 agreement that could reduce or offset its obligation for reimbursement of some of these potential additional costs. With the assistance of environmental consultants, the Company will closely monitor this matter and will continue to assess its reserves as additional information becomes available.
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
Other Matters
On February 14, 2023, a lawsuit was filed by Nan Morgan McCartney in the Circuit Court of Escambia County, Florida (later removed to the Northern District of Florida, Pensacola Division) against the Company, Scepter US Holding Company, Scepter Manufacturing, LLC, Scepter Canada Inc., Walmart Inc., and Wal-Mart Stores East, LP. The complaint sought compensatory damages and court costs for harm caused to Ms. McCartney allegedly arising from use of a 5-gallon portable fuel container manufactured by a Scepter company and alleges amounts in controversy in excess of $ 30 thousand exclusive of costs. On April 2, 2025, the Myers defendants learned that Walmart had settled its case with Plaintiff. On January 24, 2026 the Myers defendants settled the remaining aspects of the case with Plaintiff within coverages of insurance policies maintained by Scepter.
On March 18, 2025, a lawsuit was filed by Ryan Colvin, individually and on behalf of his minor son, C.C., and Chelsea Conkel, individually, in the United States District Court for the District of Arizona, against Scepter Manufacturing, LLC. The Complaint seeks damages and court costs for harm caused to Plaintiff’s minor son and both parents allegedly arising from the use of a 5-gallon portable fuel container manufactured by Scepter Manufacturing, LLC, and alleges amounts in controversy in excess of $ 75 thousand. The Company was served the Complaint on June 6, 2025, and filed its Answer on June 16, 2025. The Company cannot assess with any meaningful probability the outcome or the potential damages. Scepter has maintained insurance policies, which it believes will cover a substantial portion of the defense costs incurred in this matter.
On July 9, 2024, Spartan Composites, LLC (“Spartan”) d\b\a FODS (“FODS”) and Spartan Mats, LLC (“Spartan Mat”) (collectively, “Plaintiffs”) filed suit against Signature Systems Group, LLC, a wholly-owned subsidiary of the Company (“Signature”) in the United States District Court for the Eastern District of Texas, asserting certain claims relating to Signature’s manufacture and sale of its DiamondTrack mat, including misappropriation of FODS’ trade secrets under federal and state law, breach of a prior settlement agreement between Signature, FODS and Spartan Mat, and tortious interference with FODS’ prospective business relationships. Signature was acquired by the Company on February 8, 2024, and in connection with the acquisition, the Company obtained insurance policies providing coverage against the inaccuracy or breach of certain of the sellers’ representations and warranties set forth in the acquisition agreement (“RWI Policies”). On November 20, 2025, a jury found in favor of Plaintiffs on several counts of their , including of trade secrets and of contract, and awarded of up to $ 15 million, plus pre- and post-judgment interest and potential attorney fees. The Company believes the jury’s contains that the Company intends to vigorously through post-trial motions and, if necessary, through the appellate process. The Company has not accrued for potential in this matter as the Company cannot reasonably estimate any or range of because the matter cannot be quantified until a final, appealable order is issued. On January 5, 2026, the court granted ’ post-trial motion for a preliminary Signature from marketing, selling, renting, leasing, or manufacturing its DiamondTrack mat pending final ruling(s). Sales of this mat represented less than 1 % of the Company’s 2025 consolidated sales. Various post-trial motions remain pending, which Signature may appeal, depending on the Court’s ruling(s). The Company believes that the RWI Policies will cover a substantial portion of ongoing defense costs and any final judgments rendered in the matter.
10. Long-Term Debt and Loan Agreements
Long-term debt at December 31, 2025 and 2024 consisted of the following:
December 31,
December 31,
Amended Loan Agreement - Revolving Credit Facility
Amended Loan Agreement - Term Loan A
Less unamortized deferred financing costs
Less current portion long-term debt
Long-term debt
On February 8, 2024, the Company entered into Amendment No. 1 to the Seventh Amended and Restated Loan Agreement (“Amendment No. 1”), which amended the Seventh Amended and Restated Loan Agreement (the "Loan Agreement”) dated September 29, 2022 (collectively, the “Amended Loan Agreement”). Amendment No. 1, among other things, permitted the acquisition of Signature Systems and provided a new 5-year $ 400 million term loan facility (“Term Loan A”). Term Loan A will amortize in eight quarterly installment payments of $ 5 million beginning June 30, 2024, quarterly installment payments of $ 10 million thereafter, and any remaining balance due upon maturity . Term Loan A may be voluntarily prepaid at any time, in whole or in part, without penalty or premium, however, all amounts repaid or prepaid in respect of Term Loan A may not be reborrowed.
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
Amendment No. 1 did not change the existing revolving credit facility’s maturity date or $ 250 million borrowing limit, which includes a letter of credit subfacility and swingline subfacility. In connection with Amendment No. 1, the Company incurred deferred financing fees of $ 9.2 million, of which $ 8.5 million was related to Term Loan A and included in Long-term debt and Long-term debt - current portion and $ 0.7 million was related to the Revolving Credit Facility and included in Other Assets (long-term). These deferred financing fees are being amortized to Interest expense over their respective terms to maturity. Remaining deferred financing fees on the Revolving Credit Facility were $0 .8 million and $ 1.3 million as of December 31, 2025 and December 31, 2024 , respectively, and remaining unamortized deferred financing costs under the Term Loan A totaled $ 5.2 million and $ 7.0 million as of December 31, 2025 and December 31, 2024, respectively.
As of December 31, 2025, the Company had $ 244.7 million available under the Amended Loan Agreement, which is available for the ongoing working capital requirements of the Company and its subsidiaries and for general corporate purposes. The Company had $ 5.3 million of letters of credit issued related to insurance and other contracts requiring financial assurance in the ordinary course of business. Borrowings under the Amended Loan Agreement bear interest at the Term SOFR, RFR, SONIA, EURIBOR and CORRA-based borrowing rates. Amounts borrowed under the credit facility are secured by pledges to all of the Company's assets (except with respect to certain assets that are customarily excluded for the incurrence of such liens).
On January 12, 2024, the Company repaid $ 26.0 million of senior unsecured notes upon maturity using cash on hand and availability under the Loan agreement. On February 6, 2024, in connection with the first amendment and restatement to the Loan Agreement discussed above, the Company prepaid the remaining $ 12.0 million face value of senior unsecured notes, which were due January 15, 2026, using availability under the revolving credit facility under the Loan Agreement. After giving effect to the payment in full all outstanding senior unsecured notes under the Note Purchase Agreement have been paid and the Note Purchase Agreement has been terminated. In conjunction with the termination t he Company recognized a loss on debt extinguishment of $ 0.1 million, primarily representing the make-whole fees on the senior unsecured notes and the unamortized value of the original issuance discount which were included in Interest expense .
Amortization expense of the deferred financing costs was $ 2.3 million, $ 1.9 million, and $ 0.3 million for the years ended December 31, 2025, 2024 and 2023, respectively, and is included in Interest expense .
The weighted average interest rate on borrowings under the Company’s long-term debt was 7.80 % for 2025, 8.46 % for 2024 , and 6.86 % for 2023, which includes a quarterly facility fee on the used and unused portion, as well as amortization of deferred financing costs.
On May 2, 2024, the Company entered into an interest rate swap agreement to mitigate the variable interest rate risk of borrowings under the Amended Loan Agreement. The swap has a beginning notional value of $ 200.0 million, which reduces proportionately with scheduled Term Loan A amortization payments, and has a final maturity date of January 31, 2029 . At December 31, 2025, the remaining notional value of the Company's interest rate swap totaled $ 182.5 million. The swap is designated as a cash flow hedge and effectively results in a fixed rate of 4.606 % plus the applicable margin for the hedged debt, as described above and in Note 1.
As of December 31, 2025 , the Company was in compliance with all of its debt covenants. The most restrictive financial covenants for all of the Company’s debt are a net leverage ratio (defined as net debt divided by earnings before interest, taxes, depreciation and amortization, as adjusted) and an interest coverage ratio (defined as earnings before interest, taxes, depreciation and amortization, as adjusted, divided by interest expense). The ratios as of and for the period ended December 31, 2025 are shown in the following table:
Required Level
Actual Level
Interest Coverage Ratio
3.00 to 1 (minimum)
Net Leverage Ratio
3.25 to 1 (maximum)
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
11. Income Taxes
The Company's effective tax rate was 22.6 % , 46.8 % and 26.0 % in 2025, 2024 and 2023 , respectively. A reconciliation of the federal statutory income tax rate to the Company’s effective tax rate is as follows:
Percent of Income before
Income Taxes
U.S. federal statutory tax rate
State and local income taxes, net of federal income tax effect (1)
Foreign tax effects
Canada
Other foreign jurisdictions
Effects of cross border tax laws
Foreign derived intangible income (FDII)
Nontaxable or nondeductible items
Merger and acquisition transaction costs
Nondeductible compensation
Goodwill impairment
Other
Changes in unrecognized tax benefits
Other adjustments
Effective tax rate for the year
(1) State taxes, net of federal benefit due to activity in Oklahoma and Pennsylvania for 2025, Florida, Illinois, Oklahoma and Pennsylvania for 2024 and Illinois, Indiana, Iowa and Oklahoma for 2023, which make up the majority (greater than 50%) of the tax effect in this category.
Income before income taxes was attributable to the following sources:
United States
Foreign
Totals
Income tax expense consisted of the following:
Year ended December 31,
Current:
Federal
State and local
Foreign
Total current provision
Deferred:
Federal
State and local
Foreign
Total deferred provision
Provision for income taxes
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
Income taxes paid, net of any refunds received was as follows:
Year ended December 31,
Federal
State and local
Foreign
The following table summarizes income taxes paid, net of any refunds received, disaggregated by individual jurisdictions in which income taxes paid, net of refunds received is equal to or greater than five percent of total income taxes paid:
Year ended December 31,
Foreign
Canada
Other Foreign
During 2018, the Company recorded a provision and related deferred tax liability of $ 0.6 million related primarily to the earnings of the Company’s subsidiary in Guatemala, which were deemed by management to no longer be permanently reinvested. During 2025, the Company increased the deferred tax liability to $0.8 million. The earnings and profits for all foreign subsidiaries had been previously included in the calculation of the one-time deemed repatriation transition tax, and thus, should there be a repatriation of earnings from any other foreign subsidiaries in future periods, the Company expects to be subject to only foreign withholding tax. Management does not currently anticipate a repatriation of earnings from any other foreign subsidiaries, except as provided above, as these earnings are deemed to be permanently reinvested.
Significant components of the Company’s deferred taxes as of December 31, 2025 and 2024 are as follows:
Deferred income tax assets
Compensation accruals
Inventory valuation
Allowance for uncollectible accounts
Non-deductible accruals
Operating lease liability
Finance lease liability
Goodwill
Other deductible non-goodwill intangibles
Interest limitation carryforward
Capital loss carryforwards
Net operating loss carryforwards
Valuation allowance
Deferred income tax liabilities
Property, plant and equipment
Goodwill and indefinite-lived intangibles
Non-deductible intangibles
Right of use asset - operating leases
Finance lease assets
State deferred taxes
Other
Net deferred income tax liability
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
In 2022, the Company impaired its investment in a joint venture incurring a capital loss for which a deferred tax asset of $ 0.1 million was recorded. As of December 31, 2022 a valuation allowance of $ 0.1 million was recorded against this capital loss deferred tax asset, as the recovery is not more likely than not.
In 2024, the Company realized a $ 1.7 million benefit from a net operating loss ("NOL") carryforward acquired in the Signature acquisition described in Note 3. There is no benefit to future years after full utilization of the NOL carryforward in 2024.
The following table summarizes the activity related to the Company’s unrecognized tax benefits:
Balance at January 1
Increases related to previous year tax positions
Reductions due to lapse of applicable statute of limitations
Balance at December 31
The total amount of gross unrecognized tax benefits that would reduce the Company’s effective tax rate was $ 1.3 million, $ 1.3 million and $ 0.0 million at December 31, 2025, 2024 and 2023, respectively.
The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of December 31, 2025 , the Company is no longer subject to U.S. Federal examinations by tax authorities for tax years before 2022. The company is subject to state and local income tax examinations for tax years 2021 through 2024. In addition, the Company is subject to non-U.S. income tax examinations for tax years of 2021 through 2024 .
12. Retirement Plans
The Company and certain of its subsidiaries have pension and profit sharing plans covering substantially all of their employees. The Company’s defined benefit pension plan, The Pension Agreement between Akro-Mils and United Steelworkers of America Local No. 1761-02 , (the “Plan”) provides benefits primarily based upon a fixed amount for each year of service. The Plan was frozen in 2007, and no benefits for service have accumulated after this date.
On April 22, 2025, the Company entered into an agreement with United of Omaha Life Insurance Company (the “Insurer”), under which the Company purchased an irrevocable nonparticipating single premium group annuity contract from the insurer and transferred to the insurer the future benefit obligations and annuity administration for remaining retirees and beneficiaries under the Company’s defined benefit pension plan (the ‘Plan’) with remaining obligations that approximated $ 4.1 million, at the time of transfer. Under the group annuity contract, the Insurer has made an unconditional and irrevocable commitment to pay the pension benefits of each participant that are due on or after June 1, 2025 and the Company has no remaining obligations under the Plan. The purchase of the group annuity contract was funded primarily by the assets of the plan and as a result of the transaction, the Company recognized a pre-tax pension settlement charge of $ 1.6 million in the second quarter of 2025, primarily related to the non-cash acceleration of actuarial losses included within Accumulated Other Comprehensive Income (Loss) in the Consolidated Statements of Financial Position.
Net periodic pension cost of the Plan for the year ended December 31, 2025 was not significant. Net periodic pension cost for the years ended December 31, 2024 and 2023 was as follows:
For the Year Ended December 31,
Interest cost
Expected return on assets
Amortization of net loss
Net periodic pension cost
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
The reconciliation of changes in the Plan’s projected benefit obligations and assets are as follows:
December 31,
Change in benefit obligation:
Projected benefit obligation at beginning of year
Interest cost
Actuarial (gain) loss
Benefits paid
Settlement
Projected benefit obligation at end of year
Change in plan assets:
Fair value of plan assets at beginning of year
Actual return on plan assets
Plan expenses paid out of assets
Benefits paid
Settlement
Fair value of plan assets at end of year
Funded status
The Plan’s funded status shown above is included in Other liabilities - long-term in the Company’s Consolidated Statements of Financial Position at December 31, 2024 . At December 31, 2025 the plan was fully terminated and the Company had no remaining obligations under the Plan.
As discussed above, the annuity purchase price was used to measure the projected benefit obligation on the settlement date. Pr ior to settlement, the assumptions used to determine the Plan’s net periodic benefit cost and benefit obligations were as follows:
December 31,
Discount rate for net periodic pension cost
Discount rate for benefit obligations
Expected long-term return of plan assets
Prior to settlement the expected long-term rate of return was based on the long-term expected returns for the investment mix consistent with the Plan’s current asset allocation and investment policy. The Plan’s asset allocation and investment policy increases the allocation of fixed income investments that are managed to match the duration of the underlying pension liability as the funding status improves. The assumed discount rates represent long-term high-quality corporate bond rates commensurate with the liability duration of the Plan.
The fair value of Plan assets at December 31, 2024 consisted of mutual funds valued at $ 0.4 million and pooled separate accounts valued at $ 3.8 million. Fair values of all Plan assets are categorized as Level 1. Mutual fund values are determined based on period end closing quoted prices in active markets. The pooled separate accounts are measured at net asset value, which is made readily available to investors. Each of the pooled separate accounts invest in multiple fixed securities and provide for daily redemptions by the plan with no advance notice requirements and have redemption prices that are also determined by the fund’s net asset value per unit with no redemption fees. The weighted average asset allocations for the Plan at December 31, 2024 are show in the table below. There were no significant changes to the asset allocations of the Plan assets prior to settlement.
December 31,
U.S. equities securities
U.S. debt securities
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
The Company maintains defined contribution plans for its U.S.-based employees, who are not covered under defined benefit plans and have met eligibility service requirements. The Company recognized expense related to the 401(k) employer matching contribution in the amount of, $ 4.5 million , $ 4.9 million and $ 4.5 million in 2025, 2024 and 2023, respectively.
In addition, the Company has a Supplemental Executive Retirement Plan (“SERP”) to provide certain former senior executives with retirement benefits in addition to amounts payable under the 401(k) plan. Net expense (benefit) related to the SERP was not meaningful for the years ended December 2025, 2024 and 2023. The SERP liability was based on the discounted present value of expected future benefit payments using a discount rate of 5.4 % . The SERP liability was approximately $ 0.3 million and $ 0.6 million at December 31, 2025 and 2024, respectively, and is included in Accrued employee compensation and Other liabilities - long-term on the accompanying Consolidated Statements of Financial Position. The SERP is unfunded.
13. Leases
The Company determines if an arrangement is a lease at inception. The Company has leases for manufacturing facilities, distribution centers, warehouses, office space and equipment, with remaining lease terms of one to ten years . Certain of these leases include options to extend the lease for up to five years , and some include options to terminate the lease early. Leases with an initial term of 12 months or less are not recorded on the Consolidated Statements of Financial Position; the Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. Operating leases with an initial term greater than 12 months are included in Right of use asset – operating leases (“ROU assets”), Operating lease liability – short-term , and Operating lease liability – long-term and finance leases are included in Property, plant and equipment , Finance lease liability – short-term , and Finance lease liability – long-term in the Consolidated Statements of Financial Position.
The ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent the obligation to make lease payments. ROU assets and lease liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. When leases do not provide an implicit rate, the Company’s incremental borrowing rate is used, which is then applied at the portfolio level, based on the information available at commencement date in determining the present value of lease payments. The Company has also elected not to separate lease and non-lease components. The lease terms include options to extend or terminate the lease when it is reasonably certain the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term.
Amounts included in the Consolidated Statements of Financial Position related to leases were:
December 31,
December 31,
Classification
Assets:
Operating lease assets
Right of use asset - operating leases
Finance lease assets
Property, plant and equipment, net
Total lease assets
Liabilities:
Current
Operating lease liability - short-term
Long-term
Operating lease liability - long-term
Total operating lease liabilities
Current
Finance lease liability - short-term
Long-term
Finance lease liability - long-term
Total finance lease liabilities
Total lease liabilities
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
The components of lease expense include:
For the Year Ended December 31,
Lease Cost
Classification
Operating lease cost (1) (2)
Cost of sales
Operating lease cost (1) (3)
Selling, general and administrative expenses
Finance lease cost
Amortization expense
Cost of sales
Interest expense on lease liabilities
Interest expense, net
Total lease cost
Includes short-term leases and variable lease costs, which are immaterial
Operating lease costs included in Cost of sales for the year ended December 31, 2024, includes a $ 1.8 million termination charge related to exiting an idled lease facility, as described in Note 6
Operating lease costs included in Selling, general and administrative for the year ended December 31, 2025 include $ 1.6 million in termination charges related to exiting idled lease facilities, as described in Note 6
Supplemental cash flow information related to leases was as follows:
For the Year Ended December 31,
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
Operating cash flows from finance leases
Financing cash flows from finance leases
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases
Finance leases
Lease Term and Discount Rate
December 31, 2025
December 31, 2024
Weighted-average remaining lease term (years):
Operating leases
Finance leases
Weighted-average discount rate:
Operating leases
Finance leases
Maturity of Lease Liabilities - As of December 31, 2025
Operating Leases
Finance Leases
Total
After 2030
Total lease payments
Less: interest
Present value of lease liabilities
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
14. Segments
The Company, a leading manufacturer of products that protect the world from the ground up, manages its business under two operating segments, Material Handling and Distribution, consistent with the manner in which the Chief Operating Decision Maker ("CODM") evaluates performance and makes resource allocation decisions. The Company's CODM is the Chief Executive Officer. None of the reportable segments include operating segments that have been aggregated. These segments contain individual business components that have been combined on the basis of common management, customers, products, production processes and other economic characteristics. Intersegment sales are recorded with a reasonable margin and are eliminated in consolidation.
The Material Handling Segment manufactures a broad selection of durable plastic reusable products that are used repeatedly during the course of their service life. At the end of their service life, these highly sustainable products can be recovered, recycled, and reprocessed into new products. The Material Handling Segment’s products include plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, composite ground protection matting, consumer fuel containers and tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally molded, compression molded or blow molded. This segment conducts its primary operations in the United States and Canada, but also exports globally. Markets served include industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles, construction, infrastructure and consumer, among others. Products are sold both directly to end-users and through distributors. The acquisition of Signature, as described in Note 3, is included in the Material Handling Segment.
The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive under-vehicle repair and the manufacture of tire repair and retreading products. The product line includes categories such as tire valves and accessories, tire changing and balancing equipment, lifts and alignment equipment, service equipment and tools, and tire repair/retread supplies. The Distribution Segment also manufactures and sells certain traffic markings, including reflective highway marking tape. The Distribution Segment operates domestically through its regional and customer-focused sales team with strategically located regional distribution centers in the United States, and in certain foreign countries through export sales. In addition, the Distribution Segment operates directly in certain foreign markets, principally Central America, through foreign branch operations. Markets served include retail and truck tire dealers, commercial auto and truck fleets, truck stop operations, auto dealers, general service and repair centers, tire retreaders, and government agencies.
Total sales from foreign business units were approximately $ 56.5 million, $ 46.3 million, and $ 46.1 million, for the years ended December 31, 2025, 2024 and 2023, r espectively. Export sales from the Company's U.S. operations were approximately $ 31.7 million, $ 37.1 million, and $ 30.0 million for the years ended December 31, 2025, 2024 and 2023, respectively. Sales made to customers in Canada accounted for approximately 3.4 % , 3.0 % , and 4.4 % of total net sales in 2025, 2024 and 2023, respectively. There are no other individual foreign countries for which sales are material. Long-lived assets in foreign countries, primarily in Canada, consisted of property, plant and equipment, and were approximately $ 11.2 million and $ 10.2 million at December 31, 2025 and 2024, respectively.
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
An analysis of the Company's operations by segment, including revenue by major market is as follows:
For the Year Ended December 31, 2025
Material
Handling
Distribution
Corporate
Inter-company
Consolidated
Industrial
Infrastructure
Vehicle
Consumer
Food and beverage
Auto aftermarket
Net sales
Cost of sales
Selling, general and administrative expenses (1) (3) (4)
Depreciation and amortization
Freight out
(Gain) loss on disposal of fixed assets
Operating income (loss) (2)
Interest expense, net
Income before income taxes
Total assets
Capital additions, net
Depreciation and amortization (10)
For the Year Ended December 31, 2024
Material
Handling
Distribution
Corporate
Inter-company
Consolidated
Industrial
Infrastructure
Vehicle
Consumer
Food and beverage
Auto aftermarket
Net sales
Cost of sales (5)
Selling, general and administrative expenses (1) (6) (7)
Depreciation and amortization
Freight out
(Gain) loss on disposal of fixed assets
Impairment charges (8)
Operating income (loss) (2)
Interest expense, net
Income before income taxes
Total assets
Capital additions, net
Depreciation and amortization (10)
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
For the Year Ended December 31, 2023
Material
Handling
Distribution
Corporate
Inter-company
Consolidated
Industrial
Infrastructure
Vehicle
Consumer
Food and beverage
Auto aftermarket
Net sales
Cost of sales
Selling, general and administrative expenses (1) (6) (7) (9)
Depreciation and amortization
Freight out
(Gain) loss on disposal of fixed assets
Operating income (loss) (2)
Interest expense, net
Income before income taxes
Total assets
Capital additions, net
Depreciation and Amortization (10)
(1) The Company recognized $ 0.2 million, $( 0.2 ) million and $ 3.2 million of expense (income) related to the estimated environmental reserve, net of expected insurance recoveries in the years ended December 31, 2025, 2024 and 2023, respectively, as described in Note 9. Environmental charges are not included in segment results and are shown with Corporate.
(2) The Company incurred $ 11.2 million, $ 7.5 million and $ 2.5 million of restructuring costs associated with the restructuring initiatives described in Note 6, for the years ended December 31, 2025, 2024, and 2023, respectively, of which $ 3.9 million, $ 3.9 million and $ 1.5 million are included in Material Handling, $ 3.1 million, $ 1.4 million and $ 0.9 million are included in Distribution's results and $ 4.2 million, $ 2.3 million and $ 0.2 million are included in Corporate's results, for the years ended December 31, 2025, 2024, and 2023, respectively.
(3) In the year ended December 31, 2025, the Company recognized a $ 1.6 million pre-tax pension settlement charge within the Material Handling segment, as described in Note 12.
(4) The Company recognized a $ 3.2 million recovery of purchased credit deteriorated assets for the year ended December 31, 2025, as described in Note 3. The recovery was recognized as a reduction to bad debt expense included in Selling, general and administrative within the Material Handling segment.
(5) The Company recognized $ 4.5 million of non-cash inventory step-up that was amortized to Cost of sales for the year ended December 31, 2024, related to the reporting of inventory at fair value in conjunction with the acquisition of Signature, as described in Note 3.
(6) The Company incurred $ 4.6 million and $ 3.1 million of acquisition related costs associated with the acquisitions of Signature and Mohawk, as described in Note 3, for the years ended December 31, 2024, and 2023, respectively, of which $ 4.3 million and $ 2.7 million are included in Corporate, for the years ended December 31, 2024, and 2023, respectively, $ 0.3 million is included in Material Handling's results, for the year ended December 31, 2024 and $ 0.4 million is included in Distribution's results, for the year ended December 31, 2023. Corporate costs also include $ 1.3 million of consulting costs to improve the Company's capabilities to screen and execute large acquisitions for the year ended December 31, 2023.
(7) The Company recognize d $ 1.4 million of executive severance which is included in Corporate's results for the year ended December 31, 2024. In the year ended December 31, 2023 the Company recognized $ 0.7 million of executive severance, of which $ 0.4 million was recognized in the Distribution Segment related to severance and benefits and $ 0.3 million was recognized in Corporate related to charges for the acceleration of stock compensation.
(8) The Company recognized $ 22.0 million of non-cash impairment charges, as described in Note 4, for the year ended December 31, 2024, which are included in Material Handling's results.
(9) In the year ended December 31, 2023, the Company recognized a $ 10 million recovery of legal costs within the Material Handling Segment related to a settlement agreement with one of its insurers. $ 6.7 million of these recovered costs were originally incurred prior to 2023.
(10) Total depreciation and amortization inclusive of amounts within Cost of sales. Corporate depreciation and amortization includes amortization of deferred financing costs of $ 2.3 million, $ 1.9 million and $ 0.3 million in the years ended December 31, 2025, 2024 and 2023, respectively.
MYERS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements - (Continued)
(Dollars in thousands, except where otherwise indicated)
