Financial Analysis

"10. 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 Buck …

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"11. Long-Term Debt and Loan Agreements Long-term debt consisted of the following: June 30, December 31, 2026 2025 Amended Loan Agreement - Revolving Credit Facility $ $ Amended Loan Agreement - Term Loan A 316,000 351,000 316,000 351,000 Less unamortized deferred financing costs 4,119 5,189 311,881 345,811 Less current portion long-term debt 39,479 34,601 Long-term debt $ 272,402 $ 311,210 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. Amendment No. 1 did not change the existing revolving credit facilitys September 29, 2027 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 incu …

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The Companys revenue by major market is as follows: For the Quarter Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Industrial $ 66,295 $ 65,311 $ 127,563 $ 128,228 Infrastructure 48,589 32,018 86,189 61,781 Vehicle 20,505 25,423 43,842 52,457 Consumer 22,504 26,121 46,251 46,944 Food and beverage 21,309 14,359 39,937 35,489 Total net sales $ 179,202 $ 163,232 $ 343,782 $ 324,899 …

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9. Stock Compensation The Companys 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 $ 1.7 million and $ 0.6 million for the quarters ended June 30, 2026 and 2025, respectively, and $ 2.9 million and $ 1.5 million for the six months ended June 30, 2026 and 2025, respectively. These expenses are 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 stock-based compensation arrangements at June 30, 2026 was approximately $ 8.8 million, which will be recognized over the next three years , as such compensation is earned. Outstanding options expire, if unexercised, ten years from the date of grant. …

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7. Goodwill and Intangible Assets In the first quarter of 2026, in conjunction with the announced sale of Myers Tire Supply, the Company realigned its organizational structure into a single-segment, as more fully described in Note 1. As a result of this change the Company reallocated goodwill within its Distribution reporting unit using a relative fair value approach for which it determined the remaining goodwill of the Distribution reporting unit pertained to businesses classified as held for sale, as more fully described in Note 3, and no additional goodwill was reallocated to the remaining reporting units within continuing operations. The change in goodwill for the six months ended June 30, 2026 was as follows: January 1, 2026 $ 241,284 Foreign currency translation ( 373 ) June 30, 2026 $ 240,911 Intangible amortization expense was $ 3.3 million for both the quarters ended June 30, 2026 and 2025 , and $ 6.5 million and $ 6.6 million for the six months ended June 30, 2026 and 2025 , respectively. Intangible assets other than goodwill primarily consist of trade names, customer relationships, patents, non-competition agreements and technology assets established in connection with acquisitions. These intangible assets, other than certain trade names, are amortized over their estimated useful lives. Indefinite-lived trade names had a carrying value of $ 31.4 million at both June 30, 2026 and December 31, 2025 .

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12. Income Taxes The Companys effective tax rate was 24.7 % and 24.4 % for the quarter and six months ended June 30, 2026, respectively compared to 22.9 % and 24.6 % for the quarter and six months ended June 30, 2025. The effective income tax rate for both periods was different than the Companys statutory rate, primarily due to non-deductible expenses and state taxes. The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of June 30, 2026 , the Company is no longer subject to U.S. Federal examination by tax authorities for tax years before 2022. The Company is subject to state and local examinations for tax years of 2021 through 2024 . In addition, the Company is subject to non-U.S. income tax examinations for tax years of 2021 through 2025 . …

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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.

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4. 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 $ 2.1 million and $ 2.4 million of restructuring charges during the quarter and six months ended June 30, 2025, respectively, which were recorded within both Cost of sales and Selling, general and administrative. 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 $ 0.9 million and $ 1.5 million of restructuring charges during the quarter and six months ended June 30, 2026, respectively, which were recorded within both Cost of sales and Selling, general and administrative . Accrued and unpaid restructuring expenses were no t significant at June 30, 2026 or December 31, 2025 and the Company expects to incur up to $ 9.4 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. Charges from other restructuring initiatives to reduce and streamline overhead costs for the quarter and six months ended June 3 …

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2. Revenue Recognition The Companys revenue by major market is as follows: For the Quarter Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Industrial $ 66,295 $ 65,311 $ 127,563 $ 128,228 Infrastructure 48,589 32,018 86,189 61,781 Vehicle 20,505 25,423 43,842 52,457 Consumer 22,504 26,121 46,251 46,944 Food and beverage 21,309 14,359 39,937 35,489 Total net sales $ 179,202 $ 163,232 $ 343,782 $ 324,899 Total sales from foreign business units were approximately $ 18.6 million and $ 13.7 million for the quarters ended June 30, 2026 and 2025 , respectively, and $ 30.6 million and $ 23.1 million for the six months ended June 30, 2026 and 2025, respectively. Revenue is recognized when obligations under the terms of a contract with customers are satisfied which 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 any long-term contracts with customers greater than one year. Based on the nature of the Companys products and customer contracts, no deferred revenue has been recorded, with the exception of cash advances or deposits received from customers pr …

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"1. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Myers Industries, Inc. and all wholly owned subsidiaries (collectively, the Company), and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures are adequate to make the information not misleading. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Companys annual report on Form 10-K for the year ended December 31, 2025. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position as of June 30, 2026, and the results of operations and cash flows for the periods presented. The results of operations for the quarter and six months ended June 30, 2026 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2026 . Segment Realignment and Discontinued Operations During …

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8. Stockholders' Equity Net Income (loss) Per Common Share Net income (loss) per common share , as shown on the accompanying Condensed Consolidated Statements of Operations (Unaudited), is determined on the basis of the weighted average number of common shares outstanding during the periods as follows: For the Quarter Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Weighted average common shares outstanding basic 37,551,351 37,391,097 37,480,205 37,345,032 Dilutive effect of stock options and restricted stock 240,312 21,840 262,779 84,482 Weighted average common shares outstanding diluted 37,791,663 37,412,937 37,742,984 37,429,514 The dilutive effect of stock options and restricted stock was computed using the treasury stock method. The Company also applied the control number concept in the computation of diluted earnings per share to determine whether potential common stock equivalents are dilutive. The control number used is income from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. There were no options to purchase shares of common stock excluded from the computation of diluted earnings per share for the quarter and six months ended June 30, 2026 . Options to purchase 10,347 shares of common stock …

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13. Subsequent Events On July 28, 2026, the Company entered into Amendment No. 2 to the Seventh Amended and Restated Loan Agreement (Amendment No. 2), which amended and restated the Amended Loan Agreement as described in Note 11. Amendment No. 2, among other things, extended the revolving credit facilities for five years and replaces Term Loan A with a new five-year, $250 million term loan (Term Loan). The revolving credit facility and the Term Loan both mature on July 28, 2031. Amendment No. 2 reduces and harmonizes the applicable spread for interest charged on both the revolv ing credit facility and the Term Loan. The reduction of the $316 million balance on Term Loan A to the initial $250 million balance on the Term Loan under Amendment No. 2 was funded with borrowings on the revolving credit facility. Amendment No. 2 maintained the two most restrictive financial covenants: 1) the Interest Coverage Ratio with an unchanged minimum level of 3.00 to 1; and 2) the Net Leverage Ratio with an increased maximum level of 3.50 to 1 and providing for the Company's option to elect a four quarter holiday of 4.00 to 1 following a Material Acquisition as defined in the Amended Loan Agreement, inclusive of Amendment No. 2. Borrowings under the Amended Loan Agreement inclusive of Amendment No. 2 continue to 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, e …

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