Myers Industries, Inc.

2025 Second Quarter Earnings Results Call. My name is Makaya and I'll be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for your questions and answers at the end. At this time, I'll like to pass the call over to our host, Megan Beringer. Megan, you may begin today's call.

Thank you. Good morning, everyone, and welcome to Meijer's Second Quarter 2025 Earnings Review. Joining me today are Erin Schauffer, President and Chief Executive Officer, and Dan Hoen, Vice President, Corporate Controller, and Interim Chief Financial Officer. After the prepared remarks, we will host a question and answer session. Earlier this morning, we issued a press release outlining our Second Quarter financial results. In addition, a presentation to accompany today's prepared remarks has been posted. Those documents are available on the investor relations section of our website at meijerindustries.com. This call is being webcast live on our website and will be archived along with the transcript of the call shortly after this event. Please turn to slide three of the presentation for our Safe Harbor disclosures. I would like to remind you that we may make some forward-looking statements during this call. These comments are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and involve risks, uncertainties, and other factors which may cause results to differ materially from those expressed or implied in these statements. Further, information concerning these risks, uncertainties, and other factors are set forth in the company's periodic SEC filing. Also, please be advised that certain non-GAP financial measures, such as adjusted gross profit, adjusted operating income, adjusted EBITDA, and adjusted earnings per share may be discussed on this call. Please turn to slide five of our presentation as I will now turn the call over to Aaron.

Thank you, Megan. Good morning, everyone, and thank you for joining us. I will begin today's call with a review of our second quarter. Then I will provide an update on our focus transformation, including the announcements to accelerate our progress that we published this morning in our press release. Following my comments, Dan will provide a detailed review of second quarter financials and our outlook for the year. Second quarter revenue was lower year over year. We achieved strong growth in certain applications, notably in industrial, where demand for our military products remained healthy. However, we did encounter demand headwinds in most other end markets, primarily in vehicle and automotive aftermarket, resulting in lower sales across both segments. As Dan will detail in a few moments, we believe some of the softness is timing related. Our outlook for the second half of the year is positive, backed by our substantial backlog, primarily in industrial markets, especially military, as well as infrastructure projects. We remain encouraged by the longer term trends within our markets. We demonstrated progress against our goal to reduce SG&A, bringing those expenses down year over year and keeping us on pace to achieve our targeted $20 million cost reduction, primarily SG&A by the end of this year. For the quarter, we earned 26 cents per share, adjusted EPS was 31 cents. I am pleased with the way our team has navigated challenging end market environments and remain confident that we are on track to improve performance. Turning to slide six, I would like to provide an update on our focus transformation program. We introduced this initiative earlier this year to improve our performance and deliver more consistent and reliable results. Today, we announced three actions that we believe will accelerate our transformation and bring us closer to obtaining our goals. I would like to discuss each of these. First, our board of directors has approved launching a strategic review of our Myers Tire Supply business that serves automotive aftermarket. The history of our company cannot be told without Myers Tire Supply business. MTS is where the company began here in Akron, where we are headquartered. It is a business with strong market position, leading brand with loyal customers and great people. However, as we move forward with our focus transformation and create a portfolio of businesses that align with our mission of protecting assets from the ground up and provide us with the opportunity to apply our competitive advantages for high return applications, we have determined that this business may achieve greater success under different ownership where it can benefit from focused investment. One of our focus transformation objectives is to create clear strategies to improve the profitability of our overall portfolio. The strategic review process we are launching will enable us to achieve this as well as simplify and focus our portfolio on core businesses that align with our mission. The second update we are providing today is the consolidation of our rotational molding production capacity. We have reviewed our operating footprint and decided that we will idle two of our nine rotational molding facilities, better utilizing our operating assets. These actions will result in annual savings of at least $3 million. Production from these facilities will be consolidated into other facilities as needed. Lastly, we are on track to deliver $20 million in cost savings, primarily SG&A by the end of 2025. With the manufacturing consolidation, we have line of sight to 18 million, well on our way to our 20 million goal. With six months left, we feel confident in achieving this full year target. With those three announcements as a backdrop, let us turn to slide seven and review the four objectives of our focus transformation program and summarize our progress. We start with establishing a culture of execution and accountability to drive performance. Across the organization, we are emphasizing lean principles to drive clear, efficient processes. We are already seeing positive impacts from this focus as the team creates and rallies behind action plans that get us back on track to prioritize work that adds profit. This leads us to our second objective, to create clear strategies with action plans and specific KPIs to improve the profitability of our entire portfolio. A significant step in meeting this objective is the MTS strategic review. Completing this will enable us to devote more resources and effort to driving performance in the remaining businesses and target our investments to high growth markets aligned with our competitive advantages. Our third objective is deliver consistent and reliable results by effectively controlling what we can control. I already discussed our path to achieving the $20 million target with a majority of savings driven by organizational and footprint consolidations, followed by a reduction in outside services. The team is doing a great job of controlling costs and I'm confident will help us significantly improve our margin profile. Our fourth and final objective is to optimize cashflow and support disciplined capital allocation deployment. We are proud to report strong free cashflow generation of 25 million in the quarter. This allows us to continue investing in organic growth with capex of around 3% of sales and focusing on high growth opportunities that deliver superior returns. We also continue to ensure our balance sheet is strong with repayment of debt. We've established a good foundation with our disciplined and balanced capital allocation approach that we can build on to enhance shareholder value into the future. I am pleased with the progress we are making against our focus transformation objectives and confident in our team's ability to deliver improved financial results from the changes we are making. Turning to slide eight, we have made significant progress over the first six months of 2025. It is clear that 2025 is a year of focus transformation. One that began with building a strong foundation of corporate culture that drives high performance through execution and accountability. On top of this, we added financial discipline with 20 million in cost savings and 10 million share buyback program. With today's announcements, we have made a large significant step to simplify and focus our portfolio with the MTS strategic review. We are also rationalizing our operations with the consolidation of rotational molding production. Looking forward, we anticipate sharing more details with you before the end of 2025 on our updated strategy, including our platforms for growth, competitive advantages to differentiate Myers, strengths aligned to our high performing assets and value creation for our shareholders. This is an exciting time to be associated with Myers and I'm excited to see what we'll be able to accomplish. With that, I will turn the call over to Dan to discuss our second quarter results and updated market outlook, Dan.