5/7/2026

speaker
Operator
Conference Operator

Hello, everyone. Thank you for joining us and welcome to Meyers Industries' 2026 First Quarter Results Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the call over to Megan Behringer, Senior Director of Investor Relations. Megan, please go ahead.

speaker
Megan Behringer
Senior Director of Investor Relations

Thank you. Good morning, everyone, and welcome to Meijer's first quarter 2026 earnings review. Joining me today are Aaron Schaper, President and Chief Executive Officer, and Samantha Ruddy, Executive Vice President and 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 first 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 myersindustries.com. This call is being webcast live on our website and will be archived along with the transcripts 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 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 filings. Also, please be advised that certain non-GAAP financial measures, such as adjusted gross profit, adjusted operating income, adjusted EBITDA, and adjusted earnings per share, may be discussed on this call. Finally, all results presented and discussed in today's call are from continuing operations. Now, please turn to slide four of our presentation as I turn the call over to Aaron.

speaker
Aaron Schaper
President and Chief Executive Officer

Thank you, Megan. Good morning, everyone, and thank you for joining us. I will begin today's call with a review of our first quarter, followed by an update on our focused transformation program. Sam will then provide a detailed review of the first quarter financials and our outlook for the year. Turning to slide five, we began 2026 on a positive trajectory, building on the momentum we created in 2025. The team performed well, delivering revenue growth, improved earnings, and strong cash flow. We are continuing to see benefit from our focus transformation initiatives to improve margins, increase operating efficiency, and instill a culture of continuous improvement across the organization. First quarter, adjusted EPS improved 57.1% year over year, and adjusted EBITDA increased 27%. Free cash flow improved to 23.9 million, providing additional financial strength and flexibility to fund our growth platforms. It was a strong quarter to begin the year, and I am proud of the performance of our entire team. I would now like to review these three strategic priorities for 2026 of our focus transformation as shown on slide six. Our first priority is to focus on our core markets and customer value we deliver. Our decision to sell MTS is a significant step forward in achieving this objective. When complete, This step will simplify our portfolio and streamline our path to market by eliminating a fragmented customer base that has limited overlap with other parts of our business. Further, this step will enhance our ability to deliver customer excellence by focusing our value proposition on areas where we offer differentiated solutions. Beyond the sale of MTS, we continue to take steps to strengthen our end market position by adding new products, and customers while strengthening long-standing customer relationships. Last quarter, new customers accounted for 24% of infrastructure's revenue. This provides a larger, diverse customer base for business vitality and future growth. In addition, Signature's turf protection will be featured throughout the FIFA World Cup at multiple events this summer. The majority of the 11 venues either already own or will rent our products throughout the event. We are proud to help protect the critical infrastructure supporting the athletes and their fans from around the world. Our second priority is to drive a culture of high performance by instilling operational excellence and cost leadership across the organization. We have consistently and proactively taken steps to improve efficiencies, reduce costs, and expand margins. One example is increasing our use of recycled materials. We are installing additional regrind equipment that will enable us to bring more of this process in-house in the second half of the year. This reduced costs, secures our supply chain, and decreases waste. Our third priority is the focus on investments that maximize profitable growth. Our continued free cash flow generation enables us to invest in attractive growth platforms such as composite matting and military applications that align with our competitive advantages. We can accomplish this through capital investments in organic growth as well as more efficient use of our current operating footprint. We are currently in the process of moving a portion of our infrastructure production to optimize our manufacturing footprint, including all stadium products. This will simplify manufacturing workflows and maximize the output of each facility. It also enables operating efficiencies as the local team can focus their resources on a simplified product portfolio. This improves output with minimal capital investment and enhances our ability to serve our customers. These strategic priorities are guiding us as we make progress on our focus transformation. Our core values provide a solid and unifying foundation, empowering our employees to work together as a team to accomplish our goals. By focusing on these activities, we are creating a company that consistently and reliably delivers profitable growth. We have already demonstrated our ability to achieve milestones, and I'm confident we will continue to move forward along the positive trajectory we are on. At this time, I'll turn the call over to Sam for a review of our financial results.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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Investor presentation