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 Beringer, Senior Director of Investor Relations.

Megan, please go ahead.

Thank you. Good morning, everyone, and welcome to Meijer's First Quarter 2026 Earnings Review. Joining me today are Erin Schopper, 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. Both 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 3 of the presentation for our safe harbor disclosures. I would like to remind you that we may make some forward-looking statements during this 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.

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 Focus 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 re-grind 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 and 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 view of our financial results.

Thank you, Erin, and good morning, everyone. Before I begin my review, I would like to discuss changes in our reporting framework. MTS is now being reported as discontinued operations, and all results we are presenting today are continuing operations only. For assistance in modeling and comparison with previous periods, we have included a sliding the appendix of our earnings deck that shows our income statements for the last five quarters adjusted for this reporting change. In addition to the reporting of discontinued operations, we have made changes to our reporting of revenue by end market, most notably the removal of automotive aftermarket. Discontinued operations includes most but not all of our previous distribution segments. The remaining business is now reported across the vehicle, industrial, and infrastructure and markets we are also enhancing our financial disclosures in response to investor feedback with a focus on improving transparency and comparability with our peers while we plan to report enhanced disclosures throughout the year this quarter we are introducing two of these improvements first we have reclassified approximately five million per quarter of shipping and handling costs from SG&A into cost of sales. This reclassification has no impact on operating income. Second, we are updating our non-GAAP EPS to exclude intangible asset amortization expense to better reflect our current operating performance. Now please turn to slide 8 for a review of our first quarter results. Net sales increased 1.8% year over year, Excluding the impact of our decision in the fourth quarter of 2025 to exit low-margin products with the idling of two rotational molding facilities, net sales would have increased 5% year over year. Strong infrastructure, military, and consumer growth was partially offset by soft vehicle and food and beverage demand. Adjusted growth margin increased to 34.7% due to favorable mix, lower material costs, and lower manufacturing costs. Adjusted operating margin improved to 15.7% and adjusted EBITDA margin improved to 21.3% up 420 basis points over last year, as we made significant progress towards improving our cost structure and reaping the benefits from our focus transformation. Adjusted EPS was 44 cents, up 57.1% year over year. Please turn to slide 9. We ended the quarter with a cash balance of $44.6 million and total liquidity of $289.3 million, providing us with ample flexibility to support our capital allocation priorities. We reduced net debt by $18.3 million during the first quarter, resulting in net leverage ratio of 2.2 times within our target ratio of 1.5 to 2.5. We plan to further reduce debt in 2026 as we continue to fortify our balance sheet. First quarter operating cash flow was 26.7 million and CapEx was 2.8 million, resulting in free cash flow of 23.9 million, significantly higher than last year and up 28.5% compared to the fourth quarter. Working capital as a percent of trailing 12-month sales was down sequentially and year-over-year primarily due to the timing of receivables. We continue to prioritize working capital management to improve both metrics. Please turn to slide 10. Our capital allocation framework balances investing in growth with return in cash to shareholders capex was 2.8 million in the first quarter approximately 1.7 percent of sales for the full year we expect capex spend to be 3.5 percent of sales with plans to invest in organic growth productivity and infrastructure projects our 2026 projects include capacity expansion and infrastructure new automation to support consumer and market molds, and press replacements to sustain our core operations. Turning to slide 11, we are reaffirming the 2026 outlook that we provided on March 5th. As a reminder, our market outlook excludes the impact from exiting low-margin products and idling to rotational molding facilities in Alliance, Ohio that occurred in Q4, 2025. This represents approximately $5 million in revenue per quarter, primarily industrial and consumer markets with favorable impact to earnings. For industrial, we expect moderate growth as we are seeing modest recovery in manufacturing capital expenditure trends from industrial customers. Militaries around the world are replenishing their inventories and demand for military products continues to increase. Further, we are diversifying our product lines within current military customers. In infrastructure, we are seeing US market expansion driven by strong ongoing spend for data centers, related utilities projects, and large construction, supported by conversion from wood to composite matting. Further, orders for our Megadec product are up over 130% compared to this point last year, giving us confidence in our 2026 outlook. Finally, we are projecting an increase in the turf protection products sold in stadiums. We expect the vehicle and market to be stable overall with mixed demand indicators. For RV and marine, we expect flat sales as consumer sentiment is soft. For commercial vehicles, we expect recovery starting in the second half of 2026. For automotive OEMs, the volume of new and updated vehicle program launches over the next 36 months is expected to improve demand for the new component packaging starting in second half of the year. In consumer, we anticipate stable sales. Demand in the first quarter was strong following winter storms across most of the U.S. Spring sales continue to be strong as the lawn and garden season is at its height and spring storms continue to drive demand across the country. For the next two quarters, demand will be dependent on future storm activity. We are planning for the average of three landed storms in the continental U.S. this year. Our food and beverage end market is forecasted to be slightly down for the year. With the agricultural market, seed demand is projected to be flat while farm input costs are being impacted by the supply challenges. Based upon recent quoting trends and existing backlog, we maintain cautiously optimistic optimistic outlook for continued growth and integrated bulk container production through the second half of the year. We continue to weigh both risks and opportunities for our end markets as we monitor geopolitical conditions including energy markets, tariffs, or other factors that may implement demand The conflict in the Middle East has affected global resin supply and pricing. While availability has not been an issue for us due to secure resin supply, we are experiencing higher material costs as global prices have increased. To mitigate this impact, we are focusing on what we can control, including working with customers and taking selective or contractual pricing actions where appropriate. As there is a typical lag between cost increases and price recovery, we expect some pressure on second quarter growth margins. Beyond pricing, we are pursuing additional actions to offset cost increases. One example mentioned earlier is our investment in additional equipment to increase our use of recycled materials, which lowers costs and strengthens supply security. We expect to mitigate these cost pressures and expand margins in the second half of the year through a combination of contract structure, pricing action, and cost reduction. I would now like to turn the call back over to Aaron for some closing comments before we take your questions. Aaron?

Thank you, Sam. We are off to a strong start to the year. You're making meaningful progress on our focus transformation, taking action to improve margins and increase operating efficiency as we instill a continuous improvement culture and mindset across the organization. The decision to sell MTS will simplify our portfolio, streamline our path to market and improve our margin profile. Supported by a capital allocation framework that balances growth investments and returning cash to shareholders, we are on a clear path to creating sustainable value. Combined, all these initiatives are enabling us to focus resources and investments on opportunities that maximize profitable growth and deliver products that protect. With that, I'd like to turn the call over to the operator for questions. Operator?

We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We would ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Christian Zyla from KeyBank Capital Markets. Christian, please go ahead.

Thank you. Good morning, everyone. Thanks for taking the questions. Morning, Christian. First question, really nice growth in your infrastructure and market, even with the reclass. So how are you guys thinking about your current capacity levels along with pricing for signature. And then looking at your last six months or so of sales, you guys are run rating just above 140 million. I know the business can be lumpy at times, but is this a fair annual estimate or just how are you thinking about it in the context of the strong growth that you guys guide to?

Well, let me, let's start with a capacity question. And so as you can see in our remarks that we talked about, I mean, the great thing about Myers is, you know, because we are in the business of thermoplastics, we have a lot of opportunity to look across our manufacturing footprint. And so when you see what we've done is taken the signature product and some of the product lines, and then making sure that we use our footprint to make sure the product lines are more specialized to each plant. So you see, we talked about basically moving the stadium product so that our Orlando facility could concentrate on the Megadec product. So what we can do with some limited capital expenditures is really increase our capacity by utilizing our footprint better. So from a footprint discussion, that's really our first plan. And secondly, Sam mentioned a lot of capital expenditures will be going to our growth businesses and obviously signature is not only going to get the the capital it needs to continue to grow at this rate but it's also going to um you know get a lot of attention from our operations group to make sure that we don't run into those bottlenecks so yeah and we're we're also we have i mentioned also we're adding actual capacity in orlando as well and so that'll be coming on board early next year, Q1, as well.

So, we've accelerated that a little bit, but we're not concerned on capacity for the year being a factor for our demand, and we expect to continue to grow each quarter the rest Got it.

And then, I guess, on the run rate question, so with your comments that expecting to grow each quarter for the rest of the year, is that year over year or sequentially just how should we think about like i'm just trying to gauge in the context of year over year yeah year over year got it thanks and then my second question and then i'll hop back in the queue um you alluded to some of this in your uh prepared remarks sam but it looks like hd uh polyethylene prices have been basically going parabolic over the last month or so and looking at some of your domestic suppliers they've been raising prices pretty drastically Can you maybe quantify the price cost impact in the near term? And I know you guys are pretty good at strategically increasing inventory and materials, but conceptually, how much supply do you have relative to your internal sales forecast?

Yeah, so from a cost increase, yeah, you alluded, we've seen a very significant short-term increase. What that's going to do over time, obviously, we're monitoring that weekly, daily, very carefully. And so Q2, we are expecting some pressure on our gross margins. And we have gone out quite quickly. You know, we have to because of how significant those increases were. So we took action already in Q2. But, you know, we do have contracts to abide by. And there is a time lag in terms of, you know, index reporting and when that will take effect. So there will be some impact in Q2. But no impact on supply. We've had a steady source within the U.S. from a materials perspective. And then we see, you know, recovery to our margins in the second half of the year.

Great. Thank you.

Your next question comes from the line of Edward Nakamura from Gavelli Funds. Edward, please go ahead.

Good morning. Thanks for taking the question. And given that you've moved in MTS to a discontinued operation, can you just give us an update on the process there and what that would mean for the business?

I think it was breaking up a little bit, but I think I heard an update on the process of the sales for MTS. Is that correct?

Yeah, correct.

Okay.

Yeah, I mean, obviously, we can't really give any specifics, but we had a calendar. we're pleased with the general process and the progress that the team is making and yeah and just like any acquisition divestitures are the same situation they're hard to time exactly when these things are going to uh close so rest assured we are we're working on it working through the process with the team and uh we'll update you at the appropriate time perfect thank you and then And the portion of the distribution business that's getting added to the rest of the material handling, that's the patch rubber business, just to be clear?

Yes.

Perfect.

Your next question comes from the line of Christian Zyla from KeyBank Capital Markets. Christian, please go ahead.

Thanks for taking the follow-up. Just quickly on free cash flow, solid free cash flow quarter. how do you rank your deployment between debt paydown versus opportunistic M&A that I think you guys highlighted in the slide deck? Just kind of, can you conceptually just frame out like what the current thought process is? Thank you.

Yeah, so when we look at the uses of cash, obviously, you know, we're working on debt first. As you can see, we've made steady progress throughout the year uh last year and then uh we'll continue to get debt down we're opportunistic i mean that that's our first priority get that down the second priority though is really to make sure we invest in ourselves and you know the one thing i've always said i love about myers is the great organic growth opportunities within this business and we're going to make sure our capital gets back to those businesses that have great organic growth opportunities and you know so beyond that, our free cash flow will go back to investing in those great growth opportunities. And then third, we'll look at opportunistic M&A. And, you know, once again, timing these things is always difficult, but when we look at M&A, we always have to bring more than money to our M&A acquisitions. We have to bring something that really can, we can bring value to. So when M&A opportunities come up we we look at our growth vectors our opportunities and the businesses in our signature and sector businesses specifically and if opportunity cap m&a comes in there then we can talk about deploying that capital there so that's kind of our priorities haven't changed on that we've been fairly consistent and so kind of our priority one two and three are laid out that way And then, you know, behind that, of course, is then looking at any opportunities to return other cash to shareholders.

That's great. Super helpful. Maybe if I could just follow up on the M&A, and thanks for taking the follow-up again. Is there an end market or a category that you'd be interested in, or is it really just leveraging your footprint and your capabilities, you know, in plastics? Just any thoughts on which end market or – Yeah.

So the end markets we're most interested in is ones with growth, obviously. So if we look at kind of the signature and sector footprint, the signature, you know, ground protection, any, you know, when we look at kind of the utility expansion and thermoplastics and what they're doing for, you know, ground protection, construction, that area, of course, we're interested in those growth areas for M&A. But any other opportunities that come and strengthen our other brands, such as, you know, Scepter and Buckhorn and pieces on the military side to continue to expand our growth opportunities to the, I mean, our product lineup to our customers is great. So, you know, we look at a number of things as they come across, but once again, it's opportunistic. It's not our first priority for use of cash.

Appreciate the callers.

There are no further questions. At this time, I will now turn the call back to Megan Beringer for closing remarks. Megan, please go ahead.

Thank you for joining us today. If you'd like to continue the conversation, my contact information can be found on the final slide of this presentation. We look forward to staying in touch. With that, we'll conclude the call. Have a good day.

This concludes today's call. Thank you for attending. You may now disconnect.