Myers Industries Announces Third Quarter 2025 Results

Myers Industries Announces Third Quarter 2025 Results October 30, 2025 Higher Year-Over-Year Gross Profit Driven by Signature and Scepter Revenue Growth Significant Free Cash Flow Improvement Year-Over-Year KeyBanc Selected as Partner to Sell Myers Tire Supply Myers Industries Inc. (NYSE: MYE), a leading manufacturer of products that protect the world from the ground up, today announced results for the third quarter ended September 30, 2025. Myers Industries President and CEO Aaron Schapper commented, “I am encouraged by the higher gross profit and free cash flow this quarter, indicating Myers' ability to generate value from our core businesses and strengthen operations. We achieved growth in gross profit due to favorable product mix. Infrastructure and Industrial growth was offset by continued softness in Vehicle and Automotive Aftermarket. Scepter's Industrial sales growth more than compensated for the lower weather-driven fuel container sales in the Consumer end market. We made significant improvements in free cash flow, generating $21.5 million during the quarter compared to $10.1 million in the third quarter of 2024. With the idling of two rotational molding production facilities, we have identified $19 million in structural cost reductions, and we remain on track to deliver annualized cost savings of $20 million, primarily in SG&A, by the end of 2025." Third Quarter 2025 Financial Summary Quarter Ended September 30, (Dollars in thousands, except per share data) 2025 2024 % Inc (Dec) Net sales $ 205,435 $ 205,067 0.2 % Gross profit $ 68,570 $ 65,130 5.3 % Gross margin 33.4 % 31.8 % Operating income (loss) $ 17,689 $ (4,764 ) NM Net income (loss) $ 7,088 $ (10,878 ) NM Net income (loss) per diluted share $ 0.19 $ (0.29 ) NM Adjusted operating income $ 20,907 $ 20,539 1.8 % Adjusted net income $ 9,924 $ 9,212 7.7 % Adjusted earnings per diluted share $ 0.26 $ 0.25 4.0 % Adjusted EBITDA $ 30,595 $ 30,735 (0.5 )% Net sales: Increased due to higher demand in the Infrastructure and Industrial end markets, particularly military products. This was offset by lower demand in the Automotive Aftermarket, Consumer and Vehicle end markets. Gross profit and Operating income: Increased due to higher volume, favorable mix, favorable cost productivity and lower material cost. Third Quarter 2025 Segment Results (Dollar amounts in the segment tables below are reported in millions) Material Handling Net Sales Op Income Op Income Margin Adj EBITDA Adj EBITDA Margin Q3 2025 Results $153.5 $26.6 17.3% $36.8 24.0% Q3 2024 Results $150.7 $0.9 0.6% $33.5 22.2% $ Increase (decrease) vs prior year $2.8 $25.7 $3.4 % Increase (decrease) vs prior year 1.9% NM +1,670 bps 10.0% +180 bps Items in this table may not recalculate due to rounding Operating income: Increased primarily due to a $22 million non-cash charge for goodwill impairment taken in the third quarter of 2024. Excluding this item, operating income would have improved by $3.7 million.Adjusted EBITDA: Increased due to higher volume and favorable material costs, partially offset by lower pricing. Distribution Net Sales Op Income Op Income Margin Adj EBITDA Adj EBITDA Margin Q3 2025 Results $52.0 $0.8 1.6% $1.6 3.2% Q3 2024 Results $54.4 $2.1 3.9% $3.2 5.8% $ Increase (decrease) vs prior year ($2.4) ($1.3) ($1.5) % Increase (decrease) vs prior year (4.4)% (60.6)% -230 bps (48.2)% -260 bps Items in this table may not recalculate due to rounding Operating income and Adjusted EBITDA: Decreased due to lower volume, partially offset by favorable SG&A. Balance Sheet & Cash Flow Total liquidity of $292.7 million, including $244.7 million of availability under the revolving credit facility and $48.0 million in cash on hand.Cash flow from operations was $25.8 million. Free cash flow was $21.5 million, up $11.4 million versus prior year, due to improvements in working capital. Capital expenditures were $4.2 million.Total debt was reduced by $10.0 million with a net leverage ratio of 2.6x.Repurchased $0.5 million shares in the third quarter with $8.0 million remaining under the 2025 Share Repurchase Program. Sale Process Initiated for Myers Tire Supply Business 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. The company has partnered with KeyBanc to act as financial advisor for this process. 2025 End Market Outlook The following table presents the Company’s current 2025 outlook for each of its end markets. The 2025 outlook is updated from the outlook provided on July 31, 2025. End Markets (TTM Sales as of September 30, 2025) 2025 Outlook Industrial (30% of sales) Akro-Mils®, Buckhorn® & Jamco® containers, organizational bins, totes, carts and cabinets; Scepter® military ammunition containers; OEM parts for general industrial equipment Moderate growth Infrastructure (14% of sales) Signature Systems™ ground protection matting for construction, industrial sites, and event venues Strong growth Vehicle (12% of sales) RV, marine, and automotive components Down Consumer (11% of sales) Scepter® fuel containers; outdoor furniture and equipment Down, affected by absence of U.S. landed storms Food & Beverage (8% of sales) Buckhorn® seed boxes, intermediate bulk containers, and Tuff Series bulk containers for agricultural and chemical customers Stable Automotive Aftermarket Distribution (25% of sales) Distribution sales to tire service aftermarket Down Conference Call Details The Company will host an earnings conference call and webcast for investors and analysts on Thursday, October 30, 2025, at 8:30 a.m. ET. The call is anticipated to last less than one hour and may be accessed using the following online participation registration link: https://www.netroadshow.com/events/login/LE9zwo4BXUEngAbx5H8AnNUHwe2NmdCRXTY. Upon registering, each participant will be provided with call details and a registrant ID. Reminders will also be sent to registered participants via email. Alternatively, the conference call will be available via a live webcast. To access the live webcast or a replay, visit the Company's website www.myersindustries.com and click on the Investor Relations tab. An archived replay of the call will also be available on the site shortly after the event. To listen to the telephone replay, callers should dial: (U.S. Local) 1-929-458-6194 or (U.S. Toll-Free) 1-866-813-9403 and use access code 135145. Use of Non-GAAP Financial Measures The Company uses certain non-GAAP measures in this release. Adjusted gross profit, adjusted gross margin, adjusted operating income (loss), adjusted operating income margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA margin, adjusted net income, adjusted earnings per diluted share (adjusted EPS), and free cash flow are non-GAAP financial measures and are intended to serve as a supplement to results provided in accordance with accounting principles generally accepted in the United States. Myers Industries believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release. About Myers Industries Myers Industries Inc., based in Akron, Ohio, is a leading manufacturer of sustainable plastic and metal products that protect the world from the ground up for Consumer, Vehicle, Food & Beverage, Industrial, Infrastructure, and Automotive Aftermarket end markets. Myers Industries has a rich history that is built on strong brands and innovative products. Through years of continuous product development and strategic acquisitions, we have established ourselves as a leading diversified industrial company. We provide critical solutions to our customers, delivering exceptional value. Visit www.myersindustries.com to learn more. Caution on Forward-Looking Statements Statements in this release include “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including information regarding the Company’s financial outlook, future plans, objectives, business prospects and anticipated financial performance. Forward-looking statements can be identified by words such as “will,” “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” or variations of these words, or similar expressions. These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, these statements inherently involve a wide range of uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. The Company’s actual actions, results, and financial condition may differ materially from what is expressed or implied by the forward-looking statements. Specific factors that could cause such a difference on our business, financial position, results of operations and/or liquidity include, without limitation, raw material availability, increases in raw material costs, or other production costs; risks associated with our strategic growth initiatives or the failure to achieve the anticipated benefits of such initiatives; unanticipated downturn in business relationships with customers or their purchases; competitive pressures on sales and pricing; changes in the markets for the Company’s business segments; changes in trends and demands in the markets in which the Company competes; operational problems at our manufacturing facilities or unexpected failures at those facilities; future economic and financial conditions in the United States and around the world, including the impacts of U.S. and foreign tariff policies; inability of the Company to meet future capital requirements; claims, litigation and regulatory actions against the Company; changes in laws and regulations affecting the Company; unforeseen events, including natural disasters, unusual or severe weather events and patterns, public health crises, geopolitical crises, and other catastrophic events; our ability to successfully execute our announced intended divestiture of the Myers Tire Supply business; and other risks and uncertainties detailed from time to time in the Company’s filings with the SEC, including without limitation, the risk factors disclosed in Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Given these factors, as well as other variables that may affect our operating results, readers should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, nor use historical trends to anticipate results or trends in future periods. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. The Company expressly disclaims any obligation or intention to provide updates to the forward-looking statements and the estimates and assumptions associated with them. M-INV MYERS INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Dollars in thousands, except share and per share data) Quarter Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net sales $ 205,435 $ 205,067 $ 621,768 $ 632,405 Cost of sales 136,865 139,937 413,458 427,489 Gross profit 68,570 65,130 208,310 204,916 Selling, general and administrative expenses 44,426 38,486 132,551 129,747 Depreciation and amortization 4,318 4,868 13,225 13,615 Freight out 2,512 4,332 8,117 9,442 (Gain) loss on disposal of fixed assets (375 ) 192 99 253 Impairment charges — 22,016 — 22,016 Operating income (loss) 17,689 (4,764 ) 54,318 29,843 Interest expense, net 7,497 8,091 22,247 23,176 Income (loss) before income taxes 10,192 (12,855 ) 32,071 6,667 Income tax expense (benefit) 3,104 (1,977 ) 8,473 3,763 Net income (loss) $ 7,088 $ (10,878 ) $ 23,598 $ 2,904 Net income (loss) per common share: Basic $ 0.19 $ (0.29 ) $ 0.63 $ 0.08 Diluted $ 0.19 $ (0.29 ) $ 0.63 $ 0.08 Weighted average common shares outstanding: Basic 37,393,620 37,220,456 37,361,228 37,102,761 Diluted 37,582,062 37,220,456 37,504,164 37,250,512 MYERS INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) (Dollars in thousands) September 30, 2025 December 31, 2024 Assets Current Assets Cash $ 47,965 $ 32,222 Trade accounts receivable, net 123,271 109,372 Other accounts receivable, net 6,138 12,654 Inventories, net 99,633 97,001 Other current assets 9,787 8,058 Total Current Assets 286,794 259,307 Property, plant, & equipment, net 131,484 137,564 Right of use asset - operating leases 26,429 30,561 Goodwill and intangible assets, net 410,877 421,853 Deferred income taxes 205 205 Other assets 8,282 11,325 Total Assets $ 864,071 $ 860,815 Liabilities & Shareholders' Equity Current Liabilities Accounts payable $ 81,569 $ 71,049 Accrued expenses 53,312 49,196 Operating lease liability - short-term 6,699 6,597 Finance lease liability - short-term 639 621 Long-term debt - current portion 29,528 19,649 Total Current Liabilities 171,747 147,112 Long-term debt 331,698 355,310 Operating lease liability - long-term 19,701 23,700 Finance lease liability - long-term 7,512 7,994 Other liabilities 15,048 15,303 Deferred income taxes 31,742 33,884 Total Shareholders' Equity 286,623 277,512 Total Liabilities & Shareholders' Equity $ 864,071 $ 860,815 MYERS INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands) Quarter Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Cash Flows From Operating Activities Net income (loss) $ 7,088 $ (10,878 ) $ 23,598 $ 2,904 Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities Depreciation and amortization 9,688 10,196 29,652 28,760 Amortization of deferred financing costs 541 543 1,621 1,318 Amortization of acquisition-related inventory step-up — — — 4,457 Non-cash stock-based compensation expense 950 190 2,700 737 (Gain) loss on disposal of fixed assets (375 ) 192 99 253 Impairment charges — 22,016 — 22,016 Other (162 ) 386 (2,831 ) 550 Cash flows provided by (used for) working capital Accounts receivable - trade and other, net (9,570 ) 7,434 (2,127 ) 15,646 Inventories 2,154 574 (2,296 ) (1,385 ) Prepaid expenses and other current assets 3,601 2,975 (1,723 ) (1,668 ) Accounts payable and accrued expenses 11,843 (16,301 ) 15,507 (21,644 ) Net cash provided by (used for) operating activities 25,758 17,327 64,200 51,944 Cash Flows From Investing Activities Capital expenditures (4,245 ) (7,178 ) (15,935 ) (17,302 ) Acquisition of business, net of cash acquired — — — (348,312 ) Proceeds from sale of property, plant, and equipment 500 28 661 112 Net cash provided by (used for) investing activities (3,745 ) (7,150 ) (15,274 ) (365,502 ) Cash Flows From Financing Activities Net borrowings (repayments) from revolving credit facility (5,000 ) (8,000 ) — (15,000 ) Proceeds from Term Loan A — — — 400,000 Repayments of Term Loan A (5,000 ) (5,000 ) (15,000 ) (10,000 ) Repayments of senior unsecured notes — — — (38,000 ) Payments on finance lease (155 ) (150 ) (464 ) (442 ) Cash dividends paid (5,056 ) (5,025 ) (15,439 ) (15,392 ) Proceeds from issuance of common stock 293 295 866 3,053 Shares withheld for employee taxes on equity awards (44 ) (53 ) (929 ) (2,027 ) Repurchase of common stock (506 ) — (2,021 ) — Deferred financing fees — — — (9,172 ) Net cash provided by (used for) financing activities (15,468 ) (17,933 ) (32,987 ) 313,020 Foreign exchange rate effect on cash 130 121 (196 ) (42 ) Net increase (decrease) in cash 6,675 (7,635 ) 15,743 (580 ) Beginning Cash 41,290 37,345 32,222 30,290 Ending Cash $ 47,965 $ 29,710 $ 47,965 $ 29,710 MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands) Quarter Ended September 30, 2025 Material Handling Distribution Segment Total Corporate & Other Total Net sales $ 153,540 $ 51,967 $ 205,507 $ (72 ) $ 205,435 Net income (loss) 7,088 Net income margin 3.5 % Gross profit 68,570 Add: Restructuring expenses and other adjustments 1,102 Adjusted gross profit 69,672 Gross margin as adjusted 33.9 % Operating income (loss) 26,573 840 27,413 (9,724 ) 17,689 Operating income margin 17.3 % 1.6 % 13.3 % n/a 8.6 % Add: Restructuring expenses and other adjustments 1,472 71 1,543 1,675 3,218 Adjusted operating income (loss)(1) 28,045 911 28,956 (8,049 ) 20,907 Adjusted operating income margin 18.3 % 1.8 % 14.1 % n/a 10.2 % Add: Depreciation and amortization 8,769 732 9,501 187 9,688 Adjusted EBITDA $ 36,814 $ 1,643 $ 38,457 $ (7,862 ) $ 30,595 Adjusted EBITDA margin 24.0 % 3.2 % 18.7 % n/a 14.9 % (1) Includes gross profit adjustments of $1,102 and SG&A adjustments of $2,116 Quarter Ended September 30, 2024 Material Handling Distribution Segment Total Corporate & Other Total Net sales $ 150,718 $ 54,384 $ 205,102 $ (35 ) $ 205,067 Net income (loss) (10,878 ) Net income margin -5.3 % Gross profit 65,130 Add: Restructuring expenses and other adjustments 1,211 Adjusted gross profit 66,341 Gross margin as adjusted 32.4 % Operating income (loss) 886 2,131 3,017 (7,781 ) (4,764 ) Operating income margin 0.6 % 3.9 % 1.5 % n/a -2.3 % Add: Executive severance costs — — — 1,405 1,405 Add: Restructuring expenses and other adjustments 1,396 220 1,616 417 2,033 Add: Acquisition and integration costs — — — 349 349 Add: Impairment charges 22,016 — 22,016 — 22,016 Less: Environmental reserves, net(2) — — — (500 ) (500 ) Adjusted operating income (loss)(1) 24,298 2,351 26,649 (6,110 ) 20,539 Adjusted operating income margin 16.1 % 4.3 % 13.0 % n/a 10.0 % Add: Depreciation and amortization 9,158 823 9,981 215 10,196 Adjusted EBITDA $ 33,456 $ 3,174 $ 36,630 $ (5,895 ) $ 30,735 Adjusted EBITDA margin 22.2 % 5.8 % 17.9 % n/a 15.0 % (1) Includes gross profit adjustments of $1,211, impairment charges of $22,016 and SG&A adjustments of $2,076 (2) Includes environmental charges of $200 net of probable insurance recoveries of $700 MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES GROSS PROFIT, OPERATING INCOME AND EBITDA (UNAUDITED) (Dollars in thousands) Nine Months Ended September 30, 2025 Material Handling Distribution Segment Total Corporate & Other Total Net sales $ 469,839 $ 152,202 $ 622,041 $ (273 ) $ 621,768 Net income (loss) 23,598 Net income margin 3.8 % Gross profit 208,310 Add: Restructuring expenses and other adjustments 1,598 Adjusted gross profit 209,908 Gross margin as adjusted 33.8 % Operating income (loss) 83,426 (878 ) 82,548 (28,230 ) 54,318 Operating income margin 17.8 % -0.6 % 13.3 % n/a 8.7 % Add: Restructuring expenses and other adjustments 2,631 3,051 5,682 3,981 9,663 Add: Pension termination 1,585 — 1,585 — 1,585 Less: Recovery of purchased credit deteriorated assets (3,175 ) — (3,175 ) — (3,175 ) Adjusted operating income (loss)(1) 84,467 2,173 86,640 (24,249 ) 62,391 Adjusted operating income margin 18.0 % 1.4 % 13.9 % n/a 10.0 % Add: Depreciation and amortization 26,644 2,368 29,012 640 29,652 Adjusted EBITDA $ 111,111 $ 4,541 $ 115,652 $ (23,609 ) $ 92,043 Adjusted EBITDA margin 23.6 % 3.0 % 18.6 % n/a 14.8 % (1) Includes gross profit adjustments of $1,598 and SG&A adjustments of $6,475 Nine Months Ended September 30, 2024 Material Handling Distribution Segment Total Corporate & Other Total Net sales $ 468,951 $ 163,543 $ 632,494 $ (89 ) $ 632,405 Net income (loss) 2,904 Net income margin 0.5 % Gross profit 204,916 Add: Restructuring expenses and other adjustments 4,163 Add: Acquisition-related inventory step-up 4,457 Adjusted gross profit 213,536 Gross margin as adjusted 33.8 % Operating income (loss) 51,843 4,915 56,758 (26,915 ) 29,843 Operating income margin 11.1 % 3.0 % 9.0 % n/a 4.7 % Add: Executive severance costs — — — 1,405 1,405 Add: Restructuring expenses and other adjustments 3,860 975 4,835 417 5,252 Add: Acquisition and integration costs 305 — 305 4,132 4,437 Add: Acquisition-related inventory step-up 4,457 — 4,457 — 4,457 Add: Impairment charges 22,016 — 22,016 — 22,016 Less: Insurance recovery of legal fees (702 ) — (702 ) — (702 ) Less: Environmental reserves, net(2) — — — (700 ) (700 ) Adjusted operating income (loss)(1) 81,779 5,890 87,669 (21,661 ) 66,008 Adjusted operating income margin 17.4 % 3.6 % 13.9 % n/a 10.4 % Add: Depreciation and amortization 25,706 2,426 28,132 628 28,760 Adjusted EBITDA $ 107,485 $ 8,316 $ 115,801 $ (21,033 ) $ 94,768 Adjusted EBITDA margin 22.9 % 5.1 % 18.3 % n/a 15.0 % (1) Includes gross profit adjustments of $8,620, impairment charges of $22,016 and SG&A adjustments of $5,529 (2) Includes environmental charges of $1,000 net of probable insurance recoveries of $1,700 MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED OPERATING INCOME, ADJUSTED EBITDA AND FREE CASH FLOW (UNAUDITED) (Dollars in thousands) Quarter Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Adjusted operating income (loss) reconciliation: Operating income (loss) $ 17,689 $ (4,764 ) $ 54,318 $ 29,843 Restructuring expenses and other adjustments 3,218 2,033 9,663 5,252 Pension termination — — 1,585 — Acquisition and integration costs — 349 — 4,437 Acquisition-related inventory step-up — — — 4,457 Recovery of purchased credit deteriorated assets — — (3,175 ) — Impairment charges — 22,016 — 22,016 Insurance recovery of legal fees — — — (702 ) Executive severance costs — 1,405 — 1,405 Environmental reserves, net — (500 ) — (700 ) Adjusted operating income (loss) $ 20,907 $ 20,539 $ 62,391 $ 66,008 Adjusted EBITDA reconciliation: Net income (loss) $ 7,088 $ (10,878 ) $ 23,598 $ 2,904 Income tax expense (benefit) 3,104 (1,977 ) 8,473 3,763 Interest expense, net 7,497 8,091 22,247 23,176 Operating income (loss) 17,689 (4,764 ) 54,318 29,843 Depreciation and amortization 9,688 10,196 29,652 28,760 Restructuring expenses and other adjustments 3,218 2,033 9,663 5,252 Pension termination — — 1,585 — Acquisition and integration costs — 349 — 4,437 Acquisition-related inventory step-up — — — 4,457 Recovery of purchased credit deteriorated assets — — (3,175 ) — Impairment charges — 22,016 — 22,016 Insurance recovery of legal fees — — — (702 ) Executive severance costs — 1,405 — 1,405 Environmental reserves, net — (500 ) — (700 ) Adjusted EBITDA $ 30,595 $ 30,735 $ 92,043 $ 94,768 Free cash flow reconciliation: Net cash provided by (used for) operating activities $ 25,758 $ 17,327 $ 64,200 $ 51,944 Capital expenditures (4,245 ) (7,178 ) (15,935 ) (17,302 ) Free cash flow $ 21,513 $ 10,149 $ 48,265 $ 34,642 MYERS INDUSTRIES, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE (UNAUDITED) (Dollars in thousands, except per share data) Quarter Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Adjusted net income (loss) reconciliation: Net income (loss) $ 7,088 $ (10,878 ) $ 23,598 $ 2,904 Income tax expense (benefit) 3,104 (1,977 ) 8,473 3,763 Income (loss) before income taxes 10,192 (12,855 ) 32,071 6,667 Restructuring expenses and other adjustments 3,218 2,033 9,663 5,252 Pension termination — — 1,585 — Acquisition and integration costs — 349 — 4,437 Acquisition-related inventory step-up — — — 4,457 Recovery of purchased credit deteriorated assets — — (3,175 ) — Impairment charges — 22,016 — 22,016 Insurance recovery of legal fees — — — (702 ) Executive severance costs — 1,405 — 1,405 Environmental reserves, net — (500 ) — (700 ) Adjusted income (loss) before income taxes 13,410 12,448 40,144 42,832 Income tax expense, as adjusted(1) (3,486 ) (3,236 ) (10,437 ) (11,136 ) Adjusted net income (loss) $ 9,924 $ 9,212 $ 29,707 $ 31,696 Adjusted earnings per diluted share reconciliation: Net income (loss) per common diluted share $ 0.19 $ (0.29 ) $ 0.63 $ 0.08 Restructuring expenses and other adjustments 0.09 0.05 0.26 0.14 Pension termination — — 0.04 — Acquisition and integration costs — 0.01 — 0.12 Acquisition-related inventory step-up — — — 0.12 Recovery of purchased credit deteriorated assets — — (0.08 ) — Impairment charges — 0.59 — 0.59 Insurance recovery of legal fees — — — (0.02 ) Executive severance costs — 0.04 — 0.04 Environmental reserves, net — (0.01 ) — (0.02 ) Adjusted effective income tax rate impact (0.01 ) (0.14 ) (0.05 ) (0.20 ) Adjusted earnings per diluted share(2) $ 0.26 $ 0.25 $ 0.79 $ 0.85 Items in this table may not recalculate due to rounding (1) Income taxes are calculated using the normalized effective tax rate for each year. The rate used in 2025 is 26% and in 2024 is 26%. (2) Adjusted earnings per diluted share is calculated using the weighted average common shares outstanding for the respective period. Meghan Beringer, Senior Director Investor Relations, 252-536-5651 Source: Myers Industries, Inc.