MYE

Focus Transformation Strategic Priorities

• Deliver differentiated protective products that increase customer value via deep customer relationships and enhanced commercial excellence.
• Advance operational excellence and cost leadership by implementing standardized processes that improve consistency, productivity, and cross-organizational execution.
• Invest in high-return growth platforms to accelerate profitable, sustainable long-term growth.

Organizational Simplification and Leadership Updates

• The company is unifying its historically siloed, fragmented business structure under enterprise-wide leaders with cross-company accountability to enable faster decision-making and smarter operations.
• Gustavo Oberto joined as newly created President of Commercial and Strategy, to lead unified commercial strategy, customer-informed innovation, cross-company synergies, and expanded multi-brand sales opportunities, bringing 25+ years of global leadership experience.
• Jeff Condino was appointed President of Operations, with responsibility for enterprise-wide safety, supply chain, and manufacturing. He will extend operational best practices across the organization, identify productivity opportunities in manufacturing and procurement, and drive margin expansion and customer satisfaction, bringing 30+ years of manufacturing experience.

Growth Platform: Military Ammunition Packaging

• The company leverages its material conversion expertise to produce highly engineered ammunition packaging for U.S. and NATO Allied Nation defense customers, which reduces weight by up to 40% and lowers lifecycle costs compared to legacy wood and steel products, while improving soldier safety and reducing maintenance requirements.
• The company launched production of ammunition containers in Europe via SEPTOR International Poland to expand regional reach, align with key NATO programs, improve speed to market, and support expected market growth, with initial customer shipments completed in April 2026.
• New product expansion leverages existing manufacturing capabilities: the new 120 millimeter tank container uses the same mold base as the established 155 millimeter C-137 artillery container, minimizing incremental capital investment and accelerating time to market, while strengthening customer relationships to open access to additional future programs.

Financial and Operational Highlights

• The company reduced net debt by $21.2 million in Q2, bringing the net leverage ratio to 1.9x, well within the 1.5x to 2.5x target range, down from 2.8x year-over-year. The company completed a debt restructuring that extends total debt maturity to 2031 without changing total debt outstanding.
• Working capital management improved, with working capital as a percentage of trailing 12-month sales down sequentially and year-over-year due to an improved cash conversion cycle amid business growth.
• Full year 2026 CapEx is projected to be 3.5% of sales, focused on European military production launch, infrastructure capacity expansion, productivity-focused automation, and core operational tooling replacement.

• The company raised its 2026 full-year outlook for the food and beverage end market from slightly down to moderate growth, while reaffirming outlooks for all other end markets. The updated outlook reflects strong Q2 performance, elevated quoting activity, and existing backlogs driven primarily by IBC sales, with seed sales projected to remain flat year-over-year.
• Industrial end market is expected to see moderate growth, with building momentum in customer capital spending trends.
• Infrastructure end market is expected to see continued strong full-year growth, driven by sustained investment in utility transmission and distribution projects, data centers, and large-scale construction. Q3 infrastructure demand is expected to moderate slightly from Q2's FIFA World Cup-fueled peak, in line with typical seasonality and drier summer ground conditions, but remains strong compared to 2025 levels.
• Vehicle end market is expected to be stable overall: U.S. RV demand weakness is projected to continue through H2 2026, while marine and commercial vehicle demand will see strong growth, and automotive OEM demand will increase starting in H2 2026 driven by upcoming program launches.
• Consumer end market is expected to deliver stable full-year sales, with average storm activity projected for 2026.

Overall Q2 2026 net sales grew 9.8% year-over-year (13% excluding the impact of exiting low-margin products and idling two rotational molding facilities in Q4 2025). Adjusted gross margin increased 310 basis points to 34.6%, adjusted operating margin improved 410 basis points to 16.7%, adjusted EBITDA margin rose 350 basis points to 21.8%, and adjusted EPS increased 60.6% year-over-year to 53 cents. Free cash flow grew 10.5% to $26.5 million. Segment performance by product/end market:

1. Infrastructure: Revenue grew 52% year-over-year, driven by strong utility project demand for data center buildouts and shift from wood to composite ground protection. This segment set consecutive quarterly sales records in Q1 and Q2 2026, with additional peak demand from turf protection product use at the FIFA World Cup.
2. Food and Beverage: Revenue grew 48% year-over-year, driven by strong demand for seed boxes and intermediate bulk containers (IBCs).
3. Vehicle: Overall demand is stable, with mixed performance: U.S. RV demand saw meaningful year-over-year decline in H1, while marine and commercial vehicle demand sees strong growth; automotive OEM demand is expected to rise in H2 2026 on upcoming program launches.
4. Consumer: Sales are expected to be stable for the full year, with fuel container demand dependent on storm activity, and average storm activity projected for 2026.
5. Military Ammunition Packaging: Revenue grew from $20 million in 2024 to $49 million in 2025, and is on track for 10% to 15% CAGR through 2028. This segment now contributes 0% of full year revenue to date, with projected growth to capture share of a $300 million serviceable market.

• Geopolitical volatility, including the ongoing conflict in the Middle East, has driven increased volatility in global resin pricing, though resin supply availability remains stable for the company. There is a lag between higher input costs and passing these costs through to customers via contractual and selective pricing actions, leading to expected continued margin pressure in Q3 2026.
• Uncertainty around U.S. tariffs on automotive parts trade between North American nations creates uncertainty for automotive customer demand and business planning.
• General macroeconomic uncertainty, including higher interest rates and weak consumer confidence, has driven ongoing weakness in the U.S. RV market, a trend expected to continue through H2 2026.

Q: What details can you share about your European military production expansion, including prior non-U.S. manufacturing presence and how much contracted demand you have ahead of the launch? / A: Myers has long exported military products to Europe from the U.S. Shifting geopolitical conditions created customer demand for local regional production, so the company partnered with a local entity in Poland to launch production. Myers provides raw materials, tooling, engineering expertise, and product specifications, with minimal upfront capital outlay for Myers. Initial local shipments from the Poland facility were completed in April 2026, and the set-up meets customer demand for local, faster supply.

Q: When do you expect to see revenue benefits from upcoming automotive OEM program launches? / A: The consumer automotive segment has been weak, while the commercial vehicle segment is performing much better. The company expects to see initial benefits from new program launches in Q4 2026. Ongoing tariff negotiations between North American nations continue to create uncertainty for automotive customers that still needs to be resolved.

Q: Should investors expect a significant top-line step down from H1 to H2 2026 after the strong Q2 performance? How much of Q2's strength came from capacity shifts versus market dynamics? / A: There is no expected significant step down in total top-line revenue from H1 to H2. Q2 saw temporary peaks from FIFA World Cup turf demand and some customer pull-forward of orders ahead of expected resin price increases, but these are modest seasonal or timing impacts, not a structural change. Capacity reallocation between facilities for infrastructure and food and beverage did help accelerate Q2 growth. The new unified operations leadership will continue to identify additional cross-facility capacity optimization opportunities to meet demand spikes and leverage existing capital.

Q: What is driving the upward revision to food and beverage guidance, and is the segment exiting its recent growth trough? / A: The upward revision reflects both strong Q2 performance and improved confidence from elevated current quoting activity and order backlog, primarily driven by growth in intermediate bulk container sales. The company expects consistent moderate growth for food and beverage in H2 2026, confirming the segment is improving after a period of low growth.

Q: What is the update on the planned sale of the MTS business? / A: The company is moving the sales process forward with urgency per its internal project plan, but cannot provide a definitive timeline at this stage. The company will provide updates as more information becomes available.