Shares of Myers Industries (MYE) plummeted 9.36% in pre-market trading on Thursday following the release of its second-quarter 2025 financial results, which fell short of analysts' expectations. The company reported a significant decline in sales and earnings, prompting concerns among investors about its near-term prospects.

For Q2 2025, Myers Industries posted net sales of $209.58 million, representing a 4.8% decrease from the same period last year and missing the analyst consensus estimate of $220.60 million. The company's adjusted earnings per share came in at $0.31, down 20.5% year-over-year and slightly below the expected $0.32. Net income for the quarter dropped 5.6% to $9.7 million. The decline in financial performance was primarily attributed to lower demand in the Vehicle and Automotive Aftermarket sectors, although this was partially offset by growth in the Industrial end market, particularly in military products.

In response to the challenging market conditions, Myers Industries announced several strategic initiatives. The company launched a strategic review of its Myers Tire Supply business, signaling potential changes in its business portfolio. Additionally, Myers plans to idle two rotational molding production facilities to improve asset utilization, with production to be consolidated into other Myers locations. This move is expected to generate annual savings of $3 million. Despite the current headwinds, the company remains on track to achieve $20 million in cost savings by the end of 2025 and maintains its outlook for moderate industrial growth. These measures, however, seem insufficient to allay investor concerns in the short term, as reflected in the sharp stock price decline.