Myers Plans to Expand Signature Capacity 30% in 2027 and by the Same Amount in 2029
Key Facts
Myers Industries announced on October 29 plans to increase production capacity at its Signature unit by 30% in 2027, then add another 30% in 2029, as part of investments to support business growth. The plan comes alongside management’s expectation that unit revenue will grow at a compound annual rate of about 13% through 2026, then at annual rates in the mid-to-high teens through 2029. The company distinguished between capacity expansions and its innovation pipeline, saying that launching an average of one product each year could generate more than $60 million in additional revenue through 2029. New products and the capacity needed to manufacture them provide complementary paths in the growth plan, but the company attributed the additional revenue figure to innovation, not capacity increases alone. Signature makes composite mats and portable flooring solutions used in infrastructure and construction projects and major events.
Myers estimates the addressable market for Signature at about $4 billion, with composite mats currently accounting for about 19% of it. Management said growth in the market itself is one of the business’s drivers, alongside replacing wooden mats with composite solutions, attracting customers and introducing new products. The company explained that composite mats can be up to 40% lighter and can last five times as long as traditional wooden solutions. These characteristics support the opportunity to shift between materials in surface-protection applications, according to management’s presentation on the earnings call. Signature products are used to protect floors and grass at stadiums, as well as at construction sites, energy projects and temporary events.
The expansion announcement followed an 8.1% increase in Myers sales to $171.34 million in the quarter ended September 30, 2026, compared with $158.474 million a year earlier. Growth rose to 10.4% excluding the effect of exiting low-margin products worth about $3 million, after two rotational molding facilities were shut down in the fourth quarter of 2025. By end market, infrastructure revenue increased 38% to $40.810 million, while food and beverage revenue rose 12% to $19.298 million. Infrastructure performance is directly tied to Signature’s plan, as the unit provides surface-protection solutions for projects and construction. But revenue growth did not prevent a decline in profits: gross profit fell 5% to $46.778 million, from $49.257 million in the comparable period.
The company attributed lower gross and operating profit to higher resin costs, an unfavorable product mix and unplanned maintenance, partly offset by higher volumes and pricing actions. Gross margin fell to 27.3% from 31.1% a year earlier, a decline of 380 basis points, while operating margin dropped to 8.7% from 10.5%. Income from continuing operations fell 25.1% to $4.711 million, compared with $6.290 million in the third quarter of 2025. In contrast, adjusted earnings per share from continuing operations rose 3.2% to $0.32. The company said resin costs had declined and stabilized after their recent peak, and that pricing actions continued to support recovery, with significant sequential margin improvement expected in the fourth quarter.
The quarter’s results showed diverging outlooks for end markets in 2026: the company maintained its expectation of strong growth in infrastructure, which accounted for 24% of sales in the 12 months through the end of September, and moderate growth in industrial, which represented 39%. It also raised its outlook for food and beverage from moderate to strong growth, while lowering its outlook for the vehicle market from stable to declining. On financing, total liquidity was $254.7 million at quarter-end, including $53.5 million in cash and $201.2 million available under the revolving credit facility. Myers reduced net debt by $28.5 million, and its net leverage ratio improved to 1.86 times from 1.94 times in the second quarter. The company estimated 2026 capital expenditures at 3.5% of sales, directed toward organic growth and automation.
Signature’s plan reflects the expansion of a business Myers acquired on February 8, 2024, when its annual sales were about $110 million. In 2025, Myers’ total sales fell 1.3% to $825.7 million, while material handling segment sales increased 0.1%, including $6.4 million in additional sales related to the acquisition. Third-quarter results exceeded the revenue estimate of $163.8 million reported by Investing.com, but adjusted earnings per share of $0.32 fell short of analysts’ estimate of $0.45. Myers shares fell 12.03% to $28.33 in premarket trading on October 29, from the previous day’s close of $32.20. The market reaction puts earnings and margin pressures alongside the expansion path management is betting on through 2029.