A maker of durable plastic goods and tire-service supplies, this company produces reusable containers, pallets, fuel tanks, and composite ground-protection matting under brands like Akro-Mils, Buckhorn, and Signature Systems, along with tire-repair tools. It began in 1933 in Akron, Ohio, when brothers Meyer and Louis Myers opened a small tire-supply shop with a loan from their mother. The Akro-Mils brand name combines "Akron" with the initials of the three brothers who founded that plastics line.
Operating income rose 57.1% to $31.2M as volume returned and gross margin expanded to 34.3%.
Volume growth returned for the first time in over a year. rose 9.8% to $179.2 million and widened 3.0 points to 34.3%, driving a 57.1% increase in to $31.2 million. The business is generating higher earnings on lower debt, but the sale of Myers Tire Supply remains an open question.
Key takeaways
rose 57.1% to $31.2 million, driven by a $14.4 million increase in volume that lifted 9.8% to $179.2 million — the first volume growth since the Signature acquisition was lapped.
widened 3.0 points to 34.3%, as higher volume, pricing, favorable mix, and cost productivity more than offset higher material costs.
SG&A expenses fell 2.9% to $26.6 million, helped by lower salaries and benefits and a $2.0 million non-income tax reserve release related to the Signature acquisition, partially offset by higher incentive compensation.
Section summaries
Management's Discussion and Analysis
Q2 2026 net sales rose 9.8% to $179.2M on higher volume; gross margin expanded to 34.3% and operating income jumped 57.1%.
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increased $16.0M (9.8%) to $179.2M, driven by $14.4M higher volume, $1.5M higher pricing, and $0.1M favorable currency translation.
Net declined 14.9% to $6.3 million, reflecting a 17.1% drop in average outstanding borrowings as fell 21.3% to $272.4 million.
rose 18.5% to $33.5 million and rose 12.9% to $27.9 million, with six-month operating cash flow from continuing operations reaching $58.8 million.
The company amended its credit agreement on July 28, 2026, extending the and replacing Term Loan A with a new $250 million term loan maturing in 2031 at reduced interest spreads.
What changed
The Distribution 's multi-year decline, flagged in every filing since Q3 2023, is no longer separately reported following the planned sale of Myers Tire Supply; the segment's trajectory is now subsumed into continuing operations, which posted 9.8% growth this quarter.
The question of whether the remaining business could generate organic volume growth beyond the lapped Signature acquisition was answered in Q2: volume added $14.4 million to , the first clear volume-driven increase since the acquisition closed in early 2024.
, which had been watched for sustainability at the 33-34% level, widened to 34.3% — above the range seen in recent quarters — though the filing notes higher material costs partially offset the gain, keeping the resin-cost risk flagged in prior periods alive.
The $14.8 million after-tax on Myers Tire Supply recorded in Q1 2026 did not recur; the filing provides no update on the sale's closing, price, or timing, leaving the divestiture as an unresolved overhang.
What to watch
Whether the July 28, 2026 credit agreement amendment — replacing Term Loan A with a new $250 million term loan at reduced spreads — materially lowers net in Q3 2026.
Whether can hold at 34.3% if resin costs continue to rise, given the company holds no commodity hedges and the filing flags that significant future resin cost increases could materially harm results.
The closing of the Myers Tire Supply sale: the price, the timing, and whether the company can shed stranded overhead costs without eroding the SG&A savings already achieved.
Whether the volume growth that drove the quarter's 9.8% increase continues into Q3, or whether it reflects a one-time recovery rather than sustained demand.
grew 20.4% to $61.5M, with improving to 34.3% from 31.3%, helped by volume, pricing, favorable mix, and cost productivity, partly offset by higher material costs.
fell 2.9% to $26.6M, primarily due to lower salaries and benefits and a $2.0M non-income tax reserve release related to the Signature acquisition, partially offset by higher incentive compensation and commissions.
Net declined 14.9% to $6.3M, reflecting a 17.1% drop in average outstanding borrowings to $338.3M.
from continuing operations rose to $58.8M for the six months, up from $37.9M, supported by higher and $6.4M in cash generated from .
The company entered into a loan amendment on July 28, 2026, extending the and replacing Term Loan A with a new $250M term loan, both maturing in 2031, with reduced interest spreads.
Quantitative and Qualitative Disclosures About Market Risk
Interest rate, foreign currency, and commodity risks are disclosed; only interest rate risk is hedged via swaps.
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A 1% rate change would alter annual variable by ~$1.5M based on June 30, 2026 debt levels.
An converts a portion of floating-rate debt to fixed; a 1% rate shift would change fixed-rate on the swap's by ~$3.8M.
Foreign currency exposure arises mainly from U.S. dollar sales by Canadian and European subsidiaries, managed by promptly converting funds to U.S. dollars.
No foreign currency arrangements or contracts were in place at June 30, 2026.
Plastic resins and natural gas are key commodity inputs; no derivative contracts hedge raw material pricing, and material forward utility buys were absent at quarter-end.
Significant future resin cost increases could materially harm financial position, results, or cash flows.
Certain legal proceedings in which the Company is involved are discussed in Note 10, Contingencies, in the Unaudited Condensed Consolidated Financial Statements in Part I of this report, and Part I, Item 3 of the Company's Annual Report on Form 10-K for the year ended December 3…
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Certain legal proceedings in which the Company is involved are discussed in Note 10, Contingencies, in the Unaudited Condensed Consolidated Financial Statements in Part I of this report, and Part I, Item 3 of the Company's Annual Report on Form 10-K for the year ended December 31, 2025. The Company’s disclosures relating to legal proceedings in Note 10, Contingencies, in the Unaudited Condensed Consolidated Financial Statements in Part I of this report are incorporated into Part II of this report by reference. The Company is a defendant in various lawsuits and a party to various other legal proceedings, in the ordinary course of business, some of which are covered in whole or in part by insurance. We believe that the outcome of these lawsuits and other proceedings will not individually or in the aggregate have a future material adverse effect on our consolidated financial position, results of operations or cash flows.