<PAGE>   1

                                   FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                 Quarterly Report Under Section 13 or 15(d) of
                      The Securities Exchange Act of 1934

(Mark One)
[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934
         For the quarterly period ended December 31, 1995

[ ]      TRANSITION REPORT PURSUANT OR SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934
         For the transition period from            to
                                       ------------  ------------

                           Commission File No. 0-7770

                            MCCLAIN INDUSTRIES, INC.
             (Exact name of registrant as specified in its charter)


Michigan                                                       38-1867649
  State of Incorporation                                I.R.S. Employer I.D. No.

                               6200 Elmridge Road
                        Sterling Heights, Michigan 48310
                                 (810) 264-3611
         (Address of principal executive offices and telephone number)


         Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X . No   .
                                             ----   ----
         Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of February 10, 1995.


Common Stock, No Par Value                                 4,681,725    
--------------------------                              ----------------
          Class                                         Number of Shares





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                       PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

                          MCCLAIN INDUSTRIES, INC.

                    CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                  DECEMBER 31,      SEPTEMBER 30,
                                     1995               1995
                                  (unaudited)                   
                                  -----------       ------------
                              ASSETS
                              ------
CURRENT ASSETS
--------------
<S>                              <C>                  <C>
Cash and Cash Equivalents        $ 1,100,007          $ 1,173,370
Accounts Receivable (Net)         14,298,607           15,590,278
Inventories                       32,464,064           31,229,399
Prepaid Expenses                     340,416              176,075
                                 -----------          -----------

   Total Current Assets           48,203,094           48,169,122
                                 -----------          -----------

Property and Equipment            33,456,984           33,078,135
   Accumulated Depreciation      (12,438,306)         (11,894,922)
                                 -----------          ----------- 

Net Property and Equipment        21,018,678           21,183,213
                                 -----------          -----------

Other Assets                       5,375,993            4,546,862
                                 -----------          -----------

Total Assets                     $74,597,765          $73,899,197
                                 ===========          ===========

                    LIABILITIES AND STOCKHOLDERS' EQUITY
                    ------------------------------------

CURRENT LIABILITIES
-------------------

Current Portion of Long-Term 
  Debt                           $ 2,179,449          $ 2,179,449
Accounts Payable                   7,919,886            9,190,309
Accrued Liabilities                2,057,520            2,331,809
Federal Income Taxes                 286,402              598,999
                                 -----------          -----------

Total Current Liabilities         12,443,257           14,300,566
                                 -----------          -----------

Deferred Income Taxes              1,440,000            1,440,000
                                 -----------          -----------

Long Term Debt - Less
   Current Portion                33,382,995           31,170,287
                                 -----------          -----------

Other Liabilities                  4,493,323            4,147,070
                                 -----------          -----------

Stockholders' Equity              22,838,190           22,841,274
                                 -----------          -----------

Total Liabilities and
   Stockholders' equity          $74,597,765          $73,899,197
                                 ===========          ===========
</TABLE>

See notes to condensed consolidated financial statements.

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                            MCCLAIN INDUSTRIES, INC.

                CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
                                   UNAUDITED



<TABLE>
<CAPTION>
                                      Three Months Ended
                                         December 31,
                                     1995           1994   
                                  --------------------------
<S>                              <C>             <C>   
Net Sales                         $16,394,682    $20,602,031 
Cost of Sales                      12,957,066     16,015,242
                                  -----------    -----------
Gross Profit                        3,437,616      4,586,789

Selling General
and Administrative
Expenses                            3,258,575      2,860,830
                                  -----------    -----------

Operating Income                      179,041      1,725,959
                                  -----------    -----------

Other Income (Expense)
   Interest Expense                  (663,850)      (416,905)
   Other Income (Expense)              80,780       (261,161)
                                  -----------    ----------- 

   Total Other Income (Expense)      (583,070)      (678,066)
                                  -----------    ----------- 

Income (Loss) Before Income Taxes    (404,029)     1,047,893
(Provision) Credit for
  Income Taxes                        137,000       (356,000)
                                  -----------    ----------- 
Net Income (Loss)                 $  (267,029)   $   691,893
                                  ===========    ===========

Net income (Loss) per common
and common equivalent shares      $      (.06)   $       .15
                                  ===========    ===========

Weighted average number of
common and common equivalent
shares outstanding                  4,584,369      4,610,733
                                  ===========    ===========
</TABLE>



See notes to condensed consolidated financial statements





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<PAGE>   4


                            MCCLAIN INDUSTRIES, INC.

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   UNAUDITED


<TABLE>
<CAPTION>
                                                         THREE MONTHS ENDED
                                                            DECEMBER 31,    
                                                        -------------------
                                                        1 9 9 5      1 9 9 4
                                                       --------     --------  

<S>                                                  <C>          <C>
Net income (loss)                                     $(267,029)   $ 691,893
Adjustments to reconcile net income (loss) to net
  cash (used in) operating activities
   Depreciation and amortization                        584,195      419,363
   Changes in assets and liabilities which
    provided (used) cash
     Current assets excluding cash & equivalents       (107,335)  (4,393,623)
     Other assets                                      (851,827)     355,679
     Accounts payable                                (1,270,423)     931,078
     Accrued expenses                                  (274,289)     (84,226)
     Federal income taxes                              (312,597)     569,263
     Other liabilities                                  346,253      238,987
                                                     ----------    ---------

          TOTAL ADJUSTMENTS                          (1,886,023)  (1,963,479)
                                                     ----------    --------- 

  NET CASH USED IN OPERATING ACTIVITIES              (2,153,052)  (1,271,586)
                                                     ----------    --------- 

CASH FLOWS FROM INVESTING ACTIVITIES:
  Additions to property and equipment                  (396,964)    (948,734)
                                                     ----------    --------- 

   NET CASH USED IN INVESTING ACTIVITIES               (396,964)    (948,734)
                                                     ----------    --------- 

CASH FLOWS FROM FINANCING ACTIVITIES:
  Principal additions of long term debt               2,662,958    1,804,089
  Principal reductions of long term debt               (450,250)    (358,619)
  Sale of common stock                                  263,945            0
                                                     ----------    ---------

  NET CASH PROVIDED BY FINANCING ACTIVITIES           2,476,653    1,445,470
                                                     ----------    ---------

NET DECREASE IN CASH AND CASH EQUIVALENTS               (73,363)    (774,850)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD        1,173,370    1,697,713
                                                     ----------    ---------

CASH AND CASH EQUIVALENTS, END OF PERIOD             $1,100,007    $ 922,863
                                                     ==========    =========

</TABLE>


See notes to condensed consolidated financial statements.


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<PAGE>   5

                            MCCLAIN INDUSTRIES, INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                      THREE MONTHS ENDED DECEMBER 31, 1995

1.  Basis of Presentation

     The accompanying unaudited Consolidated Financial Statements of McClain
Industries, Inc. and subsidiaries (the "Company") have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Rule 10-01 of Regulation
S-X.  Accordingly, such Statements do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements.  In the opinion of management, all adjustments considered
necessary for a fair presentation have been included.  Operating results for
the three month period ending December 31, 1995, are not necessarily indicative
of the results that may be expected for any other period of for the year ending
September 30, 1996.  For further information, refer to the Consolidated
Financial Statements and footnotes thereto included in the Company's annual
report on Form 10-K for the year ended September 30, 1995.

2.  Inventories

     Inventories at December 31, 1995 and September 30, 1995 are summarized as
follows:

<TABLE>
<CAPTION>
                              (Unaudited)
                         December 31, 1995    September 30, 1995
                         -----------------    ------------------
<S>                            <C>                  <C>

Material and Supplies          $19,153,780           $17,400,070
Work in Process                  4,869,684             6,255,749
Finished Goods                   8,440,600             7,573,580
                               -----------           -----------
                               $32,464,064           $31,229,399
                               ===========           ===========
</TABLE>

3.  Earnings per Common Share and Common Equivalent Share:

     Earnings per common share and common equivalent share were calculated
using the weighted average number of common shares and common stock equivalents
outstanding during the year.  The weighted average number of common shares
actually outstanding was increased by the number of shares issuable on the
exercise of the dilutive stock options when the market price of the common
shares exceeds the option price granted.  This increase in the number of common
shares was reduced by the number of common shares that are assumed to have been
purchased with the proceeds from the exercise of the stock options; those
purchases were assumed to have been made at the average price of the common
stock during the period.

4.  Depreciation

     For the three months ended December 31, 1995 and 1994, depreciation
charges were $561,499 and $399,143, respectively.


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<PAGE>   6

                            MCCLAIN INDUSTRIES, INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                      THREE MONTHS ENDED DECEMBER 31, 1995

5.       Contingencies

         Legal Proceedings

         The Company is from time to time subject to various claims from
existing or former employees alleging gender, age or racial discrimination and
anti-union activity, none of which are expected to have a material adverse
affect on the Company.  In addition, as a manufacturer of industrial products,
the Company is, from time to time, subjected to various product liability
claims.  Such claims typically involve personal injury or wrongful death
associated with the use or misuse of the Company's products.  While such claims
have not been material to the Company in any year and the Company believes that
it maintains adequate product liability insurance, there can be no assurance
that such insurance will continue to be available on terms acceptable to the
Company.  Any product liability claim not fully covered by insurance, as well
as any adverse publicity from a product liability claim, could have a material
adverse effect on the Company.  The Company is currently defending a few legal
proceedings involving product liability claims relating to McClain, Galion Dump
and E-Z Pack brand products.  Galion Holding, pursuant to an indemnification it
provided Peabody Galion Division of Peabody International Corporation
("Peabody") in connection with the Galion Acquisition, is currently defending a
number of legal proceedings involving product liability claims arising out of
products manufactured by Peabody prior to the date of the Galion Acquisition.
These claims are also covered by insurance.  Although the Company has already
settled many of these cases and the Company believes that it can continue to
successfully resolve these product liability claims, there can be no assurance
that the Company can continue to do so.  The Company is not presently a party
to any material legal proceedings except as described above.



         Environmental Matters

         The Company's operations are subject to extensive federal, state and
local regulation under environmental laws and regulations concerning, among
other things, emissions into the air, discharges into the waters and the
generation, handling, storage, transportation, treatment and disposal of waste
and other materials.  Inherent in manufacturing operations and in owning real
estate is the risk of environmental liabilities as a result of both current and
past operations, which cannot be predicted with

                                  (continued)


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<PAGE>   7

                          MCCLAIN INDUSTRIES, INC.

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                    THREE MONTHS ENDED DECEMBER 31, 1995


5.       Contingencies - (continued)

certainty.  The Company has incurred and will continue to incur costs, on an
ongoing basis, associated with environmental regulatory compliance in its
business.

         State and local agencies have become increasingly active in the
environmental area.  The increased regulation by multiple agencies can be
expected to increase the Comapany's future environmental costs.  In particular,
properties under federal and state scrutiny frequently result in significant
clean-up costs and litigation expenses related to a party's clean-up
obligation.  However, the Company believes that the ever-increasing waste
stream and the continuing initiatives of government authorities relating to
environmental and waste disposal problems, including restrictions on landfill
locations and operations and extensive regulation relating to the disposal of
waste, create significant opportunities for companies in the solid waste
handling equipment industry.  In addition, the trend towards classifying more
materials as "semi-hazardous" or "hazardous" waste may be expected to continue
to make handling such materials more complex, thereby further facilitating the
market for solid waste handling products.





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<PAGE>   8


                          MCCLAIN INDUSTRIES, INC.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.

Overview

         The following discussion should be read in conjunction with the
condensed consolidated financial statements, including the notes thereto,
appearing elsewhere in this report.

         Selected financial data for the Company for the periods indicated:
<TABLE>
<CAPTION>
                                              (Unaudited)
                                          Three Months Ended
                                              DECEMBER 31,     
                                        ------------------------
                                        1995                1994
                                        ----                ----
<S>                                  <C>                 <C>
Net Sales                            $16,394,682         $20,602,031

Net Income (Loss)                       (267,029)            691,893

Net Earnings (Loss) Per Common
and Common Equivalent Share          $      (.06)        $       .20


<CAPTION>
                                      (unaudited)
                                         As of              As of
                                     December 31,       September 30,
                                         1995               1995     
                                     ------------       ------------
<S>                                  <C>                 <C>
Working Capital                      $35,759,837         $33,868,556

Total Assets                          74,597,765          73,899,197

Long-Term Debt                        33,382,995          31,170,287

Stockholder's Investment              22,838,190          22,841,274

Weighted Average Number
of Common and Common Equivalent
Shares Outstanding                     4,584,369           4,657,476

Current Ratio                             3.87:1              3.37:1

Long-Term Debt to Equity                  1.46:1              1.36:1
</TABLE>



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<PAGE>   9



                            MCCLAIN INDUSTRIES, INC.

        The following table presents, as a percentage of net sales, certain
selected financial data for the Company for the periods indicated:


<TABLE>
<CAPTION>
                                         (Unaudited)
                                      Three Months Ended
                                          December 31,    
                                     ----------------------
                                      1995           1994
                                      ----           ----
<S>                                  <C>            <C>
Net Sales                            100.00%        100.00%
Cost of Sales                         79.03          77.74
                                     ------         ------
Gross Profit                          20.97          22.26

Selling, General &
Administrative Expenses               19.88          13.89
                                     ------         ------
Operating Income                       1.09           8.37
Other Expenses                        (3.56)         (3.29)
                                     ------         ------- 
Income Before Income Taxes            (2.47)          5.08
Provision for Income Taxes            ( .83)          1.73
                                     ------         -------

Net Income                            (1.64)%         3.35%
                                     ======         ======
</TABLE>




        The following table presents the net sales of the Company by major
product line for the periods indicated (in thousands)

<TABLE>
<CAPTION>
                                       (Unaudited)
                                For the Three Months Ended 
                                       December 31,
                                 1995               1994      
                           -----------------  -----------------
                            amount      %      amount      %  
                           -----------------  -----------------
<S>                        <C>        <C>     <C>       <C>     
Dump Truck Bodies          $ 3,011    18.37   $ 3,694    17.93 
Containers                   2,697    16.45     5,501    26.70
Compactors and Unitized
 Compaction Systems          3,631    22.15     1,880     9.12
Garbage and Recycling
 Truck Bodies                4,481    27.33     4,888    23.72
Transfer Trailers            1,446     8.82     3,009    14.61
Replacement Parts              729     4.45       818     3.92
Other Product  Sales           399     2.43       812     4.00
                           ----------------   ----------------

Total Net Sale             $16,394   100.00   $20,602   100.00
                           ================   ================
</TABLE>


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                            McCLAIN INDUSTRIES, INC.

                     DISCUSSION OF RESULTS OF OPERATIONS

         Net sales decreased 20.42% to $16.4 million for the quarter ended
December 31, 1995 (Quarter 1995) from $20.6 million for the quarter ended
December 31, 1994 (Quarter 1994). The decline in sales is attributable to
intense competition by  solid waste manufactures and a temporary decline in
purchases of equipment by  the Solid Waste Industry. A decline in  trailer
sales of  $ 1.6 million  and a decline in intermodal containers sales of $3.0
million were the primary consequences of these factors. Management has been
restructuring the sales force adding additional sales people and introducing
new products to increase sales and expects to see positive results of these
actions in the latter part of the second quarter of Fiscal 1996.  Cost of sales
as a percentage of net sales was 79.03% for the Quarter 1995 compared to 77.74%
for the Quarter 1994 and was primarily due to lower revenues and increased
costs incurred for raw materials, which were not fully recoverable due to
intense pricing competition within the Solid Waste Industry.  Selling, General
and administrative expenses as a percentage of net sales increased to 19.88%
for the Quarter 1995, primarily due to the lower sales volume.  Interest
expense increased to 4.05% of net sales for the Quarter 1995 compared to 2.02%
of net sales for the Quarter 1994, primarily due to increased borrowings  and a
lower sales volume. A net loss of $267,029 was incurred for Quarter 1995
compared to net income of $691,893 for the Quarter 1994 primarily due to lower
sales.





                      DISCUSSION OF FINANCIAL CONDITION


         The Company had working capital of approximately $35.6 million at
December 31, 1995 compared to $33.9 million at September 30, 1995.  The ratio
of current assets to current liabilities was 3.87 to 1 at December 31, 1995
compared to 3.37 to 1 at September 30, 1995.  The Company's cash and cash
equivalents totaled $1.1 million at December 31, 1995.  Cash flows utilized by
operations was $2.2 million for the quarter ended December 31, 1995, primarily
as a result of increased purchases of inventory and a reduction of accounts
payable.  During this period investing activities utilized $396,964  primarily
as a result of machinery and equipment purchases.  The expenditures for
inventory and payable reductions  were financed by increased borrowings.





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                                   SIGNATURES





     Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorizd.





                                      McCLAIN INDUSTRIES, INC.



Date:    FEBRUARY 13, 1996          By:   /s/ Edward J. Zabinski  
      ------------------------           ------------------------  
                                    Edward J. Zabinski, Treasurer    



Date:    FEBRUARY 13, 1996           By:  /s/ Kenneth D. McClain      
      -------------------------          --------------------------    
                                     Kenneth D. McClain, President




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<PAGE>   12
                                EXHIBIT INDEX

EXHIBIT
NUMBER                        DESCRIPTION
--------                      -----------

  27                          Financial Data Schedule