Miller Industries Reaffirms 2026 Outlook, Eyes $200M-Plus Military Production Pipeline

Key Points

• Miller Industries reaffirmed its 2026 outlook, targeting revenue of approximately $850 million to $900 million, EPS in line with 2025, and gross margins in the mid-13% range.
• The company has secured more than $200 million in military production commitments, with manufacturing expected to begin in late 2027 and most revenue anticipated in 2028 and 2029.
• Miller plans a roughly $100 million expansion program, including a 200,000-square-foot Tennessee facility, while entering 2026 with normalized distributor inventories and a debt-free revolver.

Miller Industries NYSE: MLR said it is maintaining its 2026 revenue outlook of approximately $850 million to $900 million, with earnings per share expected to be in line with 2025 and gross margins projected in the mid-13% range.

During a presentation, Chief Executive Officer Will Miller described the company as the world’s largest manufacturer of towing and recovery equipment, with approximately 1,500 employees and manufacturing operations in Tennessee, Pennsylvania, England, France and Italy. The company sells equipment under brands including Century, Vulcan, Chevron, Holmes, Boniface, Jige and OMARS.

Miller said the company’s distribution network is a key competitive differentiator. In North America, Miller Industries has 52 exclusive distributor principals operating about 75 locations. Those distributors employ approximately 300 retail salespeople, according to the presentation. About 90% of company revenue currently comes from North American distribution, with additional revenue from exports, European operations and national accounts.

Second-Quarter Results and Capital Position

For the second quarter of 2026, Miller Industries reported approximately $240 million in revenue and diluted earnings per share of $0.63. The company returned $4.9 million to shareholders through share repurchases and dividends during the quarter.

Miller also said the company reduced its revolver debt to zero in the second quarter. The company expects to fund most of an approximately $100 million investment program through cash flow, though Miller said debt could increase late in 2027 as the company completes expansion projects and adds working capital for military production.

The company’s capital-allocation priorities include its quarterly dividend, share repurchases, working capital, acquisitions, innovation, automation, employee investment and capacity expansion.

Expansion Plans and Military Commitments

Miller Industries is building a 200,000-square-foot expansion at its Ooltewah, Tennessee, headquarters and manufacturing site. Construction is expected to begin in mid-September and be completed by Sept. 1, 2027. Miller said the expansion will change how the company manufactures heavy-duty products and will help address capacity needs as military-related production ramps up.

The company has more than $200 million in military production commitments, with manufacturing expected to begin late in 2027 and most related revenue anticipated in 2028 and 2029. Miller said those commitments consist of multiple contracts, some of which may include extension opportunities. The company also has additional requests for quotation in process.

The military contracts are global rather than limited to the U.S. Miller said the company has supplied military recovery products to customers including Australia, Singapore, Norway, Sweden, France and Denmark, as well as the United States.

In Europe, Miller said it has a strong order backlog and is expanding its Jige operation in France. The company previously approved an 8 million euro, approximately 52,000-square-foot expansion intended to double Jige’s manufacturing and chassis-integration capacity. Miller said efficiency initiatives at Boniface and the integration of Italian manufacturer OMARS are on track, and OMARS is still expected to be financially net positive in 2026.

Domestic Market Conditions

Miller characterized North American retail activity, order intake and production levels as generally flat, or “status quo,” entering 2026. He said the company expects customer sentiment could improve if fuel prices decline and geopolitical tensions ease.

The company reduced production during 2025 after distributor inventories built up following a decline in retail demand around the U.S. presidential election. Miller said the company’s decision to operate below retail activity levels was intended to allow inventory to move through the distribution channel and reduce distributors’ carrying costs.

“Making sure our distribution remains strong and healthy is key to our success long term,” Miller said.

According to Miller, distributor inventory levels normalized during the first quarter and returned to roughly a seven-year average. The company has also implemented additional systems and processes intended to prevent a similar inventory buildup in the future.

Miller said the company has been able to meet labor needs at its facilities through competitive wages and benefits, a four-days-on, four-days-off work schedule, relationships with educational institutions and an internal welding school that trains 12 new welders each quarter.

About Miller Industries (NYSE:MLR)

Miller Industries, Inc is a leading designer, engineer and manufacturer of towing and recovery vehicles and related equipment. The company's product portfolio includes light-, medium- and heavy-duty tow trucks, integrated carriers, rotators, wreckers, trailers and associated hydraulic and electronic components. These products are marketed under well-known brand names, including Miller, Century, Holmes, Vulcan, Chevron and Jige International, serving a broad spectrum of customers in the towing, recovery, roadside assistance and vehicle transport industries.

Headquartered in Ooltewah, Tennessee, Miller Industries was founded in the early 1990s and has grown into a global supplier of towing and recovery solutions.

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