Miller Industries Q1 Earnings Call Highlights

Key Points

• Q1 results were weaker year over year as revenue fell 19.8% to $180.9 million, though it rose 5.7% sequentially as production improved. The company said lower production levels set in late 2025 were the main drag, while Omars-related acquisition costs also weighed on earnings.
• Cash generation remained strong, with cash rising to $53 million and debt reduced by $10 million to about $21 million. Miller Industries also returned $4.6 million to shareholders through dividends and buybacks, while maintaining its $0.21 quarterly dividend.
• Management kept full-year 2026 guidance unchanged, still forecasting revenue of $850 million to $900 million and EPS roughly in line with 2025. The company sees second-half improvement ahead, supported by higher order activity, a growing military pipeline, and a new 3% price increase to offset rising manufacturing costs.

Miller Industries NYSE: MLR said first-quarter 2026 results reflected lower production levels put in place last year, while management pointed to improving order activity, a first full-quarter contribution from Omars and a growing military pipeline as drivers for the remainder of the year.

President and CEO William Miller, II said the company entered 2026 with “strong momentum” after actions taken in 2025 to reduce field inventory, improve the distribution channel and strengthen the supply chain. As demand improved early in the year, Miller Industries increased production, contributing to sequential revenue growth. However, Miller said escalating geopolitical tensions in the Middle East late in the quarter pushed diesel prices higher and pressured retail demand.

“In response, our team remained disciplined and focused, proactively pausing our North American production increase at current levels to maintain balanced distributor inventory,” Miller said. He added that management believes the decision positions the business for future success.

Revenue Falls Year Over Year, Rises Sequentially

For the first quarter, Miller Industries reported revenue of $180.9 million, down 19.8% from the prior-year period. Debbie, who reviewed the company’s financial results during the call, said the decline reflected lower production levels instituted in the second half of 2025. Revenue increased 5.7% from the previous quarter as the company began accelerating production earlier this year to meet stronger retail activity and order intake.

Gross profit was $25.7 million, or 14.2% of sales. Diluted earnings per share were $0.05.

Debbie said higher selling, general and administrative expenses were primarily tied to the inclusion of Omars, which was acquired by Miller Industries and contributed for a full quarter for the first time. The company also recorded certain non-cash acquisition-related expenses tied to preliminary valuation estimates for Omars, including fair value adjustments on equipment sales and amortization of estimated intangible customer relationship assets.

Those items reduced first-quarter results by about $0.13 per diluted share. Debbie said the company expects that amount to represent roughly half of the total one-time acquisition-related expenses anticipated to be recognized over the balance of 2026, subject to completion of the valuation process.

Despite the near-term costs, Debbie said Miller Industries remains confident the Omars acquisition will be accretive in the first year after recognizing the non-cash acquisition-related expenses.

Cash Position Improves as Receivables Convert

Miller Industries ended the quarter with $53 million in cash, up $8.3 million from the end of last year. Debbie said the increase was driven by faster conversion of receivables. Miller said the company’s cash generation gives it flexibility to fund investments and return capital to shareholders without the need for additional financing.

The company reduced its credit facility by $10 million during the quarter, bringing total debt to approximately $21 million. Miller Industries also repurchased $2.2 million of shares in the first quarter and had about $14 million remaining under its current authorization.

Miller highlighted the company’s quarterly dividend of $0.21 per share, noting that Miller Industries has paid a dividend for 62 consecutive quarters. In total, the company returned about $4.6 million to shareholders in the first quarter through dividends and share repurchases.

Pricing Increase Planned Amid Higher Manufacturing Costs

Miller said U.S. manufacturing costs have continued to rise. The company previously implemented an initial surcharge in April 2025 to offset tariff-related costs, but he said continued cost increases have exceeded the coverage provided by that surcharge.

As a result, Miller Industries has implemented an additional 3% price increase on all manufactured products. Miller said products will begin invoicing under the updated pricing structure effective Aug. 1, 2026, and orders invoiced on or after that date will reflect the new pricing regardless of when they were placed.

Miller said more recent data indicates that underlying demand seen at the start of the year remains intact, pointing to a rise in chassis sales over the past few weeks. He said the company remains optimistic that retail activity will improve in the second half of 2026, allowing production to accelerate.

Military Pipeline and International Demand Remain Priorities

Management pointed to international demand and military opportunities as important long-term growth drivers. Miller said production rates at the company’s international facilities remain consistent, supported by elevated backlog levels and steady customer demand.

The company began 2026 with more than $150 million in military commitments, with production scheduled to begin in 2027 and the majority of revenue expected to be recognized in 2028 and 2029. Miller said the company continues to build a pipeline of military requests for quotes and expects defense-grade recovery vehicles to become an important contributor to future financial results.

Miller also cited the Omars acquisition and an EUR 8 million expansion at Jige in France, which remains on track for completion by mid-2027, as important to the company’s global initiatives. In the U.S., Miller Industries is targeting production readiness by late 2027 at a new manufacturing facility in Ooltewah exceeding 200,000 square feet. Site preparation remains on schedule, with construction targeted to begin by late summer.

2026 Guidance Maintained

Miller Industries maintained its outlook for full-year 2026 revenue of $850 million to $900 million and said it expects earnings per share to be generally in line with full-year 2025 results. Management said production volumes and revenue are expected to be increasingly weighted toward the second half of 2026 as customers delay orders amid higher diesel prices and geopolitical uncertainty.

The company also continued to expect gross margins to return to historical levels in the mid-13% range for the full year, supported by product mix shifting toward historical levels of bodies and chassis.

During the question-and-answer portion of the call, D.A. Davidson analyst Michael Shlisky asked about Omars-related expenses and potential synergies. Debbie said some one-time charges were recorded in gross margin and about $600,000 were recorded in SG&A. She said Omars had operated as a standalone company with its own engineering, human resources and accounting functions, and that Miller Industries sees opportunities to gain efficiencies across its three European companies and with the U.S. business.

Asked about military opportunities, Miller said some requests for quotes moved in a positive direction during the quarter, though he did not provide specifics. He said management hopes to provide more information with second-quarter results.

Miller also said the underlying factors supporting towing demand remain favorable, including fleet replacement needs. He said lower retail activity last year may have caused the age of tow fleets to increase slightly, which he described as a positive trend as customers look to replace equipment.

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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