Miller Industries NYSE: MLR reported an 18.8% increase in third-quarter revenue and reaffirmed its full-year sales outlook, even as production challenges at some domestic chassis suppliers and holiday downtime at European facilities affected the quarter.
The towing and recovery equipment maker expects revenue to recover in the fourth quarter. President and CEO Will Miller said customer demand and order intake remained consistent and that the company plans to maintain current domestic production levels into 2027.
Revenue rose to $212.2 million from $178.7 million in the third quarter of 2025. Executive Vice President, CFO and Treasurer Debbie Whitmire attributed the increase to a significant reduction in distributor inventory compared with a year earlier. Net income was $6.1 million, and diluted earnings per share rose to $0.53 from $0.27.
Gross profit was $29.8 million, or 14% of sales. Whitmire said product mix affected gross profit as sales returned to a more historical balance of chassis and bodies. She also said Omars posted significant year-over-year growth and remained on track to be accretive in its first year following its acquisition.
Outlook and Chassis Supply
Miller reaffirmed its 2026 revenue guidance of $850 million to $900 million and said it continues to expect earnings per share in line with full-year 2025 results. The company raised its full-year gross margin expectation to approximately 14%, reflecting a decrease in chassis sales.
Asked about the potential fourth-quarter revenue run rate, Will Miller said chassis suppliers had experienced a “hiccup” in the third quarter that affected revenue more than earnings per share. He said the company expects to move into 2027 at a similar run rate of roughly $250 million per quarter.
Suppliers had a fairly strong October but had not caught up, Miller said, adding that there could be some catch-up in the fourth quarter as they work to get trucks off production lines.
Miller also said elevated diesel prices and reduced consumer confidence were pressuring retail demand, although the company believes those pressures remain manageable for customers.
New Rotator and Expansion Projects
The company recently unveiled the Century M65, a 65-ton rotator, at an event in Chattanooga attended by more than 1,000 distributors and customers. Miller said the product could draw some sales from the company’s older 75-ton rotator, but he expects the two products together to strengthen its competitive position.
The new unit is available to order, though the company is awaiting final 2027 chassis pricing before completing quotes. Miller said chassis are expected to arrive no earlier than May 2027, with initial sales anticipated in the second half of that year.
In Europe, the company recently integrated Jige into its enterprise resource planning system. Miller said a capacity expansion at Jige remains on track for completion in the first quarter of 2027.
Construction is also underway on a facility of more than 200,000 square feet in Ooltewah. Miller said the project remains on schedule to be production-ready by late 2027 and is intended to increase capacity for heavy-duty recovery equipment and support defense programs.
During the question-and-answer session, Miller said an initial delay in building steel had not changed the contractor’s expectation for a temporary certificate of occupancy by September 2027. That would allow time to renovate the current facility and increase production capacity by late 2027 or early 2028, he said.
Military Business and Capital Allocation
Miller said existing military commitments have surpassed $200 million. Pre-production and test units are being built, with serialized production expected to begin in 2027 and most associated revenue anticipated in 2028 and 2029.
The company ended the third quarter with $60.4 million in cash, up from $44.7 million at the end of 2025. Whitmire said total debt had fallen by approximately $30 million since the start of the year.
Miller returned $5.1 million to shareholders through dividends and share repurchases during the quarter. That included $2.7 million in repurchases, leaving approximately $8.7 million under its current authorization. The company’s quarterly dividend stands at $0.21 per share.
About Miller Industries (NYSE:MLR)
Miller Industries, Inc designs, manufactures and sells towing and recovery equipment. Its product portfolio includes light-, medium- and heavy-duty tow trucks, vehicle carriers, wreckers, rotators, underlift systems and related equipment used to recover, transport and service disabled vehicles.
The company markets products under brands including Century, Vulcan, Chevron, Holmes and Champion. It also provides replacement parts and related support for its equipment. Miller Industries sells through a network of distributors and dealers to towing operators, transportation companies, government agencies and other commercial customers.
Headquartered in Ooltewah, Tennessee, Miller Industries serves customers in North America and international markets.
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