MILLER INDUSTRIES REPORTS 2025 FIRST QUARTER RESULTS

Rhea-AI Summary

Miller Industries (NYSE: MLR) reported its Q1 2025 financial results with net sales of $225.7 million, down 35.5% from $349.9 million in Q1 2024, primarily due to decreased chassis shipments. Despite lower sales, gross margin improved to 15.0% from 12.6%, driven by a shift in product mix. Net income decreased 52.6% to $8.1 million ($0.69 per diluted share) compared to $17.0 million ($1.47 per diluted share) in Q1 2024. The company declared a quarterly dividend of $0.20 per share and executed $2.1 million in share repurchases. Management highlighted efforts to mitigate tariff impacts through surcharges and price increases, while noting strong activity in the global military market and anticipating improvements in the second half of 2025.

Positive

• Gross margin improved to 15.0% from 12.6% year-over-year
• Company maintains strong shareholder returns with $0.20 quarterly dividend and $2.1M in share repurchases
• $20 million remaining in share repurchase authorization
• Strong activity reported in global military market
• Working capital and cash conversion improving

Negative

• Net sales declined 35.5% year-over-year to $225.7M
• Net income dropped 52.6% to $8.1M compared to Q1 2024
• SG&A expenses increased to 10.3% of net sales from 6.2%
• Ongoing tariff-related uncertainties affecting business operations

Insights

Financial Analyst

Miller's revenue declined 35.5% amid supply chain normalization, but improved gross margins and proactive management signal a transitional quarter.

Miller Industries' Q1 2025 results reflect an expected transition as industry supply chains normalize. The 35.5% revenue decline to $225.7 million stems primarily from reduced chassis shipments, which were artificially elevated in Q1 2024 due to inconsistent OEM delivery schedules following previous supply chain disruptions.

Despite the revenue contraction, gross margin improved significantly to 15.0% from 12.6%, driven by a favorable product mix shift from chassis to higher-margin bodies. This margin expansion wasn't enough to offset the volume decrease, however, resulting in net income falling 52.6% to $8.1 million ($0.69 EPS vs. $1.47 in Q1 2024).

Balance sheet management shows discipline, with inventories reduced by $21.3 million since year-end 2024 and accounts receivable down $20.8 million. This working capital efficiency helped increase cash by $3 million despite earnings pressure. Long-term obligations increased by $10 million to $75 million, potentially supporting the $2.1 million in share repurchases executed during the quarter.

Management's approach to tariff challenges includes implementing surcharges on new orders, raising prices on accessories/parts, and reducing Chinese supplier exposure. The company maintained its shareholder return commitment with its 58th consecutive quarterly dividend ($0.20 per share) while continuing buybacks with $20 million remaining in authorization.

Looking ahead, management anticipates sequential improvement throughout H2 2025 as channel inventory returns to optimal levels, with potential tailwinds from global military market activity positioning the company for a stronger 2026 entry.

CHATTANOOGA, Tenn., May 7, 2025 /PRNewswire/ -- Miller Industries, Inc. (NYSE: MLR) ("Miller Industries" or the "Company") today announced financial results for the first quarter ended March 31, 2025.

Net Sales for the first quarter of 2025 were $225.7 million, compared to $349.9 million for the first quarter of 2024, a decrease of 35.5%. The year over year decrease was driven primarily by a decline in chassis shipments, which, in prior quarters, were significantly elevated due to the inconsistent delivery schedule of chassis from original equipment manufacturers ("OEMs") as they recovered from previous supply chain disruptions.

Gross profit for the first quarter of 2025 was $33.9 million, or 15.0% of net sales, compared to $44.2 million, or 12.6% of net sales, for the first quarter of 2024. The increase in gross margin was driven largely by product mix, which shifted from a higher percentage of chassis in the prior year period, to a higher percentage of bodies in the current period.

Selling, general and administrative (SG&A) expenses were $23.3 million, or 10.3% of net sales, compared to $21.5 million, or 6.2% of net sales, in the prior year period. The year over year increase in selling, general and administrative expenses was primarily driven by annual market adjustments to salaries and cost of living increases in the second quarter of 2024, as well as elevated employee benefit costs.

Net income in the first quarter of 2025 was $8.1 million, or $0.69 per diluted share, compared to net income of $17.0 million, or $1.47 per diluted share, in the prior year period, for decreases of 52.6% and 52.8%, respectively.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.20 per share, payable June 9, 2025, to shareholders of record at the close of business on June 2, 2025, the fifty-eighth consecutive quarter that the Company has paid a dividend.

"Results for the quarter were in-line with our expectations as we continued to execute our strategy of reducing field inventory and product lead times as the industry returns to a normalized channel flow, positioning ourselves for future growth," said William G. Miller, II, Chief Executive Officer of the Company. "During the quarter, we continued to prioritize returning capital to our shareholders as we executed approximately $2.1 million in share repurchases, in addition to paying our industry-leading dividend. With our cash conversion improving, working capital declining, and $20 million remaining in our share repurchase authorization, we have excellent flexibility to continue buying opportunistically."

Mr. Miller II, concluded, "While tariff-related uncertainties persist, we've made efforts to mitigate the existing and expected impacts to our business to the extent we can. We recently implemented a tariff surcharge on all new orders of manufactured products, as well as additional price increases on all accessories and parts sales. We continue to diversify our supply chain, including continued reduction of our already-minimal exposure in China. Despite the current uncertainty, we're encouraged by the underlying fundamentals we see in our end markets. Channel inventory is returning to optimal levels, and we continue to see strong activity in the global military market. We anticipate continued improvement throughout the second half of 2025 and enter 2026 in a position of strength."

The Company will host a conference call, which will be simultaneously broadcast live over the Internet. The call is scheduled for tomorrow, May 8, 2025, at 10:00 AM ET. Listeners can access the conference call live and archived over the Internet through the following link:

https://app.webinar.net/4xOvyGvRja3

Please allow 15 minutes prior to the call to visit the site, download, and install any necessary audio software. A replay of this call will be available approximately one hour after the live call ends through May 15, 2025. The replay number is 1-844-512-2921, Passcode 1188873.

About Miller Industries, Inc.

Miller Industries is The World's Largest Manufacturer of Towing and Recovery Equipment®, and markets its towing and recovery equipment under a number of well-recognized brands, including Century®, Vulcan®, Chevron™, Holmes®, Challenger®, Champion®, Jige™, Boniface™, Titan® and Eagle®.

Certain statements in this news release may be deemed to be forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as "may", "will", "should", "could", "continue", "future", "potential", "believe", "project", "plan", "intend", "seek", "estimate", "predict", "expect", "anticipate" and similar expressions, or the negative of such terms, or other comparable terminology and include, without limitation, any statements relating to the ability to execute our strategy to reduce field inventory and product lead times, expectations regarding channel flow, expectations regarding improvements in cash conversion and working capital declining, the potential for future repurchases of stock under our share repurchase program, the potential success of actions taken to address tariff-related uncertainties, the future performance of our end markets, opportunities in the global military market, and our future performance, including the 2025 guidance, revenues, share repurchases or profitability. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements. Such forward-looking statements are made based on our management's beliefs as well as assumptions made by, and information currently available to, our management. Our actual results may differ materially from the results anticipated in these forward-looking statements due to, among other things: our dependence upon outside suppliers for component parts, chassis and raw materials, including aluminum, steel, and petroleum-related products leaves us subject to changes in price and availability, the cadence and quantity of deliveries from our suppliers, and delays in receiving supplies of such materials, component parts or chassis; our customers' and towing operators' access to capital and credit to fund purchases; macroeconomic trends, availability of financing, and changing interest rates; our customers' ability to fund purchases of our products increases in the cost of skilled labor; the cyclical nature of our industry and changes in consumer confidence and in economic conditions in general; special risks from our sales to U.S. and other governmental entities through prime contractors; changes in fuel and other transportation costs, insurance costs and weather conditions; changes in government regulations, including environmental and health and safety regulations; failure to comply with domestic and foreign anti-corruption laws; competition in our industry and our ability to attract or retain customers; our ability to develop or acquire proprietary products and technology; assertions against us relating to intellectual property rights; changes in the tax regimes and related government policies and regulations in the countries in which we operate, including the imposition of new or increased tariffs and any resulting trade wars; the effects of regulations relating to conflict minerals; the catastrophic loss of one of our manufacturing facilities; environmental and health and safety liabilities and requirements; loss of the services of our key executives; product warranty or product liability claims in excess of our insurance coverage; potential recalls of components or parts manufactured for us by suppliers or potential recalls of defective products; an inability to acquire insurance at commercially reasonable rates; a disruption in, or breach in security of, our information technology systems or any violation of data protection laws; and those other risks discussed in our filings with the Securities and Exchange Commission, including those risks discussed under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, as supplemented in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which discussion is incorporated herein by this reference. Such factors are not exclusive. We do not undertake to update any forward-looking statement that may be made from time to time by, or on behalf of, the Company.

MILLER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except share and per share data) (Unaudited)
			Three Months Ended
			March 31
								%
			2025			2024		Change
NET SALES		$	225,651		$	349,871		(35.5) %
COST OF OPERATIONS			191,707			305,628		(37.3) %
GROSS PROFIT			33,944			44,243		(23.3) %
OPERATING EXPENSES:
Selling, General and Administrative Expenses			23,260			21,543		8.0 %
NON-OPERATING (INCOME) EXPENSES:
Interest Expense, Net			95			1,245		(92.4) %
Other (Income) Expense, Net			(202)			(33)		512.5 %
Total Expense, Net			23,153			22,755		1.7 %
INCOME BEFORE INCOME TAXES			10,791			21,488		(49.8) %
INCOME TAX PROVISION			2,726			4,465		(38.9) %
NET INCOME		$	8,065		$	17,023		(52.6) %
BASIC INCOME PER SHARE OF COMMON STOCK		$	0.70		$	1.49		(52.7) %
DILUTED INCOME PER SHARE OF COMMON STOCK		$	0.69		$	1.47		(52.8) %
CASH DIVIDENDS DECLARED PER SHARE OF COMMON STOCK		$	0.20		$	0.19		5.3 %
WEIGHTED-AVERAGE SHARES OUTSTANDING:
Basic			11,450			11,452		0.0 %
Diluted			11,614			11,556		0.5 %

 

MILLER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data)
	March 31,
	2025			December 31,
	(Unaudited)			2024
ASSETS
CURRENT ASSETS:
Cash and temporary investments	$	27,360		$	24,337
Accounts receivable, net of allowance for credit losses of $1,907 and $1,850 at March 31, 2025 and December 31, 2024, respectively		292,574			313,413
Inventories, net		164,897			186,169
Prepaid expenses		16,114			5,847
Total current assets		500,945			529,766
NON-CURRENT ASSETS:
Property, plant and equipment, net		117,502			115,979
Right-of-use assets - operating leases		500			545
Goodwill		19,998			19,998
Other assets		762			727
TOTAL ASSETS	$	639,707		$	667,015
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	113,512		$	145,853
Accrued liabilities		39,520			50,620
Income taxes payable		1,887			1,082
Current portion of operating lease obligation		319			318
Total current liabilities		155,238			197,873
NON-CURRENT LIABILITIES:
Long-term obligations		75,000			65,000
Non-current portion of operating lease obligation		181			227
Deferred income tax liabilities		2,782			2,885
Total liabilities		233,201			265,985
SHAREHOLDERS' EQUITY:
Preferred stock, $0.01 par value per share:
Authorized – 5,000,000 shares, Issued – none		—			—
Common stock, $0.01 par value per share:
Authorized – 100,000,000 shares, Issued – 11,459,278 and 11,439,292 shares as of         March 31, 2025 and December 31, 2024, respectively		115			114
Additional paid-in capital		153,523			153,704
Retained earnings		260,715			254,938
Accumulated other comprehensive loss		(7,847)			(7,726)
TOTAL SHAREHOLDERS' EQUITY		406,506			401,030
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	639,707		$	667,015

 

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SOURCE Miller Industries, Inc.

FAQ

What were Miller Industries (MLR) Q1 2025 earnings per share?

Miller Industries reported Q1 2025 diluted earnings per share of $0.69, down 52.8% from $1.47 in Q1 2024.

How much is Miller Industries' (MLR) quarterly dividend for Q1 2025?

Miller Industries declared a quarterly cash dividend of $0.20 per share, payable June 9, 2025, to shareholders of record as of June 2, 2025.

What caused Miller Industries' (MLR) revenue decline in Q1 2025?

The 35.5% revenue decline was primarily driven by decreased chassis shipments, which were previously elevated due to inconsistent delivery schedules from OEMs recovering from supply chain disruptions.

How is Miller Industries (MLR) addressing tariff-related challenges?

The company implemented a tariff surcharge on new manufactured products, increased prices on accessories and parts sales, and is diversifying its supply chain while reducing exposure to China.

What was Miller Industries' (MLR) share repurchase activity in Q1 2025?

The company executed approximately $2.1 million in share repurchases during Q1 2025, with $20 million remaining in the share repurchase authorization.