MLR — Miller Industries, Inc.

Summary of Miller Industries, Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Q4 2025 Revenue: $171.2 million, down 22.9% year-over-year.
• Full Year 2025 Revenue: $790.3 million, a decline of 37.2% from 2024.
• Gross Profit (Q4): $26.5 million, representing 15.5% of sales.
• Diluted EPS (Q4): $0.29.
• Full Year Gross Profit: $120.4 million, or 15.2% of sales.
• Net Income: $23 million, or $1.98 per diluted share.
• SG&A Expenses: Increased due to one-time retirement program costs and integration expenses related to the OMARS acquisition.

2. Strategic Updates and Business Highlights:

• Successfully completed the acquisition of OMARS, enhancing European market presence and product offerings.
• Focused on reducing production to normalize distributor inventories, which are now back to historical levels.
• Increased production levels anticipated in Q1 and Q2 2026 to meet recovering demand.
• Significant investments in U.S. manufacturing, including a $100 million expansion of the Oodawa facility to enhance production capacity for military and export markets.
• Continued commitment to shareholder returns with a 5% increase in the quarterly dividend to $0.21 per share.

3. Forward Guidance and Outlook:

• 2026 Revenue Expectation: Between $850 million and $900 million, with quarterly revenues projected to approach $250 million.
• Anticipated return to gross margins in the mid-13% range as production normalizes.
• Confidence in the 2026 outlook is bolstered by normalized distributor inventories and consistent retail demand.

4. Bad News, Challenges, or Points of Concern:

• Revenue decline in 2025 was significant, reflecting a challenging industry environment.
• Increased SG&A expenses could pressure margins if not managed effectively.
• The integration of OMARS may present operational challenges despite expected long-term benefits.
• Market uncertainties remain, particularly regarding global economic conditions and competitive pressures.

5. Notable Q&A Insights:

• Management expressed confidence in margin recovery, with expectations of improved operating margins due to cost reductions.
• The company is better positioned to forecast demand and production needs compared to the previous year, utilizing improved data analytics.
• OMARS acquisition is expected to be accretive in the first year, with potential for greater synergies as integration progresses.
• The balance between chassis-plus-tow sales and tow-only packages is returning to normalized levels, which should support revenue growth.

Overall, Miller Industries is navigating a challenging market but is positioned for recovery and growth in 2026, supported by strategic investments and operational improvements.