Miller Industries, Inc.

What they do

Miller Industries designs and manufactures bodies for car carriers and wreckers that are installed on third-party chassis and sold under brands including Century, Vulcan, Chevron, Holmes, Challenger, Champion, Jige, Boniface, Omars, Titan, and Eagle. Products are marketed primarily through a network of independent distributors serving all 50 states, Canada, Mexico, and other foreign markets, as well as through prime contractors to governmental entities. The company has domestic manufacturing operations in Tennessee and Pennsylvania and foreign operations in France, Italy, and the United Kingdom, and it operates as a single reportable segment.

Revenue drivers

• Towing and recovery equipment (single reportable segment) — Revenue comes from manufacturing car carrier and wrecker bodies installed on third-party chassis; the company operates as one reportable segment and management evaluates performance on a consolidated basis, with no separate segment revenue breakdown disclosed.
• Distribution network — Products are sold primarily through independent distributors serving all 50 states, Canada, Mexico, and other foreign markets, with management believing more than 90 percent of its independent distributors do not offer competing towing and recovery equipment.
• European operations and brands — Substantial European distribution capabilities come from ownership of Jige International S.A., Boniface Engineering, Ltd, and Omars S.p.A., with the Omars acquisition completed in fiscal 2025 adding a well-recognized Italian brand and additional light-, medium-, and heavy-duty recovery vehicle capacity.
• Parts and service via distributors — In addition to selling new equipment, independent distributors provide end-users with parts and service, though no separate revenue figure for parts and service is disclosed in the excerpts.

Recent performance

Q2 2026 revenue was $240.0 million, up 12.1% from $214.0 million in Q2 2025, while gross profit rose 3.9% to $35.9 million and gross margin fell 120 basis points to 15.0%. Net income declined 14.1% to $7.3 million and diluted EPS fell 13.7% to $0.63, with the quarter including approximately $0.11 per diluted share of non-cash acquisition-related expenses tied to Omars. SG&A expenses increased 7.6% to $25.2 million. The company reduced debt by $20 million from the end of Q1 2026 and returned $4.9 million to shareholders through dividends and share repurchases.

Strategy

Management is matching production to sustained order intake while keeping distributor inventory at healthy levels, having strategically decreased production in 2025 to reduce field inventory. Cost savings initiatives included a reduction of approximately 150 positions across three U.S. manufacturing facilities in the third quarter of 2025. The company is investing in a new 200,000+ square foot facility at its Ooltewah headquarters at a cost of approximately $100 million, intended to increase production capacity and support future growth, European demand, and defense production commitments, funded primarily through operating cash flow over the next several years. Capital allocation priorities include debt reduction, the dividend, share repurchases, and continued investment in the business.

Risks

• Tariffs and trade restrictions — In fiscal 2025 the U.S. government imposed additional tariffs on a significant number of countries, including on steel and aluminum imports, which may affect the prices and supply of component parts, chassis, and raw materials such as aluminum, steel, and petroleum-related products.
• Demand headwinds — Beginning in the second half of 2025 the company experienced reduced retail sales and lower order intake, which it attributes to the high cost of equipment ownership in an elevated interest rate environment, escalating insurance costs for customers, and tariff uncertainty.
• International operations and geopolitical uncertainty — Manufacturing operations in Norfolk, England; Cuneo, Italy; and the Lorraine region of France expose the company to restrictive taxation policies, changing political conditions, trade policies, and ongoing military conflicts in Ukraine and the Middle East that could disrupt trade and workforces.
• Customer financing and credit conditions — A decline in the U.S. credit rating or a recession in global or regional economies, along with inflation or pressure on credit markets, could adversely affect the company's and its customers' access to liquidity and increase borrowing costs, affecting equipment purchases.

Outlook

CEO William G. Miller II said the company believes current production levels are sustainable into the second half of the year and remains confident in its ability to deliver on its full year 2026 outlook. Management expects the Omars acquisition to be accretive in the first year despite non-cash acquisition-related expenses, most of which were recognized in the first and second quarters. The Ooltewah expansion remains on schedule and is expected to support future growth, European demand, and defense production commitments.