Miller Industries (MLR) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 were $214 million, down 42.4% year-over-year, primarily due to reduced chassis deliveries and lower product shipments following elevated OEM deliveries.

• Net income for Q2 2025 was $8.5 million, or $0.73 per diluted share, representing a 58.8% decrease from $20.5 million ($1.78 per share) in Q2 2024.

• Gross profit margin improved to 16.2% from 13.8% year-over-year, driven by a favorable product mix shift toward higher-margin bodies.

• Retail sales activity declined 20% sequentially, with a 30% drop in order intake from distributors due to lower consumer confidence and higher ownership costs.

• Management is adjusting production, implementing cost improvements, and investing in automation and robotics to address elevated field inventory and enhance efficiency.

Financial highlights

• Net sales for the first half of 2025 were $439.7 million, down 39.0% year-over-year.

• Six-month net income fell 56.0% to $16.5 million compared to $37.5 million in the prior year.

• SG&A expenses rose to $23.4 million (10.9% of sales) in Q2 2025, up from 6.1% in Q2 2024, driven by higher compensation costs.

• Interest expense dropped 85.6% to $249,000, while net income fell sharply year-over-year.

• Operating cash flow for the first half of 2025 was $30.0 million, a significant improvement from a $1.7 million outflow in the prior year period.

Outlook and guidance

• Revenue guidance for 2025 revised to $750–800 million; EPS guidance suspended due to operational initiatives and uncertainty.

• Management expects continued demand headwinds from high equipment ownership costs, interest rates, insurance premiums, and tariffs.

• Chassis and body inventory levels are moving closer to optimal, with improved synchronization of equipment and chassis deliveries anticipated in the second half of 2025.

• Management anticipates a recovery in the commercial towing market and potential upside from military contracts in 2026 and beyond.

• Cost reduction initiatives and production adjustments are underway to align with current demand and reduce channel inventory.