Miller Revenue Rebounds as Production Stabilizes
The manufacturer expects revenue of about $250 million in each remaining 2026 quarter.
Miller Industries (MLR), a maker of towing and recovery equipment, returned to year-over-year revenue growth in the second quarter as production stabilized alongside sustained order intake. The quarter reversed three consecutive declines, including a 19.8% drop in the first quarter.
Revenue rose 12.1% from a year earlier to $240.0 million and increased 32.7% from the first quarter. Diluted earnings were $0.63 a share, up from $0.05 sequentially but down 13.7% from a year earlier, while net income fell 14.1% to $7.3 million.
The earnings rebound followed a first quarter in which net income had fallen 93.1% from a year earlier. The first-half comparison remained weaker: net income declined 52.7% to $7.8 million, and diluted earnings fell 52.1% to $0.68 a share.
Gross profit increased 39.9% sequentially to $35.9 million but rose only 3.9% from a year earlier, trailing revenue growth. Gross margin recovered to 15.0% from 14.2% in the first quarter, though it remained 1.2 percentage points below the year-earlier period. Selling, general and administrative expenses rose 7.6% to $25.2 million, contributing to an 11.4% decline in pretax income.
Miller had reduced production in the third quarter of 2025 and paused planned North American increases during the first quarter of 2026. Second-quarter production matched sustained order intake, and the company expects to maintain those volumes through the second half.
The company reaffirmed its 2026 revenue forecast of $850 million to $900 million and continues to expect earnings generally in line with 2025. Miller forecasts a full-year gross margin in the mid-13% range as its product mix returns toward historical proportions of bodies and chassis.
Miller reduced debt by $20 million during the quarter and eliminated the balance on its credit facility, leaving $1.0 million of long-term obligations at June 30. Inventory declined about $26.9 million from year-end to $157.3 million as distributor stocks returned to historically average levels.
The company returned $4.9 million to shareholders, including about $2.5 million through repurchases, and maintained its quarterly dividend at $0.21 a share. Global military commitments exceeded $200 million by the second quarter, up from more than $150 million at year-end, with production scheduled to begin in 2027 and accelerate through 2029.