#United States #Chattanooga #Supply Chain #Miller Industries #Chassis Shipments

Miller Industries Financial Report for Q1 2025

Miller Industries, Inc. (NYSE: MLR) recently released its financial outcomes for the first quarter ended March 31, 2025. The results show a significant drop in net sales and net income compared to the same quarter last year, reflecting ongoing challenges in the supply chain.

Key Financial Metrics

For the first quarter of 2025, Miller Industries recorded net sales amounting to $225.7 million, a decline of 35.5% compared to $349.9 million during the first quarter of 2024. This major decrease is primarily attributed to a reduction in chassis shipments. In prior periods, chassis deliveries were notably high due to previous supply chain disruptions, which have now stabilized.

The company's gross profit for the quarter stood at $33.9 million, accounting for 15% of net sales. This represents an increase from 12.6% in the prior year, as the product mix shifted from a higher percentage of chassis to a larger share of bodies.

Selling, general, and administrative (SGA) expenses reached $23.3 million, marking an increase from $21.5 million in the comparable period last year. The rise in these expenses can be linked to annual salary adjustments and increased employee benefit costs.

Net income for Q1 2025 was reported at $8.1 million, or $0.69 per diluted share, down from $17.0 million and $1.47 per diluted share in Q1 2024, indicating declines of 52.6% and 52.8%, respectively.

Dividends and Share Repurchases

Miller Industries announced a quarterly cash dividend of $0.20 per share, which will be payable on June 9, 2025. This marks the fifty-eighth consecutive quarter in which the company has issued a dividend to its shareholders.

CEO William G. Miller, II, noted that the company's performance aligns with expectations, focusing on reducing field inventory and lead times as the market normalizes. The company also executed share repurchases worth approximately $2.1 million during the quarter in addition to maintaining dividends, signaling its commitment to return capital to shareholders.

Miller expressed optimism about the future, anticipating continued improvements in operations during the second half of 2025. With a focus on diversifying supply chains and managing tariff impacts, the company is hopeful for robustness in its end markets, particularly in global military sectors. Given the encouraging market fundamentals, Miller expects to enhance its performance going into 2026.

Future Outlook and Challenges

Despite the ongoing uncertainties surrounding tariffs and market fluctuations, Miller has taken proactive measures to mitigate risks. These include implementing a tariff surcharge on new orders and raising prices on accessories and parts. The company remains vigilant in its strategies to minimize exposure, especially concerning its limited interactions with suppliers from China.

The management is set to conduct a conference call to discuss these results in detail, providing insights for investors and stakeholders. This call will take place on May 8, 2025, at 10 AM ET, with the opportunity for stakeholders to join via an online platform. Following the call, a replay will be made available, allowing for broad access to the critical details shared.

Miller Industries continues to position itself as the world’s leading manufacturer of towing and recovery equipment, with a commitment to adapting and overcoming market challenges while seeking growth opportunities in the future.

Conclusion

As Miller Industries navigates through the complexities of the current business environment, their strategic approaches and focus on shareholder value exemplify resilience amidst the challenges posed by the supply chain. The company's performance in the upcoming months will be crucial as they strive to recover from the adverse effects of the previous year’s disruptions and look toward sustained growth.