Miller Industries, Inc. Q4 FY2025 earnings call

• Thanked employees for their dedication. • Highlighted delivering fourth quarter revenue in line with revised expectations despite challenging industry. • Made difficult decisions like decreasing production, right-sizing cost structure, strengthening supply chain. • Completed acquisition of OMARS to expand European footprint. • Core philosophy is having best people in towing and recovery. • Domestic market has normalized distributor inventory, steadier retail demand; export business is strong with three drivers: consistent European demand, growing demand in other international markets, robust military RFQs pipeline. • Integration of OMARS progressing well, expected to be accretive in first year. • 8 million euro expansion at Gijet in France on schedule, investing in production efficiencies at Boniface in UK. • Beginning significant project to add 200,000-plus square foot to Udawah facility. • Capital allocation priorities: paying consistent quarterly dividend, debt reduction, share repurchases, selective M&A opportunities, ongoing investments in automation, innovation, people, and capacity.

For the fourth quarter, revenue was $171.2 million, down 22.9% year-over-year. Gross profit was $26.5 million, or 15.5% of sales. For the full year 2025, revenue was $790.3 million, down 37.2% from 2024. Gross profit was $120.4 million, or 15.2% of sales. SG&A expenses increased due to one-time expenses related to voluntary retirement program, OMARS acquisition transaction and integration costs, and higher stock compensation expenses. The acquisition of OMARS in December contributed approximately one month of revenue in the fourth quarter.

• Expect 2026 revenues between $850 and $900 million. • Performance to accelerate in second half of 2026 as manufacturing activity increases and product mix normalizes, anticipating revenue approaching $250 million per quarter by second half. • Gross margins expected to return to historical mid-13% range for full year 2026.

Q: Help me understand the margin story, specifically about gross margin expectation for 13% range and if cost reductions will benefit margins.

A: Said margins are normalizing, better than pre-COVID levels, most people reduction was hourly related to lower production, some retirements help SG&A but some employees replaced.

Q: Top-line outlook for 2026, confidence compared to last year.

A: Confidence higher this year due to better data analysis, distribution inventory back to historical levels, retail activity consistent.

Q: Mix between chassis plus tow stales and tow-only packages.

A: Not one-for-one, returning to normalized level.

Q: Omar's accretion, if more than just layering existing P&L.

A: More of long-term play, currently P&L drops but expected accretive in year one, focused on European facilities product placement, purchasing, augmenting Omar's heavy-duty production with U.S. capabilities