Miller Industries, Inc. Q1 FY2026 earnings call

• Entered 2026 with strong momentum, having reduced field inventory, improved distribution channel health, and strengthened supply chain in 2025. - Proactively paused North American production increase due to Middle East geopolitical tensions and higher diesel prices to maintain balanced distributor inventory. - Core philosophy remains based on best people, products, and distribution network. - First full quarter contribution from OMARS acquisition, with smooth integration expected to continue. - Strong cash balance of $53 million at end of first quarter, up $8.3 million from end of last year. - Focused on five key capital allocation priorities: paying consistent dividend, reducing credit facility, share repurchases, selective M&A opportunities, and ongoing investment in capacity expansion, automation, and innovation. - Ottawa's new manufacturing facility site preparation on schedule, targeting construction to begin by late summer.

Revenue for the first quarter was $180.9 million, down 19.8% year over year but up 5.7% quarter over quarter. Gross profit was $25.7 million, or 14.2% of sales. Diluted EPS was 5 cents per share. Higher SG&A expenses were due to inclusion of OMARS. OMARS contributed to the results for the first full quarter, and is expected to be an increasingly meaningful contributor going forward.

• Expect to generate between $850 million and $900 billion in revenue for full year 2026 and earnings per share generally in line with full year 2025. - Production volumes and revenue expected to be weighted towards second half of 2026. - Confident in approaching $250 million in quarterly revenue by second half of 2026. - Expect gross margins to return to mid-13% range for full year 2026 with product mix shifting towards historical levels of bodies and chassis.

• Escalating geopolitical tensions in the Middle East leading to higher diesel prices and pressure on retail demand. - Uncertainty from geopolitical tensions causing customers to push orders.

Q: The one-time items mentioned, were those on the SG&A line in the quarter? And about SG&A increase due to OMARS deal. Also about synergies to reduce SGA.

A: Some one-time charges were at gross margin and SG&A lines. About $600,000 on SG&A related to acquisition costs. Remaining is current run rate with full quarter of OMARS plus conservative tax approach. OMARS had standalone staff, synergies expected from leveraging European companies for cost reductions.

Q: Did anything move closer to commitment phase during the quarter regarding military opportunities?

A: Seen some positive movement in RFQs during quarter, but no specific RFQ to add, hoping to have more info in Q2 earnings.

Q: Underlying reasons for consumer to use tow service still intact?

A: Average age of car and number of cars on road still favorable, but uncertainty from geopolitical tensions and diesel prices causing some delay in purchases, expected to return once Middle East settles.