Miller Industries, Inc.

Revenue for the second quarter was $240 million, up 12.1% year over year and 32.7% sequentially. Gross profit was $35.9 million, or 15% of sales, and net income was $7.3 million. Diluted EPS was $0.63 per share, up from $0.05 in the first quarter; Omars transaction-related expenses impacted EPS by $0.11 in the quarter, and management said $0.04 to $0.05 of similar expense remains for the rest of the year. Cash ended the quarter at $55.6 million, up $2.6 million from last quarter, and debt was reduced by $20 million since Q1. For 2026, management expects roughly $250 million of revenue per quarter in the remainder of the year, full-year revenue of $850 million to $900 million, EPS in line with full-year 2025, and gross margin returning to the mid-13% range.

Will Miller emphasized that the company is benefiting from operational efficiencies, stronger cash generation, and a stronger balance sheet, which he said provides flexibility to invest and return capital. He described the domestic tow market as stable but subdued, with consumer confidence, geopolitics, and fuel prices weighing on demand, while international and military opportunities are building. His tone was constructive and confident, especially around the second half, the Omars acquisition, the France expansion, and the Ooltewah facility buildout.

Deborah Whitmire highlighted the quarter’s operating improvement: gross profit of $35.9 million, gross margin of 15%, net income of $7.3 million, and diluted EPS of $0.63. She said Omars transaction-related costs reduced EPS by $0.11 in Q2, following a $0.13 impact in Q1, with only $0.04 to $0.05 expected to remain for the rest of the year. She also noted cash of $55.6 million, an increase of $2.6 million sequentially, $20 million of debt reduction since Q1, and $4.9 million returned to shareholders through repurchases and dividends.

Analysts focused on why full-year gross margin guidance is only mid-13% despite Q1 and Q2 margins of 14% and 15%; management said the product mix is normalizing as chassis revenue rises, which should pressure margins slightly. On EPS, management confirmed the full-year outlook includes Omars-related one-time costs in both the first and second quarters, with a small remainder expected in the back half. The analyst also pressed on military bookings and management said commitments moved from north of $150 million to over $200 million, mostly heavy-duty production, though customer and region were not disclosed. On the domestic tow market, management said retail activity, orders, and inventory are all flat and stable, but confidence remains limited until geopolitical tension and fuel prices ease.