Miller Industries (NYSE:MLR) reported second-quarter 2026 revenue of $240 million, up 12.1% from a year earlier and 32.7% sequentially, as steady production rates supported retail activity and order intake. The towing and recovery equipment maker said it expects similar quarterly revenue of about $250 million for the remainder of the year and reaffirmed its full-year revenue outlook of $850 million to $900 million.
President and CEO Will Miller said the company delivered revenue growth and improved profitability despite what he described as an inconsistent macroeconomic environment. He attributed the progress to production efficiencies and stronger cash generation, which helped the company reduce debt and increase financial flexibility.
Second-Quarter Results and Margins
Executive Vice President, CFO and Treasurer Debbie Whitmire said the profitability improvement reflected operational efficiency and disciplined labor-cost management. However, gross profit was affected by a product mix that returned toward a more normalized balance between chassis and bodies after a period of elevated inventory within distribution channels.
The quarter’s earnings also included $0.11 per share of expenses related to the acquisition of Omars. Whitmire said Miller Industries has recognized the majority of transaction-related costs and expects any remaining impact to be less material. During the question-and-answer session, she estimated the remaining Omars-related expense for the year at roughly $0.04 to $0.05 per share, following impacts of $0.13 in the first quarter and $0.11 in the second quarter.
The company expects full-year earnings per share to be in line with 2025 results and expects gross margins to return to historical levels in the mid-13% range for 2026. Will Miller told analysts that greater chassis demand from distributors could modestly pressure margins as the product mix normalizes.
Cash, Debt Reduction and Shareholder Returns
Miller Industries ended the second quarter with $65.6 million in cash, an increase of $2.6 million from the prior quarter. The company also reduced debt by $20 million since the end of the first quarter.
Management said the balance sheet and cash generation provide flexibility to support investments, strategic opportunities and shareholder returns. The company returned $4.9 million to shareholders during the quarter through dividends and share repurchases, including $2.5 million in stock buybacks. Approximately $11.5 million remained available under its current repurchase authorization.
Will Miller said the company’s capital-allocation priorities include its quarterly dividend, which is currently $0.21 per share, share repurchases, working-capital optimization, selective acquisitions, and continued investment in capacity, automation and innovation. He said Miller Industries has paid dividends for 63 consecutive quarters and expects its cash generation to support these priorities without expanding its credit facility.
Domestic Demand Remains Stable
In the domestic towing market, management said retail demand, order entry and distributor inventory levels remained stable and near historical averages. The company expects retail activity and production volumes to remain broadly consistent with current levels.
Will Miller said customer sentiment remains influenced by consumer confidence, geopolitical developments and fuel prices. “Our production levels, retail activity levels, inventory levels, everything’s really flat right now,” he said, adding that distributors are satisfied with current inventory levels and that excess distributor inventory has largely been worked through.
He said domestic market conditions could improve if geopolitical tensions in the Middle East ease and fuel prices stabilize, but added that the company does not expect a significant improvement before there is more clarity on those issues.
Military Commitments Exceed $200 Million
Miller Industries said its military commitments have surpassed $200 million, with production scheduled to begin in 2027. The company expects the majority of revenue from those commitments to be recognized in 2028 and 2029.
During the call, Will Miller said the increase from more than $150 million in military commitments last quarter included several smaller items and one larger commitment. He said the vast majority involved heavy-duty production, with some industrial car carriers included. He did not disclose the customer or region associated with the larger contract.
The company said it continues to work with domestic and international government agencies on additional opportunities and sees military recovery vehicles as a potential driver of results in future years.
Capacity Expansion and International Operations
International and export backlog levels remained consistent, according to management, while the company’s overseas facilities continued operating at a steady pace. Miller Industries said its Omars acquisition is progressing smoothly and is expected to be accretive in the first year after accounting for transaction expenses.
The company is also pursuing an €8 million expansion at Jigé in France, which remains on track for completion in mid-2027. Separately, Miller Industries expects to begin construction in the fourth quarter of 2026 on a new manufacturing facility in Ooltewah, Tennessee, after wrapping up site preparation during the current month.
The planned facility will exceed 200,000 square feet and is targeted to be production-ready by late 2027. Management said the site will support production of high-volume defense-grade recovery vehicles and global export demand while maintaining service for North American customers. The facility is also expected to incorporate manufacturing technology intended to improve heavy-duty workflows and efficiency.
About Miller Industries (NYSE:MLR)
Miller Industries, Inc is a leading designer, engineer and manufacturer of towing and recovery vehicles and related equipment. The company’s product portfolio includes light-, medium- and heavy-duty tow trucks, integrated carriers, rotators, wreckers, trailers and associated hydraulic and electronic components. These products are marketed under well-known brand names, including Miller, Century, Holmes, Vulcan, Chevron and Jige International, serving a broad spectrum of customers in the towing, recovery, roadside assistance and vehicle transport industries.
Headquartered in Ooltewah, Tennessee, Miller Industries was founded in the early 1990s and has grown into a global supplier of towing and recovery solutions.
