Miller Industries Reports 35.5% Decline in Net Sales for Q1 Fiscal 2025

Miller Industries, Inc. reported a significant decline in financial performance for the first quarter of fiscal year 2025, with net sales totaling $225.7 million, a decrease of 35.5% compared to $349.9 million in the same period last year. The company's gross profit also fell to $33.9 million from $44.2 million, reflecting a 23.3% decline. The decrease in revenue was primarily attributed to reduced chassis deliveries aimed at mitigating inventory buildup within the distribution channel. Despite the drop in sales, the gross profit margin improved to 15.0%, up from 12.6% in the prior year, due to a favorable product mix.

In terms of operational metrics, Miller Industries experienced a notable reduction in costs, with the cost of operations decreasing by 37.3% to $191.7 million. Selling, general, and administrative expenses rose by 8.0% to $23.3 million, driven by increased compensation and employee incentives. The company reported a net income of $8.1 million, down 52.6% from $17.0 million in the previous year, resulting in earnings per share of $0.70, compared to $1.49 in the first quarter of 2024.

Miller Industries has also made strategic investments in its operations, including a focus on automation and robotics to enhance production efficiency. The company has committed approximately $10.0 million for the construction and acquisition of property, plant, and equipment, and has authorized an additional $9.1 million for facility expansion in France, expected to commence in the third quarter of 2025. The company continues to invest in its enterprise resource planning (ERP) system, with ongoing enhancements aimed at improving operational capabilities.

As of March 31, 2025, Miller Industries reported total assets of $639.7 million, down from $667.0 million at the end of the previous fiscal year. The company’s cash and temporary investments increased to $27.4 million, while outstanding borrowings under its credit facility rose to $75.0 million. The company has maintained compliance with its credit facility covenants and continues to monitor its liquidity position closely.

Looking ahead, Miller Industries anticipates that the synchronization of chassis deliveries and manufacturing will improve in the latter half of 2025, potentially stabilizing sales. However, the company remains cautious about external factors such as supply chain pressures, geopolitical tensions, and regulatory changes that could impact its operations and financial results. The management believes that ongoing investments in innovation and operational excellence will position the company to capitalize on future opportunities.