Miller Industries Reports 42.4% Decline in Net Sales for Q2 2025

Miller Industries, Inc. reported a significant decline in financial performance for the second quarter of fiscal year 2025, with net sales of $214.0 million, down 42.4% from $371.5 million in the same period last year. For the first half of the fiscal year, net sales totaled $439.7 million, a decrease of 39.0% compared to $721.3 million in the prior year. The company attributed this decline primarily to reduced chassis deliveries aimed at mitigating inventory buildup within its distribution channel. Despite the drop in sales, gross profit for the second quarter was $34.6 million, representing a gross margin of 16.2%, an increase from 13.8% in the prior year, due to a favorable product mix.

In terms of profitability, Miller Industries reported a net income of $8.5 million for the second quarter, down 58.8% from $20.5 million in the same quarter of 2024. For the first half of 2025, net income was $16.5 million, a decrease of 56.0% from $37.5 million in the previous year. The company’s selling, general, and administrative expenses increased slightly to $23.4 million in the second quarter, up from $22.8 million a year earlier, primarily due to higher stock-based compensation and employee training costs. Interest expense also saw a significant reduction, dropping 85.6% to $0.3 million, reflecting improved interest income from accounts receivable.

Operationally, Miller Industries has been focusing on enhancing its manufacturing capabilities and efficiency. The company has continued its investments in automation and robotics, with a commitment of approximately $9.0 million for construction and acquisition of property, plant, and equipment. Additionally, the company is expanding its facility in France, with plans to begin construction in the third quarter of 2025. As of June 30, 2025, Miller Industries had cash and temporary investments of $31.8 million and outstanding borrowings of $55.0 million under its credit facility.

Looking ahead, Miller Industries anticipates ongoing challenges due to high equipment ownership costs, including rising insurance premiums and interest rates, which may impact customer demand. The company is also monitoring the effects of new emissions regulations and potential tariffs that could affect its operations. Despite these challenges, management remains optimistic about aligning production schedules and inventory levels, expecting improvements in the second half of 2025. The company declared a quarterly cash dividend of $0.20 per share, payable on September 15, 2025, to shareholders of record as of September 8, 2025.