Miller Industries Reports 19.8% Decline in Q1 2026 Net Sales

Miller Industries, Inc. reported a significant decline in financial performance for the first quarter of fiscal year 2026, with net sales totaling $180.9 million, a decrease of 19.8% compared to $225.7 million in the same period last year. The company's gross profit also fell to $25.7 million, down 24.3% from $33.9 million in the prior year, primarily due to lower production levels aimed at reducing inventory buildup in the distribution channel. The net income for the quarter was $555,000, a sharp decline of 93.1% from $8.1 million in Q1 2025, reflecting the challenges faced in the current economic environment.

In terms of operational metrics, the company experienced a notable increase in foreign sales, which rose by 25.1% to $49.2 million, largely attributed to the full quarter contribution from the recently acquired Omars – S.p.A., which added approximately $7.6 million to revenues. However, domestic sales in North America dropped by 29.3%, highlighting the ongoing demand headwinds and economic pressures affecting the market. The company’s selling, general, and administrative expenses increased by 3.0% to $23.9 million, influenced by the inclusion of Omars' expenses and amortization costs related to intangible assets.

Miller Industries completed the acquisition of Omars in December 2025 for approximately $20.2 million, which is expected to enhance its manufacturing capacity and expand its market presence in Europe. The acquisition is anticipated to be accretive in the first year, despite the initial non-cash acquisition-related expenses impacting earnings. The company is also investing in automation and robotics to improve production efficiency, with ongoing capital expenditures of $7.9 million in the first quarter of 2026.

The company’s balance sheet as of March 31, 2026, showed total assets of $585.6 million, a slight decrease from $589.7 million at the end of 2025. Cash and cash equivalents increased to $53.0 million, up from $44.7 million, while total liabilities decreased marginally to $168.3 million. The company’s employee headcount has been reduced as part of a cost-saving initiative, which included a workforce reduction of approximately 150 positions in 2025.

Looking ahead, Miller Industries remains cautious about the economic landscape, citing ongoing supply chain disruptions, inflationary pressures, and geopolitical tensions as potential risks to its operations. The company plans to implement a 3% price increase on all manufactured products effective July 31, 2026, to better align pricing with current cost structures. Management continues to monitor market conditions closely and is focused on stabilizing production and managing inventory levels to meet anticipated demand.