Miller Industries Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 6 May 2026: press release. Guidance figures: 3 new, 4 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue fell 19.8% year over year: Net sales were $180.9 million against $225.7 million a year earlier. Revenue rose sequentially from $171.2 million in the fourth quarter of 2025. Source
• Diluted EPS fell to $0.05: Net income was $555 thousand against $8.1 million a year earlier. Management attributed part of the decline to Omars-related non-cash expenses. Source
• Omars costs weighed on earnings: Omars expenses came from equipment sold at fair market value and amortization of customer relationships. The first-quarter effect was about $0.13 per diluted share. Source
• Military commitments top $150 million: Management cited more than $150 million in military commitments, with additional global RFQs underway for defense-grade recovery vehicles. Source
• Tariffs and costs pressure pricing: Management cited tariff impacts, regulatory and compliance requirements, and U.S. manufacturing costs as drivers of pricing pressure. The April 2025 surcharge did not cover later cost increases. Source
• Middle East tensions weigh on demand: Late in the quarter, Middle East tensions raised diesel prices and macro uncertainty, beginning to pressure retail demand. Management expects effects on second-quarter revenue and profit. Source
• Cash flow funds debt and returns: Cash rose to $53.0 million from $44.7 million at year-end. Long-term obligations fell to $21.0 million from $31.1 million, and management tied cash generation to the expansion and capital returns. Source
• Ooltewah site preparation advancing: Site preparation is advancing for a new 200,000+ square foot facility at Ooltewah. The site is expected to be ready for construction by late summer. Source

“First-quarter performance was consistent with our expectations, as we continued to carefully increase production in response to improving retail activity and order flow, driving sequential revenue growth”

William G. Miller II, Chief Executive Officer

Guidance

What changed from last quarter

• Guidance kept: Full-year 2026 revenue guidance of $850 million to $900 million was re-affirmed without change from the March 2026 range. Source
• New guidance: EPS guidance was given for full-year 2026 as generally in line with full-year 2025. The March 2026 release did not include an EPS figure. Source
• Guidance kept: Full-year 2026 gross margin expectation stayed in the mid-13% range, the same as in the March 2026 release. Source
• New: The April 2025 surcharge will be rolled into standard pricing because cost increases exceeded its coverage. Source
• New: A 3% price increase on manufactured products invoiced after July 31, 2026 was announced. The March 2026 release did not include it. Source
• New: Planned North American production increases were paused at current levels. The March 2026 release had expected volumes to rise through the first and second quarters. Source

Results and growth drivers

• Revenue fell 19.8% year over year: Net sales were $180.9 million against $225.7 million a year earlier. Revenue rose sequentially from $171.2 million in the fourth quarter of 2025. Source
• Diluted EPS fell to $0.05: Net income was $555 thousand against $8.1 million a year earlier. Management attributed part of the decline to Omars-related non-cash expenses. Source
• Sequential revenue growth on production: The company increased production to meet rising order intake, producing sequential revenue growth. Management said first-quarter performance matched its expectations. Source

Omars and Europe

• Omars costs weighed on earnings: Omars expenses came from equipment sold at fair market value and amortization of customer relationships. The first-quarter effect was about $0.13 per diluted share. Source
• Omars accretion expected in year one: Management remains confident the acquisition will be accretive in the first year after these non-cash expenses. The final expense amount awaits third-party valuation work. Source
• U.S. output backs European demand: U.S. production is set to serve as the backbone for European demand, alongside Omars, the Jige heavy-duty integration expansion, and Boniface production enhancements. Source

“Late in the quarter, rising geopolitical tensions in the Middle East led to higher diesel prices and increased macroeconomic uncertainty, which began to pressure retail demand.”

William G. Miller II, Chief Executive Officer

Military and heavy-duty products

• Military commitments top $150 million: Management cited more than $150 million in military commitments, with additional global RFQs underway for defense-grade recovery vehicles. Source
• Heavy-duty recovery largest export: Heavy-duty recovery units remain the company's largest global export. The expansion is expected to add output capacity for this product line. Source
• Military output starts in 2027: Military programs are scheduled to begin production in 2027, accelerate in 2028, and reach higher levels in 2029. Source

Costs, margins and pricing

• Gross margin fell to 14.2%: Gross margin was 14.2%, down 80 basis points from 15.0%. Cost of operations fell 19.1% to $155.2 million. Source
• Tariffs and costs pressure pricing: Management cited tariff impacts, regulatory and compliance requirements, and U.S. manufacturing costs as drivers of pricing pressure. The April 2025 surcharge did not cover later cost increases. Source
• Pricing actions to offset costs: The April 2025 surcharge will roll into standard pricing, and a 3% increase applies to products invoiced after July 31, 2026. Source
• Cost control and efficiency focus: Management said it remains focused on disciplined cost control and operational efficiency. It described the pricing adjustments as necessary to mitigate ongoing margin pressure. Source

“Near-term profitability continues to reflect elevated acquisition-related costs associated with Omars; however, we expect these expenses to moderate as the year progresses.”

William G. Miller II, Chief Executive Officer

Demand and production schedule

• Middle East tensions weigh on demand: Late in the quarter, Middle East tensions raised diesel prices and macro uncertainty, beginning to pressure retail demand. Management expects effects on second-quarter revenue and profit. Source
• Production paused at current levels: Planned North American production increases were paused to keep distributor inventory balanced. Production is expected to rise in the second half of 2026. Source
• Distributor inventory nearing historical average: Management said distributor inventories are returning to historically average levels. Production volumes are then expected to rise in the second half of 2026 and hold steady to meet retail deliveries. Source

Capital, cash and shareholder returns

• Cash flow funds debt and returns: Cash rose to $53.0 million from $44.7 million at year-end. Long-term obligations fell to $21.0 million from $31.1 million, and management tied cash generation to the expansion and capital returns. Source
• $4.6 million returned to holders: The company returned $4.6 million through dividends and share repurchases in the quarter. Stock repurchases were about $2.2 million. Source
• Dividend held at $0.21: The Board approved a quarterly dividend of $0.21, unchanged from the March 2026 level. It is the sixty-second consecutive quarterly dividend. Source

Ooltewah capacity expansion

• Ooltewah site preparation advancing: Site preparation is advancing for a new 200,000+ square foot facility at Ooltewah. The site is expected to be ready for construction by late summer. Source
• Expansion funded mainly from cash: Management expects most of the roughly $100 million expansion to be funded through operating cash flow over the next several years. Source
• New facility to cut lead times: The facility is intended to expand output for domestic and international demand and reduce lead times, supporting European and military production. Source

Coming up, as management said on 6 May 2026

• Dividend payable June 8: The $0.21 quarterly dividend is payable June 8, 2026, to shareholders of record as of June 1, 2026. Source
• 3% price increase after July 31: The 3% price increase applies to manufactured products invoiced after July 31, 2026. Source
• Ooltewah construction start by late summer: The Ooltewah site is expected to be ready for construction to begin by late summer 2026. Source

Risks management discussed

• Demand: Higher diesel prices and macro uncertainty from Middle East tensions began to pressure retail demand, according to management. Source
• Regulatory: Tariff impacts and regulatory and compliance requirements, together with U.S. manufacturing costs, are driving ongoing pricing pressure. Source
• Financial: Omars non-cash acquisition-related expenses are expected to continue over the rest of 2026, with the final amount pending valuation work. Source
• Operational: Production increases were paused at current levels, changing the planned production schedule for North American output. Source

Earlier plans management reported on

• Met: Management said first-quarter performance was consistent with its expectations, with production increased to meet order flow. Source
• Not stated: Management re-affirmed the previously issued full-year 2026 revenue guidance range. Source
• Not stated: Management remains confident the Omars acquisition will be accretive in the first year after non-cash expenses are recognized. Source

Other quarters

• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.