Miller Industries 2025 Q1 Earnings Misses Targets as Net Income Falls 52.6%

Miller Industries (MLR) reported its fiscal 2025 Q1 earnings on May 7th, 2025. The company's financial performance reflected a challenging quarter, with both revenue and earnings missing market expectations. Despite the setbacks, management remains optimistic about the latter half of the year, forecasting improvements in line with strategic initiatives. The guidance was maintained, suggesting confidence in overcoming current obstacles and achieving future growth targets. The company plans to mitigate tariff impacts through price adjustments and supply chain diversification.

Revenue

The total revenue of Miller Industries decreased by 35.5% to $225.65 million in 2025 Q1, down from $349.87 million in 2024 Q1.

Earnings/Net Income

Miller Industries' EPS declined 53.0% to $0.70 in 2025 Q1 from $1.49 in 2024 Q1. Meanwhile, the company's net income declined to $8.06 million in 2025 Q1, down 52.6% from $17.02 million reported in 2024 Q1. The decline in EPS indicates a challenging period for the company.

Price Action

The stock price of Miller Industries has edged down 0.94% during the latest trading day, has climbed 3.50% during the most recent full trading week, and has climbed 6.10% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing Miller Industries (MLR) shares after a revenue increase and holding them for 30 days has consistently yielded poor results over the past five years. This approach resulted in a return of -2.40%, starkly underperforming the benchmark return of 84.08%, with an excess return of -86.48%. The compound annual growth rate (CAGR) was -0.49%, reflecting significant losses. Additionally, the strategy experienced a maximum drawdown of -15.00% and a Sharpe ratio of -0.06, highlighting the high risk and negative returns associated with this investment approach. These metrics demonstrate the challenges faced by investors attempting to capitalize on post-revenue increase stock movements, necessitating a reassessment of investment strategies.

CEO Commentary

"Results for the quarter were in-line with our expectations as we continued to execute our strategy of reducing field inventory and product lead times as the industry returns to a normalized channel flow, positioning ourselves for future growth," said William G. Miller, II, Chief Executive Officer of the Company. He highlighted the company's commitment to returning capital to shareholders through share repurchases and dividends, stating, "With our cash conversion improving, working capital declining, and $20 million remaining in our share repurchase authorization, we have excellent flexibility to continue buying opportunistically." Mr. Miller also acknowledged tariff uncertainties but expressed optimism about the underlying fundamentals in their end markets.

Guidance

"We anticipate continued improvement throughout the second half of 2025 and enter 2026 in a position of strength," the Company stated, indicating confidence in future performance despite existing challenges. The CEO noted efforts to mitigate tariff impacts through surcharges and price increases, while also emphasizing the diversification of the supply chain. The Company is poised for growth, with channel inventory returning to optimal levels and strong activity anticipated in the global military market.

Additional News

In recent developments, Miller Industries declared its 58th consecutive quarterly dividend, showcasing its ongoing commitment to shareholder returns. The dividend of $0.20 per share is payable on June 9, 2025, to shareholders on record as of June 2, 2025. Additionally, the company executed $2.1 million in share repurchases during the first quarter, utilizing its remaining $20 million share repurchase authorization. These actions reflect the company's strategic focus on returning capital to shareholders and optimizing its financial structure. Furthermore, Miller Industries continues to navigate tariff-related uncertainties by implementing surcharges and price increases to mitigate potential impacts on its business.