Miller Industries 2025 Q2 Earnings Sharp Earnings Drop Despite Lower Revenue

Miller Industries (MLR) reported its fiscal 2025 Q2 earnings on Aug 06, 2025, with results that fell well below expectations. The company experienced significant declines in both revenue and earnings, and has revised its full-year guidance downward due to ongoing challenges. The earnings performance missed expectations, and the company suspended earnings per share guidance for 2025.

Revenue
Revenue for the second quarter of 2025 dropped by 42.4% to $214.03 million, a stark decline from the $371.45 million recorded in the same period in 2024. This significant decrease reflects ongoing industry-wide headwinds, including reduced demand from key market segments.

Earnings/Net Income
Miller Industries reported a sharp decline in earnings, with EPS falling by 58.7% to $0.74 from $1.79 in the prior year. Net income also contracted significantly, dropping to $8.46 million in Q2 2025, a 58.8% decline from $20.51 million in the second quarter of 2024. These results represent a disappointing earnings performance and underscore the company’s current financial challenges.

Price Action
The stock price of Miller Industries edged up 0.36% during the latest trading day and rose by 0.29% over the past full trading week. However, it has declined by 8.26% on a month-to-date basis.

Post-Earnings Price Action Review
A strategy of buying MLR shares following earnings beats and holding for 30 days resulted in a -22.54% return, significantly underperforming the benchmark’s 45.79% gain. The approach was characterized by high volatility (26.25%) and a negative Sharpe ratio of -0.36, indicating a high-risk, low-reward profile with no maximum drawdown recorded.

CEO Commentary
William G. Miller, II, CEO, attributed the challenges to industry-wide demand headwinds, noting a 20% decline in retail sales quarter over quarter and a 30% drop in order intake from distributors. He cited lower consumer confidence, elevated ownership costs, and high inventory levels in the distribution channel as key factors. Mr. Miller emphasized the company’s efforts to reduce inventory, streamline costs, and strengthen its supply chain. Looking ahead, he expressed confidence in long-term fundamentals such as increasing miles driven and accident rates, and highlighted strategic priorities including operational efficiency, capital allocation, and positioning for future growth, including potential military contract opportunities.

Guidance
Due to near-term uncertainties and challenges, Miller Industries revised its 2025 full-year revenue guidance to a range of $750 to $800 million and suspended earnings per share guidance. The company noted that ongoing operational initiatives could lead to material cost impacts, extraordinary expenses, and potential losses in the second half of the year. It will provide updates as decisions are made and more information becomes available. The statements included are forward-looking, and actual results may differ materially.

Additional News
In the three weeks following the earnings report, Miller Industries announced a strategic partnership with a leading logistics provider to enhance supply chain efficiency, aiming to reduce delivery times and lower operational costs. The company also named a new Chief Supply Chain Officer, a move seen as critical to addressing ongoing inventory management issues. Additionally, Miller Industries announced the formation of a dedicated military sales division, signaling its intent to pursue long-term government contract opportunities. These developments reflect the company's broader strategy to adapt to market conditions and position itself for growth in the coming years.