Miller Industries Q1 2025: Diverging Narratives on Inventory Levels and Tariff Impacts

None



Revenue Decline and Inventory Normalization:
- Miller Industries reported net sales of $225.7 million for Q1 2025, a decline of 35.5% compared to the same quarter last year.
- The decrease was primarily driven by chassis shipment patterns normalizing after prior supply chain disruptions.

Gross Margin Improvement:
- Gross profit for Q1 2025 was $33.9 million or 15% of net sales, compared to $44.2 million or 12.6% of net sales in the same period last year.
- This improvement was attributed to a higher percentage of body deliveries relative to chassis shipments.

Capital Return to Shareholders:
- During Q1 2025, Miller Industries returned $4.4 million to shareholders, including $2.1 million in share repurchases and the remaining balance of the dividend.
- The Board approved a quarterly cash dividend of $0.20 per share, marking the 58th consecutive quarter of dividend payments.

Inventory Reduction and Cash Conversion:
- Inventories were $164.9 million as of March 31, 2025, compared to $186.2 million at the end of 2024, with accounts payable reduced by nearly $33 million.
- The reduction in inventory levels is expected to improve cash conversion rates as both Miller Industries and distributor levels normalize in the second half of 2025.

Regulatory Uncertainty and Market Adaptation:
- The Advanced Clean Truck regulation introduces uncertainty, impacting operations in six large states.
- Miller Industries is planning for these changes and aligning its operations to adapt to potential regulatory changes, with CARB-compliant chassis expected to become available in early 2026.