Miller Industries Shares Plummet After Disappointing Q4 Results

Miller Industries, Inc. (NYSE: MLR) shares took a significant hit on Wednesday, March 5, following the release of the company's fourth-quarter and full-year 2024 financial results. The stock fell 14% in after-hours trading, reaching $47.45, after ending the regular session roughly flat at $54.87. The decline comes on the heels of a 26% drop in the stock's value over the past three months.

The company reported a profit in the fourth quarter of $10.5 million, down from $16.7 million a year earlier. Per share earnings came in at 91 cents, down from $1.45, a drop of 37%. Revenue fell to $221.9 million from $296.2 million, primarily due to a decline in chassis shipments, which were significantly elevated in the fourth quarter of 2023 due to inconsistent delivery schedules from original equipment manufacturers (OEMs) as they recovered from previous supply chain disruptions.

Miller Industries' gross margin improved to 15.1% from 13.0% year-over-year, driven largely by product mix and a relatively higher percentage of bodies compared to chassis. However, selling, general, and administrative expenses (SG&A) increased to 8.9% of net sales from 5.5% in the prior year period, due to expenses associated with additional executive compensation, increased investment in the workforce, new product launches, and new military contracts.

For the full year 2024, the company achieved record performance with net sales of $1.26 billion, up 9.0% from 2023. Net income increased 8.9% to $63.5 million, with earnings of $5.47 per diluted share. Despite these positive results, Miller Industries' guidance for 2025 projects a potential 16-24% decline in revenue and a 41-47% drop in EPS, indicating substantial headwinds ahead.

The company expects to generate $950 million to $1.0 billion in revenue and diluted earnings per share between $2.90-$3.20 for the full year 2025. CEO William G. Miller II cited macroeconomic challenges, including tariffs, new legislation impacting the business, and rising ownership costs for end users, as key concerns for the coming year. He also noted that the dynamics in the chassis market have finally normalized, which should result in more stable and predictable revenues and margins quarter to quarter.

Miller Industries also increased its quarterly cash dividend to $0.20 per share, payable on March 24, 2025, to shareholders of record at the close of business on March 17, 2025. The new payout represents an annual yield of 1.5% based on Wednesday's closing price of $54.87. In addition, during the full year of 2024, the company repurchased 49,500 shares of its common stock, representing $2.9 million of the $25.0 million repurchase program authorized by the Board of Directors in April 2024.



In conclusion, Miller Industries' shares plummeted after the company logged lower profit and revenue in the fourth quarter. The company's guidance for 2025 indicates significant challenges ahead, with a potential 16-24% decline in revenue and a 41-47% drop in EPS. Investors will be closely watching the company's progress as it navigates these headwinds and focuses on core principles to drive long-term growth.