Q4 2025 Miller Industries Inc Earnings Call

March 5, 2026

Operator: Good day, ladies and gentlemen, and welcome to the Miller Industries Q4 2025 Results Conference Call. Please note this event is being recorded. Now at this time, I would like to turn the call over to Will Miller at Miller Industries. Please go ahead, sir.

Speaker #1: Good day, ladies and gentlemen, and welcome to the Miller Industries Fourth Quarter 2025 results conference call. Please note this event is being recorded. And now, at this time, I would like to turn the call over to Will Miller at Miller Industries.

Speaker #1: Please go ahead, sir.

Will Miller: Good morning, everyone, thank you for joining us for our Q4 and full year 2025 Earnings Call. I want to begin by thanking our employees around the world for their dedication throughout the year. Our results and strategic progress reflect the commitment and passion of our team, our suppliers, our customers, and our shareholders. As always, our remarks today will include forward-looking statements. Actual results may differ materially. Please refer to our SEC filings and the safe harbor statement included in today's presentation. I would like to start with a brief overview before I hand the call over to Debbie, who will review our results in greater detail. We were pleased to deliver a Q4 that led to generating full year revenue in line with our revised expectations despite a challenging industry environment.

Speaker #2: Good morning, everyone, and thank you for joining us for our fourth quarter and full year 2025 earnings call. I want to begin by thanking our employees around the world for their dedication throughout the year.

Speaker #2: Our results in strategic progress reflect the commitment and passion of our team, our suppliers, our customers, and our shareholders. As always, our remarks today will include forward-looking statements.

Speaker #2: Actual results may differ materially. Please refer to our SEC filings and the Safe Harbor statement included in today's presentation. I would like to start with a brief overview before I hand the call over to Debbie, who will review our results in greater detail.

Speaker #2: We were pleased to deliver a Fourth Quarter that led to generating full-year revenue in line with our revised expectations despite a challenging industry environment.

Will Miller: I'm incredibly proud of the way our team rose to the challenge this year, focusing on operating discipline in the areas of the business within our control. We have over 1,500 employees across Tennessee, Pennsylvania, France, the United Kingdom, and Italy. Our footprint gives us unmatched reach, capability, and reliability. During the year, we made many difficult but necessary decisions to protect the long-term health of the business. These included strategically decreasing production in response to elevated field inventory in our North American distribution network, rightsizing our cost structure for the current environment, and strengthening our supply chain to mitigate the impacts of tariffs. We also achieved meaningful milestones, completing the acquisition of Omars in an effort to expand our European footprint and take advantage of the strong demand we are seeing in the region, particularly for our heavy-duty products. More on that shortly.

Speaker #2: I'm incredibly proud of the way our team rose to the challenge this year. Focusing on operating discipline, in the areas of the business within our control.

Speaker #2: We have over 1,500 employees across Tennessee, Pennsylvania, France, the United Kingdom, and Italy. Our footprint gives us unmatched reach, capability, and reliability. During the year, we made many difficult but necessary decisions to protect the long-term health of the business.

Speaker #2: These included strategically decreasing production in response to elevated field inventory in our North American distribution network, right-sizing our cost structure for the current environment, and strengthening our supply chain to mitigate the impacts of tariffs.

Speaker #2: We also achieved meaningful milestones. Completing the acquisition of Omars in an effort to expand our European footprint and take advantage of the strong demand we are seeing in the region.

Speaker #2: Particularly for our heavy-duty products. More on that shortly. Our core philosophy remains exactly as it has been since day one. Miller Industries has the best people, the best products, and the best distribution network in the towing and recovery industry.

Will Miller: Our core philosophy remains exactly as it has been since day 1. Miller Industries has the best people, the best products, and the best distribution network in the towing and recovery industry. That philosophy is the backbone of Miller Industries' 35-year history and continues to position the company for future growth. I want to directly acknowledge our teams across the United States, Europe, and the United Kingdom, who delivered through a challenging market and a deliberate recalibration of production. Their execution enabled us to finish the year with momentum and enter 2026 from a position of strength. I'll now turn the call over to Debbie, who will provide an update on our financial results in more detail before returning with some more specific thoughts on our markets in 2026, capital allocation priorities, and guidance.

Speaker #2: That philosophy is the backbone of Miller Industries' 35-year history and continues to position the company for future growth. I want to directly acknowledge our teams across the United States, Europe, and the United Kingdom, who delivered through a challenging market and a deliberate recalibration of production.

Speaker #2: Their execution enabled us to finish the year with momentum and enter 2026 from a position of strength. I'll now turn the call over to Debbie, who will provide an update on our financial results in more detail.

Speaker #2: Before returning with some more specific thoughts on our markets in 2026, capital allocation priorities, and guidance.

[Company Representative] (Miller Industries): Thank you, Will. Before I begin, I would like to note that we closed the acquisition of Omars on 2 December, our Q4 results only reflect approximately one month of contribution from Omars. For Q4, revenue was $171.2 million, down 22.9% year-over-year as expected. This decline reflects our decision earlier in the year to reduce production and allow distributor inventories to return to historically normalized levels. Gross profit was $26.5 million or 15.5% of sales, and diluted EPS was $0.29 per share. We saw sequential improvement in retail order activity late in the quarter, that momentum has continued into 2026, consistent with our expectations. As a result, we have already begun to increase production levels at all the US facilities to meet this demand.

Speaker #3: Thank you, Will. Before I begin, I would like to note that we closed the acquisition of Omars on December 2, so our fourth quarter results only reflect approximately one month of contribution from Omars.

Speaker #3: For the Fourth $171.2 million down 22.9% year over year as expected. This decline reflects our decision earlier in the year to reduce production and allow distributor inventories to return to historically normalized levels.

Speaker #3: Gross profit was $26.5 million, or 15.5% of sales, and diluted EPS was 29 cents per share. We saw sequential improvement in retail order activity late in the quarter and that momentum has continued into 2026 consistent with our expectations.

Speaker #3: As a result, we have already begun to increase production levels at all the U.S. facilities to meet this demand. For the Full Year 2025, revenue was $790.3 million, down 37.2% from 2024.

[Company Representative] (Miller Industries): For the full year 2025, revenue was $790.3 million, down 37.2% from 2024. Gross profit was $120.4 million or 15.2% of sales, and net income was $23 million or $1.98 per diluted share. With distributor inventory now back to historical levels, we have greater visibility into retail demand and are operating with an improved production cadence. Our SG&A expenses increased on a year-over-year basis for both the Q4 and full year 2025, primarily due to one-time expenses related to the voluntary retirement program in Q3 and Q4. As we executed planned workforce transitions across the organization.

Speaker #3: Gross profit was $120.4 million, or 15.2% of sales, and net income was $23 million, or $1.98 per diluted share. With distributor inventory now back to historical levels, we have greater visibility into the retail demand and are operating with an improved production cadence.

Speaker #3: Our SG&A expenses increased on a year-over-year basis for both the Fourth Quarter and Full Year 2025, primarily due to one-time expenses related to the voluntary retirement program and third and fourth quarter and as we executed planned workforce transitions across the organization.

[Company Representative] (Miller Industries): Transaction and integration costs related to the Omars acquisition, which represent an important investment in our European growth strategy and higher stock compensation expenses to retain key leadership talent and further align the executive team to the interest of shareholders. These were all planned and strategic investments and expenses that advance our future growth strategy. I'll turn the call back to Will to discuss our markets and our outlook for 2026.

Speaker #3: Also, transaction and integration costs related to the Omars acquisition, which represent an important investment in our European growth strategy, and higher stock compensation expenses to retain key leadership talent and further align the executive team to the interests of shareholders.

Speaker #3: These were all planned and strategic investments and expenses that advance our future growth strategy. Now I'll turn the call back to Will to discuss our markets and our outlook for 2026.

Will Miller: Thank you, Debbie. In the domestic market, we now see normalized distributor inventory, steadier retail demand, and improved sales order entry as we move into 2026. We expect production levels to rise methodically throughout Q1 and Q2 to match this demand recovery. Our export business remains a major strength. The 2026 outlook is very encouraging. Three drivers stand out in particular: consistent European demand, growing demand in other international markets such as Australia, Japan, Mexico, Indonesia, and many others. A robust pipeline of global military RFQs, which we will discuss further later in the presentation. These should provide a strong multi-year growth tailwind. The acquisition of Omars and our expansion at Jige will both play large roles in this expected growth. Our integration of Omars, Italy's premier towing equipment manufacturer, continues to progress extremely well.

Speaker #2: Thank you, Debbie. In the domestic market, we now see normalized distributor inventory, steadier retail demand, and improved sales order entry as we move into 2026.

Speaker #2: We expect production levels to rise methodically throughout Q1 and Q2 to match this demand recovery. Our export business remains a major strength. The 2026 outlook is very encouraging.

Speaker #2: Three drivers stand out in particular: consistent European demand, growing demand in other international markets such as Australia, Japan, Mexico, others. And a robust pipeline of global military RFQs.

Speaker #2: Which we will discuss further later in the presentation. These should provide a strong multi-year growth tailwind. The acquisition of Omars and our expansion at GJ will both play large roles in this expected growth.

Speaker #2: Our integration of Omars, Italy's premier towing equipment manufacturer, continues to progress extremely well. As we've previously shared, we expect our Omars acquisition to be a creative in the first year.

Will Miller: As we've previously shared, we expect our Omars acquisition to be accretive in the first year. Omars provides Miller Industries with new sales channels, a stronger brand presence in Europe, and a strategic manufacturing and distribution hub in a key growth region. Omars is critical to our long-term growth in the European market. This acquisition should also increase US production levels to supplement Omars' integration capacity and equip them with the necessary resources and scale to capitalize on the strong demand for their products. At Jige in France, our EUR 8 million expansion is on schedule and is anticipated to double their heavy-duty integration capacity. We're expected to complete the expansion project by mid-2027. Meanwhile, at Boniface in the United Kingdom, we're investing in production efficiencies to increase capacity and support the growing need for both light and heavy-duty products.

Speaker #2: Omars provides Miller Industries with new sales channels, a stronger brand presence in Europe, and a strategic manufacturing and distribution hub in a key growth region.

Speaker #2: Omars is critical to our long-term growth in the European market. This acquisition should also increase U.S. production levels to supplement Omars' integration capacity and equip them with the necessary resources and scale to capitalize on the strong demand for their products.

Speaker #2: At GJ in France, our €8 million expansion is on schedule and is anticipated to double their heavy-duty integration capacity. We're expected to complete the expansion project by mid-2027.

Speaker #2: Meanwhile, at Boniface in the United Kingdom, we're investing in production efficiencies to increase capacity and support the growing need for both light and heavy-duty products.

Will Miller: Demand in Europe remains strong, to support this, our US operations, especially Ooltewah's increased heavy-duty production capabilities, will supply Jige, Boniface, and Omars with reduced lead times, consistent quality, and increased production volumes. Earlier, I mentioned our robust pipeline of military RFQs. We began 2026 with more than $150 million in military commitments, with production scheduled to begin in 2027, with the majority of revenue to be recognized in 2028 and 2029. We are also actively engaged in a substantial pipeline of additional military RFQs. This level of military activity is unprecedented for our company and represents a major long-term growth vector. To service future demand, we're beginning one of the most significant projects in our history, a 200,000-plus sq ft addition to our Ooltewah facility.

Speaker #2: Demand in Europe remains strong, and to support this, our U.S. operations, especially Utawaz, increased heavy-duty production capabilities will supply GJ, Boniface, and Omars with reduced lead times, consistent quality, and increased production volumes.

Speaker #2: Earlier, I mentioned our robust pipeline of military RFQs. We began 2026 with more than $150 million in military commitments, with production scheduled to begin in 2027 and the majority of revenue to be recognized in 2028 and 2029.

Speaker #2: We are also actively engaged in a substantial pipeline of additional military RFQs. This level of military activity is unprecedented for our company and represents a major long-term growth factor.

Speaker #2: To service future demand, we're beginning one of the most significant projects in our history. A $200,000-plus square foot addition to our Utawaz facility. investment should unlock new capacity, streamline heavy-duty workflow, and enhance our manufacturing efficiencies.

Will Miller: This estimated $100 million investment should unlock new capacity, streamline heavy-duty workflow, and enhance our manufacturing efficiencies. With more than $150 million in military commitments secured and additional global RFQs underway, the new facility will be key to producing global, high-volume, defense-grade recovery vehicles, as well as meeting increased demand for our global export markets while maintaining the ability to service our North American customer base. We anticipate the new facility will be production-ready in late 2027. As we continue our strong cash generation and debt continues to decline, we anticipate funding the majority of our expansion organically through operating cash flow over the next several years.

Speaker #2: With more than 150 million dollars in military commitments secured and additional global RFQs underway, the new facility will be key to producing global, high-volume, defense-grade recovery vehicles as well as meeting increased demand for our global export markets while maintaining the ability to service our North American customer base.

Speaker #2: We anticipate the new facility will be production-ready in late 2027. As we continue our strong cash generation and debt continues to decline, we anticipate funding the majority of our expansion organically through operating cash flow over the next several years.

Will Miller: We remain disciplined in how we allocate capital, focusing on 5 key priorities: Paying a consistent quarterly dividend, which the board of directors increased 5% to $0.21 per share this quarter. Debt reduction, which has been reduced to $20 million in January 2026 through our diligent reduction in working capital. Share repurchases, including $2.2 million in Q4 of 2025. Selective M&A opportunities and ongoing investments in automation, innovation, people, and capacity. We're extremely proud that we've paid our dividend for 61 consecutive quarters, and in 2025, we returned approximately $15.1 million to shareholders between our dividend and share repurchase program. This balanced approach strengthens the company while also returning value directly to shareholders. For 2026, we expect revenues between $850 and $900 million.

Speaker #2: We remain disciplined in how we allocate capital, focusing on five key priorities. Paying a consistent quarterly dividend, which the board of directors increased 5% to 21 cents per share this quarter.

Speaker #2: Debt reduction, which has been reduced to 20 million dollars in January of 2026 through our diligent reduction in working capital. Share repurchases, including 2.2 million dollars in Q4 of 2025.

Speaker #2: Selective M&A opportunities, and ongoing investments in automation, innovation, people, and capacity. We're extremely proud that we've paid our dividend for 61 consecutive quarters. And in 2025, we returned approximately $15.1 million to shareholders between our dividend and share repurchase program.

Speaker #2: This balanced approach strengthens the company while also returning value directly to shareholders. For 2026, we expect revenues between $850 million and $900 million. We also expect that performance will accelerate into the second half of the year, as manufacturing activity increases throughout the first and second quarters.

Will Miller: We also expect that performance will accelerate into the second half of the year as manufacturing activity increases throughout Q1 and Q2 and product mix normalizes. We anticipate that revenue will approach $250 million per quarter by the second half of 2026. Additionally, as product mix shifts to a historical percentage of manufactured product and chassis, we would also expect gross margins to return to historical levels in the mid 13% range for the full year. We look forward to meeting with investors to speak about these exciting developments throughout 2026 at the Three Party Advisors Conferences in New York, Chicago, and Dallas, at D.A. Davidson's Industrial Conference in Nashville, and additional non-deal roadshows to be scheduled. We always welcome continued dialogue with our shareholders.

Speaker #2: And product mix normalizes. We anticipate that revenue will approach 250 million dollars per quarter by the second half of 2026. Additionally, as product mix shifts to a historical percentage of manufactured product and chassis, we would also expect gross margins to return to historical levels in the mid-13% range for the full year.

Speaker #2: We look forward to meeting with investors to speak about these exciting developments throughout 2026 at the three-part advisor's conferences in New York, Chicago, and Dallas; at D.A. Davidson's Industrial Conference in Nashville; and at additional non-deal roadshows to be scheduled.

Speaker #2: We always welcome continued dialogue with our shareholders. In closing, I want to emphasize that 2025 was a difficult year. In our team managed multiple challenges extremely well.

Will Miller: In closing, I want to emphasize that 2025 was a difficult year. Our team managed multiple challenges extremely well. We now enter 2026 with normalized distributor inventories, stronger retail demand visibility, a growing international platform, major military momentum, a significant expansion of our US manufacturing footprint, and a strengthened balance sheet. We are exceptionally well-positioned for long, long-term global growth. I am proud of the work our team has done to get us here. As always, I would like to thank our employees, customers, suppliers, and shareholders for their ongoing support of Miller Industries. Thank you again for joining us. Operator, please open the line for questions.

Speaker #2: We now enter 2026 with normalized distributor inventories, stronger retail demand visibility, a growing international platform, major military momentum, a significant expansion of our U.S.

Speaker #2: manufacturing footprint, and a strengthened balance sheet. We are exceptionally well positioned for long-term global growth, and I am proud of the work our team has done to get us here.

Speaker #2: As always, I would like to thank our employees, customers, suppliers, and shareholders for their ongoing support of Miller Industries. Thank you again for joining us, Operator.

Speaker #2: Please open the line for questions.

Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the 1 on your touch tone phone. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the 2. If you are using a speakerphone, please flip the handset before pressing any keys. First question comes from Michael Shlisky at D.A. Davidson. Please go ahead.

Speaker #1: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the one on your touchtone phone.

Speaker #1: You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the two.

Speaker #1: And if you are using a speakerphone, please flip the handset before pressing any keys. First question comes from Mike Schlitzky at D.A. Davidson. Please go ahead.

Mike Shlisky: Good morning, thanks for taking my questions here.

Speaker #3: Good morning and thanks for taking my questions here. So help me understand, yes, hey guys, so I guess I'm trying to figure out the margin story first.

Will Miller: Absolutely. Good morning.

Mike Shlisky: Help me understand. Yes. Hey, guys. I guess I'm trying to figure out the margin story first. Would you say that the gross margin expectation for 13% range is better than you've seen in the past for the mix that you're expecting? I'm trying to make sure that the cost adjustments that you've undertaken are kind of having the desired effect, or at least that we might see on the operating margin line an improvement, when you consider your cost reductions, you know, now that they're behind you. Is it better or worse than it's been in the past? Is kind of what I'm trying to figure out here.

Speaker #3: Would you say that the gross margin expectation for 13% range is better than you've seen in the past for the mix that you're expecting?

Speaker #3: I'm trying to make sure that the cost adjustments that you've undertaken are kind of having the desired effect, or at least that we might see on the operating margin line an improvement when you consider your cost reductions now that they're in the now that they're behind you.

Speaker #3: Or is it better or worse than it's been in the past? That's kind of what I'm trying to figure out here.

Will Miller: I believe they're normalizing. I think our margins are better than they were pre-COVID levels in 2019, where we saw margins in the mid-12s to high 12s. I think you'll see them return back to on an average year, if you look at 2023 and 2024, in those mid-13s. Although we did have some fluctuations quarter to quarter due to chassis availability and timing of shipments of chassis. I think over a year period, you're gonna see them normalize back in that mid-13 range.

Speaker #4: I believe they're normalizing. I think our margins are better than they were pre-COVID levels in '19 where we saw margins in the mid-12 to high-12s.

Speaker #4: But I think you'll see them return back to on an average year, if you look at 23 and 24 in those mid-13s, although we did have some fluctuations quarter to quarter due to chassis availability and timing of shipments of chassis.

Speaker #4: But I think, over a year period, you're going to see them normalize back in the mid-13 range.

Mike Shlisky: The cost reductions that you've had, the people cost, et cetera, that you've done over the last 12 months, they haven't had any impact on margins? I'm just trying to figure out whether you're gonna be seeing a better margin profile. Maybe it's operating margin rather than gross. Like, do you feel you're gonna get the benefit that you're expecting on the margin end from all those cost reductions?

Speaker #3: So the cost reductions that you've had—the people cost, etc.—that you've done over the last 12 months, they haven't had any, or I'm just trying to figure out whether you're going to be seeing a better margin profile.

Speaker #3: Maybe it's operating margin rather than gross. Do you feel you're going to get the benefit that you're expecting on the margin end from all those cost reductions?

Will Miller: Well, most of our people reduction was hourly employees that were focused on the reduction or lower levels of production. As we start to ramp back up, we'll, you know, intentionally add some people back. We did have some retirements that will help, you know, on the SG&A level. However, some of those employees have also been replaced as we moved on and we progressed to the and had plans to replace them throughout the process.

Speaker #4: Well, most of our people reduction was hourly employees that were focused on the reduction or lower levels of production. As we start to ramp back up, we'll intentionally add some people back.

Speaker #4: We did have some retirements that will help on the SG&A level. However, some of those employees have also been replaced as we moved on and we progressed to the and had plans to replace them.

Speaker #4: Throughout the process, so.

Mike Shlisky: Okay. No, that makes sense. I get it. That's totally fair, Will. The top-line outlook. I think back a year, what happened back then, you know, we on our end were blindsided by some of the, you know, how those fluctuations. I think some of that even surprised you in the swiftness of how the market changed and things that happened late Q4 2024. The outlook you have now for 2026 at this time of the year, do you feel like you've got a better sense of the confidence in it this time around than you had this time last year? What's changed, et cetera, that, you know, makes you feel like you've got that $850?

Speaker #3: Okay. No, that makes sense. I get it. That's totally fair, Will. And then the top-line outlook—I think back a year, what happened back then—we, on our end, were blindsided by some of how it was, bullish petitions.

Speaker #3: I think some of that even surprised you in the swiftness of how the market changed and things that happened late fourth quarter of 2024.

Speaker #3: So, the outlook you have now for 2026, at this time of the year—do you feel like you've got a better sense of confidence this time around than you had at this time last year?

Speaker #3: What's changed, etc., that makes you feel like you've got the 850?

Will Miller: Yeah, I think our confidence level's higher this year. You know, we saw an abrupt change in, you know, and downward projections mid-year last year and really a couple of things. We've utilized the technology that we have internal to be able to better analyze and project what our distribution needs and retail activity is going to be on an average basis. We had the data, but actually putting into a format to be able to project what we think future needs will be. Also, distribution inventory is back to, you know, as we said, you know, historical average levels. We're starting to see that order intake pick back up, and really what we're looking at is retail activity.

Speaker #4: Yeah. I think our confidence levels higher this year. So we saw an abrupt change and downward projections mid-year last year and really a couple of things.

Speaker #4: So we've utilized the technology that we have internal to be able to better analyze and project what our distributions needs and retail activity is going to be on an average basis.

Speaker #4: So we've got a lot more we had the data but actually putting into a format to be able to project what we think future needs will be.

Speaker #4: Also, distribution inventories are back to, as we said, historical average levels. So we're starting to see that order intake pick back up. And really, what we're looking at is retail activity.

Will Miller: Retail activity, or retail demand, from our distributors to the end users was consistent throughout all of 2025. We see that consistency moving right back into 2026. Really what we're projecting is that we're just ramping back production to meet the average, retail demand levels that we saw consistent through '25 and into '26 so far.

Speaker #4: Retail activity or retail demand from our distributors to the end users was consistent throughout all of 2025. And we see that consistency moving right back into 2026.

Speaker #4: So really where we're projecting is that we're just ramping back production to meet the average retail demand levels that we saw consistent through '25 and into '26 so far.

Mike Shlisky: Great.

Will Miller: Our confidence level is pretty high.

Speaker #4: So our confidence level is pretty high. We'll be able to meet.

Mike Shlisky: Thanks for that. You would characterize the mix between the chassis plus tow sales and the tow-only kind of packages as more normalized in 2026 in your current outlook?

Speaker #3: And so you would characterize the mix between the chassis plus tow sales and the tow-only kind of packages as more normalized in '26 in your current outlook?

Will Miller: Absolutely.

Mike Shlisky: does that mean that it's 50/50 or some other kind of fraction?

Speaker #3: And does that mean that—does that mean that it's 50-50, or some other kind of fraction?

Mike Shlisky: does that mean that it's 50/50 or some other kind of fraction?

Will Miller: No, it's not a one for one. As you realize, that we do have distributors that provide their own chassis, what we call customer-supplied chassis. You also have municipalities that provide their own chassis, along with all of our export product and our sales over in Europe. It's not a one for one, but it's returning back to a normalized level. I mean, every tow body that we manufacture does have to have a chassis to create a tow truck, but that doesn't mean that we sell every chassis with the body.

Speaker #4: No, it's not a one-for-one, as you realize that we do have distributors that provide their own chassis—what we call customer supply chassis. You also have municipalities that provide their own chassis, along with all of our export product.

Speaker #4: And our sales over in Europe. So it's not a one-for-one, but it's returning back to a normalized level. I mean, every tow body that we manufacture does have to have a chassis to create a tow truck, but that doesn't mean that we sell every chassis with the body.

Mike Shlisky: Right. Okay. Just switching over to Omars real quick. You have an outlook for accretion in 2026, if I'm not mistaken. It sounds like your description of it, Will, was more that Omars is gonna help in a lot of other ways, help your US capacity, help your European business with some synergies and cross-selling and some cross, I guess, cross-manufacturing. Is your comment that it was gonna be accretive just based on, you know, just layering in the existing Omars P&L? Is there's a lot more accretion that could happen once some of these synergies start to roll? Is that a fair assumption?

Speaker #3: Right. Okay. Just switching over to Omar's real quick. You have an outlook for an accretion in 2026, if I'm not mistaken. But it sounds like your description of it, Will, was more that Omar's is going to help in a lot of other ways, help your US capacity, help your European business with some synergies and cross-selling and some cross-manufacturing.

Speaker #3: Is your comment that it was going to be accretive just based on just layering in the existing Omar's P&L? It sounds like there's a lot more accretion that could happen once some of these synergies start to roll.

Speaker #3: Is that a fair situation?

Will Miller: Yes. It's more of a long-term play, right? I mean, currently you're gonna see their P&L drop in Omars. We do believe that they'll be accretive in year one. However, moving forwards, we're now focused on, you know, in our European facilities, what product we should build where and what's most successful. Also, looking at purchasing throughout those three facilities and how to best purchase product.

Speaker #4: Yes, it's more of a long-term play, right? So, I mean, currently you're going to see their P&L drop in dollars. And we do believe that they'll be accretive in year one.

Speaker #4: However, moving forwards, we're now focused on in our European facilities, what product we should build where, and what's most successful. And also, looking at purchasing throughout those three facilities and how to best purchase product.

Will Miller: You know, augmenting Omars heavy duty production, which they make a great heavy duty product, but also giving them additional production capabilities from the United States that we can export to them to increase their sales capacity, similar to what we're doing with Jige, as both Jige and Boniface currently use about 50% of their heavy duty product that's manufactured in the United States that they sell in the European market. We believe there's a significant level of synergies other than bringing on just their additional revenue to our organization. Not to mention they have an amazing state-of-the-art factory with some great capacity and capabilities as well.

Speaker #4: And then augmenting Omar's heavy-duty production, which they make a great heavy-duty product, but also giving them additional production capabilities from the United States that we can export to them to increase their sales capacity similar to what we're doing with Shijie as both Shijie and Boniface currently use about 50% of their heavy-duty product that's manufactured in the United States.

Speaker #4: That they sell in the European market. So we believe there's a significant level of synergies other than bringing on just their additional revenue to our organization.

Speaker #4: Not to mention, they have an amazing, state-of-the-art factory with some great capacity and capabilities as well.

Mike Shlisky: Sounds great. I appreciate all the color. I'll pass it along. Thank you.

Speaker #3: Sounds great. I appreciate all the color. I'll pass it along. Thank you.

Will Miller: Thank you, Mike.

Speaker #4: Thank you, Mike.

Operator: Thank you. We have no further questions. I will turn the call back over to Will Miller for closing comments.

Speaker #1: Thank you. We have no further questions. I will turn the call back over to Will Miller for closing comments.

Will Miller: Thank you. I'd like to thank you all again for joining us on the call today, and we look forward to speaking with you on our Q1 conference call. If you'd like information on how to participate and ask questions on the call, please visit our investor relations website, millerind.com/investors or email investors.relations@millerind.com. Thank you. May God bless you and may God bless our troops.

Speaker #4: Thank you. I'd like to thank you all again for joining us on the call today. And we look forward to speaking with you on our first quarter conference call.

Speaker #4: If you'd like information on how to participate and ask questions on the call, please visit our investor relations website, millerind.com/investors, or email investors.relations@millerind.com. Thank you and may God bless you and may God bless our troops.

Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and we ask that you please disconnect your lines.

Q4 2025 Miller Industries Inc Earnings Call

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