Q2 2026 Miller Industries Inc Earnings Call

August 6, 2026

Operator: Good day, ladies and gentlemen, welcome to the Miller Industries Q2 2026 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.

Operator: Good day, ladies and gentlemen, welcome to the Miller Industries Q2 2026 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 Q2, 2026 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.

Speaker #2: Thank you. Good morning, everyone, and thank you for joining us for our second quarter 2026 earnings call. I want to start by recognizing the hard work of our employees around the world.

Will Miller: Thank you. Good morning, everyone, thank you for joining us for our Q2 2026 earnings call. I want to start by recognizing the hard work of our employees around the world. Our Q2 results and our continued progress in strengthening our business reflects the dedication 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. Before I hand the call over to Debbie to discuss our results in greater detail, I would like to start with a brief overview of the quarter. We delivered strong sequential and year-over-year revenue growth in the Q2 while navigating an inconsistent macroeconomic environment. We also achieved continued improvement in profitability, reflecting the production efficiencies our operations team has implemented.

Speaker #2: Our second quarter results and our continued progress in strengthening our business reflect the dedication and passion of our team, our suppliers, our customers, and our shareholders.

Speaker #2: 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.

Will Miller: 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.

Speaker #2: Before I hand the call over to Debbie, to discuss our results in greater detail, I would like to start with a brief overview of the quarter.

Will Miller: Before I hand the call over to Debbie to discuss our results in greater detail, I would like to start with a brief overview of the quarter. We delivered strong sequential and year-over-year revenue growth in the Q2 while navigating an inconsistent macroeconomic environment. We also achieved continued improvement in profitability, reflecting the production efficiencies our operations team has implemented.

Speaker #2: We delivered strong sequential and year-over-year revenue growth in the second quarter, while navigating an inconsistent macroeconomic environment. We also achieved continued improvement in profitability reflecting the production efficiencies our operations team has implemented.

Speaker #2: These production efficiencies have also enhanced our already strong cash generation enabling us to further improve our balance sheet and reduce our debt balance. This provides us with greater financial flexibility to invest in our business.

Will Miller: These production efficiencies have also enhanced our already strong cash generation, enabling us to further improve our balance sheet and reduce our debt balance. This provides us with greater financial flexibility to invest in our business, focusing on the areas where we see the greatest opportunities to create long-term value. Together, we believe these actions position us well for a strong H2 of the year. Our core philosophy remains exactly as it has been since the start of the company. 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-plus year history and will continue to be our philosophy moving forward.

Speaker #2: Focusing on the areas where we see the greatest opportunities to create long-term value. Together, we believe these actions position us well for a strong second half of the year.

Speaker #2: Our core philosophy remains exactly as it has been since the start of the company. 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 the start of the company. 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-plus year history and will continue to be our philosophy moving forward.

Speaker #2: That philosophy is the backbone of Miller Industries' 35-plus year history and will continue to be our philosophy moving forward. Our 1,500-plus employees across Tennessee, Pennsylvania, France, the United Kingdom, and Italy combined with our widespread distribution footprint give us unmatched reach, capability, and reliability that continues to position the company for sustained profitable growth.

Will Miller: Our 1,500-plus employees across Tennessee, Pennsylvania, France, the UK, and Italy, combined with our widespread distribution footprint, give us unmatched reach, capability, and reliability that continues to position the company for sustained profitable growth. I want to express my gratitude for all of our team members across the US, Europe, and the UK for their continued dedication to the company. Their commitment allows us to execute with discipline today while continuing to build the foundation for longer-term growth and value creation. 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, capital allocation priorities, and guidance.

Speaker #2: I want to express my gratitude for all of our team members across the U.S., Europe, and the U.K. for their continued dedication to the company.

Speaker #2: Their commitment allows us to execute with discipline today while continuing to build the foundation for longer-term growth and value creation. I'll now turn the call over to Debbie, who will provide an update on our financial results in more detail.

Will Miller: Their commitment allows us to execute with discipline today while continuing to build the foundation for longer-term growth and value creation. 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, capital allocation priorities, and guidance.

Speaker #2: Before returning with some more specific thoughts on our markets. Capital allocation guidance.

Speaker #3: Thank you, Will. For the second quarter, revenue was $240 million up 12.1% year over year, and $32.7% sequential. This growth was driven by steady production rates to meet retail activity and order intake levels.

[Company Representative] (Miller Industries): Thank you, Will. For Q2, revenue was $240 million, up 12.1% year over year and 32.7% sequentially. This growth was driven by steady production rates to meet retail activity and order intake levels. Gross profit was $35.9 million, or 15% of sales, and net income was $7.3 million. Our improved profitability was driven by operational efficiency and disciplined labor cost management, which was made possible by the outstanding execution of our operations team across the globe. Gross profit was impacted by product mix as it returns to a more normalized balance of chassis and bodies after periods of significantly elevated inventory in our distribution channels. Additionally, diluted EPS was $0.63 per share, up from $0.05 in Q1. As expected, EPS during the quarter continued to reflect transaction-related expenses from the Omars acquisition, which impacted EPS by $0.11 in the quarter.

Debbie L Whitmire: Thank you, Will. For Q2, revenue was $240 million, up 12.1% year over year and 32.7% sequentially. This growth was driven by steady production rates to meet retail activity and order intake levels. Gross profit was $35.9 million, or 15% of sales, and net income was $7.3 million.

Speaker #3: Growth profit was $35.9 million or 15% of sales, and net income was $7.3 million. Our improved profitability was driven by operational efficiency and disciplined labor cost management, which was made possible by the outstanding execution of our operations team across the globe.

Debbie L Whitmire: Our improved profitability was driven by operational efficiency and disciplined labor cost management, which was made possible by the outstanding execution of our operations team across the globe. Gross profit was impacted by product mix as it returns to a more normalized balance of chassis and bodies after periods of significantly elevated inventory in our distribution channels.

Speaker #3: Gross profit was impacted by product mix as it returns to a more normalized balance of chassis and body after periods of significantly elevated inventory in our distribution channel.

Debbie L Whitmire: Additionally, diluted EPS was $0.63 per share, up from $0.05 in Q1. As expected, EPS during the quarter continued to reflect transaction-related expenses from the Omars acquisition, which impacted EPS by $0.11 in the quarter.

Speaker #3: Additionally, diluted EPS was 63 cents per share, up from 5 cents in the first quarter. As expected, EPS during the quarter continued to reflect transaction-related expenses from the Omar's acquisition, which impacted EPS by 11 cents in the quarter.

Speaker #3: We have now recognized the majority of expenses related to the transaction, and we believe that any further impacts will be far less material to our financial results.

[Company Representative] (Miller Industries): We have now recognized the majority of expenses related to the transaction. We believe that any further impact will be far less material to our financial results. Our integration of Omars continues to progress smoothly. We remain confident that the acquisition will be accretive in the first year after recognizing these expenses. I'd like to now shift to a discussion of our balance sheet. At the end of Q2, we had a cash balance of $55.6 million, up $2.6 million from last quarter. We also reduced our debt by an additional $20 million since the end of Q1. This combination of strong cash generation and a robust balance sheet provides us with greater financial flexibility to invest in our business, pursue strategic opportunities, and allocate capital to maximize value for the company and our investors.

Debbie L Whitmire: We have now recognized the majority of expenses related to the transaction. We believe that any further impact will be far less material to our financial results. Our integration of Omars continues to progress smoothly. We remain confident that the acquisition will be accretive in the first year after recognizing these expenses.

Speaker #3: Our integration of Omar's continues to progress smoothly and we remain confident that the acquisition will be a creative in the first year after recognizing these expenses.

Speaker #3: I'd like to now shift to discussion of our balance sheet. At the end of the second quarter, we had a cash balance of $55.6 million up 2.6 million from last quarter.

Debbie L Whitmire: I'd like to now shift to a discussion of our balance sheet. At the end of Q2, we had a cash balance of $55.6 million, up $2.6 million from last quarter. We also reduced our debt by an additional $20 million since the end of Q1.

Speaker #3: We also reduced our debt by an additional $20 million since the end of Q1. This combination of strong cash generation and a robust balance sheet provides us with greater financial flexibility to invest in our business, pursue strategic opportunities, and allocate capital to maximize the value for the company and our investors.

Debbie L Whitmire: This combination of strong cash generation and a robust balance sheet provides us with greater financial flexibility to invest in our business, pursue strategic opportunities, and allocate capital to maximize value for the company and our investors.

Speaker #3: During the quarter, we were pleased to return $4.9 million directly to our shareholders in the form of share repurchases and dividends. Now, I'll turn the call back to Will to discuss our markets and our outlook.

[Company Representative] (Miller Industries): During this quarter, we were pleased to return $4.9 million directly to our shareholders in the form of share repurchases and dividends. I'll turn the call back to Will to discuss our markets and our outlook.

Debbie L Whitmire: During this quarter, we were pleased to return $4.9 million directly to our shareholders in the form of share repurchases and dividends. I'll turn the call back to Will to discuss our markets and our outlook.

Speaker #2: Thank you, Debbie. In the domestic market, despite the ongoing geopolitical tensions and elevated fuel prices, we are pleased to see stable retail demand, order entry, and distributor inventory levels which remain at historical averages.

Will Miller: Thank you, Debbie. In the domestic market, despite the ongoing geopolitical tensions and elevated fuel prices, we are pleased to see stable retail demand, order entry, and distributor inventory levels which remain at historical averages. We currently anticipate that retail activity and production volumes will remain steady and in line with current levels as the product mix returns to an optimal ratio between bodies and chassis. We remain confident in the strength of our business and our ability to execute against our long-term strategy. In our international and export business, backlog levels remain consistent. Our international facilities are operating at a steady production pace to meet sustained customer demand. The acquisition of Omars and our EUR 8 million expansion in Gigean, France, which remains on track to be completed mid-2027, will both be significant drivers of the success of our global initiatives.

Speaker #2: We currently anticipate that retail activity and production volumes will remain steady and in line with current levels as the product mix returns to an optimal ratio between bodies and chassis.

Speaker #2: We remain confident in the strength of our business and our ability to execute against our long-term strategy. In our international and export business, backlog levels remain consistent.

Will Miller: We remain confident in the strength of our business and our ability to execute against our long-term strategy. In our international and export business, backlog levels remain consistent. Our international facilities are operating at a steady production pace to meet sustained customer demand. The acquisition of Omars and our EUR 8 million expansion in Gigean, France, which remains on track to be completed mid-2027, will both be significant drivers of the success of our global initiatives.

Speaker #2: In our international facilities, our operating at a steady production pace to meet sustained customer demand. The acquisition of Omar's and our $8 million expansion at GJ in France which remains on track to be completed mid-2027 will both be significant drivers of the success of our global initiatives.

Speaker #2: Meanwhile, we continue to communicate with various domestic and international government agencies. Building our confidence that our success in our military business will continue to grow in the second half of the year.

Will Miller: Meanwhile, we continue to communicate with various domestic and international government agencies, building our confidence that our success in our military business will continue to grow in the second half of the year. We are pleased to report that our military commitments have now surpassed $200 million, and production is scheduled to begin in 2027. We anticipate that the majority of revenue will be recognized in 2028 and 2029. We expect our diligent work with militaries around the globe and our industry-leading defense-grade recovery vehicles will be an important driver for our financial results in years ahead. As it relates to our manufacturing capacity expansion in Ooltewah, we are still aiming to be production ready by late 2027. We are beginning to wrap up site preparation this month and are on schedule to begin construction of the new facility by Q4 of 2026.

Speaker #2: We are pleased to report that our military commitments have now surpassed $200 million and production is scheduled to begin in 2027. We anticipate that the majority of revenue will be recognized in 2028 and 2029.

Speaker #2: We expect our diligent work with militaries around the globe and our industry-leading defense-grade recovery vehicles will be an important driver for our financial results in years ahead.

Will Miller: We expect our diligent work with militaries around the globe and our industry-leading defense-grade recovery vehicles will be an important driver for our financial results in years ahead. As it relates to our manufacturing capacity expansion in Ooltewah, we are still aiming to be production ready by late 2027. We are beginning to wrap up site preparation this month and are on schedule to begin construction of the new facility by Q4 of 2026.

Speaker #2: As it relates to our manufacturing capacity expansion in Utah, we are still aiming to be production-ready by late 2027. We are beginning to wrap up site preparation this month and are on schedule to begin construction of the new facility by Q4 of 2026.

Speaker #2: The new 200,000-plus square-foot manufacturing facility will be instrumental to producing global high-volume defense-grade recovery vehicles and meeting increased demand for our global export markets while maintaining the ability to service our North American customer base.

Will Miller: The new 200,000-plus sq ft manufacturing facility will be instrumental to producing global high-volume defense-grade recovery vehicles and meeting increased demand for our global export markets while maintaining the ability to service our North American customer base. The project will also incorporate the latest manufacturing technology, helping streamline heavy-duty workflows and enhance our manufacturing efficiency. We believe our strong cash flow generation positions us well to fund most of the expansion organically over the next several years. Our strengthened balance sheet now provides us with even more flexibility to allocate capital to our five key priorities. Industry-leading quarterly dividend currently at $0.21 per share. $2.5 million of share repurchases in Q2 and approximately $11.5 million remaining under the current share repurchase authorization, strategic optimization of working capital, selective M&A opportunities, and ongoing investment in capacity expansion, automation, and innovation.

Will Miller: The project will also incorporate the latest manufacturing technology, helping streamline heavy-duty workflows and enhance our manufacturing efficiency. We believe our strong cash flow generation positions us well to fund most of the expansion organically over the next several years. Our strengthened balance sheet now provides us with even more flexibility to allocate capital to our five key priorities.

Speaker #2: The project will also incorporate the latest manufacturing technology helping streamline heavy-duty workflows and enhance our manufacturing efficiency. We believe our strong cash flow generation positions as well to fund most of the expansion organically over the next several years.

Speaker #2: Our strengthened balance sheet now provides us with even more flexibility to allocate capital to our five key priorities. Industry-leading quarterly dividend currently at $21 cents per share.

Will Miller: Industry-leading quarterly dividend currently at $0.21 per share. $2.5 million of share repurchases in Q2 and approximately $11.5 million remaining under the current share repurchase authorization, strategic optimization of working capital, selective M&A opportunities, and ongoing investment in capacity expansion, automation, and innovation.

Speaker #2: $2.5 million of share repurchases in the second quarter and approximately $11.5 million remaining under the current share repurchase authorization strategic optimization of working capital selective M&A opportunities and ongoing investment in capacity expansion automation and innovation.

Speaker #2: We're extremely proud that we've paid our dividend for 63 consecutive quarters. As Debbie mentioned in the second quarter, we continue to prioritize distributing capital by returning approximately $4.9 million to shareholders between our share repurchase program and dividends.

Will Miller: We are extremely proud that we have paid our dividend for 63 consecutive quarters. As Debbie mentioned in Q2, we continue to prioritize distributing capital by returning approximately $4.9 million to shareholders between our share repurchase program and dividends. This balanced approach allows us to continue investing in the company while also returning value directly to shareholders. We believe our cash generation capabilities will allow us to execute on each one of these priorities without expanding our credit facility. Given our steady levels of production, we anticipate to attain similar quarterly results of approximately $250 million in revenue for the remainder of the year. We remain confident that we are on track to achieve our previously stated guidance, generating between $850 million to $900 million in revenue for the full year 2026.

Speaker #2: This balanced approach allows us to continue investing in the company while also returning value directly to shareholders. We believe our cash generation capabilities will allow us to execute on each one of these priorities without expanding our credit facility.

Will Miller: We believe our cash generation capabilities will allow us to execute on each one of these priorities without expanding our credit facility. Given our steady levels of production, we anticipate to attain similar quarterly results of approximately $250 million in revenue for the remainder of the year. We remain confident that we are on track to achieve our previously stated guidance, generating between $850 million to $900 million in revenue for the full year 2026.

Speaker #2: Given our steady levels of production, we anticipate to attain similar quarterly results of approximately $250 million in revenue for the remainder of the year.

Speaker #2: We remain confident that we are on track to achieve our previously stated guidance, generating between $850 million to $900 million in revenue for the full year 2026.

Speaker #2: We anticipate that our earnings per share will be in line with full year 2025 results and gross margins to return to historical levels in the mid-13% range for the full year 2026.

Will Miller: We anticipate that our earnings per share will be in line with full-year 2025 results, and gross margins to return to historical levels in the mid 13% range for the full year 2026. We look forward to meeting with investors to speak about exciting developments in Miller Industries in the coming months at the D.A. Davidson Small Cap Conference on 11 August, Midwest IDEAS Conference on 26 August, the D.A. Davidson Diversified Industrials & Services Conference on 23 September, Southwest IDEAS Conference on 18 November, and additional non-deal roadshows to be scheduled. We always welcome continued dialogue with our shareholders. In closing, the entire management team and I would like to thank all of our employees, suppliers, customers, and shareholders for their continued support of Miller Industries. We are well-positioned to execute on our priorities in the near term while continuing to drive long-term global growth.

Speaker #2: We look forward to meeting with investors to speak about exciting developments at Miller Industries in the coming months. At the DA Davidson Small Cap Conference on August 11th, Midwest Ideas Conference on August 26th, the DA Davidson Diversified Industrials and Services Conference on September 23rd, Southwest Ideas Conference on November 18th, and additional non-deal road shows to be scheduled.

Speaker #2: We always welcome continued dialogue with our shareholders. In closing, the entire management team and I would like to thank all of our employees, suppliers, customers, and shareholders for their continued support of Miller Industries.

Will Miller: We always welcome continued dialogue with our shareholders. In closing, the entire management team and I would like to thank all of our employees, suppliers, customers, and shareholders for their continued support of Miller Industries. We are well-positioned to execute on our priorities in the near term while continuing to drive long-term global growth.

Speaker #2: We are well positioned to execute on our priorities in the near term while continuing to drive long-term global growth. Thank you again for joining us, Operator.

Will Miller: Thank you again for joining us. Operator, please open the line for questions.

Speaker #2: Please open the line for questions.

Speaker #1: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Did you have a question? Please press star, followed by the number one on your touchstone phone.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number 1 on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the number 2. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please, for your first question. Your first question comes from Mike Aishwiski of D.A. Davidson. Please go ahead, your line is open.

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

Operator: Should you wish to decline from the polling process, please press star followed by the number 2. If you are using a speakerphone, please lift the handset before pressing any keys. Your first question comes from Mike Aishwiski of D.A. Davidson. Please go ahead, your line is open.

Speaker #1: If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. And your first question comes from Michael Switzky of the Davidson.

Speaker #1: Please go ahead. Your line is open.

Mike Aishwiski: Yes. Hi, good morning, and thanks for taking my questions here.

Mike Shlisky: Yes. Hi, good morning, and thanks for taking my questions here.

Speaker #3: Yes. Hi. Good morning, and thanks for taking my questions here.

Will Miller: Absolutely. Good morning, Mike.

Will Miller: [audio distortion] Absolutely. Good morning, Mike.

Speaker #2: Absolutely. Good morning, Mike.

Speaker #3: Yes. Good morning. The outlook for revenues of 250 a quarter in the back half of the year that's a slight increase from where you were in Q2.

Mike Aishwiski: Yes, good morning. The outlook for revenues of $250 a quarter in the H2 of the year, that's a slight increase from where you were in Q2 and certainly above where you were in Q1. The gross margins in those two quarters were 14% and even 15% this past quarter, you're still guiding for the mid-thirteens for the full year. You also mentioned that mix is getting back to normal again as well between the chassis and the bodies. Can you maybe just help us give us a little more granular detail as to why gross margins might not be as robust in the H2 as in the H1, if that's the case?

Mike Shlisky: Yes, good morning. The outlook for revenues of $250 a quarter in the H2 of the year, that's a slight increase from where you were in Q2 and certainly above where you were in Q1. The gross margins in those two quarters were 14% and even 15% this past quarter, you're still guiding for the mid-thirteens for the full year.

Speaker #3: It's certainly above where you were in the first quarter. And the gross margins in those two quarters were 14 and even 15 percent this past quarter.

Speaker #3: But you're still guiding for the mid-13s for the full year. And then you also mentioned that mix is getting back to normal again as well between the chassis and the body.

Mike Shlisky: You also mentioned that mix is getting back to normal again as well between the chassis and the bodies. Can you maybe just help us give us a little more granular detail as to why gross margins might not be as robust in the H2 as in the H1, if that's the case?

Speaker #3: So can you maybe just help us give us a little more granular detail as to why gross margins might not be as robust in the back half as in the first half, if that's what's the case?

Speaker #2: Yeah. I mean, our projections, Mike, right now thank you for the question. Our projections right now are sort of to continue the current pace with bodies and chassis, but we're seeing that product mix return back to historical levels.

Will Miller: Yeah. Thank you for the question. Our projections right now are to continue the current pace with bodies and chassis, we're seeing that product mix return back to historical levels. As our distribution base demands more chassis to integrate with their bodies, we're going to see an uptick in that chassis revenue, which will probably affect margins slightly. We're not exactly sure, we think somewhere in that mid-13% range for the full year as it starts to get back down to historical averages. It might be a little bit higher than that, we're close.

Speaker #2: So as our distribution base demands more chassis to integrate with their bodies, we're going to see an uptick in that chassis revenue, which will probably affect margins slightly.

Speaker #2: So we're not exactly sure, but we think somewhere in that mid-13 percent range for the full year as it starts to get back down to historical averages.

Speaker #2: It might be a little bit higher than that, but we're close.

Speaker #3: Okay. Great. I also want to clarify I think I did this last quarter on the call, Debbie, that the EPS outlook for roughly flat year-over-year that includes what looks like in the first half so far is almost 25 cents of Omar's kind of one-time items.

Mike Aishwiski: Okay. Great. I also want to clarify, I think I did this last quarter on the call, Debbie, that the EPS outlook for roughly flat year-over-year, that includes what looks like in the H1 so far is almost $0.25 of Omars' one-time items. I know you don't put out adjusted EPS, had it not been for that, your EPS would be up double digits, if you didn't have those one-time charges. Is that the way we're to think about it?

Mike Shlisky: Okay. Great. I also want to clarify, I think I did this last quarter on the call, Debbie, that the EPS outlook for roughly flat year-over-year, that includes what looks like in the H1 so far is almost $0.25 of Omars' one-time items. I know you don't put out adjusted EPS, had it not been for that, your EPS would be up double digits, if you didn't have those one-time charges. Is that the way we're to think about it?

Speaker #3: I know you don't put out a adjusted EPS, but had it not been for that, your EPS would be up double digits if you didn't have those one-time charges.

Speaker #3: Is that the right way to think about it?

Speaker #4: Yes, that's correct. The outlook does include those additional expenses that were recorded in the first and second quarter.

[Company Representative] (Miller Industries): Yes, that's correct. The outlook does include those additional expenses that were recorded in the Q1 and Q2.

Debbie L Whitmire: Yes, that's correct. The outlook does include those additional expenses that were recorded in the Q1 and Q2.

Speaker #3: Okay. And you said in your comments that those are the majority of the one-time items, but could you maybe just give us a sense as to how much more it might be left even just a small amount?

Mike Aishwiski: Okay. You said in your comments that those are the majority of the one-time items that Could you maybe just give us a sense as to how much more might be left in just a small amount? What will the whole full year look like from a one-time Omars perspective?

Mike Shlisky: Okay. You said in your comments that those are the majority of the one-time items that Could you maybe just give us a sense as to how much more might be left in just a small amount? What will the whole full year look like from a one-time Omars perspective?

Speaker #3: What will the whole full year look like from a one-time Omar's perspective?

Speaker #4: So first quarter, I think we said it was 13th in impact, second quarter is 11. I would say the remainder of the year is 4 to 5 cents.

[Company Representative] (Miller Industries): First quarter, I think we said it was $0.13 impact. Second quarter is $0.11. I would say the remainder of the year is $0.04 to $0.05.

Debbie L Whitmire: First quarter, I think we said it was $0.13 impact. Second quarter is $0.11. I would say the remainder of the year is $0.04 to $0.05.

Speaker #3: Okay. Great. Thank you for that. Also want to ask about military. Will I think it was 150 last quarter. Now you're at 200. Can you give us a sense of what broadly speaking has been added?

Mike Aishwiski: Okay, great. Thank you for that. Also want to ask about military. Willie, I think it was $150 last quarter, now you're at $200. Can you give us a sense of what, broadly speaking, has been added? Is it extremely heavy stuff? Is it with a European partner? Then just a sense as to what the pipeline is, what you think you got your sights on for the rest of the year or just the overall pipeline size for military.

Mike Shlisky: Okay, great. Thank you for that. Also want to ask about military. Will, I think it was $150 last quarter, now you're at $200. Can you give us a sense of what, broadly speaking, has been added? Is it extremely heavy stuff? Is it with a European partner? Then just a sense as to what the pipeline is, what you think you got your sights on for the rest of the year or just the overall pipeline size for military.

Speaker #3: Is it extremely heavy stuff? Is it with a European partner? And then give us a sense as to what the pipeline is when you might think you got your sights on for the rest of the year or just the overall pipeline size for military.

Speaker #2: Yeah. The additions that we saw moving us from north of 150 million commitments to now over 200 million was probably there were some small items in there along throughout the quarter.

Will Miller: Yeah. The additions that we saw moving us from north of $150 million in commitments to now over $200 million was, probably there were some small items in there along for us, or there was one more larger commitment. Vast majority of it was heavy duty production, a few industrial car carriers. The vast majority was heavy duty production. Can't disclose, as far as the customer or region that the latest larger contract was at this time. We hope to have a little bit more light for investors as we move into Q3 and Q4 this year with regards to where some of these vehicles may be headed Looking forwards, there's still, as there has been, a significant pipeline of potential opportunities with RFQs that we're actively working with different governmental agencies globally. We're excited and we're happy to see them starting to progress and move forwards.

Will Miller: The additions that we saw moving us from north of $150 million in commitments to now over $200 million was, probably there were some small items in there along for us, or there was one more larger commitment. Vast majority of it was heavy duty production, a few industrial car carriers. The vast majority was heavy duty production. Can't disclose, as far as the customer or region that the latest larger contract was at this time.

Speaker #2: There was one more larger commitment. All of it was vast majority of it was heavy-duty production. Some few industrial car carriers. The vast majority was heavy-duty production.

Speaker #2: Can't disclose as far as the customer or region that the latest larger contract was at this time. But we hope to have a little bit more light for investors as we move into Q3 and Q4 this year with regards to where some of these vehicles may be headed.

Will Miller: We hope to have a little bit more light for investors as we move into Q3 and Q4 this year with regards to where some of these vehicles may be headed Looking forwards, there's still, as there has been, a significant pipeline of potential opportunities with RFQs that we're actively working with different governmental agencies globally. We're excited and we're happy to see them starting to progress and move forwards.

Speaker #2: Looking forward, there's still as there has been a significant pipeline of potential opportunities with RFQs that were actively working with different governmental agencies globally.

Speaker #2: So we're excited. We're happy to see them starting to progress and move forwards.

Mike Aishwiski: Great. Thanks for that. Maybe turning to the core tow business, what can you share about your latest conversations with end users or with some dealers about how they feel about buying? I remember over the last, let's say 12 months or so, there's political concerns, there's interest rate concerns. They seem to have gotten better at some points along the way here. Give us a sense, as you take the temperature of the customer base and dealer base, what they might be telling you about for the rest of this year and even the first part of 2027.

Mike Shlisky: Great. Thanks for that. Maybe turning to the core tow business, what can you share about your latest conversations with end users or with some dealers about how they feel about buying? I remember over the last, let's say 12 months or so, there's political concerns, there's interest rate concerns.

Speaker #3: Great. Thanks for that. And then maybe turning to the core tow business, can you share about your latest conversations with end users or with some dealers about how they feel about buying at remember over the last, let's say, 12 months or so in political concerns?

Speaker #3: There's an interest rate concerns. It seems to have gotten better at some point along the way here. Give us a sense as you take the temperature of the customer base and dealer base, what they might be telling you about for the rest of this year and even the first part of '27.

Mike Shlisky: They seem to have gotten better at some points along the way here. Give us a sense, as you take the temperature of the customer base and dealer base, what they might be telling you about for the rest of this year and even the first part of 2027.

Speaker #2: Yeah, I mean, right now, what we're seeing is it's mostly consumer confidence and geopolitical and fuel pricing that's on everybody's mind. So, the confidence level isn't all that high.

Will Miller: Right now, what we're seeing is it's mostly consumer confidence and geopolitical and fuel pricing is what's on everybody's mind. The confidence level isn't all that high. Our production levels, retail activity levels, inventory levels, everything's really flat right now. We're building at the proper rate. We're receiving orders to build at that rate. We're not having inventory shrink or grow at the distribution level. Our distribution's happy with the inventory levels that they have today. We seem to have pushed through all of the excess inventory for the most part at the distribution level. I think everybody's in a solid, steady state.

Speaker #2: I mean, our production levels, retail activity levels, inventory levels, everything's really flat right now. So there's we're building at the proper rate. We're receiving orders to build at that rate.

Speaker #2: We're not having inventory shrink or grow. At the distribution level, our distribution's happy with the inventory levels that they have today. So we've seemed to have pushed through all of the excess inventory for the most part at the distribution level.

Speaker #2: I think everybody's in a solid steady state. There's obviously room for improvement in the domestic market, but I don't think we're going to see any of that until we get some light at the end of the tunnel with the current issues in the Middle East and fuel prices settling back down.

Will Miller: There's obviously room for improvement in the domestic market, I don't think we're going to see any of that until we get some light at the end of the tunnel with the current issues in the Middle East and fuel prices settling back down. Still there, Mike?

Speaker #2: Just another mic.

Speaker #3: Oh, yes. Just want to make sure that you were done. Yeah. Thanks for those answers. I appreciate it. I will pass it along. Thank you.

Mike Aishwiski: Yes. I just wanted to make sure that you were done. Thanks for those answers. I appreciate it. I will pass it along. Thank you.

Mike Shlisky: Yes. I just wanted to make sure that you were done. Thanks for those answers. I appreciate it. I will pass it along. Thank you.

Speaker #1: Thank you.

Operator: Thank you.

Speaker #2: Thank you, Mike. We appreciate it.

Will Miller: Thank you, Mike. I appreciate it.

Operator: There are no further questions at this time. I would now like to turn the call back over to Will Miller for closing comments.

Speaker #1: And there are no further questions at this time. I would now like to turn the call back over to Will Miller for closing comments.

Operator: There are no further questions at this time. I would now like to turn the call back over to Will Miller for closing comments.

Speaker #2: 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 third-quarter conference call.

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 Q3 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 #2: If you'd like information on how to participate and ask questions on the call, please visit our investor relations website. Millerind.com, forward slash investors, or email investors.relations@millerind.com.

Speaker #2: Thank you. May God bless you and may God bless our troops.

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

Q2 2026 Miller Industries Inc Earnings Call

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