Miller Industries (MLR) investor relations material

Company overview and operations

• Leading global manufacturer of towing and recovery equipment with facilities in the US, England, and France, operating under multiple brands including Century, Vulcan, Chevron, Holmes, Boniface, and GJ.

• Focus on innovation, quality, and safety, with significant investment in on-site fabrication, robotics, and ERP systems to enhance production and efficiency.

• Distribution network includes 53 distributor principals with 75 locations in North America, and exports to over 60 countries globally.

• Product lifecycle management emphasizes trade cycles aligned with warranty periods, and a diversified customer base with no single customer exceeding 10% of revenue.

• Aftermarket parts provide consistent margins but are a small portion of revenue, mainly focused on proprietary components.

Market dynamics and industry drivers

• The towing and recovery industry is a multibillion-dollar global market, driven by miles driven, accident rates, last mile deliveries, aging vehicle fleets, infrastructure, and natural disasters.

• Growth in last mile delivery and construction activity increases demand for towing equipment, as more vehicles are needed for deliveries and job site incidents.

• Military sector presents growth opportunities, with recent contracts such as the Canadian military for 85 heavy-duty recovery units, and ongoing global RFQs.

• Rental market share has expanded, now serving major rental companies like Sunbelt, Herc, United, and Equipment Share.

• No significant distribution losses or competitive takeaways; inventory and demand challenges are industry-wide.

Financial performance and outlook

• 2024 was a record year with $1.26 billion in revenue and $63.5 million net income; Q1 2025 revenue was $214 million with $8.5 million net income.

• 2025 guidance adjusted to $750–800 million in revenue due to distributor inventory buildup and lower retail activity; EPS guidance suspended pending workforce adjustments.

• Inventory levels expected to normalize by late Q4 2025 or early Q1 2026, with a return to growth anticipated in 2026 and beyond.

• Cost reduction initiatives include the first layoff in 16 years and a new retirement program to manage workforce demographics and SG&A.

• Capital allocation priorities remain on dividends, debt reduction, share repurchases, innovation, and capacity expansion.