Miller Industries (MLR) 17th Annual Southwest IDEAS Conference summary

Company overview and strategy

• Founded in 1990, operates six manufacturing facilities globally and leads the towing and recovery equipment industry.

• Focuses on innovation, safety, and rapid prototyping, with a strong emphasis on employee development and a five-star distribution network.

• Maintains a compounded annual growth rate driven mostly by organic growth since 1997 and has paid 60 consecutive quarterly dividends.

• Key markets include commercial towing, rental, salvage, government, and military, with North America accounting for about 90% of revenue.

• Strategy centers on product innovation, expanding global market share, and exploring M&A for capacity or new market entry.

Product and market insights

• Manufactures a range of light, medium, and heavy-duty recovery vehicles, with small car carriers as the highest volume product.

• Most sales are through an exclusive North American distribution network of 53 principals and 75 locations.

• Rental industry market share has grown significantly since 2014, now supplying four of the largest rental companies.

• Military contracts are increasing post-2022, with new RFQs and a Canadian contract scheduled for 2027–2028.

• Electric and autonomous vehicles are expected to have a net neutral impact on demand, as breakdowns remain the primary driver.

Financial performance and outlook

• Q3 revenue was $178.7 million, with $3.1 million net income and $3.5 million returned to shareholders.

• Cost reduction initiatives are underway amid slower industry demand and inventory normalization at distributors.

• Production and order intake are expected to align with retail activity by mid-Q1 next year.

• Guidance for 2025 is reaffirmed at approximately $800 million, with a strong balance sheet and focus on commercial and European market recovery.

• A one-time $2.6 million retirement package expense for U.S. employees over 65 will impact Q3 and Q4 results.