Miller Industries Q3 Profit Nearly Doubles as Revenue Rises 18.8%

Miller Industries reported sharply higher third-quarter earnings as revenue grew 18.8% from a year earlier, while maintaining its 2026 outlook for $850 million to $900 million in sales. Profit nearly doubled year over year, although revenue and earnings declined from the second quarter.

The towing and recovery equipment manufacturer generated third-quarter 2026 revenue of $212.2 million, down 11.6% sequentially. Gross profit rose 17.6% year over year to $29.8 million but fell 17.1% from the previous quarter, resulting in a gross margin of 14.0%.

Net income increased 97.2% from the prior-year period to $6.1 million, representing a 3.0% net margin. Diluted earnings per share were $0.53, up 96.3% year over year. Compared with the second quarter, net income decreased 16.4% and diluted EPS declined 15.9%. The company had about 11.5 million diluted shares outstanding.

Miller returned $5.1 million to shareholders through dividends and share repurchases during the quarter. Shareholders’ equity stood at $421.9 million.

Operations and expansion

For its domestic business, Miller highlighted a new product launch, chassis conditions, retail activity, production levels and product mix as key areas of focus for the 2026 market outlook. The presentation did not provide numerical forecasts for those items.

Internationally, the company reported a strong backlog and continued work on integrating Omars. Miller expects its Jige expansion to be completed in the first quarter of 2027 and is also pursuing efficiency improvements at its Boniface facility.

Construction on the company’s Ooltewah expansion began in September 2026, with building steel scheduled to arrive in January 2027. Capital expenditures are expected to increase through 2026 and 2027, with the vast majority funded through operating cash flow.

In the military business, pre-production and test units are currently being manufactured. Miller said most associated revenue is expected to be recognized in 2028 and 2029. The company also cited a significant value of outstanding requests for quotations in process, though military commitments and contracts remain subject to funding, timing and possible adjustment or cancellation.

2026 outlook

Miller expects full-year 2026 revenue of $850 million to $900 million, gross margin of approximately 14%, and EPS in line with fiscal 2025. Its capital allocation priorities include quarterly dividends, share repurchases, working capital, potential acquisitions, innovation, automation, workforce investment and capacity expansion.

The company identified supply availability and costs for chassis, components and raw materials as continuing uncertainties. Other disclosed risks include tariffs, elevated interest rates, rising insurance and equipment-ownership costs, access to customer financing, geopolitical conflicts, transportation expenses, skilled-labor costs and the cyclical nature of the towing and recovery equipment market. These factors could affect demand, production, margins and the timing of military or other customer orders.