Miller Industries (MLR) Q2 2026 Earnings Call Transcript

Miller Industries delivered Q2 2026 revenue of $240 million, up 12.1% year-over-year, while net income came in at $7.3 million. The towing and recovery equipment maker reaffirmed full-year 2026 guidance of $850 million to $900 million in revenue with gross margins targeted at the mid-13% range.

The company announced a $100 million capacity expansion at its Tennessee facilities and reduced debt by $20 million during the quarter. Military contract commitments now exceed $200 million, with production slated to begin in 2027, adding a new revenue stream beyond the company's traditional commercial markets.

Management tempered expectations for near-term domestic demand, citing geopolitical tensions and fuel price volatility as headwinds. Despite the cautious outlook on core markets, MLR maintained its full-year targets, suggesting confidence that military production ramp and operational efficiency gains can offset weakness in traditional channels.

The company's balance sheet strengthening and capacity investments position it for the military contract ramp, though execution risk remains as production scales in 2027.