Miller Industries (MLR) Posts Growth, But Profits Tell A Different Story

On August 5, Miller Industries (NYSE: MLR ) reported second-quarter 2026 results that showed revenue climbing while profit slipped, a split scorecard for the towing and recovery equipment maker. Revenue reached $240 million, up 12.1% from $214 million in the same quarter of 2025, driven by steady production matched to order intake. Net income fell to $7.3 million from $8.5 million, and diluted EPS dropped to $0.63 from $0.73. The numbers set up a real tension for investors weighing top-line strength against bottom-line pressure.

Miller Industries backed up its growth with balance sheet moves that get less attention than headline revenue. The company cut total debt by $20 million during the second quarter of 2026, leaving no outstanding balance on its credit facility. That freed up cash for the business to keep funding its priorities without leaning on borrowed money. Strong cash generation also let Miller Industries return $4.9 million to shareholders during the quarter through dividends and share repurchases, including roughly $2.5 million spent buying back stock. The board approved a quarterly dividend of $0.21 per share, payable September 15, to shareholders of record as of September 8, marking the sixty-third consecutive quarter the company has paid a dividend.

The company is also betting on future demand. Miller Industries is building a new facility of more than 200,000 square feet at its Ooltewah, Tennessee headquarters, a roughly $100 million project the company plans to fund mostly through operating cash flow over the next several years. Management pointed to European demand, an expanding integration facility in France through its Jige unit, and military commitments now topping $200 million as reasons for the added capacity, with defense-grade vehicle production expected to begin in 2027 and ramp through 2028 and 2029. The company's Omars acquisition also delivered solid initial results, and management said it still expects the deal to be accretive within its first year.

The profit side of the report tells a tougher story. Gross margin slipped 120 basis points to 15% in the second quarter of 2026, even as gross profit inched up 3.9% to $35.9 million. SG&A expenses rose faster than revenue, up 7.6% to $25.2 million from $23.4 million a year earlier, and that cost growth helped push net income down 14.1% and diluted EPS down 13.7%. For a company posting double-digit revenue growth, a double-digit decline in earnings per share is the kind of gap investors tend to notice.