Miller Industries' Q3 Profits Plunge 80% Amid Sales Slump

TL;DR

**MLR's Q3 numbers are a wreck; sell before it gets towed away.**

AI Summary

MILLER INDUSTRIES INC /TN/ reported a significant decline in financial performance for the three and nine months ended September 30, 2025. Net sales for the three months decreased by 43.1% to $178.67 million from $314.27 million in the prior year. Net income for the three months plummeted by 80.0% to $3.08 million from $15.43 million. For the nine-month period, net sales fell by 40.3% to $618.35 million from $1.04 billion, and net income dropped by 63.0% to $19.61 million from $52.96 million. Basic earnings per share decreased from $1.35 to $0.27 for the three-month period and from $4.62 to $1.71 for the nine-month period. The company's cash and temporary investments increased to $38.40 million as of September 30, 2025, from $24.34 million at December 31, 2024, driven by $49.86 million in net cash flows from operating activities for the nine months. Long-term obligations were reduced by $20 million, from $65 million to $45 million, indicating a deleveraging effort despite the revenue and profit downturn.

Why It Matters

This sharp decline in Miller Industries' revenue and net income signals significant headwinds for investors, potentially impacting future dividend growth and stock performance. The competitive landscape for towing and recovery equipment appears challenging, as evidenced by the substantial drop in sales across both North America and foreign markets. Employees might face increased pressure or potential restructuring if these trends continue, while customers could see shifts in product availability or pricing strategies. The broader market for industrial equipment may interpret this as a sign of softening demand, affecting other players in the sector.

Risk Assessment

Risk Level: high — The company experienced an 80.0% decrease in net income for the three months ended September 30, 2025, falling to $3.08 million from $15.43 million in the prior year. Additionally, net sales declined by 43.1% to $178.67 million from $314.27 million, indicating a severe contraction in demand or market share.

Analyst Insight

Investors should consider reducing their exposure to MLR given the drastic decline in net sales and net income. Monitor upcoming earnings calls for management's strategy to address the significant revenue contraction and profit erosion, and look for signs of stabilization before considering any new positions.

Financial Highlights

debt To Equity

0.11

revenue

$178.67M

operating Margin

14.19%

total Assets

$604.34M

total Debt

$45.12M

net Income

$3.08M

eps

$0.27

gross Margin

14.18%

cash Position

$38.40M

revenue Growth

-43.1%

Key Numbers

• $178.67M — Net Sales (Q3 2025) (43.1% decrease from $314.27M in Q3 2024)
• $3.08M — Net Income (Q3 2025) (80.0% decrease from $15.43M in Q3 2024)
• $618.35M — Net Sales (YTD Q3 2025) (40.3% decrease from $1.04B in YTD Q3 2024)
• $19.61M — Net Income (YTD Q3 2025) (63.0% decrease from $52.96M in YTD Q3 2024)
• $0.27 — Basic EPS (Q3 2025) (Decreased from $1.35 in Q3 2024)
• $1.71 — Basic EPS (YTD Q3 2025) (Decreased from $4.62 in YTD Q3 2024)
• $38.40M — Cash and Temporary Investments (Sep 30, 2025) (Increased from $24.34M at Dec 31, 2024)
• $45.00M — Long-term Obligations (Sep 30, 2025) (Decreased from $65.00M at Dec 31, 2024)
• $49.86M — Net Cash from Operating Activities (YTD Q3 2025) (Increased from $28.59M in YTD Q3 2024)
• 11,431,416 — Shares Outstanding (Oct 31, 2025) (Slight decrease from 11,439,292 shares at Dec 31, 2024)

Key Players & Entities

• MILLER INDUSTRIES INC /TN/ (company) — registrant
• New York Stock Exchange (regulator) — exchange for common stock
• SEC (regulator) — U.S. Securities and Exchange Commission
• FASB (regulator) — Financial Accounting Standards Board
• $178,670 (dollar_amount) — Net sales for three months ended September 30, 2025
• $314,271 (dollar_amount) — Net sales for three months ended September 30, 2024
• $3,082 (dollar_amount) — Net income for three months ended September 30, 2025
• $15,425 (dollar_amount) — Net income for three months ended September 30, 2024
• $45,000 (dollar_amount) — Long-term obligations as of September 30, 2025
• $65,000 (dollar_amount) — Long-term obligations as of December 31, 2024

FAQ

Risk Factors

• Economic Downturn and Demand Fluctuations [high — market]: The company experienced a significant 43.1% decline in net sales for Q3 2025, totaling $178.67 million, compared to $314.27 million in the prior year. This indicates a substantial drop in demand for their products, likely influenced by broader economic conditions affecting their customer base.
• Inventory Management Challenges [medium — operational]: Despite the sharp decline in sales, inventories remained relatively high at $180.715 million as of September 30, 2025, a slight decrease from $186.169 million at the end of 2024. This suggests potential challenges in aligning production with demand, leading to increased holding costs and potential write-downs.
• Profitability Erosion [high — financial]: Net income for Q3 2025 plummeted by 80.0% to $3.08 million from $15.43 million in the prior year. For the nine-month period, net income dropped by 63.0% to $19.61 million from $52.96 million. This severe contraction in profitability raises concerns about the company's ability to generate sustainable earnings.
• Increased Operating Cash Flow Despite Lower Sales [medium — financial]: The company generated $49.86 million in net cash from operating activities for the nine months ended September 30, 2025, an increase from $28.59 million in the prior year. This was largely driven by significant favorable changes in working capital, particularly a decrease in accounts receivable ($82.414 million) and accounts payable ($65.196 million), which masks the underlying operational performance decline.
• Debt Reduction Efforts [medium — financial]: Long-term obligations were reduced by $20 million, from $65 million to $45 million, as of September 30, 2025. This deleveraging is a positive step, but it occurs during a period of significant financial performance deterioration.
• Compliance and Reporting [low — regulatory]: As a publicly traded company, Miller Industries is subject to various SEC regulations and reporting requirements. Failure to comply with these regulations could result in fines, penalties, and reputational damage.

Industry Context

Miller Industries operates in the specialized market of towing and recovery equipment manufacturing. The industry is cyclical and sensitive to economic conditions, as demand for new equipment is often tied to fleet replacement cycles and overall economic activity. Competition can be intense, with established players and potential new entrants vying for market share.

Regulatory Implications

As a publicly traded entity, Miller Industries must adhere to stringent financial reporting standards set by the SEC. Any misstatements or non-compliance can lead to significant penalties and damage investor confidence. The company's operations may also be subject to various environmental and safety regulations depending on its manufacturing processes and product applications.

What Investors Should Do

1. Monitor inventory levels closely in upcoming quarters to assess the effectiveness of demand-supply alignment.
2. Analyze the drivers behind the significant drop in net sales and net income to understand the sustainability of the downturn.
3. Evaluate the company's strategy for navigating the current economic climate and its impact on future revenue and profitability.
4. Assess the impact of the debt reduction on the company's financial flexibility and its ability to fund future growth or weather further downturns.

Key Dates

• 2025-09-30: End of Q3 2025 — Reporting period for the significant decline in net sales and net income.
• 2024-12-31: End of Fiscal Year 2024 — Baseline for comparison of cash and long-term obligations.

Glossary

Net Sales

The total revenue generated from the sale of goods or services, net of returns, allowances, and discounts. (Key indicator of top-line performance and market demand.)

Net Income

The profit remaining after all expenses, including taxes and interest, have been deducted from revenue. (Measures the company's overall profitability.)

Basic Earnings Per Share (EPS)

The portion of a company's profit allocated to each outstanding share of common stock, calculated by dividing net income by the weighted-average number of common shares outstanding. (Indicates profitability on a per-share basis for common shareholders.)

Cash and temporary investments

Highly liquid assets that can be readily converted to cash, including cash on hand, bank deposits, and short-term marketable securities. (Measures the company's immediate liquidity and financial flexibility.)

Long-term obligations

Debts and other financial liabilities that are due more than one year from the balance sheet date. (Indicates the company's long-term financial leverage and debt management.)

Operating Activities

Cash generated from the normal day-to-day business operations of a company. (Shows the cash-generating ability of the core business.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Miller Industries has experienced a substantial downturn. Net sales for the nine months ended September 30, 2025, decreased by 40.3% to $618.35 million from $1.04 billion. This revenue decline has severely impacted profitability, with net income dropping by 63.0% to $19.61 million from $52.96 million. While cash reserves have increased and long-term debt has been reduced, these are overshadowed by the sharp deterioration in operational performance and earnings.

Key Financial Figures

• $0.01 — ch Registered Common Stock, par value $0.01 per share MLR New York Stock Exchan

Filing Documents

• mlr-20250930x10q.htm (10-Q) — 1543KB
• mlr-20250930xex31d1.htm (EX-31.1) — 13KB
• mlr-20250930xex31d2.htm (EX-31.2) — 13KB
• mlr-20250930xex32d1.htm (EX-32.1) — 4KB
• mlr-20250930xex32d2.htm (EX-32.2) — 4KB
• mlr-20250930x10q001.jpg (GRAPHIC) — 9KB
• mlr-20250930x10q003.jpg (GRAPHIC) — 2KB
• 0001104659-25-107065.txt ( ) — 6185KB
• mlr-20250930.xsd (EX-101.SCH) — 29KB
• mlr-20250930_cal.xml (EX-101.CAL) — 45KB
• mlr-20250930_def.xml (EX-101.DEF) — 109KB
• mlr-20250930_lab.xml (EX-101.LAB) — 275KB
• mlr-20250930_pre.xml (EX-101.PRE) — 225KB
• mlr-20250930x10q_htm.xml (XML) — 1130KB

Financial Statements

Financial Statements 4 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Income 5 Condensed Consolidated Statements of Comprehensive Income 6 Condensed Consolidated Statements of Shareholders' Equity 7 Condensed Consolidated Statements of Cash Flows 9 Notes to the Condensed Consolidated Financial Statements 10 Note 1. Basis of Presentation and Significant Accounting Policies 10 Note 2. Inventory 12 Note 3. Property, Plant and Equipment 12 Note 4. Long-Term Obligations 13 Note 5. Income Taxes 13 Note 6. Leases 13 Note 7. Commitments and Contingencies 14 Note 8. Shareholders' Equity 15 Note 9. Revenue 16 Note 10. Earnings Per Share 17 Note 11. Subsequent Events 17 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 Item 4.

Controls and Procedures

Controls and Procedures 25 PART II. OTHER INFORMATION 26 Item 1.

Legal Proceedings

Legal Proceedings 26 Item 1A.

Risk Factors

Risk Factors 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Defaults Upon Senior Securities 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 26 Item 6. Exhibits 27

SIGNATURES

SIGNATURES 28 2 | Q3 FY 2025 FORM 10-Q Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements in this Quarterly Report on Form 10-Q, including but not limited to statements made in Part I, Item 2 – "Management's Discussion and Analysis of Financial Condition and Results of Operations", statements about anticipated effects of adopting certain accounting standards, statements made with respect to future operating results, and statements about trends, events, or developments that we expect or anticipate will occur in the future are forward-looking statements. Forward-looking statements can be identified by the use of words such as "may", "will", "should", "could", "continue", "future", "potential", "believe", "project", "plan", "intend", "seek", "estimate", "predict", "expect", "anticipate", and similar expressions, or the negative of such terms, or other comparable terminology. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements. Such forward-looking statements are made based on our management's beliefs as well as assumptions made by, and information currently available to, our management. Our actual results may differ materially from the results anticipated in these forward-looking statements due to, among other things, the risks set forth in Part I, Item 1A – "Risk Factors" in our most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in our other filings with the Securities and Exchange Commission. Given these uncertainties, you should not place undue reliance on these forward-looking statements. You should read this Quarterly Report and the documents that we reference in this Quarterly Report and documents we have filed as exhibits to this Quarterly Report completely and with the understanding that our actual future results may be materially different from what we expect. Also, forward-looking statement

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS MILLER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2025 December 31, 2024 (in thousands, except share and per share amounts) (Unaudited) ASSETS CURRENT ASSETS: Cash and temporary investments $ 38,401 $ 24,337 Accounts receivable, net of allowance for credit losses of $ 2,018 and $ 1,850 as of September 30, 2025 and December 31, 2024, respectively 232,617 313,413 Inventories, net 180,715 186,169 Prepaid expenses 17,733 5,847 Total current assets 469,466 529,766 NON-CURRENT ASSETS: Property, plant and equipment, net 113,516 115,979 Right-of-use assets – operating leases 363 545 Goodwill 19,998 19,998 Other assets 1,000 727 TOTAL ASSETS $ 604,343 $ 667,015 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 82,238 $ 145,853 Accrued liabilities 52,110 50,620 Income taxes payable 1,186 1,082 Current portion of operating lease obligation 242 318 Total current liabilities 135,776 197,873 NON-CURRENT LIABILITIES: Long-term obligations 45,000 65,000 Non-current portion of operating lease obligation 121 227 Deferred income tax liabilities 2,791 2,885 TOTAL LIABILITIES 183,688 265,985 COMMITMENTS AND CONTINGENCIES (Note 7) SHAREHOLDERS' EQUITY: Preferred stock, $ 0.01 par value per share: Authorized – 5,000,000 shares, Issued – none — — Common stock, $ 0.01 par value per share: Authorized – 100,000,000 shares, Issued – 11,431,416 and 11,439,292 shares as of September 30, 2025 and December 31, 2024 , respectively 114 114 Additional paid-in capital 154,143 153,704 Retained earnings 267,675 254,938 Accumulated other comprehensive loss ( 1,277 ) ( 7,726 ) TOTAL SHAREHOLDERS' EQUITY 420,655 401,030 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 604,343 $ 667,015 See notes to condensed co

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS MILLER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine Months Ended September 30 September 30 (in thousands, except share and per share amounts) 2025 2024 2025 2024 NET SALES $ 178,670 $ 314,271 $ 618,353 $ 1,035,593 COST OF OPERATIONS 153,338 272,245 524,491 898,246 GROSS PROFIT 25,332 42,026 93,862 137,347 OPERATING EXPENSES: Selling, general and administrative expenses 21,247 22,326 67,912 66,642 NON-OPERATING (INCOME) EXPENSES: Interest expense, net 93 251 482 3,544 Other (income) expense, net ( 312 ) ( 321 ) ( 994 ) ( 341 ) Total expense, net 21,028 22,256 67,400 69,845 INCOME BEFORE INCOME TAXES 4,304 19,770 26,462 67,502 INCOME TAX PROVISION 1,222 4,345 6,857 14,540 NET INCOME $ 3,082 $ 15,425 $ 19,605 $ 52,962 INCOME PER SHARE OF COMMON STOCK: Basic $ 0.27 $ 1.35 $ 1.71 $ 4.62 Diluted $ 0.27 $ 1.33 $ 1.68 $ 4.57 CASH DIVIDENDS DECLARED PER SHARE OF COMMON STOCK $ 0.20 $ 0.19 $ 0.60 $ 0.57 WEIGHTED-AVERAGE SHARES OUTSTANDING: Basic 11,446 11,447 11,451 11,453 Diluted 11,595 11,596 11,640 11,593 See notes to condensed consolidated financial statements. 5 Table of Contents

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS MILLER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended Nine Months Ended September 30 September 30 (in thousands) 2025 2024 2025 2024 NET INCOME $ 3,082 $ 15,425 $ 19,605 $ 52,962 OTHER COMPREHENSIVE INCOME (LOSS): Foreign currency translation adjustment 1,299 2,136 6,449 1,498 Total other comprehensive income (loss) 1,299 2,136 6,449 1,498 TOTAL COMPREHENSIVE INCOME $ 4,381 $ 17,561 $ 26,054 $ 54,460 See notes to condensed consolidated financial statements. 6 | Q3 FY 2025 FORM 10-Q Table of Contents

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS MILLER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) Common Stock Additional Accumulated Other (in thousands, except share and per share amounts) Shares Amount Paid-in Capital Retained Earnings Comprehensive Gain (Loss) Total Equity BALANCE, December 31, 2023 11,445,640 $ 114 $ 153,574 $ 200,165 $ ( 5,933 ) $ 347,920 Issuance of common stock, net of shares withheld for employee taxes 24,320 1 ( 214 ) — — ( 213 ) Stock-based compensation — — 383 — — 383 Dividends paid ( $ 0.19 ) — — — ( 2,179 ) — ( 2,179 ) Foreign currency translation gain (loss) — — — — ( 575 ) ( 575 ) Net income — — — 17,023 — 17,023 BALANCE, March 31, 2024 11,469,960 $ 115 $ 153,743 $ 215,009 $ ( 6,508 ) $ 362,359 Issuance of common stock, net of shares withheld for employee taxes 18,832 — 16 — — 16 Stock-based compensation — — 1,302 — — 1,302 Repurchases of common stock ( 35,000 ) — ( 2,047 ) — — ( 2,047 ) Dividends paid ( $ 0.19 ) — — — ( 2,193 ) — ( 2,193 ) Foreign currency translation gain (loss) — — — — ( 63 ) ( 63 ) Net income — — — 20,514 — 20,514 BALANCE, June 30, 2024 11,453,792 $ 115 $ 153,014 $ 233,330 $ ( 6,571 ) $ 379,888 Stock-based compensation — — 770 — — 770 Repurchases of common stock ( 14,500 ) ( 1 ) ( 851 ) — — ( 853 ) Dividends paid ( $ 0.19 ) — — — ( 2,176 ) — ( 2,176 ) Foreign currency translation gain (loss) — — — — 2,136 2,136 Net income — — — 15,425 — 15,425 BALANCE, September 30, 2024 11,439,292 $ 114 $ 152,933 $ 246,578 $ ( 4,435 ) $ 395,190 See notes to condensed consolidated financial statements. 7 Table of Contents

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS MILLER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) Common Stock Additional Accumulated Other (in thousands, except share and per share amounts) Shares Amount Paid-in Capital Retained Earnings Comprehensive Gain (Loss) Total Equity BALANCE, December 31, 2024 11,439,292 $ 114 $ 153,704 $ 254,938 $ ( 7,726 ) $ 401,030 Issuance of common stock, net of shares withheld for employee taxes 66,803 1 — — — 1 Stock-based compensation — — 1,921 — — 1,921 Repurchases of common stock ( 46,817 ) — ( 2,102 ) — — ( 2,102 ) Dividends paid ( $ 0.20 ) — — — ( 2,288 ) — ( 2,288 ) Foreign currency translation gain (loss) — — — — ( 121 ) ( 121 ) Net income — — — 8,065 — 8,065 BALANCE, March 31, 2025 11,459,278 $ 115 $ 153,523 $ 260,715 $ ( 7,847 ) $ 406,506 Issuance of common stock, net of shares withheld for employee taxes 10,003 — — — — — Stock-based compensation — — 1,153 — — 1,153 Repurchases of common stock ( 11,158 ) — ( 500 ) — — ( 500 ) Dividends paid ( $ 0.20 ) — — — ( 2,294 ) — ( 2,294 ) Foreign currency translation gain (loss) — — — — 5,271 5,271 Net income — — — 8,458 — 8,458 BALANCE, June 30, 2025 11,458,123 $ 115 $ 154,176 $ 266,879 $ ( 2,576 ) $ 418,594 Stock-based compensation — — 1,127 — — 1,127 Repurchases of common stock ( 26,707 ) ( 1 ) ( 1,160 ) — — ( 1,161 ) Dividends paid ( $ 0.20 ) — — — ( 2,286 ) — ( 2,286 ) Foreign currency translation gain (loss) — — — — 1,299 1,299 Net income — — — 3,082 — 3,082 BALANCE, September 30, 2025 11,431,416 $ 114 $ 154,143 $ 267,675 $ ( 1,277 ) $ 420,655 See notes to condensed consolidated financial

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS MILLER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30 (in thousands) 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 19,605 $ 52,962 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 10,890 10,635 (Gain) loss on disposal of property, plant and equipment ( 449 ) ( 6 ) Provision for credit losses 162 161 Issuance of common stock, net of shares withheld for employee taxes 1 — Stock-based compensation 4,201 2,257 Deferred tax provision ( 124 ) 9 Changes in operating assets and liabilities: Accounts receivable 82,414 ( 87,707 ) Inventories 9,950 445 Prepaid expenses ( 11,829 ) ( 5,856 ) Other assets ( 44 ) 342 Accounts payable ( 65,196 ) 42,137 Accrued liabilities 887 13,567 Income taxes payable ( 609 ) ( 357 ) Net cash flows provided by (used in) operating activities 49,860 28,589 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment ( 8,602 ) ( 14,085 ) Proceeds from sale of property, plant and equipment 1,280 77 Acquisition of business — 24 Net cash flows provided by (used in) investing activities ( 7,322 ) ( 13,984 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repurchase of common stock ( 3,762 ) ( 2,898 ) Net borrowings (payments) under credit facility ( 20,000 ) 5,000 Payments of cash dividends ( 6,868 ) ( 6,548 ) Net cash flows provided by (used in) financing activities ( 30,630 ) ( 4,446 ) EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND TEMPORARY INVESTMENTS 2,156 532 NET CHANGE IN CASH AND TEMPORARY INVESTMENTS 14,064 10,691 CASH AND TEMPORARY INVESTMENTS, beginning of period 24,337 29,909 CASH AND TEMPORARY INVESTMENTS, end of period $ 38,401 $ 40,600 SUPPLEMENTAL INFORMATION: Ca

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MILLER INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The condensed consolidated financial statements of Miller Industries, Inc. include the accounts of all consolidated subsidiaries (the "Company"). All significant intercompany transactions and amounts have been eliminated. The results of businesses acquired or disposed of are included in the condensed consolidated financial statements from the date of the acquisition or up to the date of disposal, respectively. References to "we", "our", and similar pronouns in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 (this "Form 10-Q") are to Miller Industries, Inc. and its consolidated subsidiaries unless the context requires otherwise. Our condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission ( " SEC " ) instructions to Quarterly Reports on Form 10-Q and include the information and disclosures required by accounting principles generally accepted in the United States ( " GAAP " ) for interim financial reporting. The preparation of financial statements in conformity with GAAP requires us to make estimates, judgments, and assumptions that affect amounts reported in the condensed consolidated financial statements and the accompanying notes. Actual amounts may differ from these estimated amounts. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Except as disclosed elsewhere in this Form 10-Q, all such adjustments are of a normal and recurring nature. Financial results presented for this fiscal 2025 interim period are not necessarily indicative of the results that may be expected for the full fiscal year ending December 31, 2025. These

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ASU 2025-05 is effective for reporting periods beginning after December 15, 2025, with early adoption permitted for financial statements that have not been issued or made available for issuance. The Company is currently evaluating the impact this standard will have on its disclosures, including the method and timing of adoption. Segment Disclosures The Company has one reportable segment identified as towing and recovery equipment, which is manufactured in the United States, United Kingdom, and France. The Company designs and manufactures bodies of car carriers and wreckers, which are installed on chassis (manufactured by third parties) and sold to our customers. Net sales is primarily derived from the sale of towing and recovery equipment through our distributor network or directly to end-user customers. The Company's chief operating decision maker (the "CODM") is the President and Chief Executive Officer of the Company. The CODM assesses performance for the segment and decides how to allocate resources based on consolidated net income as reported on the consolidated statements of income. The CODM also uses current market conditions to evaluate income generated from segment assets in deciding whether to recommend reinvesting profits into the segment or into other parts of the entity, such as for acquisitions or to pay dividends. Net income is used to monitor budget versus actual results. The CODM also uses net income in competitive analysis by benchmarking to the Company's competitors. The competitive analysis and the monitoring of budgeted versus actual results are used in assessing the segment's performance. The accounting policies of the segment are the same as those described in the summary of significant accounting policies included in Note 1 of the Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The measure of segment assets is reported on the consolidated balance sheet as total conso

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025 December 31, 2024 (in thousands) (Unaudited) TOTAL ASSETS Cash and temporary investments $ 38,401 $ 24,337 Accounts receivable, net of allowance for credit losses 232,617 313,413 Inventories, net 180,715 186,169 Prepaid expenses 17,733 5,847 Long-lived assets: North America 125,314 129,181 Foreign 8,564 7,341 Net long-lived assets 133,877 136,522 Other assets 1,000 727 CONSOLIDATED TOTAL ASSETS $ 604,343 $ 667,015 2. INVENTORY Inventory costs include materials, labor, and factory overhead. Inventories are stated at the lower of cost or net realizable value, primarily determined on a moving average unit cost basis. Appropriate consideration is given to obsolescence, valuation, and other factors in determining net realizable value. Revisions of these estimates could result in the need for adjustments. Inventories, net of reserves, consisted of the following: September 30, December 31, (in thousands) 2025 2024 Chassis $ 47,135 $ 36,930 Raw materials 65,293 77,358 Work in process 45,271 48,251 Finished goods 23,016 23,630 TOTAL INVENTORY $ 180,715 $ 186,169 For the three- and nine-month periods ended September 30, 2025 and 2024, the Company did no t recognize impairment of inventory. As of September 30, 2025 and December 31, 2024, the Company's balances are presented net of inventory reserves of $ 9.4 million and $ 5.2 million, respectively. 3. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: September 30, December 31, (in thousands) 2025 2024 Land and improvements $ 22,930 $ 22,580 Buildings and improvements 91,711 85,993 Machinery and equipment 90,924 93,275 Furniture and fixtures 13,756 14,732 Software costs 15,465 15,845 TOTAL PROPERTY, PLANT AND EQUIPMENT, gross 234,786 232,425 Les

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 4. LONG-TERM OBLIGATIONS Credit Facility The Company's loan agreement with First Horizon Bank, which governs its $ 100.0 million amended unsecured revolving credit facility with a maturity date of May 31, 2027, contains customary representations and warranties, events of default, and financial, affirmative, and negative covenants for loan agreements of this kind. T he credit facility restricts the payment of cash dividends if the payment would cause the Company to be in violation of the minimum tangible net worth test or the leverage ratio test in the loan agreement, among various other customary covenants. In the absence of default, all borrowings under the credit facility bear interest at the one-month Term Secured Overnight Financing Rate (SOFR ) plus 1.00 % or 1.25 % per annum. We were in compliance with all covenants under the credit facility throughout 2024 and the first nine months of 2025. T he Company pays a quarterly non-usage fee under the current loan agreement at a rate per annum equal to between 0.15 % and 0.35 % of the unused amount of the credit facility. For the three months ended September 30, 2025 and 2024, interest expense on the credit facility was $ 0.7 million and $ 1.1 million, respectively. For the nine months ended September 30, 2025 and 2024, interest exp ense on the credit facility was $ 2.6 million and $ 3.2 million, respectively. The Company had outstanding borrowings of $ 45.0 million and $ 65.0 million under the credit facility as of September 30, 2025 and December 31, 2024, respectively. 5. INCOME TAXES As of September 30, 2025, the Company had no federal net operating loss carryforwards. As of September 30, 2025 and December 31, 2024, state net operating loss carryforwards were $ 8.9 million. 6. LEASES We have lease agreements for equipment and facilities under long-term, non-cancellable leases. We determine if an arrangement is a lease at inception by evaluating whether t

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