Miller Industries Reports 9% Increase in Net Sales to $1.26 Billion for Fiscal Year 2024

Miller Industries, Inc., the largest manufacturer of towing and recovery equipment globally, reported a 9% increase in net sales for the fiscal year 2024, reaching $1.26 billion compared to $1.15 billion in 2023. The growth was primarily driven by higher production volumes due to a stabilization of supply chains and strong customer demand, alongside a 3% price increase implemented in the first half of the year. Gross profit also saw a significant rise, increasing by 12.5% to $170.8 million, with gross profit margins improving to 13.6% from 13.2% in the previous year.

The company's cost of operations rose by 8.5% to $1.09 billion, reflecting increased deliveries and stabilization in supply chains. Selling, general, and administrative expenses increased by 18.1% to $86.3 million, attributed to higher executive compensation and investments in workforce training and retention. Net income for the year was reported at $63.5 million, an 8.9% increase from $58.3 million in 2023, with earnings per share rising to $5.55 from $5.10.

In terms of strategic developments, Miller Industries completed the acquisition of Southern Hydraulic Cylinder, Inc. in May 2023, which is expected to enhance the stability of its supply chain. The acquisition cost approximately $17.4 million and resulted in the recognition of $8.4 million in goodwill. The company plans to continue pursuing additional acquisitions to diversify its product line and strengthen its market position.

Operationally, Miller Industries maintained a diverse network of approximately 76 distributor locations in North America and over 30 distributors in foreign markets. The company reported a backlog of orders returning to historical levels, although it faced challenges in the second half of the year due to timing issues with chassis deliveries. As of December 31, 2024, the company employed approximately 1,711 individuals globally, with efforts to improve employee retention and engagement contributing to a decrease in turnover rates.

Looking ahead, Miller Industries anticipates launching multiple new products in fiscal 2025 as part of its ongoing commitment to innovation. However, the company remains cautious about potential impacts from ongoing supply chain disruptions, inflationary pressures, and geopolitical factors, which could affect production capabilities and financial performance. The management is focused on mitigating these risks while continuing to enhance operational efficiencies and customer service.