Mike Schielski's questions to MILLER INDUSTRIES INC /TN/ (MLR) leadership • Q2 2025
Question
The analyst asked about the company's cost reduction strategies, sales incentives to stimulate demand, the potential impact of an interest rate cut on guidance, the status of the share buyback program, updates on military contract RFQs, and the expected product mix and gross margin for the second half of the year.
Answer
Management is analyzing all costs for potential reductions without harming long-term success. They are working with chassis partners on incentives. A potential interest rate cut is not in the guidance and would be upside. $20 million remains on the buyback plan, which the board will aggressively consider. Military RFQ activity remains high, with the Canadian contract now secured. The product mix is expected to normalize over the next two quarters, with gross margins anticipated to settle in the mid-13% range in the future.