Q2 2024 Earnings Summary
Reported on Jan 9, 2025 (After Market Close)
Pre-Earnings Price$59.99Last close (Aug 8, 2024)
Post-Earnings Price$59.51Open (Aug 9, 2024)
Price Change
$-0.48(-0.80%)
- Potential Increase in Demand Due to Upcoming Emissions Changes in 2027: There is chatter in the OEM truck market about pre-buying ahead of emissions changes expected in 2027. While Miller Industries' customer base hasn't yet discussed significant truck rebuys, the executive mentioned that as the emission change date approaches, this outlook could potentially change, leading to increased demand for the company's products.
- Expectation of Stable Margins: The company expects margins to remain in the mid to upper 13% range for the remainder of 2024, indicating confidence in maintaining profitability levels despite potential market challenges.
- Lack of significant pre-buy activity from customers ahead of the 2027 emission changes could indicate potential future demand softness or uncertainty in core markets. William Miller stated, "I don't believe that our customer base has really started discussing it at a significant volume as far as truck rebuys."
- Management expects margins to maintain rather than expand in the remainder of 2024, forecasting margins "in the mid upper 13% range," which suggests limited profitability growth despite increased revenues.
- The company is closely monitoring the OEM chassis market due to upcoming emission changes, indicating potential risks related to supply chain disruptions or increased costs that could impact future operations. William Miller mentioned, "we're watching the OEM market, the chassis market very closely as we move closer and closer to that date."
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Margin Outlook
Q: Can you discuss margin expectations for the rest of the year?
A: Management expects margins to maintain through the remainder of the year and anticipates margins for 2024 to be in the mid to upper 13% range. -
Emission Regulation Impact
Q: Are customers accelerating purchases ahead of 2027 emission changes?
A: While there's chatter in the OEM truck market about pre-buying due to upcoming emission changes in 2027, the company's customer base hasn't significantly discussed early purchases yet. However, as the emission change approaches, this outlook could potentially change, and the company is monitoring the OEM and chassis markets closely.