Miller Industries at 16th Annual Midwest Ideas Conference: Navigating Challenges and Growth

On Wednesday, 27 August 2025, Miller Industries (NYSE:MLR) presented at the 16th Annual Midwest Ideas Conference, offering insights into its current performance and strategic outlook. The company reported record revenues for 2024 but faces challenges in 2025 due to distributor inventory reductions and decreased retail activity. Despite these hurdles, Miller Industries is focusing on growth opportunities in military contracts and international markets.

Key Takeaways

• Miller Industries reported record revenue of $1.26 billion in 2024 but faces a challenging 2025 with adjusted revenue guidance of $750-800 million.
• Retail activity decreased by about 20% in Q2 2025, prompting cost-cutting measures like layoffs and retirement programs.
• The company is focusing on expanding in the European market and pursuing military contracts as growth opportunities.
• Strategic partnerships with Cummins and Eaton are in place to explore electric truck markets.
• Inventory levels are expected to normalize by late Q4 2025 or early Q1 2026.

Financial Results

• 2024 Full Year: Record revenue of $1.26 billion, net income of $63.5 million, EPS of $5.47.
• Q1 2025: Revenue of $214 million, net income of $8.5 million, EPS of $0.73.
• 2025 Guidance: Adjusted revenue guidance of $750 million to $800 million; EPS guidance suspended due to workforce reduction initiatives.

Operational Updates

• Experiencing distributor inventory reduction, impacting current year performance.
• Implemented the first layoff in 16 years and offered a retirement program to manage costs.
• Expansion of the French facility with an €8 million investment.
• California CARB regulations to permit chassis sales starting September 8, 2025.

Future Outlook

• Inventory levels are expected to return to historical averages by late Q4 2025 or early Q1 2026.
• Focus on recovering the commercial market and expanding military RFQs globally.
• Aiming to strengthen its position by 2026 to continue global brand growth.

Q&A Highlights

• Guidance reduction attributed to consumer confidence issues, rising insurance costs, and interest rate expectations.
• No distribution losses or competitive takeaways reported; issues are seen as industry-wide.
• Military business is a growth area, with a Canadian military contract for 85 heavy-duty recovery units starting production in 2027-2028.
• Electric truck plans are ongoing, with challenges due to the lack of suitable electric chassis from OEMs.

Readers are invited to refer to the full transcript for a more detailed discussion of Miller Industries’ strategies and future plans.

Full transcript - 16th Annual Midwest Ideas Conference:

Jeff Elliott, Three Part Advisors, Three Part Advisors: Good morning, everyone. I’m Jeff Elliott with Three Part Advisors. Next presenting company today is Miller Industries. The ticker is MLR. And with us here today from the company, we have Will Miller, CEO and Nick Tiano, Chief of Staff and Head of IR.

Miller is a three part advisors client. So if anyone would like a follow-up meeting or a call, please reach out to me directly. Happy to help set that up. And with that, let’s turn it over to Will.

Will Miller, CEO, Miller Industries: Thank you, Jeff. Appreciate it. Good morning, everybody. We’re going to start with a quick couple of minute video for those of you who aren’t as familiar with the Miller industry story, which will show you a little bit about who we are, what we do and how we manufacture the product and sell it around the world.

Unidentified speaker: Miller Industries was founded in 1990. Since its inception, the company has provided innovative high quality towing and recovery equipment worldwide. Listed on the New York Stock Exchange, Miller Industries has a total of four manufacturing facilities in The United States, as well as one in England and one in France. Under the well known brands of Century, Vulcan, Chevron, Holmes, Boniface, and GJ. As the industry leader, Miller Industries provides a complete line of quality equipment, including carriers up to 30 feet in length with deck capabilities up to 40,000 pounds and towing recovery units with boom capabilities up to 100 tons.

Like all great products, engineering and attention to detail are at the forefront. Our on-site fabrication facilities are key to our innovation and essential for rapid prototyping or part supplementation. Innovation

Unidentified speaker: is

Unidentified speaker: key to our product line. Innovation in weight capacity, tow capacity, and most importantly, in the safety of our trucks. So just what is a tow truck? For the purposes of this demonstration, a tow truck is a vehicle married to a wrecker body, and Miller Industries makes a whole range of various wrecker bodies. How do we build one?

We start with a blank slate of a vehicle, otherwise known as a commercial chassis. The chassis has a cab on the front and nothing on the rear just yet, at least not until we put wrecker body there. Prior to the wrecker being installed onto the chassis, the subframe is assembled in our weld shop. Subframe assembly can take up to fifty to sixty hours using both robotic and human welders. Once a unit leaves weld, is taken to our blasting and painting facilities.

We blast the welded components prior to painting them with a primer before we top them off with a finished paint. Once all the components are painted inside and out, we move them over to our assembly area where our wiring, wiring harnesses, valves, electric, and control stations for the wrecker are built and hand assembled. At this point, the wrecker body is ready to move to distribution or over to our factory install area where we will mount the PTO on the pump and attach the subframe to the mounting frame and onto the vehicle. After this, the toolboxes are wired in with their lights, power door locks, and wiring harnesses that were assembled earlier. At this point, the vehicle is starting to look a bit more like a tow truck.

The wrecker body is attached to the vehicle, but it’s still missing the toolboxes. With the toolboxes still uninstalled, we take the unit back to paint where the unit is stretched out and washed with a deionizing wash, where we eliminate any particulates or dust before taking the unit to final paint. Once the unit has its final paint, it’s time to take the truck over to dress out and see it come to life. This is the final stop before becoming a finished truck. In the dress out bays, we take all of the components we were working with before and we bring them all together.

The toolboxes are installed, final wiring for the lights, electronics are attached to the hydraulic systems, we put the accessories in the toolboxes and we finish the truck according to the exact specifications of each customer. Once everything is installed and the truck is finished, we have a dedicated team that works through all of the features and the line items to make sure the truck checks all the boxes on quality and specifications before moving on to our worldwide distribution network. Miller Industries products are sold and serviced through the largest distribution network in the industry And as the world leader in towing and recovery we look forward to continued growth and success.

Will Miller, CEO, Miller Industries: Look at that. I can follow instructions. Perfect. Well, welcome. Hopefully, for those of you who are new to the story, that gave you a little bit of a background of what we do at Miller Industries and the products that we manufacture at our facilities around the world.

Quick safe harbor statement. And moving on, we are the world’s largest manufacturer of towing and recovery equipment. We specialize in producing light duty car carriers, specialty transport vehicles, medium heavy duty recovery units, rotators and military recovery vehicles. Our key focus at Miller Industries and our belief is that we have the best people, the best product and the best distributor network in the towing and recovery industry. That is what has created our success since 1990, and we continue to follow that as we move forwards into the future.

When you look at overall investment highlights, we are the world leader in the towing and recovery manufacturing segment. We have consistent organic growth, quarterly dividend. We are the industry leader in innovation, best in class products and distribution, strong customer relationships, attractive financial metrics and an experienced management team. When you look at our senior staff at Miller Industries, we have over two hundred years at Miller Industries and more than that in the industry itself. Our strategy is simple, develop world class team at our facilities, innovate, design and produce the highest quality products for our customers, locate, develop and maintain a five star distribution to manage the sale, after sale and service of our products, invest in our business and grow our commercial market share.

The towing and recovery industry is a multibillion dollar global market. Primary segments of this industry are commercial towing, which is towing commercial vehicles, transportation fleets, rental fleets and salvage fleets like United Rentals and Copart, government municipal sales, military. Primary product types that we looked at earlier were light duty recovery vehicles, medium and heavy duty and car carriers. Our industry drivers are relatively simple that focus on miles driven, accidents or incidents per miles driven, the last mile deliveries, which is deliveries from warehouses to consumers such as Amazon. The aging vehicle fleet of and population both in The United States and in the European market, general infrastructure and construction and natural disasters.

Really when you look at our industry drivers, when things are going bad for everybody else, that’s when it’s good for tow trucks. I hate to look at it that way, but it’s just the way it is. Accelerators, trade cycle, future emission changes coming up in 2027, global conflict and military recovery upgrades. So what we’re seeing in the military, the world globally is that the militaries are starting to invest in more and more armored vehicles, larger vehicles that are heavier and they lack the ability to recover those vehicles once they break down or get damaged. As shown in the video, we have manufacturing facilities both here in The United States, in England and in France.

We continue to invest in our manufacturing. As you’ve ’ve done any research on Miller Industries from 2016 to 2018, we invested a little over $100,000,000 into our U. S. Facilities. Last quarter, we also announced an €8,000,000 expansion of our French facility.

So we continue to reinvest and expand our facilities to meet current demand. We also focus diligently on investing in our people, promoting from within and growing talent inside our organization through a multitude of different opportunities that we provide to our staff. When you look at our product brands, Miller Industries is branded under multiple different brands. So the largest brand, most well known brand globally is the Century brand. We also market under Vulcan, Chevron, the Holmes brand, which is the oldest brand.

The tow truck was founded in 1916 in Chattanooga, Tennessee by the Holmes Corporation. We do own that company, Titan, GJ and Boniface. Sales channels revenue streams, North American distribution, approximately 90 of our revenue comes through North American distribution. Our export product out of The United States, European operation and national accounts. Also government, military, aftermarket parts and our chassis sale program.

North American distribution, we have approximately 53 distributor principals with 75 locations. 100% of our distributors are exclusive to Miller Industries in the sale of towing and recovery equipment. Approximately 95% of them are solely dedicated to selling towing and recovery equipment. There’s 300 plus retail sales persons, people in The U. S.

That work for those distributors that focus on retail selling our product on a daily basis. The market, when you look at the vast majority of the market here in North America is made up of commercial towing operators, average fleet size of 10 to 15 trucks with a trade cycle that runs between forty eight seventy two months for the first time buyers. A lot of that’s driven by the warranty offering of the chassis that they’re purchasing and really controlling that cost of ownership and understanding what that vehicle cost for them to run over the warranty period until it gets outside of warranty and unknown expenses. International manufacturing facilities, we have our French subsidiary, Giger, also our English subsidiary, Boniface. They both have strong backlogs.

Current expansion projects, as I spoke about at Giger. And we are looking to continue to expand and take opportunities for growth in the European market. There are 30 plus distributors globally as well as government and direct sales in foreign countries. We export to approximately 60 plus countries globally. We look at potential growth opportunities for Miller Industries.

Global military contracts, RFQs. We saw a reduction during the COVID time frame of RFQs globally. But post the Ukraine and The Middle East activity, we’ve seen all of those come back to life in the last twenty four months or so. Continuing to expand our rental share market, we had very little rental share market in 2014. Today, we provide transport equipment to four of the largest rental companies here in North America, we continue to grow that market share.

So we are the primary supplier for delivery equipment for Sunbelt, Herc, United and equipment share. Expansion of our global presence. As we discussed, we’re continuing to expand in our European facilities and look to grow our European market share. And then future M and A opportunities, we’re always on the lookout for possibilities for expansion through this process. We are a little bit particular on which companies we want to acquire.

There are a handful of European operators that we believe fit the scale and the size of what we’re interested in. There are also a lot of small regional manufacturers that really don’t bring much to the table for Miller Industries from a size of their factories or their technology that they bring to the table. So we are a little particular, but we are open to the idea if it comes. As we continue to deploy capital, we invest annually in robotics throughout our facilities to expand capacity, human capital, our ERP system that was implemented in 2021 and we continue to add bolt on additions to that. Cybersecurity, IT infrastructure research and development, vertical integration as we bought a cylinder manufacturing company approximately a year ago and then employees health and safety.

Also with our ERP system, we start to we have started to deploy AI throughout to start doing some of those mundane tasks, order entry and things of that nature in our organization to help control headcount. Capital allocation priorities are quarterly dividend, debt reduction, share repurchase program, innovation, automation and capacity expansion. The picture at the bottom right is actually the illustration of our expansion of our facility in France. Quick financial overview. For full year metrics in 2024 was our best year, a record year of $1,260,000,000 in revenue with a net income of $63,500,000 EPS of $5.47 Quarterly metrics for 2025, $214,000,000 in revenue, net income of $8,500,000 EPS of $0.73 As we entered into 2025, we did start with lower guidance for ’twenty five with the buildup of inventory that we saw at our distribution channel in 2024.

We believe that most of that would have flowed through by midyear. Unfortunately, we saw a reduction in Q2 at the retail activity of about 20% that I mentioned on our quarterly call. And we’re seeing that inventory stretch out a little bit longer than anticipated. We set out some new guidance for lower revenue numbers this year. And it looks if everything stays status quo, retail activity doesn’t move up or down either direction for the remainder of the year, we should see our inventory levels return to historical averages by late Q4, early Q1.

So we’re looking forward to moving the needle up again in ’twenty six and beyond. Our 2025 outlook, our industry demand headwinds, distributor inventory reduction, which I just discussed, retail activity and order intake, production levels, cost reduction initiatives, CARB, ACT and tariffs. We have taken quite a bit of cost reduction initiatives at Miller Industries over the last few weeks. We did announce that we did our first layoff in sixteen years unfortunately, Made sure that we kept our best employees by department and still set for success in the future. Also, we were notified last no, this week, earlier this no, last week, that carb sounds like they are moving onwards and that chassis, diesel vehicles and chassis being sold in the state of California will be open again as of September 8 is what we’re being told.

Yes. It’s a good thing moving forward. Tariffs, we continue to watch. We believe that we are set with the price increases that we put through this year. Currently, it is a very rapidly changing area that we’re watching, but we’ll continue to make sure that we price our equipment properly to our distribution channel to absorb any tariffs that we need to.

Little inventory graph that we’ve been putting out for the last few quarters. Chassis, as you can see, really exploded at the end of or ’4. Those have come down below historical levels. So they’re where they need to be. Chassis generally trend slightly below our body inventory.

So we’d like to see our body inventory in the blue line get a little bit lower as well as the chassis throughout the remainder of this year and get back to historical averages. When you look at the second half and beyond, we will continue to generate free cash flow as you saw from Q1 to Q2, continue to reduce our debt, focus on commercial market recovery. Military RFQs, we’re continuing to be active on RFQs globally. Looking at our growth opportunities in the European market and expanding our export presence and intend to enter 2026 in a position of strength to continue to grow our brands globally. Our capital allocation strategy, as I’ve discussed, we will continue our quarterly dividend, debt reduction, share repurchase program, innovation, automation, human capital and capacity expansion.

Our adjusted guidance for 2025 estimated revenue of $750,000,000 to $800,000,000 and we have suspended EPS guidance at this time as we are looking at our reduction of force. We’ve also now officially offered a retirement program to employees at Miller Industries and really looking at how many employees take advantage of that over the coming weeks, we’ll sort of adjust our EPS for the year. Our schedule for the remainder of 2025 will be at the D. A. Davidson conference in Nashville, seventeenth through the September 19.

We’ll be at the Southwest Ideas conference with three part in November and attempt to do a few roadshows in between. With that, we’ve got quite a bit of time left, and I’ll open it up for any questions that you may have.

Unidentified speaker: Will, how’s

Unidentified speaker: it going?

Will Miller, CEO, Miller Industries: Good. Can you

Unidentified speaker: I guess, kind of the top line and guidance reductions, is there a way to kind of quantify that by number of trucks and maybe by state? Is there any color on those metrics that you can give?

Will Miller, CEO, Miller Industries: So question, is there any more specific details on the metrics we’ve given of, I guess, retail activity by state or regionally? Is that what you’re looking for? Regionally, obviously, most of the carb states have come back online in the last and by September, all of them. So we’re starting to see some picked up activity in those areas. The Southeast tends to be doing better.

Southeast over to Texas seems to be doing a little bit better than the rest of the country. But it’s our revenue reduction seems to be a general consumer confidence issue. You’ve got insurance cost rising. That’s pretty out of control, I think, and that’s not just commercial trucks, but overall in a lot of industry. You have customers really looking to I think they’re waiting to see what happened with the tax bill, that was a positive.

And now I think they’re really waiting as they look towards what they’re going to spend for the rest of the years hoping for an interest rate drop as well. But I think it’s just a little lack of consumer confidence. We anticipated to see a bump after the election. It didn’t happen. But I think we’ll start seeing that towards the tail end of this year in 2026.

Unidentified speaker: Distribution losses or competitive takeaways or any kind of structural changes?

Will Miller, CEO, Miller Industries: No. I think it’s an industry wide issue. So our competitors are dealing with the same inventory, actually probably a worse inventory issue than we are, which doesn’t help us any because they need to get rid of their inventory at some point as well. I mean product will sell at a certain price. If they get their price low enough, it will sell and enter into the marketplace.

But as far as our distribution, we have not lost anybody. Our footprint remains the same. And we believe that our overall success in the marketplace still continues.

Unidentified speaker: And then just kind of last one. Is there any kind of balance sheet risk that we may not see from the outside like distributors putting back inventory to you and you having to is there anything like that?

Will Miller, CEO, Miller Industries: No. The question is, is there any balance sheet issues that you need to be aware of? And the answer is no. Distribution seems to be extremely healthy. They’ve done very well for the last couple of years.

Overall, interest they’re paying month to month is reducing. Their inventories you’ve seen has come down dramatically throughout this year, which was their biggest pressure. So I think our belief is by the end of this year, our distribution channel for the most part will be back to historical levels of inventory and costs and move forward as strong as they’ve ever been. Yes, sir.

Unidentified speaker: Both for The U. S. And also for The S.

Will Miller, CEO, Miller Industries: share. So my answer to the market share question, this will be the first time this is like on public record. It’s usually one on ones. So there is no real data in the towing and recovery industry for market share. The reason for that is because tow trucks are registered as commercial vehicles.

So it’s registered as a Kenworth, a Peterbilt, a Freightliner. And there’s no it’s not classified as emergency vehicle, so it doesn’t get like a fire truck tag. It just has a standard commercial vehicle tag. So there’s no real information. The only information I can put out there is that in 1997, the United States Justice Department told us that our market share was less than 70%.

So we’ll stick with that.

Unidentified speaker: In the military business, are you looking at that as a growth?

Will Miller, CEO, Miller Industries: We are yes, it’s a growth opportunity. Military is feast or famine, right? It’s there are contractual agreements. You win one, as we announced last year, I think last November that we were awarded the Canadian military contract. Production begins ’27 ’28.

It was for 85 heavy duty recovery units. So it will be a bonus for us in ’27 and ’28. There are a multitude of contracts out there we’re currently working and no more have been awarded of any large size. In the military sector, we are the predominant player for recovery vehicles globally. Historically, we have produced the vast majority of recovery equipment for all of our NATO allies.

Yes, sir.

Unidentified speaker: So you mentioned a retirement plan that seemed to be somewhat oriented towards reducing your workforce. Maybe you could elaborate on that. That sounds like kind of a a negative thought that you want to have a smaller workforce, but what are your objectives there?

Will Miller, CEO, Miller Industries: No. So obviously, I mentioned we did a layoff for the first time in sixteen years. When we look at our workforce population, we do have a four zero one and everything for our employees. But looking at the age demographics in our workforce, we felt that it was the right time to also take this opportunity to award reward those employees that have given a significant amount of time, effort and years and success to our company with an opportunity to continue to create space for the next generation to move up. So we’re looking at it as a positive.

It will help our SG and short term as well as we move through this, although it is a cash expense, but moving forward, but then also give us some room to continue to grow. Yes, sir?

Unidentified speaker: Number one, can you talk about the average useful life of the vehicle, maybe like secondary trading market and secondarily, do have any real aftermarket or service revenue?

Will Miller, CEO, Miller Industries: Yes. So first question was life cycle of the equipment. So on our lighter duty products, so Class four, five and six chassis product, which are our light duty tow trucks and our car carriers, you’re looking at approximately forty two months is that trade window cycle that a professional tower is going to want to try to get in and out of the product. Reason for that is all of our chassis come with a proprietary five year 300,000 mile warranty. They’re trying to utilize that chassis inside the warranty window.

So they understand their total cost of ownership. There’s no unknowns. Really, it’s preventative maintenance, brakes, tires, fuel. And then sell that product for its maximum value where it still has warranty left on the product to get maximum trade in or retail for it to sell someone that still has some peace of mind that they have 50,000 miles or nine months or a year left on that warranty. So we’ve seen that trade cycle created in that Class four, five and six product.

The secondary market for that is going to be towers, smaller areas, more rural areas that don’t run as many miles that, that truck could last them a significantly longer period of time, not major fleets. And then by the time it gets to its third life cycle, it’s generally exported out of The United States, where they have less emission controls. So generally, what happens is once they get exported, they remove the emission controls on it, and now it’s an old diesel engine again. On our Class eight product, our larger product, you’re going to see that first trade cycle in that five to seven years on that product. It’s going to move to someone generally that doesn’t have the ability to finance the original amount.

Although our heavy duty product is quite exceptional that it does retain a significant amount of its purchase value even at that five to seven year mark. Same thing, once it gets old enough, they’ll last in that secondary market, they could last upwards of twenty years before they get sort of exported out of The United States. And then your second question was retail parts. We do have a retail parts aftermarket parts part of our revenue. It’s great margin.

It’s very consistent. It’s really not that large of a number from a revenue perspective. When you look at our parts, it’s just proprietary parts. So a little different than a chassis OEM. You’re looking at proprietary cylinders or weldments or potential accessories that could be lost.

When you look at hydraulic hoses, things of that nature due to the small fleet size of our customer base with if a truck is down because of a hydraulic hose, they’re generally not going to go to their local miller distributor or if that distributor is two or three, four hours away from them drive there to buy a hydraulic hose. Going to go to a local hydraulic place, get a hose made that’s 28 inches long with these two fittings on each side and put their truck back into service. So really most of our retail parts or our aftermarket parts are weldments for catastrophic failures or something of that nature. Yes, sir?

Unidentified speaker: What’s the status of your plans for an electric truck and the partnership with Cummins engine?

Will Miller, CEO, Miller Industries: At this moment in time, well, we’ve worked with multiple OEMs as they develop their electric chassis. At this time, nobody has provided us with an electric chassis that will actually work as an electrified tow truck. There are AAA in California was able to use an aftermarket company where they took a diesel truck, stripped the diesel out of it, turned it into an electric vehicle. It took them about two years to get it operational. It runs around in California a little bit, more of a showpiece than an actual usable daily vehicle.

We will continue to work with all the chassis suppliers as them and Cummins and Eaton develop electric alternatives to make sure that we have the ability to mount a tow vehicle to the chassis. But when you look at most of the chassis OEMs and their ability to put research dollars and R and D dollars into electrification of vehicles, they’re looking at the largest volume of chassis that they can build. So you’re looking at over the road tractors and you’re looking at things like stake beds or box vans that have less requirements from specifics of the chassis requirements that a tow vehicle does. Where for us the placement of batteries can get in the way of hydraulics, wheel lifts and things of that nature. So it’s much more difficult for them to plan around us.

And really when they look at it, the towing segment and our special needs for a tow truck are so small that it’s not at the top of their priority list to develop an electric chassis that meets our needs. But we’re there to partner with all of them when the time comes. Yes,

Unidentified speaker: sir. I have two questions. First of all, on your industry driver slide, there are a couple of pieces I’d like you to explain further. The last mile deliveries and secondarily, the construction and infrastructure. Those two drive

Will Miller, CEO, Miller Industries: Tow truck sales. So the question was specifically on a couple of the industry drivers, last mile driven and construction. Construction is easier, so I’ll hit it first. We do provide a lot of equipment to delivery companies, Sunbelt, United, Herc. So as construction moves up, they start to rent more equipment, they need more delivery vehicles, so they start buying more product from us to deliver their rental equipment.

Also secondarily, the more concrete mixers, the more things that enter into major job sites, the more likely they are to flip over, get stuck, it’s muddy, it’s wet. And every time a large Class eight truck or even a small vehicle gets stuck on a job site, it requires a tow truck to come get it out. So there is some and then infrastructure construction, when you look at it, the number of accidents on a road when they’re doing road construction, they move they shift lanes and they try to warn everybody that they’re shifting lanes. The number of accidents in those construction zones go significantly up, which then also requires tow trucks. The first question was last mile driven.

Last mile driven is an interesting one, which is we really thought that 2016 as Amazon took off that it was sort of the death of the towing industry and commercial trucks weren’t going to drive as much because they weren’t delivering anything to malls or Walmart and things of that nature. We were absolutely incorrect. Because what you see is an explosion of deliveries to residential areas. So not only that, the UPS and FedEx couldn’t handle all of these deliveries. So now Amazon has created its own driver fleet.

And there’s been no consolidation of freight. So where you may have gotten one delivery at your house historically in 2016. Today, you could get four deliveries at your house, sometimes from FedEx, FedEx Ground, UPS, UPS another segment of UPS and Amazon Prime Truck and the Postal Service. And what you’ve seen is this explosion of need for drivers to drive these vans that are historically used to driving their Honda Civic. And next thing you know, they’re in a big Amazon Prime van, and they tend to not drive them quite so well.

And so it’s been a very good thing for the towing industry. That last mile driven really exploding has expanded the need for towing and recovery equipment.

Unidentified speaker: And the second question is relative to your distribution network. Would you please characterize how complete you believe it is? And the spirit of that is that I see Las Vegas doesn’t have a dot on it. Seattle doesn’t have a dot on it. It seems like maybe there’s

Will Miller, CEO, Miller Industries: Yes. We actually do. We have a distributor that actually does have a service location in Las Vegas. But it’s a transient town. So it’s we believe that the locations to service the towers, although there’s most metropolitan areas have a distributor, is the appropriate amount of locations that really has worked.

We’ve shrunk that down and I’m out of time. We’ve shrunk that down from 145 locations 125 locations to the current 75. But we believe it’s the best distribution network in the industry and we can continue forward with that. I still have two more questions. Do you want to let me go?

Go. All right.

Unidentified speaker: Who are the clients for the heavy duty? I mean is it municipalities or is it also private?

Will Miller, CEO, Miller Industries: No. The vast majority of our sales is to commercial towing operators. So there’s very few municipalities that own tow trucks. The largest fleet of municipal tow trucks is New York City. Outside of that, there’s no real major fleets.

There are some small ones, but no major fleets. A few fire departments will own a rotator or something like that, but it’s very, very limited. Well, we actually it’s picture that we have. Those will deliver two. We actually build four car carriers as well.

So people like Copart uses four car carriers also some of the larger car dealerships will transport cars back and forth. CarMax uses our product to move their multiple cars back and forth. We stop at four cars. We used to build seven car trailers, but most of that is moved to an 11 car transport trailer that you see. So we got out of that business and focused on the four car four vehicles and less.

Unidentified speaker: The

Will Miller, CEO, Miller Industries: They’re when they’re buying, they’re a good business, but our distribution channel is still even an individual distributor is still significantly larger. In 2024, we did not have a single customer that was over 10% of revenue. So it’s very diversified. Yes, last question. I think it’s a multitude.

Moving into new products, new product development. So we really focus on innovation. When I say we’re the innovation leader, in 2010, we had seven engineers, today we have 60. So really innovating new products in the new market segments, getting into the rental industry. Two years ago, we got a call from Mobile Mini, if you’re all familiar with them.

They move small containers for job sites and home use. They needed a new solution. They were unhappy with their current supplier. They said, can you build us a delivery truck? It looks like a car carrier to us, right?

It moves product from point A to point B. We’re now Mobile Mini’s provider for all of their delivery equipment. So really just being open minded that when someone brings a solution to us, we’re not just towing, but we’re actually really looking at if you have a problem moving something from point A to point B, we’re in the transportation sector of moving product from point A to point B if it’s something hard to move. And I think that’s what has brought a lot of the success along with it. Thank you.

Appreciate it. Sorry, I went over. Have a great day.

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