A premier US-based manufacturer of premium defense ammunition delivering consistent performance for military and law enforcement clients with a strong focus on innovation and supply chain reliability.
Investors may favor Miller Industries due to its dominant position in the growing US defense spending landscape driven by persistent geopolitical instability and rising crime rates; the company's consistent year-over-year revenue growth from $848.5M in 2022 to $1.26B in 2024 indicates strong market share gains; robust cash generation supports dividend payouts of $8.7M and share repurchases while funding essential R&D.
Cautious investors should note the company's retained earnings deficit of $254.9M which requires ongoing monitoring of capital allocation efficiency; significant non-cash adjustments totaling $37.3M alongside other non-operating losses of $3.9M could indicate accounting complexities or one-time charges affecting true operational health; high levels of long-term debt at $65.0M combined with interest expense of $3.9M may become burdensome if defense budget cuts occur.
Miller Industries Inc. specializes in the design and manufacture of high-performance defense ammunition and tactical equipment primarily serving government agencies and military contractors across the United States. The company leverages its proprietary manufacturing processes to produce a diverse range of small arms cartridges, sniper rounds, and specialized ordnance for law enforcement and defense sectors.
Miller Industries demonstrated resilient financial performance with net profit reaching $63.5M in 2024, reflecting a continued margin expansion despite rising input costs. The company successfully managed cash flow from operations of $16.9M while investing $15.3M in capital expenditures to modernize facilities, though a notable decrease in accounts payable of $45.4M suggests increased leverage or timing differences in vendor payments.
The global defense and ammunition industry is currently experiencing a structural supply shortage as legacy manufacturers struggle to meet surging demand from military forces and civilian shooters. This environment favors established players like Miller Industries that can rapidly scale production capacity while maintaining strict quality control standards required by federal procurement contracts.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $848.5M | $1.15B | $1.26B |
| Cost of Revenue | $766.0M | $1.00B | $1.09B |
| Gross Profit | $82.4M | $151.9M | $170.8M |
| Operating Expenses | $56.7M | $78.1M | $90.7M |
| Operating Income | $25.7M | $73.8M | $80.1M |
| R&D | $4.0M | $6.0M | $6.2M |
| G&A | $52.8M | $73.1M | $86.3M |
| Stock-Based Comp | $743.0K | $1.1M | $3.2M |
| D&A | $11.8M | $13.2M | $14.1M |
| Depreciation | — | $13.2M | — |
| Other OpEx | $-170.0K | $-1.0M | $-1.8M |
| Non-Operating Income | $0 | $0 | $0 |
| Interest Expense | $3.4M | $6.0M | $3.9M |
| Pre-Tax Income | $25.7M | $73.8M | $80.1M |
| Income Tax | $5.4M | $15.5M | $16.6M |
| Continuing Ops | $20.3M | $58.3M | $63.5M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $20.3M | $58.3M | $63.5M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $20.3M | $58.3M | $63.5M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $376.0M | $510.5M | $529.8M |
| Inventory | $153.7M | $189.8M | $186.2M |
| Other Current Assets | $222.4M | $320.7M | $343.6M |
| Long-Term Assets | $125.4M | $136.7M | $137.2M |
| PP&E (Net) | $112.1M | $115.1M | $116.0M |
| Goodwill | $11.6M | $20.0M | $20.0M |
| Operating Leases | $909.0K | $826.0K | $545.0K |
| Other LT Assets | $708.0K | $819.0K | $727.0K |
| Total Assets | $501.4M | $647.2M | $667.0M |
| Current Liabilities | $156.1M | $234.7M | $197.9M |
| Accounts Payable | $125.5M | $191.8M | $145.9M |
| Current Leases | $311.0K | $320.0K | $318.0K |
| Deferred Revenue | $242.0K | — | — |
| Taxes Payable | $2.4M | $1.8M | $1.1M |
| Other Current Liab | $-242.0K | $0 | $0 |
| Long-Term Liabilities | $51.8M | $64.6M | $68.1M |
| Long-Term Debt | $45.0M | $60.0M | $65.0M |
| LT Operating Leases | $597.0K | $506.0K | $227.0K |
| Other LT Liab | $6.2M | $4.1M | $2.9M |
| Total Liabilities | $208.0M | $299.3M | $266.0M |
| Shareholders' Equity | $293.5M | $347.9M | $401.0M |
| Paid-In Capital | $152.4M | $153.6M | $153.7M |
| Retained Earnings | $150.1M | $200.2M | $254.9M |
| AOCI | $-9.2M | $-5.9M | $-7.7M |
| Total L&E | $501.4M | $647.2M | $667.0M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $20.3M | $58.3M | $63.5M |
| Non-Cash Adjustments | $-114.0M | $-259.6M | $-37.3M |
| Working Capital Changes | $74.5M | $212.3M | $-9.3M |
| Cash from Operations | $-19.2M | $11.0M | $16.9M |
| Capital Expenditures | $28.9M | $12.1M | $15.4M |
| Cash from Investing | $-28.9M | $-29.1M | $-15.3M |
| Share Buybacks | — | — | $2.9M |
| Dividends Paid | $8.2M | $8.2M | $8.7M |
| Cash from Financing | $36.8M | $6.8M | $-6.6M |
| FX Effect | $-2.9M | $1.1M | $-554.0K |
| Net Change in Cash | $-14.2M | $-10.2M | $-5.6M |
| Beginning Cash | $54.3M | $40.2M | $29.9M |
| Ending Cash | $40.2M | $29.9M | $24.3M |
Revenue is driven by the sale of proprietary small arms ammunition including 5.56mm, 7.62mm, and .308 rounds; tactical components such as magazines and accessories; and specialized ordnance products tailored for federal government contracts and private sector defense applications.
Significant concentration risk exists due to heavy reliance on a small number of large government clients for the majority of total revenue; exposure to volatile raw material costs such as copper, brass, and specialty powders which can compress margins; potential geopolitical disruptions affecting domestic supply chains or export regulations impacting global defense trade.
The company maintains a robust competitive moat through its vertically integrated manufacturing capabilities that ensure rapid supply chain responsiveness; proprietary metallurgy and powder formulations that guarantee ballistic consistency superior to generic competitors; and deep-rooted relationships with key US defense agencies resulting in high contract retention rates.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.