Douglas Dynamics Raises Outlook as Attachment Sales Drive Record Revenue
The company lifted the midpoint of its adjusted earnings outlook by 35 cents to $3.15 a share.
Douglas Dynamics (PLOW), a maker of commercial work-truck attachments and equipment, posted record second-quarter sales as strong preseason orders lifted its snow-and-ice-control business.
Net sales rose 10% to $214.6 million from $194.3 million a year earlier. Diluted earnings slipped to $1.07 a share from $1.09 as operating income declined 4% and net income fell 2%.
Adjusted results moved higher. Adjusted net income increased 6% to $28.9 million, and adjusted earnings rose 7% to a record $1.22 a share. Stock-based compensation adjustments increased to $4.45 million from $1.55 million.
Work Truck Attachments drove the quarter, with sales rising 20% to $129.3 million on snow-and-ice-control demand and the addition of Venco Venturo. The segment produced about 60% of company sales, up from roughly 56% a year earlier. Its adjusted EBITDA increased 13%, while its margin narrowed 1.5 percentage points to 27.7%.
Work Truck Solutions sales declined about 1% to $85.3 million as softer commercial demand offset strong municipal demand. Adjusted EBITDA fell 21% to $8.8 million, and the segment margin contracted to 10.3% from 12.8%.
Companywide adjusted EBITDA rose 5% to a record $44.6 million, though the margin narrowed to 20.8% from 21.9%. Gross margin was nearly unchanged at 31.1%. Stronger-than-expected orders, particularly for parts and accessories, shifted expected preseason shipments to an approximately even split between the second and third quarters.
Douglas raised its 2026 outlook again. It now expects net sales of $765 million to $805 million, adjusted EBITDA of $120 million to $135 million and adjusted earnings of $2.90 to $3.40 a share.
The company returned about $10 million to shareholders through its quarterly dividend and share repurchases. Higher inventory and receivables weighed on cash generation, with first-half operating cash outflow nearly doubling to $25.2 million and free-cash-flow outflow widening to $32.5 million.