Douglas Dynamics (PLOW) investor relations material

Executive summary

• Consolidated net sales increased 25.3% year-over-year to $162.1 million for Q3 2025, driven by strong municipal and commercial demand and improved throughput in both segments.

• Solutions segment achieved record net sales and earnings growth of over 30% year-over-year, while Attachments segment showed meaningful improvement with pre-season orders aligning with forecasts.

• Completed the acquisition of Venco Venturo, a provider of truck-mounted cranes and dump hoists, for $26 million, marking the first acquisition in over nine years and expanding the product portfolio.

• Board changes included the retirement of a long-serving director and the addition of two new independent directors, expanding the board to eight members.

• Quarterly cash dividend of $0.295 per share paid on September 30, 2025.

Financial highlights

• Gross profit increased 23.3% to $38.1 million for Q3 2025, with gross margin at 23.5%, slightly down from 23.9% last year.

• Adjusted EBITDA rose 31% to $20.1 million, with margin up to 12.4%.

• Adjusted net income and adjusted EPS both rose over 60% to $9.5 million and $0.40, respectively.

• Interest expense decreased 16% to $3.8 million due to lower borrowings and rates.

• Free cash flow for the nine months improved 21% to $(29.3) million.

Outlook and guidance

• 2025 net sales guidance raised to $635–$660 million, up from $630–$660 million.

• Adjusted EBITDA guidance increased to $87–$102 million, and adjusted EPS to $1.85–$2.25.

• Assumes stable economic and supply chain conditions and average Q4 snowfall.

• Venco Venturo acquisition expected to be modestly accretive to earnings and free cash flow in 2026.

• Effective tax rate expected to remain at 24–25%.