Douglas Dynamics (PLOW) investor relations material

Executive summary

• Achieved record first quarter sales and earnings, with net sales up 20% year-over-year to $137.8 million, driven by above-average snowfall, strong municipal demand, and robust execution in both business segments.

• Net income rose to $6.4 million, with adjusted EBITDA increasing 78% to $16.8 million and adjusted diluted EPS of $0.36.

• Attachments segment saw 67% sales growth to $60.9 million, driven by strong demand, above-average snowfall, and the Venco Venturo acquisition.

• Solutions segment achieved near-record sales and record margins, led by robust municipal demand, offsetting softer commercial demand.

• Raised full-year 2026 guidance based on strong Q1 results and positive early pre-season trends.

Financial highlights

• Consolidated net sales increased 20% year-over-year to $137.8 million, a record for Q1.

• Gross margin improved by 290 basis points to 27.4%, with gross profit up 34.5% to $37.8 million.

• Adjusted EBITDA rose 78% to $16.8 million, with margin up 400 basis points to 12.2%.

• Adjusted net income reached $8.6 million, with adjusted diluted EPS of $0.36.

• Free cash flow was -$4.2 million, reflecting seasonal working capital needs and higher CapEx.

Outlook and guidance

• 2026 net sales now expected between $750 million and $795 million, with adjusted EBITDA guidance raised to $110 million–$125 million and adjusted EPS forecast increased to $2.55–$3.05.

• Effective tax rate expected at 24%–25%, though Q1 2026 was 19.2% due to discrete tax benefits.

• Pre-season shipments expected to be evenly split between Q2 and Q3, returning to typical timing.

• Outlook assumes stable economic and supply chain conditions and average snowfall in Q4.

• Management expects cash on hand, operating cash flow, and available credit to provide adequate liquidity.