Douglas Dynamics Reports Second Quarter 2025 Results

Douglas Dynamics, Inc., North America’s premier manufacturer and upfitter of work truck attachments and equipment, has released its financial results for the second quarter of 2025. The company reported a mix of growth and challenges, with notable improvements in net income and earnings per share (EPS).

Financial Highlights

For the second quarter of 2025, Douglas Dynamics reported consolidated net income of $26.0 million, or $1.09 per diluted share, reflecting a 6.6% increase from the same period in 2024. The company's gross profit margin slightly improved to 31.0% from 30.7% in the previous year. However, net sales saw a slight decline of 2.8%, totaling $194.3 million compared to $199.9 million in Q2 2024.

Adjusted EBITDA for the quarter was $42.6 million, down from $43.7 million in the previous year, maintaining a stable adjusted EBITDA margin of 21.9%.

Business and Operational Highlights

The Work Truck Solutions segment delivered record second-quarter results, with net sales increasing by 5.4% to $86.2 million and adjusted EBITDA growing by 39.8% to $11.0 million. This growth was driven by favorable pricing and higher municipal volumes, despite a decrease in commercial volumes.

Conversely, the Work Truck Attachments segment experienced a decline in net sales to $108.1 million from $118.1 million in Q2 2024, primarily due to the timing of pre-season shipments. Adjusted EBITDA for this segment also decreased to $31.6 million from $35.8 million.

Strategic Initiatives and Corporate Developments

Douglas Dynamics returned approximately $13 million of cash to shareholders through dividends and share repurchases. The company also reported a significant improvement in its leverage ratio, which decreased to 2.0X from 3.3X, aligning well within their target range of 1.5X to 3.0X.

Capital expenditures increased by $2.4 million in the first half of 2025, with expectations to remain towards the higher end of the traditional range of 2% to 3% of net sales for the full year.

Management's Perspective

Mark Van Genderen, President and CEO, emphasized the company's strong execution and market-leading innovation as key drivers of their performance. He highlighted the company's focus on optimizing current business operations while pursuing growth opportunities.

Sarah Lauber, Executive Vice President and CFO, noted the company's raised and narrowed guidance ranges for 2025, reflecting confidence in their performance despite economic and tariff uncertainties.

Future Outlook

Douglas Dynamics has updated its 2025 outlook, now expecting net sales to be between $630 million and $660 million, an increase from the previous range of $610 million to $650 million. Adjusted EBITDA is projected to range from $82 million to $97 million, up from the prior range of $75 million to $95 million. Adjusted earnings per share are anticipated to be between $1.65 and $2.15, compared to the earlier range of $1.30 to $2.10.

The company assumes stable economic and supply chain conditions and average snowfall in the fourth quarter of 2025 for these projections.

SEC Filing: DOUGLAS DYNAMICS, INC [ PLOW ] - 8-K - Aug. 04, 2025