Group 1: Company Performance - Douglas Dynamics (PLOW) has returned 22.1% year-to-date, significantly outperforming the Auto-Tires-Trucks sector, which has returned an average of -11% [4] - The Zacks Consensus Estimate for PLOW's full-year earnings has increased by 16.6% over the past three months, indicating improved analyst sentiment [4] - Douglas Dynamics holds a Zacks Rank of 2 (Buy), suggesting a positive outlook for the stock [3] Group 2: Industry Context - Douglas Dynamics is part of the Automotive - Replacement Parts industry, which ranks 26 in the Zacks Industry Rank, with stocks in this group losing about 3.1% year-to-date [6] - In comparison, Ferrari (RACE), another stock in the Auto-Tires-Trucks sector, has returned 8.5% year-to-date and has a Zacks Rank of 1 (Strong Buy) [5] - The Automotive - Original Equipment industry, to which Ferrari belongs, is currently ranked 74 and has moved -0.3% year-to-date [6]

Core Points - Douglas Dynamics, Inc. celebrated its 15th anniversary as a publicly traded company on the NYSE, marking a significant milestone in its 75-year history [1][3] - The company is recognized as North America's premier manufacturer and upfitter of commercial work truck attachments and equipment, with a commitment to innovation and quality [4] - The company operates through two main segments: Work Truck Attachments and Work Truck Solutions, featuring well-known brands such as FISHER®, SNOWEX®, WESTERN®, HENDERSON®, and DEJANA® [4] Company Overview - Douglas Dynamics has been innovating products for over 75 years, enabling businesses to perform jobs more efficiently and increase profitability [4] - The proprietary Douglas Dynamics Management System (DDMS) focuses on continuous improvement to produce high-quality products and deliver industry-leading service [4] - The company emphasizes optimizing operations, expanding offerings, and enhancing its resilient business model [3]

Financial Performance - Net sales for the three months ended March 31, 2025, were $115.1 million, an increase of $19.4 million or 20.3% compared to $95.7 million in the same period of 2024[113] - The Work Truck Attachments segment reported net sales of $36.5 million for the three months ended March 31, 2025, up from $23.8 million in 2024, reflecting an increase of $12.7 million due to improved snowfall[114] - The Work Truck Solutions segment achieved net sales of $78.6 million for the three months ended March 31, 2025, compared to $71.8 million in 2024, an increase of $6.8 million driven by improved municipal volumes[115] - Gross profit rose to $28.1 million for the three months ended March 31, 2025, an increase of $9.2 million or 48.7% compared to $18.9 million in 2024, with gross profit as a percentage of net sales increasing to 24.5%[117] - Net income for the three months ended March 31, 2025 was $0.1 million, an increase of $8.5 million compared to a net loss of $8.4 million for the same period in 2024, representing a change from (8.7%) to 0.1% of net sales[124] - Adjusted net income for the three months ended March 31, 2025, was $2.2 million compared to a loss of $6.5 million in the same period of 2024[149] - Adjusted diluted earnings per share for the three months ended March 31, 2025, was $0.09, compared to a loss of $0.29 in the same period of 2024[149] Cost and Expenses - Cost of sales increased to $86.9 million for the three months ended March 31, 2025, up $10.2 million or 13.3% from $76.7 million in 2024, with cost of sales as a percentage of sales decreasing to 75.5% from 80.2%[116] - Selling, general, and administrative expenses were $24.9 million for the three months ended March 31, 2025, an increase of $0.8 million or 3.3% from $24.1 million in 2024, primarily due to higher stock-based compensation[118] - Free cash flow for the three months ended March 31, 2025 was ($3.5) million, an improvement of $19.4 million compared to ($22.9) million in the same period in 2024[135] Liquidity and Financing - Total liquidity as of March 31, 2025 was $119.7 million, consisting of $7.2 million in cash and cash equivalents and $112.5 million in borrowing availability, down from $154.6 million as of December 31, 2024[128] - Interest expense decreased to $2.4 million for the three months ended March 31, 2025, down from $3.5 million in the same period of 2024, attributed to lower interest on revolver and term loan[122] - The company executed a sale leaseback transaction for gross proceeds of $64.2 million in 2024, using a portion to pay down $42.0 million on its term loan[108] - Net cash provided by financing activities increased by $4.8 million for the three months ended March 31, 2025, related to $12.0 million in revolver borrowings outstanding[134] Operational Efficiency - Adjusted EBITDA for the three months ended March 31, 2025 was $9.4 million, compared to $1.5 million for the same period in 2024, driven by improved performance in the Work Truck Solutions segment[142] - Adjusted EBITDA for the Work Truck Solutions segment was $9.1 million for the three months ended March 31, 2025, an increase of $3.1 million from $6.0 million in the same period of 2024[146] - The Work Truck Attachments segment reported Adjusted EBITDA of $0.3 million for the three months ended March 31, 2025, a significant increase of $4.8 million from ($4.5) million in the same period in 2024, attributed to better snowfall conditions[145] - Net cash used in operating activities decreased by $20.3 million from the three months ended March 31, 2024 to March 31, 2025, primarily due to an increase in net income and favorable changes in working capital[132] Tax and Regulatory - The effective tax rate for the three months ended March 31, 2025 was 69.8%, significantly higher than 16.0% for the same period in 2024, impacted by discrete tax expenses related to stock compensation[123] Market and Economic Conditions - Inflation in materials and labor had a material impact on profitability, with ongoing inflationary pressures expected to continue affecting costs in 2025[154] - The company anticipates that cash on hand and generated from operations will provide adequate funds for the foreseeable future despite market volatility and inflationary pressures[108] - The company is exposed to interest rate risk due to variable rates on borrowings, with $12.0 million outstanding under the revolving credit facility as of March 31, 2025[167] - A hypothetical 1% increase in interest rates would have resulted in an additional interest expense of $0.1 million for the term loan for the three months ended March 31, 2025[164] Strategic Initiatives - The company implemented a 2024 Cost Savings Program in January 2024, involving restructuring charges for salaried headcount reductions to preserve liquidity[108] - The company implemented a 2024 Cost Savings Program aimed at restructuring and reducing discretionary spending to preserve liquidity[128] - The company anticipates managing seasonal impacts through a pre-season sales program, which has historically generated over two-thirds of sales in the second and third quarters[158] Commodity and Risk Management - The company entered into a steel hedging agreement on December 17, 2024, to mitigate exposure to commodity price fluctuations[169] - The notional quantity of the steel hedging instrument is 3,000 short tons, effective from August 1, 2025, to December 31, 2025[169] - The company expects the hedge to cover slightly less than half of its exposure during the effective period[169] - Fixed payments under the steel hedge agreement are set at $819 per short ton for Steel Hot Rolled Coil (HRC) commodity[169] - The steel hedging instrument is classified as a cash flow hedge[169] - The fair value of the steel hedging instrument was positive $0.0 million as of March 31, 2025, and negative $0.1 million as of December 31, 2024[169] - The fair value changes are reflected in Prepaid and other current assets and Accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheet[169] Supply Chain Management - Steel purchases as a percentage of revenue decreased to 8.5% for the three months ended March 31, 2025, from 12.5% in the same period of 2024[168] - The company employs a highly variable cost structure, allowing adjustments in response to changing demand, which is critical for managing profitability amid market fluctuations[166]

Financial Data and Key Metrics Changes - Consolidated net sales increased by 20.3% to a record $115.1 million, with gross margins improving by 470 basis points to 24.5% [24] - Adjusted EBITDA increased significantly to $9.4 million, and adjusted net income improved by $8.7 million to $2.2 million, resulting in a record adjusted EPS of $0.09 [24][25] - Interest expense decreased to approximately $2.4 million following debt reduction and lower revolver borrowings [24] Business Line Data and Key Metrics Changes - Work Truck Attachments saw net sales increase by 52.9% to $36.5 million, driven by higher sales of parts and accessories due to improved winter weather conditions [25] - Work Truck Solutions achieved net sales growth of 9.5% to $78.6 million, primarily from higher municipal volumes and improved pricing realization [25] Market Data and Key Metrics Changes - The overall snowfall across the United States was 12% below the ten-year average but higher than the previous year, reversing a three-year trend [12] - The number of ice events experienced was significantly above average, contributing to increased sales in the Work Truck Attachments segment [12] Company Strategy and Development Direction - The company is focused on operational cash generation to cover dividends while considering small to medium-sized acquisitions in the work vehicle attachment space [20][21] - The leadership team emphasizes maintaining a disciplined approach to acquisitions while exploring operational excellence and brand integration [46] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about the year, with a strong backlog and stable operations despite some softness in dealer business [16][22] - The company is well-positioned to manage tariff impacts, with 95% of net sales in the U.S. and most materials sourced domestically [37] Other Important Information - The effective tax rate for the quarter was unusually high at 69.8% due to breakeven results, but it is expected to normalize in the coming quarters [29] - Capital expenditures are expected to return to typical levels, with an increase to $2.2 million, and the leverage ratio improved to 2.1 times [30] Q&A Session Summary Question: Comments on the solutions business in 2025 versus 2024 - Management expects Solutions to achieve double-digit margins in the long term, with some uncertainty factored in for 2025 due to demand risks [41][42] Question: Cash priorities if no M&A candidates arise - The company is focused on operational excellence and may consider share buybacks or dividend increases if no suitable acquisition opportunities arise [46] Question: Timing of certain projects and their impact - Some volume in municipal projects was pulled from the second quarter, but the timing impact was not deemed overly material [48] Question: Competition's manufacturing footprint and tariff impact - Competitive pricing has been consistent, and the company is well-positioned to manage tariff impacts due to its U.S.-based operations [50][51] Question: Planned capacity expansion for the solutions side - Capacity expansion plans are in place but expected to come online in 2026, with a focus on prudent investment based on backlog and contracts [54]

Financial Data and Key Metrics Changes - Consolidated net sales increased by 20.3% to a record $115.1 million, with gross margins improving by 470 basis points to 24.5% [22] - Adjusted EBITDA rose significantly to $9.4 million, and adjusted net income improved by $8.7 million to $2.2 million, resulting in a record adjusted EPS of $0.09 [22][23] - Interest expense decreased to approximately $2.4 million due to debt reduction and lower borrowings [22] Business Line Data and Key Metrics Changes - Work Truck Attachments saw net sales increase by 52.9% to $36.5 million, driven by higher sales of parts and accessories due to improved winter weather conditions [23] - Work Truck Solutions achieved net sales growth of 9.5% to $78.6 million, primarily from higher municipal volumes and improved pricing realization [23] Market Data and Key Metrics Changes - The overall snowfall across the United States was 12% below the ten-year average but higher than the previous year, contributing to improved sales in Work Truck Attachments [11] - The number of ice events experienced was significantly above average, leading to increased interest in ice mitigation products [12] Company Strategy and Development Direction - The company is focused on operational cash generation to cover dividends while considering small to medium-sized acquisitions in the work vehicle attachment space [19] - The leadership team is committed to maintaining a disciplined approach to acquisitions while exploring opportunities for growth [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the year, noting that while there is uncertainty regarding the economic outlook and tariffs, the company is well-positioned to manage these challenges [20][36] - The company expects 2025 results to be similar to or slightly better than 2024, with a strong backlog and solid demand in the municipal sector [25][36] Other Important Information - The effective tax rate for the quarter was unusually high at 69.8% due to being close to breakeven, but it is expected to normalize in the coming quarters [28] - Capital expenditures are expected to be at the higher end of the usual range of 2% to 3% of net sales in 2025 due to catching up on postponed projects [29] Q&A Session Summary Question: Comments on the solutions business in 2025 versus 2024 - Management indicated that while they aim for double-digit margins in the long term, 2025 may see some uncertainty in demand affecting this goal [40][41] Question: Cash priorities if no M&A candidates arise - The company is focused on operational excellence and may consider share buybacks or increasing dividends if no suitable acquisition opportunities arise [44] Question: Timing of certain projects and their impact - Management noted that some volume in municipal projects was pulled from the second quarter, but the impact was not overly material [46] Question: Competitive pricing and tariff impact - Management stated that competitive pricing has been consistent with their adjustments, and they believe they are in a strong competitive position [47][49] Question: Planned capacity expansion for the solutions side - The company is planning a modest capacity expansion expected to come online in 2026, driven by strong demand and existing contracts [52]

Core Insights - Douglas Dynamics (PLOW) reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of a loss of $0.16 per share, and showing improvement from a loss of $0.29 per share a year ago [1] - The company achieved revenues of $115.07 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 9.90% and increasing from $95.66 million year-over-year [2] - The stock has gained approximately 3.8% since the beginning of the year, contrasting with the S&P 500's decline of -3.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.86 on revenues of $186.9 million, and for the current fiscal year, it is $1.79 on revenues of $624.2 million [7] - The estimate revisions trend for Douglas Dynamics is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Automotive - Replacement Parts industry, to which Douglas Dynamics belongs, is currently in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Exhibit 99.1 DOUGLAS DYNAMICS REPORTS FIRST QUARTER 2025 RESULTS Record Results at Work Truck Solutions; Positive Impact of Winter Weather at Work Truck Attachments First Quarter 2025 Highlights*: "With a rich history, deep industry experience, and a focus on continuous improvement, our brands continue to get stronger as we look to the future," explained Mark Van Genderen, President, and CEO. "This was an excellent quarter for our company across the board, with both segments executing successfully and deliv ...

Financial Performance - Douglas Dynamics, Inc. reported a net sales increase of 20.3% to a record $115.1 million in Q1 2025 compared to Q1 2024, driven by higher sales of equipment and parts [5][6] - Gross profit margin improved by 470 basis points to 24.5%, reflecting enhanced operational efficiency [5][6] - Net income for the quarter was $0.1 million, a significant improvement from a net loss of $(8.4) million in the same period last year [5][6] - Adjusted EBITDA rose to $9.4 million from $1.5 million year-over-year, with a record adjusted diluted EPS of $0.09 [5][6] Segment Performance - The Work Truck Attachments segment saw net sales increase by 52.9% to $36.5 million, with adjusted EBITDA improving to $0.3 million from a loss of $(4.5) million [12][4] - The Work Truck Solutions segment reported net sales of $78.6 million, a 9.5% increase, and adjusted EBITDA of $9.1 million, up 51.7% from the previous year [13][8] Operational Highlights - The company experienced more typical winter weather patterns, leading to increased sales of ice control equipment, with snowfall approximately 30% higher than the previous winter [7] - Selling, general, and administrative expenses increased by $1.9 million to $23.4 million, attributed to improved performance and higher stock-based compensation [6] Liquidity and Capital Structure - The company paid a quarterly cash dividend of $0.295 per share on March 31, 2025, and reduced net cash used in operating activities significantly from $21.6 million in Q1 2024 to $1.3 million in Q1 2025 [14][6] - Total inventory at the end of Q1 2025 was $171.5 million, a decrease from $174.8 million year-over-year, with a notable reduction in the Attachments segment [14][6] 2025 Outlook - The company maintains a positive outlook for 2025, assuming stable economic conditions and average snowfall in core markets [15][11] - Guidance for 2025 includes expected net sales between $610 million and $650 million, with adjusted EBITDA projected to range from $75 million to $95 million [20][11]

Core Viewpoint - Douglas Dynamics, Inc. announces a leadership transition with Don Sturdivant appointed as Chairman of the Board, succeeding Jim Janik, who will remain on the Board to ensure continuity [1][2][3]. Company Overview - Douglas Dynamics is North America's leading manufacturer and upfitter of work truck attachments and equipment, with over 75 years of innovation in products that enhance job efficiency and business profitability [6]. - The company operates through two segments: Work Truck Attachments, which includes brands like FISHER®, SNOWEX®, and WESTERN®, and Work Truck Solutions, featuring the HENDERSON® and DEJANA® brands [6]. Leadership Transition - Jim Janik has stepped down as Chairman effective April 30, 2025, after decades of leadership, while continuing as a Board member [1][2]. - Don Sturdivant, who has been on the Board since 2010 and Lead Director since 2023, is recognized for his strategic acumen and managerial experience, making him well-suited for the Chairman role [2][3]. - With Sturdivant's appointment, the Board will eliminate the Lead Director position [3]. Don Sturdivant's Background - Sturdivant is an Operating Partner at TruArc LLC, focusing on the Specialty Manufacturing Sector, and has held CEO positions at FleetPride, Inc. and Marietta Corporation [4][5]. - His previous executive roles include Chief Operating Officer at Altivity Packaging and Division President at Graphic Packaging International and Fort James Corporation [5].

Company Overview - Douglas Dynamics, Inc. is North America's premier manufacturer and upfitter of work truck attachments and equipment, with over 75 years of industry experience [3] - The company operates through two segments: Work Truck Attachments, which includes brands like FISHER®, SNOWEX®, and WESTERN®, and Work Truck Solutions, which includes the HENDERSON® and DEJANA® brands [3] Financial Results Announcement - Douglas Dynamics will release its financial results for the first quarter of 2025 after market close on May 5, 2025 [1] - A conference call to discuss these results will take place on May 6, 2025, at 9:00 a.m. Central Time, hosted by the President and CEO Mark Van Genderen and CFO Sarah Lauber [2] Commitment to Quality and Improvement - The company emphasizes continuous improvement through its proprietary Douglas Dynamics Management System (DDMS), aiming to produce high-quality products and provide industry-leading service [3]