Douglas Dynamics Reports Fourth Quarter And Full Year 2024 Results

Core Insights - Douglas Dynamics, Inc. reported strong financial results for the fourth quarter and full year ended December 31, 2024, driven by record performance in Work Truck Solutions and improved margins in Work Truck Attachments [2][3][5] Financial Performance - Net Sales for FY 2024 reached $568.5 million, a slight increase from $568.2 million in FY 2023 [6] - Net Income for FY 2024 was $56.2 million, significantly up from $23.7 million in FY 2023, reflecting a one-time gain of $42.3 million from a sale leaseback transaction [10][5] - Diluted Earnings Per Share (EPS) increased to $2.36 in FY 2024 from $0.98 in FY 2023 [10][5] - Adjusted Net Income and Adjusted Diluted EPS rose approximately 45% to $35.2 million and $1.47, respectively [5][10] Segment Performance - Work Truck Solutions achieved record full-year results with Net Sales of $312.5 million, up from $276.5 million in FY 2023 [12][8] - Work Truck Attachments saw Net Sales decline to $256.0 million from $291.7 million in FY 2023, impacted by low snowfall in previous winters [11][8] - Adjusted EBITDA for Work Truck Solutions increased 75.6% to $30.9 million, while Work Truck Attachments reported Adjusted EBITDA of $48.5 million, down from $50.6 million [12][11] Cost Management and Efficiency - The 2024 Cost Savings Program exceeded expectations, delivering over $10 million in savings [5][6] - Selling, general, and administrative expenses rose to $91.7 million in FY 2024 from $78.8 million in FY 2023, primarily due to one-time costs [6][10] Capital Allocation and Liquidity - Net Cash Provided by Operating Activities increased significantly from $12.5 million in FY 2023 to $41.1 million in FY 2024 [17][10] - Free Cash Flow for FY 2024 was $33.3 million, a substantial improvement from $1.9 million in FY 2023 [17][10] - The leverage ratio improved to 2.4X at the end of FY 2024, down from slightly below 3.5X at the end of FY 2023 [17][10] 2025 Outlook - The company anticipates Net Sales for 2025 to be between $610 million and $650 million, with Adjusted EBITDA expected to range from $75 million to $95 million [18][14] - The effective tax rate for 2025 is projected to be approximately 24% to 25% [18][14]