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Douglas Dynamics Reports First Quarter 2025 Results
PLOWDouglas Dynamics(PLOW) GlobeNewswire·2025-05-05 22:05

Financial Performance - Douglas Dynamics, Inc. reported a net sales increase of 20.3% to a record 115.1millioninQ12025comparedtoQ12024,drivenbyhighersalesofequipmentandparts[5][6]−Grossprofitmarginimprovedby470basispointsto24.5115.1 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)millioninthesameperiodlastyear[5][6]−AdjustedEBITDAroseto(8.4) million in the same period last year [5][6] - Adjusted EBITDA rose to 9.4 million from 1.5millionyear−over−year,witharecordadjusteddilutedEPSof1.5 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 36.5million,withadjustedEBITDAimprovingto36.5 million, with adjusted EBITDA improving to 0.3 million from a loss of (4.5)million[12][4]−TheWorkTruckSolutionssegmentreportednetsalesof(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 9.1million,up51.79.1 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 23.4million,attributedtoimprovedperformanceandhigherstock−basedcompensation[6]LiquidityandCapitalStructure−Thecompanypaidaquarterlycashdividendof23.4 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 21.6millioninQ12024to21.6 million in Q1 2024 to 1.3 million in Q1 2025 [14][6] - Total inventory at the end of Q1 2025 was 171.5million,adecreasefrom171.5 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 610millionand610 million and 650 million, with adjusted EBITDA projected to range from 75millionto75 million to 95 million [20][11]