Douglas Dynamics Reports First Quarter 2025 Results

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]