10-Q · May 5, 2026
Douglas Dynamics, Inc. reported robust Q1 results with revenue of $137.8 million, a notable 19.7% increase year-over-year. The diluted EPS was reported at $0.36, significantly exceeding expectations of $0.12. The…
Earnings analysis · 10-Q
PLOW earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Douglas Dynamics delivered Q2 revenue of $214.648 million, up 10.4% year over year and sharply above Q1 levels, driven by stronger Work Truck Attachments demand after snowfall finished 26.0% above the 10-year average.…
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Douglas Dynamics delivered Q2 revenue of $214.648 million, up 10.4% year over year and sharply above Q1 levels, driven by stronger Work Truck Attachments demand after snowfall finished 26.0% above the 10-year average. Gross margin held essentially flat-to-up at 31.1%, but operating margin declined to 16.5% as SG&A and amortization rose 34.3%; GAAP EPS slipped to $1.07 from $1.09, while adjusted EPS increased to $1.22 from $1.14. The primary counterweight is cash conversion: first-half free cash flow was negative $32.496 million and liquidity fell to $69.4 million as receivables and inventory expanded. Item 1A states there were no significant changes to risk factors from the 2025 Form 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.07
What stood out
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Revenue accelerated sequentially and year over year
Q2 net sales rose $20.321 million, or 10.4% year over year, to $214.648 million; revenue also increased $76.648 million, or about 55.5%, from $138 million in Q1 2026. Growth reflected improved snowfall-driven Attachments volumes.
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Gross margin expanded despite cost pressures
Gross margin improved 10 basis points year over year to 31.1% from 31.0%, while gross profit increased $6.500 million, or 10.8%, to $66.796 million. Management attributed the improvement to favorable segment mix, with Attachments carrying higher gross margins.
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Attachments demand and EBITDA strengthened
Work Truck Attachments sales increased $21.216 million year over year to $129.330 million and adjusted EBITDA increased $4.231 million to $35.801 million. The 2026 snow season was approximately 26.0% above the 10-year average versus 12.0% below average in the prior season.
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Adjusted EPS grew despite slight GAAP decline
Adjusted diluted EPS increased to $1.22 from $1.14, while GAAP diluted EPS was $1.07 versus $1.09. The $0.15 GAAP-to-adjusted EPS gap primarily reflects $4.450 million of stock-based compensation.
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First-half profitability improved
First-half gross margin expanded to 29.7% from 28.6%, and six-month net income rose $5.653 million to $31.755 million. Lower interest expense of $4.386 million versus $5.357 million also aided first-half profitability.
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Tariff refunds provided a cost tailwind
The company received approximately $0.9 million of IEEPA tariff refunds and recorded a further $2.8 million receivable for accepted refunds as of June 30, 2026. Refunds reduced cost of sales for sold goods or inventory for goods still on hand.
What to watch
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SG&A growth compressed operating margin
Operating leverage weakened: SG&A plus intangible amortization rose $8.048 million, or 34.3%, to $31.349 million, exceeding the 10.4% sales increase. Consequently, operating margin fell 250 basis points year over year to 16.5% from 19.0%.
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Solutions segment demand and EBITDA declined
Work Truck Solutions revenue declined $0.895 million to $85.318 million and segment adjusted EBITDA fell $2.270 million to $8.777 million. Management cited lower commercial volumes, only partly offset by price realization.
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Working-capital use reduced liquidity
Liquidity declined to $69.4 million at June 30, 2026 from $127.8 million at December 31, 2025; cash fell to $1.875 million from $8.297 million. First-half operating cash flow was an outflow of $25.195 million and free cash flow was negative $32.496 million.
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Receivables and inventory absorbed cash
Accounts receivable increased to $156.633 million from $97.561 million and inventory increased to $174.981 million from $149.656 million since year-end. Management attributed cash use to inventory demand and shipment timing, supplier-payment timing, and collections timing.
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Variable-rate debt creates interest-rate exposure
Debt exposure remains meaningful, with $140.3 million outstanding on the term loan and $57.0 million on the revolving facility as of June 30, 2026. A 1.0% rate change would raise quarterly interest by approximately $0.1 million on each facility.
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Higher steel intensity raises cost-pass-through risk
Steel purchases increased to 7.3% of Q2 revenue from 5.3% a year earlier. Management expects tariffs, freight costs and inflation could pressure profitability if price increases lag cost increases.
Management's outlook
The 10-Q does not provide explicit consolidated revenue or EPS guidance. Management states annual capital expenditures are normally budgeted at approximately 2%-3% of net sales and can be reduced by up to approximately 40% if sales volumes fall; it also expects cash on hand, operating cash generation, and available credit to fund needs for the foreseeable future.
Earlier filings 4
10-K · February 24, 2026
Douglas Dynamics’ 2025 10-K emphasizes market leadership in snow & ice control and truck upfitting, highlighted by a 2025 revenue run-rate of ~$656.0M (sum of quarterly reported sales) and positive free cash flow of…
10-Q · November 4, 2025
Douglas Dynamics reported Q3 net sales of $162,121,000 (three months ended Sept. 30, 2025) — up $32,723,000 (25.3%) versus Q3 2024 but down versus Q2 2025. Gross profit increased to $38,107,000 (23.5% of sales), but…
10-Q · August 5, 2025
Douglas Dynamics reported Q2 net sales of $194,327,000 and diluted EPS of $1.09. Revenue was down modestly versus Q2 2024 but materially higher versus Q1 2025; margins and operating income improved year-over-year. The…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.