Douglas Dynamics Raises 2026 Forecast Floor After Third-Quarter Sales Jump 35%

Key Facts

Douglas Dynamics reported record results on November 2 for the third quarter ended September 30, 2026, as sales rose 35% to $218.0 million and net income jumped 166% to $21.2 million. Diluted earnings per share were $0.89, compared with $0.33 a year earlier, while adjusted EBITDA rose 89% to $37.9 million. Adjusted earnings per share were $0.98, up 145% year over year. The company raised the low ends of its full-year forecasts for sales, adjusted EBITDA and earnings per share, while leaving the high ends unchanged. Revenue fell short of analyst estimates, at $218.01 million versus consensus of $218.6 million, while adjusted earnings per share beat the estimate of $0.92.

The Work Truck Attachments segment led growth, with sales rising 78% to a record $121.5 million. The company attributed the increase to strong pre-season demand, operational execution that lifted productivity and completion rates, and the addition of Venco Venturo. The segment's adjusted EBITDA surged to $30.2 million from $10.5 million, while its margin widened to 24.8% from 15.4%. The company said an improved product mix and the timing of shipments between the second and third quarters also supported the margin. In the second quarter, management had expected 2026 pre-season shipments to be split approximately evenly between the two quarters, after a 60% to 40% split in 2025.

Work Truck Solutions segment sales rose 3% to a record $96.5 million, with adjusted EBITDA of $7.8 million. The company said strong municipal demand offset uneven commercial demand, making the segment's quarterly performance slower than that of Attachments. Companywide, gross margin rose to 27.4% from 23.5% a year earlier, and adjusted EBITDA margin increased to 17.4% from 12.4%. The chief executive called the first nine months' results "exceptional," citing strong earnings, operational execution and the strategy pursued in recent years. The chief financial officer added that year-to-date adjusted earnings per share had already exceeded the previous full-year record set in 2019.

On a quarter-over-quarter basis, second-quarter sales were $214.6 million, up 10% year over year, and adjusted EBITDA was $44.6 million. For comparison, third-quarter 2025 sales rose 25.3% to $162.1 million, supported by improved productivity in the Solutions segment and the timing of pre-season shipments in Attachments. In the latest quarter, the company said year-to-date shipments of parts and accessories had exceeded the previous annual record set in 2025. The company returned about $27 million to shareholders year to date through dividends and share repurchases. Capital expenditures for the same period were $11.2 million.

Douglas Dynamics raised the low end of its 2026 sales forecast to $770 million from $765 million, keeping the high end at $805 million. It also raised the low end of its adjusted EBITDA forecast to $123 million from $120 million, leaving the high end at $135 million. The expected range for adjusted earnings per share is now $3.00 to $3.40, compared with a previous low end of $2.90 and a high end of $3.40. Management said the higher forecast floors reflected momentum and operational execution. The company expected 2026 capital expenditures to remain within its traditional range of 2% to 3% of net sales.

The outlook remains tied to winter conditions, with the company assuming average snowfall in its core markets during the fourth quarter of 2026. Management warned that the timing and severity of winter could cause meaningful variation in year-end results. In the first nine months, net cash used in operating activities was $47.5 million, an increase of $26.3 million from the year-earlier period; the company said this was related to higher working capital to support demand. The company's shares, PLOW, closed at $39.87 on November 2; an Investing.com report cited a decline of 11.22% over three months and a rise of 34.47% over 12 months through that date. The company's results call was scheduled for November 3, 2026, at 10:00 a.m. Eastern time, or 9:00 a.m. Central time, and it expected to begin operating its new Ohio facility in the weeks after the announcement to support capacity and municipal demand.