Douglas Dynamics NYSE: PLOW reported record second-quarter results for 2026, supported by strong pre-season demand in its Work Truck Attachments segment and continued municipal-market strength in Work Truck Solutions. The company raised its full-year sales, adjusted EBITDA and adjusted earnings-per-share outlook.
President and CEO Mark Van Genderen said above-average snowfall during the prior winter lifted demand for snow and ice-control equipment, while municipal demand continued to underpin the Solutions business. He also cited companywide operational execution as a contributor to the quarter's results.
“Both segments performed well in Q2, resulting in a record quarter for the company,” Van Genderen said. “Results in the attachment segment really exceeded our expectations.”
Record Sales and Earnings
Consolidated net sales increased 10% year over year to a record $214.6 million in the second quarter. Gross margin held steady at 31%.
Adjusted EBITDA rose 5% to a record $44.6 million, while adjusted diluted earnings per share increased 7% to a record $1.22, according to Executive Vice President and CFO Sarah Lauber.
SG&A expense increased 37% to $29.8 million. Lauber attributed the increase to higher variable incentive and stock-based compensation resulting from improved performance, as well as employee costs associated with the addition of Venco Venturo.
Lauber said tariff effects were not material to Douglas Dynamics because the company sources most of its materials in North America, manufactures entirely in the U.S. and generates 95% of sales in the U.S. The company received refunds related to IEEPA tariffs, but said those refunds were not material and were included in reported results and updated guidance.
Attachments Segment Driven by Pre-Season Demand
Work Truck Attachments sales increased 20% to $129.3 million, driven by pre-season orders following above-average snowfall, along with the Venco Venturo acquisition. Adjusted EBITDA for the segment increased 13% to $35.8 million, producing an adjusted EBITDA margin of 27.7%.
Van Genderen said strong retail sales and lower dealer inventories of plows and hoppers supported pre-season ordering. Douglas Dynamics expects pre-season shipments to be split approximately evenly between the second and third quarters, compared with a 60% second-quarter and 40% third-quarter mix in 2025.
The company expects to complete pre-season shipments by the end of the third quarter and said it plans to enter the fourth quarter with healthy inventory levels to support in-season dealer demand.
Douglas Dynamics also expects parts and accessories sales to surpass the record level set in 2025 by the end of the third quarter. Van Genderen said dealer inventories of plows and hoppers were lower than levels seen in recent years, creating demand both from retail activity and inventory rebuilding.
During the question-and-answer session, Lauber said segment margins were affected by the addition of Venco Venturo, product mix and the timing of shipments. Excluding the acquisition, she said second-quarter attachment margins would have been flat year over year despite higher volumes. The company expects full-year segment margins to improve and reach the low-20% range.
Van Genderen said the integration of Venco Venturo, which produces cranes and hoists, is essentially complete. He said the Cincinnati-based operation has benefited from Douglas Dynamics’ manufacturing, sourcing and operational expertise, although the company did not announce new products for the business.
Municipal Demand Supports Solutions Results
Work Truck Solutions generated $85.3 million in sales, roughly flat compared with record second-quarter results a year earlier. Adjusted EBITDA was $8.8 million.
Strong municipal demand offset softness in certain commercial operations, where lower volumes created inefficiencies. Lauber said municipal demand remains strong, with production dates booked well into 2027. The company has added approximately 10% of additional municipal capacity.
Van Genderen said some larger fleet customers have paused orders while assessing geopolitical and economic conditions. He said those orders have been placed on hold rather than lost to competitors. The company also said its dealer channel has recently shown signs of improvement.
The company opened its new purpose-built Missouri facility on schedule and said it is fully operational. Douglas Dynamics is also building a logistics facility in Manchester, Iowa, that is expected to begin operations during the fourth quarter. In addition, the company plans to relocate its Ohio Upfit center to a larger facility intended to increase capacity and efficiency.
Van Genderen said the company’s municipal business has benefited from operational performance, sales efforts and new contracts. He said the company’s backlog is near the record level reached in 2022, reflecting multi-year customer commitments.
Cash Flow, Capital Returns and Increased Outlook
For the first half of 2026, net cash used in operating activities was $25.2 million, an increase of $12.5 million from the prior-year period. Free cash flow was negative $32.5 million, compared with negative $17.8 million in the first half of 2025, primarily because of higher inventory needed to meet demand and higher receivables tied to increased sales.
At midyear, Douglas Dynamics had total liquidity of $69.4 million, including $1.9 million of cash and $67.5 million of available revolver capacity. First-half capital expenditures increased $2.2 million to $7.3 million. The company continues to expect full-year capital expenditures to equal roughly 2% to 3% of net sales.
During the quarter, Douglas Dynamics repurchased approximately 67,500 shares and returned a combined $10.1 million to shareholders through repurchases and dividends. Lauber said the company remains interested in strategic acquisition opportunities but will remain selective on valuation and fit.
The company raised its 2026 outlook, now forecasting:
- Net sales of $765 million to $805 million.
- Adjusted EBITDA of $120 million to $135 million.
- Adjusted EPS of $2.90 to $3.40.
- An effective tax rate of approximately 24% to 25%.
The updated forecast assumes relatively stable economic and supply-chain conditions and average snowfall in the fourth quarter. Lauber said that achieving the low end of the new adjusted EPS range would represent an approximate 20% increase over the company’s prior record, established in 2019.
About Douglas Dynamics (NYSE:PLOW)
Douglas Dynamics, Inc is a leading designer, manufacturer and distributor of snow and ice removal equipment for commercial, municipal and residential markets. The company's product portfolio encompasses a wide range of truck-mounted plows, spreaders, salt brine systems and related accessories engineered to perform in challenging winter conditions. Its offerings cater to professional snow contractors, government agencies and retail customers seeking reliable solutions for snow and ice management.
Douglas Dynamics markets its products under several well-known brands, including Fisher Engineering, Western Products, Hiniker Company and Buyers Products.
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