Douglas Dynamics (NYSE:PLOW) reported record second-quarter results for 2026 and 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. 'Both segments performed well in Q2, resulting in a record quarter for the company,' he said.
Gross margin held steady at 31%. Executive Vice President and CFO Sarah Lauber said adjusted EBITDA rose 5% to a record $44.6 million, and adjusted diluted earnings per share increased 7% to a record $1.22.
SG&A expense increased 37% to $29.8 million. Lauber attributed the increase to higher variable incentive and stock-based compensation and employee costs from the addition of Venco Venturo.
Lauber said tariff effects were not material because the company sources most materials in North America, manufactures entirely in the U.S. and generates 95% of sales in the U.S. Douglas Dynamics received refunds related to IEEPA tariffs, but stated the refunds were not material.
Segment performance
Work Truck Attachments sales increased 20% to $129.3 million, with adjusted EBITDA up 13% to $35.8 million and 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. He added, 'Results in the attachment segment really exceeded our expectations.'
Work Truck Solutions generated $85.3 million in sales and adjusted EBITDA of $8.8 million. Lauber said municipal demand remains strong, with production dates booked well into 2027.
Douglas Dynamics expects pre-season shipments to be split approximately evenly between the second and third quarters, compared with a 60/40 split in 2025. The company expects parts and accessories sales to surpass the record level set in 2025 by the end of the third quarter.
Lauber said segment margins were affected by the addition of Venco Venturo, product mix and the timing of shipments. Excluding the acquisition, second-quarter attachment margins would have been flat year over year. The company expects full-year segment margins to reach the low-20% range.
Van Genderen said the integration of Venco Venturo, a producer of cranes and hoists based in Cincinnati, US, is essentially complete.
Van Genderen said some larger fleet customers have paused orders to assess geopolitical and economic conditions. He added that the company's backlog is near the record level reached in 2022.
Operations and investments
Douglas Dynamics opened a new purpose-built facility in Missouri, US, on schedule. It is building a logistics facility in Manchester, Iowa, US, expected to begin operations during the fourth quarter, and plans to relocate its Ohio, US Upfit center to a larger facility. The company has added approximately 10% of additional municipal capacity.
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 to negative $17.8 million in the first half of 2025. At midyear, total liquidity was $69.4 million, including $1.9 million in cash and $67.5 million in available revolver capacity. First-half capital expenditures increased $2.2 million to $7.3 million; full-year capital expenditures are expected 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.
