Executive Summary

Q3 2025 delivered mixed headline results: adjusted EPS of $0.40 (vs $0.39 consensus) was a small beat, while revenue of $162.1M (vs $163.3M consensus) and EBITDA of $18.0M (consensus) vs $18.0M actual were essentially in line to slightly below; management raised full-year guidance across net sales, adjusted EBITDA, and adjusted EPS . EPS/revenue vs consensus from S&P Global: see Estimates Context section below.*
Work Truck Solutions posted another record quarter with net sales up 36% to $94.0M and adjusted EBITDA up 34% to $9.6M; Attachments improved on pre-season timing with net sales +13% to $68.1M and adjusted EBITDA +29% to $10.5M .
Guidance raised: Net Sales to $635–$660M (from $630–$660M), Adjusted EBITDA to $87–$102M (from $82–$97M), Adjusted EPS to $1.85–$2.25 (from $1.65–$2.15); tax rate maintained at ~24–25% .
Strategic catalyst: acquisition of Venco Venturo (truck-mounted cranes and dump hoists), expected to be modestly accretive to EPS and free cash flow in 2026; funded via revolver, minimal leverage impact . Liquidity of $70.1M at quarter-end supports execution .

What Went Well and What Went Wrong

What Went Well

Solutions delivered “record third-quarter results,” with combined municipal and commercial strength, improved throughput and efficiencies (“really knocking it out of the park”) .
Dealer inventories “back below the five-year average,” positioning Attachments well for winter; pre-season shipment split normalized to ~60/40 between Q2/Q3 .
Interest expense decreased ~16% YoY given lower borrowings and rates; leverage ratio ended at 1.9x, within 1.5x–3.0x target range .

What Went Wrong

Gross margin slipped slightly YoY to 23.5% (vs 23.9%); GAAP comparisons year-over-year were distorted by the Q3 2024 $42.3M gain on sale-leaseback (diluted EPS $1.36 last year vs $0.33 this year) .
Free cash flow remained negative: Q3 free cash flow was –$11.4M and YTD was –$29.3M; management attributes YTD improvement to earnings, but working capital (receivables) remains a headwind .
Commercial small customers remain price-sensitive and slower to decide; despite improvement in tariff concerns, inventories on the ground still exist in some markets, limiting upside leverage near term .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Millions)	$129.4	$194.3	$162.1
Gross Profit Margin (%)	23.9%	31.0%	23.5%
Diluted EPS (GAAP) ($)	$1.36	$1.09	$0.33
Adjusted Diluted EPS ($)	$0.24	$1.14	$0.40
Adjusted EBITDA ($USD Millions)	$15.3	$42.6	$20.1
Adjusted EBITDA Margin (%)	11.8%	21.9%	12.4%

Vs. Wall Street consensus (S&P Global):

Metric	Q3 2025 Actual	Q3 2025 Consensus	Surprise
Adjusted EPS ($)	$0.40	0.39333*	+$0.01 (beat)*
Revenue ($USD Millions)	$162.121	163.26667*	–$1.15M (miss)*
EBITDA ($USD Millions)	$17.999	18.00000*	~In line (–$0.00M)*

Values retrieved from S&P Global.*

Segment performance:

Segment	Q3 2024 Net Sales ($M)	Q3 2025 Net Sales ($M)	Q3 2024 Adj. EBITDA ($M)	Q3 2025 Adj. EBITDA ($M)	Q3 2024 Adj. EBITDA Margin (%)	Q3 2025 Adj. EBITDA Margin (%)
Work Truck Attachments	$60.2	$68.1	$8.1	$10.5	13.5%	15.4%
Work Truck Solutions	$69.1	$94.0	$7.2	$9.6	10.4%	10.2%

Key KPIs:

KPI	Q1 2025	Q2 2025	Q3 2025
Inventory ($USD Millions)	$171.5	$153.3	$138.7
Total Liquidity ($USD Millions)	—	—	$70.1
Leverage Ratio (x)	2.1x	2.0x	1.9x
Net Cash from Operating Activities (Quarter) ($M)	—	—	–$8.52
Free Cash Flow (Quarter) ($M)	—	—	–$11.45
Dividend per Share ($)	$0.295 (paid Mar 31)	$0.295 (paid Jun 30)	$0.295 (paid Sep 30)

Note: CapEx totaled $8.1M year-to-date (CFO clarified on the call), while Q3 quarter CapEx was $2.93M per the free cash flow reconciliation .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales ($USD Millions)	FY 2025	$630–$660	$635–$660	Raised lower bound
Adjusted EBITDA ($USD Millions)	FY 2025	$82–$97	$87–$102	Raised both ends
Adjusted EPS ($)	FY 2025	$1.65–$2.15	$1.85–$2.25	Raised both ends
Effective Tax Rate (%)	FY 2025	~24–25	~24–25	Maintained
Dividend	Ongoing	$0.295/qtr (consistent)	$0.295/qtr (paid Sep 30)	Maintained

Assumptions: stable economic/supply chain; average snowfall in core markets in Q4 2025 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 and Q2)	Current Period (Q3)	Trend
M&A/Activate pillar	Strategic pillars introduced; focus on optimizing/expanding; guidance initially maintained given uncertainties	Acquisition of Venco Venturo to diversify portfolio; modestly accretive in 2026; funded via revolver	Activation of M&A flywheel; portfolio expansion underway
Supply chain/throughput	Solutions record Q2 on favorable mix and price realization; backlog robust	“Receiving the chassis and components” needed; improved throughput and efficiencies drove record Solutions quarter	Improving operational flow and efficiency
Tariffs/macro	“Economic and tariff uncertainty persists” (Q2)	“Reduction in economic and tariff concerns” aided commercial performance in Q3	Moderating headwind
Dealer inventory/replacement cycle	Elongated replacement cycle impact expected at Attachments (Q2)	Dealer inventories below 5-year average; Attachments pre-season aligned with expectations	Normalizing channel inventory
Weather dependency	Q1: more typical patterns, snowfall ~12% below 10-year average; ~30% above prior winter	Q4 guidance assumes average snowfall; operations primed for winter	Cautious-normal outlook
Solutions margin leverage	Q2 margins at 12.8% (record); mix/price realization supportive	CFO expects ~25% incremental margins for Solutions for the year; quarter-to-quarter can be choppy	Sustained margin improvement over full year

Management Commentary

Strategic posture: “Looking to the future, we are encouraged by our initial progress as we implement our Optimize, Expand, and Activate strategic pillars… Adding [Venco Venturo] is a meaningful first step as we look to acquire complex attachments to diversify and balance our portfolio” — Mark Van Genderen, CEO .
Segment momentum: “Solutions produced another record quarter… pre-season shipments were in line with expectations at Attachments” — Sarah Lauber, CFO .
Readiness for winter: “Dealer inventories are now back below the five-year average… we are primed and ready to respond to demand shifts, snowfall, and ice event trends as they occur” — Mark Van Genderen, CEO .

Q&A Highlights

Venco Venturo scope: CFO estimated ~$30–$40M sales with margins akin to Solutions pre-synergies; focus on small-to-medium deals ($25–$75M) and synergy capture via DDMS and sourcing over time .
Dejana synergies: Dejana is a purchaser of Venco Venturo cranes/hoists; integration expected to expand upfit demand across Solutions .
Attachments outlook: For Q4, Attachments volume outlook aligns back to FY23 levels at guidance midpoint, with margins expected to be flattish vs last year at those volumes (assumes average snowfall) .
Solutions margin cadence: Incremental margin target ~25% for the year; quarterly leverage can be choppy given truck flow timing .

Estimates Context

Q3 2025 performance vs S&P Global consensus: Adjusted EPS $0.40 beat $0.39 by ~$0.01; revenue $162.1M was ~$1.15M below $163.3M; EBITDA ~$18.0M was essentially in line (actual EBITDA $18.0M vs $18.0M consensus).*
Forward consensus snapshots: Q4 2025 EPS 0.525*, revenue $170.1M*, EBITDA $21.5M*; Q1 2026 EPS 0.1025*, revenue $127.0M*, EBITDA ~$9.0M*. Values retrieved from S&P Global.*

Key Takeaways for Investors

Guidance raise across net sales, adjusted EBITDA, and adjusted EPS suggests higher confidence driven by Solutions momentum and normalized Attachments pre-season timing; weather in Q4 remains the key variable .
Solutions’ record results and backlog “well above historical norms” indicate continued mix/pricing/throughput advantages; CFO targets ~25% incremental margins for the year, supporting medium-term margin thesis .
Channel health improved (dealer inventories below 5-year average), positioning Attachments for average-snowfall scenario execution; monitor reorder patterns and early-season storms for near-term trading signals .
Capital structure/liquidity remain supportive of M&A and operations (liquidity $70.1M; leverage 1.9x); Venco Venturo adds a new growth vector with expected modest accretion in 2026 .
Watch working capital discipline: receivables growth weighed on operating cash flow; despite YTD FCF improvement vs 2024, FCF remains negative and merits focus in Q4 .
Estimate revisions: Expect modest EPS upward adjustments given the beat and guidance raise; revenue/EBITDA likely converge to raised ranges if Solutions strength persists and weather is average.*
Near-term catalysts: early winter weather patterns, order cadence in Attachments, integration milestones at Venco Venturo, and any tariff/macro updates on the commercial side .

All non-GAAP definitions and reconciliations are provided by the company in the press release/8‑K; 2024 YoY GAAP comparisons are materially impacted by the Q3 2024 sale-leaseback gain .

DOUGLAS DYNAMICS, INC (PLOW)·Q3 2025 Earnings Summary