On this page of StockholderLetter.com we present the latest annual shareholder letter from DOUGLAS DYNAMICS, INC — ticker symbol PLOW. Reading current and past PLOW letters to shareholders can bring important insights into the investment thesis.

 •  3/20/2026 Letter Continued (Full PDF)
 •  3/24/2023 PLOW Stockholder Letter
 •  3/22/2024 PLOW Stockholder Letter
 •  3/21/2025 PLOW Stockholder Letter
 •  More "Industrial Machinery & Equipment" Category Stockholder Letters
 •  PLOW Benford's Law Stock Score = 96

PLOW Shareholder/Stockholder Letter Transcript:

$118$/  
5(3257

Douglas Dynamics
2026 Shareholder Letter
Dear Fellow Shareholders,
Thank you for your ongoing support of our company.
While this is my first shareholder letter since assuming
the role of President and CEO in March 2025, I have had
the privilege of being part of Douglas Dynamics for the
past five years in various leadership positions. I am
honored to now lead a team of more than 1,700
exceptional people as we continue to build on a proud
legacy of innovation and success spanning more than
75 years.
As a company, we have navigated a period of significant
change in our operating environment over the past
several years. Together, we successfully managed the
challenges of the COVID-19 pandemic, supply chain
disruptions, inflationary pressures, tariffs, and the
difficult   but necessary   business decisions required
following several consecutive seasons of low snowfall.
After this prolonged snow drought, the most recent
winter brought above-average snowfall across our key
markets, and our teams worked hard to meet the
resulting increase in demand. While the journey has
been demanding, our teams consistently rose to the
occasion. As a result, we are emerging stronger, more
resilient, and better positioned for the opportunities
ahead. Throughout it all, our people and our culture have
remained at the forefront of our priorities.
Leadership and Organizational Strength
We began the year with an important addition to our
leadership team when Chris Bernauer joined the
company as President of Work Truck Attachments in
February. He has quickly demonstrated that his
reputation for driving strong operational performance
and fostering collaborative, high-performing cultures is
well deserved, and that he is an outstanding fit for our
organization. Now in his second year with the company,
Chris continues to build on our legacy of innovation and
quality, while advancing critical initiatives to support the
company   s continued growth and expansion.
In September, we promoted Chad Barker, a more than
30-year company veteran, from Vice President and
General Manager to President of our municipal-focused
operations within Work Truck Solutions. Under Chad   s
leadership, our municipal business has continued to
deliver consistent, profitable growth, making his
promotion both well-deserved and a fitting recognition of
his significant contributions.
We also announced several Board transitions during the
year. In May 2025, Jim Janik decided to step down as
Chairman. Jim continues to serve as a member of the
Board, and we are grateful for his ongoing service and
strategic insights. In his stead, lead director Don
Sturdivant took on the Chairman role. His leadership and
advice have been invaluable, and we are well served by
his steady, thoughtful guidance.
In October 2025, we added two exceptional individuals
to our Board of Directors. Both Jennifer Ansberry and
Brad Nelson bring extensive and highly relevant
experience, provide valuable counsel, and strengthen
the Board   s ability to govern and guide the company. At
the same time, Margaret Dano retired after 13 years of
dedicated service. We are extremely grateful for her
many contributions.
Beyond these significant leadership transitions, our
employees across the company rose to the occasion in
2025, and their commitment and execution were clearly
reflected in the strength of our financial results.
Accomplishments and Milestones
In 2025, Net Sales grew approximately 15% compared
to last year to a record $656.1 million. Net income and
diluted earnings per share were $46.9 million and $1.96,
respectively, and both Adjusted EBITDA and Adjusted
Earnings Per Share increased dramatically. The
generally favorable market conditions for both
segments, coupled with strong operational performance,
delivered excellent year-over-year improvements!
The Work Truck Attachments segment produced strong
results as snowfall arrived early, with major storms in
November and December 2025. The weather helped
complete a much-improved annual performance with
2025 Net Sales and Adjusted EBITDA improving by
double digits compared to last year. The strong early
snowfall continued in the first quarter of 2026, and after
several years of low snowfall, this current snow season
will end above the 10-year average. Our teams are now
switching from meeting demand for parts and
accessories to preparing for what we believe will be a
solid pre-season sales period starting in April 2026.
The Work Truck Solutions segment exceeded our
expectations once again in 2025, delivering record
results and the fourth consecutive year of improvement.
The team delivered double-digit Net Sales growth,
Adjusted EBITDA growth, and record annual margins.
We entered 2026 with robust demand and backlog from
municipal customers, and we continue to work through
the large multi-year contracts that we discussed last
year.
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This strong performance drove excellent free cash flow
in 2025, which we plan to return to shareholders in 2026
through our robust quarterly cash dividend and, to a
lesser extent, through share repurchases if and as
opportunities arise. We will also continue to invest in the
business to drive growth, and, supported by our strong
balance sheet, we believe we are well-positioned to
consider small- to medium-sized acquisitions of complex
attachments in the future.
We also reached a significant milestone in May 2025,
celebrating 15 years as a publicly traded company.
Sarah Lauber, our Executive Vice President & Chief
Financial Officer, rang the opening bell at the New York
Stock Exchange, with members of our Board,
management team, and advisors in attendance. This
anniversary provided an opportunity to reflect on the
significant progress we have made since our IPO. Over
the past 15 years, we have grown the business,
strengthened our market position, and remained
committed to disciplined execution and long-term value
creation.
The Way Forward
Building on our strong financial performance and with a
seasoned management team now in place, we have
crafted a more defined strategic vision for the future,
which manifested itself through the three strategic
pillars: Optimize, Expand, and Activate.
The first priority is to Optimize our current operations.
Continuous improvement is ingrained in our culture, and
the Optimize pillar has helped refocus efforts across the
organization. This included the creation of centers of
excellence within the Work Truck Attachments segment,
where production has shifted from brand-focused to a
product-specific manufacturing approach at each facility.
This has enabled greater specialization and brings the
full breadth of our engineering, supply chain, and
manufacturing expertise to bear across WESTERN,
FISHER, and SnowEx product lines, while leveraging
the unique strengths of each location and workforce.
The third pillar is Activate, which refers to restarting our
acquisition efforts, which ultimately led to the Venco
Venturo team joining the Douglas Dynamics family in
November 2025. Adding this well-established and highly
respected provider of truck-mounted cranes and dump
hoists was a meaningful first step as we look to diversify
and balance our portfolio over the long term. The
integration team has been working diligently to realize
the benefits of this partnership and drive profitable
growth. Venco Venturo exemplifies the type of highquality brands and businesses that align with our longterm vision.
With substantial initiatives now underway across all
three pillars, 2026 began with a clear focus on
sustainable, profitable growth.
In conclusion, 2025 was an important year for our
company:
x We delivered robust financial performance
across both segments.
x Our strategic framework is gaining traction,
with divisional plans aligned around Optimize,
Expand, and Activate beginning to deliver
meaningful results.
x As we look ahead, we remain focused on
building on this momentum and driving
sustainable long-term value creation.
I will close this letter in the same way I began, which is
to thank you for your support of our company! It is an
exciting time in our industry with considerable
opportunities ahead, and our teams are continually
striving to get better every day.
Sincerely,
Mark Van Genderen
President & CEO
The second pillar is Expand, which relates to pursuing
organic geographic growth and new product offerings.
For example, with lead times across the municipal sector
top of mind, we are opening a new municipal upfit facility
in Missouri this year. This expansion will allow us to
better serve customers in surrounding markets and
continue to deliver trucks on time, both of which will
strengthen our competitive advantage.
In addition, the Work Truck Attachments team launched
the auto speed controller for hopper spreaders last year.
This controller is directly linked to the truck CPU and can
automatically adjust the flow of deicing material as the
vehicle speed changes, improving efficiency, reducing
waste, and allowing for better monitoring. Needless to
say, it has been extremely well received by end-user
professionals.
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Forward Looking Statements
This document contains certain forward-looking
statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. These
statements include information relating to future events,
future financial performance, strategies, expectations,
competitive environment, regulation, product demand,
the payment of dividends, and availability of financial
resources. These statements are often identified by use
of words such as "anticipate," "believe," "intend,"
"estimate," "expect," "continue," "should," "could,"
"may," "plan," "project," "predict," "will" and similar
expressions and include references to assumptions and
relate to our future prospects, developments, and
business strategies. Such statements involve known
and unknown risks, uncertainties and other factors that
could cause our actual results, performance, or
achievements to be materially different from any future
results, performance or achievements expressed or
implied by these forward-looking statements. Factors
that could cause or contribute to such differences
include, but are not limited to, weather conditions,
particularly lack of or reduced levels of snowfall and the
timing of such snowfall, our ability to manage general
economic, business and geopolitical conditions,
including the impacts of natural disasters, labor strikes,
global political instability, adverse developments
affecting the banking and financial services industries,
pandemics and outbreaks of contagious diseases and
other adverse public health developments, increases in
the price of steel or other materials, including as a result
of tariffs, necessary for the production of our products
that cannot be passed on to our distributors, our inability
to maintain good relationships with our distributors, our
inability to maintain good relationships with the original
equipment manufacturers with whom we currently do
significant business, lack of available or favorable
financing options for our end-users, distributors or
customers, increases in the price of fuel or freight, a
significant decline in economic conditions, the inability of
our suppliers and original equipment manufacturer
partners to meet our volume or quality requirements,
inaccuracies in our estimates of future demand for our
products, our inability to protect or continue to build our
intellectual property portfolio, the effects of laws and
regulations and their interpretations on our business and
financial condition, including policy or regulatory
changes related to climate change, our inability to
develop new products or improve upon existing products
in response to end-user needs, losses due to lawsuits
arising out of personal injuries associated with our
products, factors that could impact the future declaration
and payment of dividends, or our ability to execute
repurchases under our stock repurchase program, our
inability to effectively manage the use of artificial
intelligence, disruptions at our manufacturing facilities,
our inability to compete effectively against competition,
our inability to successfully implement our new
enterprise resource planning system, our inability to
achieve the projected financial performance with the
assets of Venco Venturo, which we acquired in 2025 and
unexpected costs or liabilities related to such acquisition,
as well as those discussed in the section entitled    Risk
Factors    in our annual report on Form 10-K for the year
ended December 31, 2025 and any subsequent Form
10-Q filings. You should not place undue reliance on
these forward-looking statements. In addition, the
forward-looking statements in this document speak only
as of the date hereof and we undertake no obligation,
except as required by law, to update or release any
revisions to any forward-looking statement, even if new
information becomes available in the future.
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3/20/2026 Letter Continued (Full PDF)

 

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