Douglas Dynamics, Inc. Q4 FY2025 earnings call

• Mark noted the impact of Winter Storm Hernando and the company's navigation of past challenges. • Three main areas of focus: excellent fourth quarter and 2025 performance, expected growth in 2026, and strategic framework including optimize, expand, activate. • For Work Truck Attachments, early winter snowfall boosted sales and parts/accessories performance. • Work Truck Solutions exceeded expectations with record quarter and year, strong municipal demand but some softening in commercial dealer business. • Strategic pillars: optimize with centers of excellence, expand with new facilities and products, activate with M&A including Venco Venturo acquisition.

Work Truck Attachments: Fourth quarter net sales and adjusted EBITDA increased by over 50% to $83.1 million and $13.9 million respectively, driven by early winter snowfall and record parts/accessories sales. Full year net sales up ~16% to $295.7 million, adjusted EBITDA up 16% to $56.2 million. Work Truck Solutions: Fourth quarter net sales up ~13% to $101.5 million, adjusted EBITDA up ~22% to $11.9 million. Full year net sales up ~15%, adjusted EBITDA up 35%, adjusted EBITDA margins to a record 11.6%.

• Expect 2026 net sales between $710 million and $760 million. • Adjusted EBITDA predicted to range from $100 million to $120 million. • Adjusted earnings per share expected in range of $2.25 to $2.85. • Effective tax rate expected to be approximately 24% to 25%. • Assumes above-average snowfall in first quarter and average in fourth quarter to address replacement cycle.

• Forward-looking statements subject to risks including those described in press release and SEC filings.

Q: Mike Shlisky asked about segment growth outlook and margin leverage.

A: Solutions expected mid-to-high single-digit growth, remaining growth in attachments due to Venco and Q1 snowfall. Margin leverage on solutions from optimize/expand, attachments margins relatively flat.

Q: Timothy Wojs asked about parts and accessory performance, margin leverage.

A: Parts/accessories ~14-15% of sales, margin flat in fourth quarter due to factors like Venco and variable compensation.

Q: Greg Burns asked about Solutions segment strength, Missouri facility, Attachments margin.

A: Solutions strength due to team execution, Missouri facility targeting second quarter, Attachments margin flat due to Venco and variable factors.