Douglas Dynamics, Inc. has reported its third-quarter 2024 financial results, revealing several significant changes compared to the same period in 2023. The company saw a decrease in net sales from $144.1 million in Q3 2023 to $129.4 million in Q3 2024. However, despite the drop in net sales, the gross profit margin increased by 160 basis points to 23.9% in Q3 2024 from 22.3% in Q3 2023, driven by higher price realization and the impact of the 2024 cost savings program.
Income from operations rose to $45.9 million in Q3 2024 from $11.5 million in Q3 2023, while net income surged to $32.3 million from $5.8 million, and diluted earnings per share (EPS) increased to $1.36 from $0.24.
The company reported that the adjusted EBITDA decreased to $15.3 million in Q3 2024 from $17.3 million in Q3 2023 due to lower volumes at attachments. However, the work truck solutions segment delivered record third-quarter results with net sales of $69.1 million, adjusted EBITDA of $7.2 million, and an adjusted EBITDA margin of 10.4%, which represents a significant improvement from the same period last year.
The company's 2024 financial outlook has been adjusted, with the net sales guidance range lowered to between $570 million and $600 million, adjusted EBITDA predicted to range from $70 million to $80 million, and adjusted EPS expected to be in the range of $1.20 per share to $1.60 per share. The effective tax rate is anticipated to be approximately 24% to 25%.
The company's liquidity position has improved, with $90.9 million of total liquidity as of September 30, 2024, and the leverage ratio returning to 2.6x at the end of the third quarter, down from the previously amended 3.5x. Additionally, the company reported a quarterly cash dividend of $0.295 per share of common stock paid on September 30, 2024.
Today the company's shares have moved -10.5% to a price of $23.33. Check out the company's full 8-K submission here.
