Douglas Dynamics, Inc. has reported its financial results for the fourth quarter and full year of 2024, showcasing improvements across various metrics compared to the prior year.
In the full year 2024, the company reported net sales of $568.5 million, with net income of $56.2 million and diluted earnings per share of $2.36. Notably, adjusted net income and adjusted diluted EPS both increased by approximately 45% to $35.2 million and $1.47, respectively, compared to the full year 2023.
The work truck solutions segment produced record full-year results, while the work truck attachments segment delivered improved margins. The 2024 cost savings program exceeded expectations, delivering over $10 million in savings.
Key financial metrics for the consolidated results in the fourth quarter and full year 2024 showed improvements compared to the prior year. Notably, net sales were $568.5 million for the full year 2024, slightly up from $568.2 million in 2023. Full-year gross margins increased by 220 basis points compared to the prior year, reaching 25.8%, driven by improved price realization and throughput at solutions and the impact of the 2024 cost savings program.
Adjusted EBITDA increased by 16.4% to $79.3 million for 2024, compared to $68.1 million in 2023, while adjusted earnings per share for 2024 increased approximately 45% to $1.47 compared to $1.01 in 2023.
The work truck attachments segment faced the impact of low snowfall in core markets, leading to lower net sales for the quarter and full year. However, the 2024 cost savings program allowed attachments to maximize profitability, with adjusted EBITDA margins improving by 160 basis points to 18.9% for 2024.
In the work truck solutions segment, net sales grew by 13.0% to $312.5 million for the full year 2024, while adjusted EBITDA increased by 75.6% to $30.9 million, with margins of 9.9%, a 350-basis point improvement compared to 2023.
The company's liquidity saw significant improvement, with net cash provided by operating activities increasing from $12.5 million in 2023 to $41.1 million in 2024. Additionally, free cash flow for 2024 was $33.3 million, a significant improvement compared to $1.9 million in 2023.
Looking ahead, Douglas Dynamics has provided its 2025 outlook, anticipating net sales to be between $610 million and $650 million, adjusted EBITDA to range from $75 million to $95 million, and adjusted earnings per share to be in the range of $1.30 to $2.10.
The market has reacted to these announcements by moving the company's shares 6.5% to a price of $27.05. Check out the company's full 8-K submission here.
