Douglas Dynamics (NYSE:PLOW) Shares Gap Up After Better-Than-Expected Earnings

Shares of Douglas Dynamics, Inc. (NYSE:PLOW) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $42.64, but opened at $44.71. Douglas Dynamics shares last traded at $45.36, with a volume of 108,405 shares trading hands.

The auto parts company reported $0.62 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.06. The firm had revenue of $184.54 million during the quarter, compared to analyst estimates of $169.95 million. Douglas Dynamics had a net margin of 6.82% and a return on equity of 16.18%. Douglas Dynamics has set its FY 2026 guidance at 2.250-2.850 EPS.

Douglas Dynamics Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th will be issued a $0.295 dividend. This represents a $1.18 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Tuesday, March 17th. Douglas Dynamics’s payout ratio is 67.05%.

Key Stories Impacting Douglas Dynamics

Here are the key news stories impacting Douglas Dynamics this week:

• Positive Sentiment: Q4 results beat expectations — Douglas Dynamics reported $0.62 EPS vs. $0.56 expected and revenue of $184.5M vs. $169.95M consensus, signaling stronger demand and margin improvement. Douglas Dynamics (PLOW) Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Record FY performance and strategic M&A — FY2025 adjusted EPS rose sharply (adjusted diluted EPS $2.24) and consolidated net sales were a record $656.1M; the company also closed the Venco Venturo acquisition to broaden truck-mounted product lines. Douglas Dynamics Reports Record 2025 Performance & Venco Venturo Acquisition
• Positive Sentiment: Dividend declared — Board approved a quarterly cash dividend of $0.295 per share (payable Mar 31; record date Mar 17), supporting total yield (~2.8%) and signaling shareholder return priority. Douglas Dynamics declares $0.295 dividend
• Positive Sentiment: 2026 revenue guidance slightly above consensus — Company gave 2026 net sales guidance of $710M–$760M (consensus ~$705M), indicating management expects continued top-line strength. Douglas Dynamics Reports Strong Fourth Quarter And Full Year 2025 Results
• Positive Sentiment: Cash generation & margins improved — Free cash flow and adjusted EBITDA rose materially in 2025, strengthening the balance sheet and capacity for buybacks/dividends. Douglas Dynamics Reports Strong Fourth Quarter And Full Year 2025 Results
• Neutral Sentiment: Guidance is a range — FY2026 EPS guidance of $2.25–$2.85 overlaps consensus (2.30) but is wide; investors will watch margin/seasonality assumptions and the forthcoming conference call for detail. Douglas Dynamics Reports Strong Fourth Quarter And Full Year 2025 Results
• Neutral Sentiment: Conference call / investor details — Management will host an earnings call today; investors should listen for commentary on inventory, municipal backlogs, and M&A integration. View Press Release
• Negative Sentiment: GAAP net income was lower year-over-year — Full-year GAAP net income declined (FY2025 $46.9M vs. $56.2M in 2024) and GAAP EPS is affected by one-time items, which may concern some value-focused investors. Douglas Dynamics Reports Strong Fourth Quarter And Full Year 2025 Results
• Negative Sentiment: Weather dependency and seasonality risk — Parts & accessories strength was weather-driven (heavy snowfall); a milder winter or inventory normalization could reverse recent demand gains. Douglas Dynamics, Inc. Reports Record 2025 Financial Performance and Acquisition of Venco Venturo

Analysts Set New Price Targets

PLOW has been the topic of several recent research reports. Wall Street Zen cut Douglas Dynamics from a “strong-buy” rating to a “buy” rating in a report on Saturday, November 22nd. DA Davidson reissued a “buy” rating and issued a $39.00 price objective on shares of Douglas Dynamics in a research note on Monday, December 8th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Douglas Dynamics in a research note on Monday, December 29th. One analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $39.00.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. CIBC Private Wealth Group LLC lifted its position in shares of Douglas Dynamics by 229.9% during the third quarter. CIBC Private Wealth Group LLC now owns 1,204 shares of the auto parts company’s stock worth $38,000 after purchasing an additional 839 shares during the last quarter. State of Alaska Department of Revenue acquired a new stake in Douglas Dynamics in the third quarter valued at approximately $39,000. EverSource Wealth Advisors LLC increased its position in Douglas Dynamics by 85.4% during the 3rd quarter. EverSource Wealth Advisors LLC now owns 1,266 shares of the auto parts company’s stock valued at $40,000 after buying an additional 583 shares in the last quarter. Tower Research Capital LLC TRC boosted its stake in Douglas Dynamics by 136.6% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,257 shares of the auto parts company’s stock worth $67,000 after purchasing an additional 1,303 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC purchased a new position in Douglas Dynamics in the 3rd quarter worth $69,000. Institutional investors own 91.85% of the company’s stock.

Douglas Dynamics Trading Up 3.8%

The company has a quick ratio of 1.09, a current ratio of 2.01 and a debt-to-equity ratio of 0.50. The stock has a 50-day moving average of $37.07 and a 200 day moving average of $33.66. The stock has a market cap of $1.02 billion, a PE ratio of 25.15, a price-to-earnings-growth ratio of 1.43 and a beta of 1.26.

Douglas Dynamics Company Profile

Douglas Dynamics, Inc is a leading designer, manufacturer and distributor of snow and ice removal equipment for commercial, municipal and residential markets. The company’s product portfolio encompasses a wide range of truck-mounted plows, spreaders, salt brine systems and related accessories engineered to perform in challenging winter conditions. Its offerings cater to professional snow contractors, government agencies and retail customers seeking reliable solutions for snow and ice management.

Douglas Dynamics markets its products under several well-known brands, including Fisher Engineering, Western Products, Hiniker Company and Buyers Products.