Q2 2026 Douglas Dynamics Inc Earnings Call

August 3, 2026

Speaker #1: Good day, and welcome to the Douglas Dynamics second quarter 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Operator: Good day, welcome to the Douglas Dynamics Second Quarter 2026 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Nathan Elwell, Vice President of Investor Relations. Please go ahead.

Speaker #1: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on a touchtone phone.

Speaker #1: To withdraw your question, please press star, then 2. Please note, this event is being recorded. I would now like to turn the conference over to Nathan Elwell, Vice President of Investor Relations.

Speaker #1: Please go ahead.

Speaker #2: Thank you. Welcome, everyone, and thank you for joining us on today's call. Before we begin, I would like to remind you that some of the comments that will be made during this conference call, including answers to your questions, will constitute forward-looking statements.

Nathan Elwell: Thank you. Welcome everyone, and thank you for joining us on today's call. Before we begin, I would like to remind you that some of the comments that will be made during this conference call, including answers to your questions, will constitute forward-looking statements. These forward-looking statements are subject to risks that could cause actual results to be materially different. Those risks include, among others, matters that we have described in today's press release and in our filings with the SEC. Please note the quarterly fact sheet can be found on our IR website. Joining me on the call today is Mark Van Genderen, President and CEO, and Sarah Lauber, Executive Vice President and CFO. Mark will provide an overview of our performance, followed by Sarah reviewing our financial results and guidance. After that, we'll open the call for questions. With that, I'll hand the call over to Mark.

Speaker #2: These forward-looking statements are subject to risks that could cause actual results to be materially different. Those risks include, among others, matters that we have described in today's press release and in our filings with the SEC.

Speaker #2: Please note the quarterly fact sheet can be found on our IR website. Joining me on the call today are Mark Van Genderen, President and CEO, and Sarah Lauber, Executive Vice President and CFO.

Speaker #2: Mark will provide an overview of our performance, followed by Sarah reviewing our financial results and guidance. After that, we'll open the call for questions.

Speaker #2: With that, I'll hand the call over to Mark. Please go ahead.

Nathan Elwell: Please go ahead.

Speaker #3: Thanks, Nathan. And welcome to our call, everyone. We're pleased to report that both segments performed well in Q2, resulting in a record quarter for the company.

Mark Van Genderen: Thanks, Nathan, and welcome to our call, everyone. We're pleased to report that both segments performed well in Q2, resulting in a record quarter for the company. These continued results underscore the strength of our current position, the markets we serve, the positive market conditions we're experiencing today, how well we're operating across almost every facet of our business, and ultimately, are just a fantastic example of a team effort across the entire company. In the Work Truck Attachments segment, our team responded exceptionally well to the elevated demand created by last winter's snowfall, delivering strong operational performance. Meanwhile, the Work Truck Solutions segment delivered another excellent quarter, continuing the pattern of strong results that has characterized the business in recent years. Sarah will share more details shortly, but as a quick summary, three key factors have been driving our performance so far this year.

Speaker #3: These continued results underscore the strength of our current position in the markets we serve, the positive market conditions we're experiencing today, how well we're operating across almost every facet of our business, and ultimately are just a fantastic example of a team effort across the entire company.

Speaker #3: In the Attachment segment, our team responded exceptionally well to the elevated demand created by last winter's snowfall, delivering strong operational performance. Meanwhile, the Solutions segment delivered another excellent quarter, continuing the pattern of strong results that has characterized the business in recent years.

Speaker #3: Sarah will share more details shortly. But as a quick summary, three key factors have been driving our performance so far this year. First, above-average snowfall last winter created strong pre-season demand at Attachments.

Mark Van Genderen: First, above-average snowfall last winter created strong pre-season demand at Work Truck Attachments. Second, ongoing robust demand for our municipal-focused products and services at Work Truck Solutions. Third, our teams have really maintained an unwavering focus on execution, meeting near-term customer demand while continuing to advance our long-term strategic priorities. While performance was strong across the company, results in the Work Truck Attachments segment really exceeded our expectations. This gives us the confidence to raise our full-year guidance once again, which Sarah will discuss later in the call. Let me walk through our performance by segment, starting with Work Truck Attachments. As you know, our dealers put in pre-season orders for the upcoming winter during Q2 each year. I'm pleased to share that very solid retail sales, combined with lower plow and hopper field inventory, drove strong pre-season orders during the quarter.

Speaker #3: Second, ongoing robust demand for our municipal-focused products and services at Solutions; and third, our teams have really maintained an unwavering focus on execution, meeting near-term customer demand while continuing to advance our long-term strategic priorities.

Speaker #3: While performance was strong across the company, results in the Attachment segment really exceeded our expectations. This gives us the confidence to raise our full-year guidance once again, which Sarah will discuss later in the call.

Speaker #3: Let me walk through our performance by segment, starting with Work Truck Attachments. As you know, our dealers put in pre-season orders for the upcoming winter during Q2 each year.

Speaker #3: I'm pleased to share that very solid retail sales, combined with lower plow and hopper field inventory, drove strong pre-season orders during the quarter. Our team did a great job delivering roughly the first half of these orders, resulting in year-over-year top and bottom-line growth.

Mark Van Genderen: Our team did a great job delivering roughly the H1 of these orders, resulting in year-over-year top and bottom line growth. Furthermore, we continue to expect a pre-season shipment mix of roughly 50% in Q2 and 50% in Q3. For context, in 2025, we shipped approximately 60% of pre-season orders in the Q2 and 40% in the Q3. Bottom line, we anticipate a very strong Q3 in Work Truck Attachments. We will continue to ship these remaining pre-season orders to our dealers over the next several weeks, so they will be ready to install the products as we move into their main retail season before winter weather arrives. Based on the ordering patterns we have observed and our most recent field inventory taken in Q2, it is clear that dealer inventories are lower than they have been in recent years.

Speaker #3: Furthermore, we continue to expect a pre-season shipment mix of roughly 50% in Q2 and 50% in Q3. For context, in 2025, we shipped approximately 60% of pre-season orders in the second quarter and 40% in the third quarter.

Speaker #3: So, bottom line, we anticipate a very strong Q3 in attachments. We will continue to ship these remaining pre-season orders to our dealers over the next several weeks so they will be ready to install the products as we move into their main retail season before winter weather arrives.

Speaker #3: And based on the ordering patterns we've observed, and our most recent field inventory taken in Q2, it's clear that dealer inventories are lower than they have been in recent years.

Speaker #3: This means, in addition to strong demand, our pre-season has seen a boost from dealers who are rebuilding their inventories. We are also in the process of building more finished goods inventory compared to last year, so that we're ready to ship to dealers in season when the snow starts to fly.

Mark Van Genderen: This means, in addition to strong demand, our pre-season has seen a boost from dealers who are rebuilding their inventories. We are also in the process of building more finished goods inventory compared to last year so that we are ready to ship to dealers in-season when the snow starts to fly. It is not just whole goods. You may remember that we achieved record parts and accessories sales in 2025. Well, based on current trends, we expect to surpass that record by the end of the Q3 this year, which is just a tremendous achievement by our team. As always, we will continue to closely monitor reorder activity during the H2 of the year and weather trends once we get into the Q4. Staying with Work Truck Attachments, but switching gears to cranes and hoists, the integration of Venco Venturo is essentially complete.

Speaker #3: And it's not just whole goods. You may remember that we achieved record parts and accessories sales in 2025. Well, based on current trends, we expect to surpass that record by the end of the third quarter this year, which is just a tremendous achievement by our team.

Speaker #3: As always, we'll continue to closely monitor reorder activity during the second half of the year, and weather trends once we get into the fourth quarter.

Speaker #3: So, staying with attachments but switching gears to cranes and hoists, the integration of Venco Venturo is essentially complete. Our new team in Cincinnati is incredibly receptive too, and already benefiting from Douglas’s manufacturing, sourcing, and operational expertise.

Mark Van Genderen: Our new team in Cincinnati is incredibly receptive to, and already benefiting from, Douglas Dynamics's manufacturing, sourcing, and operational expertise, which is contributing to improved execution across the business. To wrap up Work Truck Attachments, we remain optimistic about our Q3 performance and believe we are ready for whatever the weather brings us in the Q4. All right, turning to Work Truck Solutions, where municipal demand continues to be a key source of strength and where we are investing to expand our capacity to meet customer needs. Of course, we know results and solutions will naturally fluctuate from quarter to quarter. After delivering record Q2 results in both 2024 and 2025, we are pleased to deliver another excellent Q2 in 2026. Our municipal business continues to generate growth, supported by ongoing operational improvements and our continued strong competitive position in the market is the main driver behind our strong backlog.

Speaker #3: This has contributed to improved execution across the business. To wrap up Attachments, we remain optimistic about our third quarter performance and believe we are ready for whatever the weather brings us in the fourth quarter.

Speaker #3: All right. So, turning to work truck solutions, where municipal demand continues to be a key source of strength, and where we're investing to expand our capacity to meet customer needs.

Speaker #3: Of course, we know results and solutions will naturally fluctuate from quarter to quarter. And after delivering record second-quarter results in both 2024 and 2025, we're pleased to deliver another excellent second quarter in 2026.

Speaker #3: Our municipal business continues to generate growth, supported by ongoing operational improvements, and our continued strong competitive position in the market is the main driver behind our strong backlog.

Speaker #3: To support this growth, I'm pleased to confirm that our new purpose-built facility in Missouri is now open and fully operational, right on schedule. We're also expanding our manufacturing operations in Manchester, Iowa, with the addition of a new logistics facility.

Mark Van Genderen: To support this growth, I am pleased to confirm that our new purpose-built facility in Missouri is now open and fully operational, right on schedule. We are also expanding our manufacturing operations in Manchester, Iowa, with the addition of a new logistics facility. Construction is already underway and we expect the building to begin operations during the Q4. Once complete, it will also free up valuable space within our existing manufacturing facility and help improve throughput and efficiency. More recently, we announced the planned relocation of our Ohio Upfit Center to a larger, better-suited facility, which will increase capacity and efficiency. These investments represent important additions to our capacity and position us well to exceed customer expectations and support future growth opportunities. As I mentioned earlier, the strength of our municipal business helped offset softer demand in certain areas of our commercial operations.

Speaker #3: Construction is already underway, and we expect completion in the fourth quarter. Once complete, it will also free up valuable space within our existing manufacturing facility and help improve throughput and efficiency.

Speaker #3: And more recently, we announced the planned relocation of our Ohio upfit center to a larger, better-suited facility, which will increase capacity and efficiency. These investments represent important additions to our capacity and position us well to exceed customer expectations and support future growth opportunities.

Speaker #3: As I mentioned earlier, the strength of our municipal business helped offset softer demand in certain areas of our commercial operations. As we continue to navigate shifting demand trends, we are taking targeted actions to optimize our sales and marketing efforts, while aligning our cost structure to preserve profitability wherever possible.

Mark Van Genderen: As we continue to navigate shifting demand trends, we are taking targeted actions to optimize our sales and marketing efforts while aligning our cost structure to preserve profitability wherever possible. It's encouraging to note that our dealer channel, which has historically been one of the more difficult parts of the business to forecast, has shown signs of improvement recently and is trending in the right direction. Another trend we observed recently that several of our larger fleet customers have paused their ordering as they evaluate the current geopolitical and economic landscape. This is an important distinction, as these orders have been put on hold, so to speak, rather than lost to competitors. Overall, we continue to expect another solid year from the Solutions segment as well. All right. With the results of another strong quarter covered, I'd like to take a moment to focus on the bigger picture.

Speaker #3: It's encouraging to note that our dealer channel, which has historically been one of the more difficult parts of the business to forecast, has shown signs of improvement recently and is trending in the right direction.

Speaker #3: Another trend we've observed recently is that several of our larger fleet customers have paused their ordering as they evaluate the current geopolitical and economic landscape.

Speaker #3: This is an important distinction, as these orders have been put on hold, so to speak, rather than lost to competitors. Overall, we continue to expect another solid year from the Solutions segment as well.

Speaker #3: All right. So, with the results of another strong quarter covered, I'd like to take a moment to focus on the bigger picture. Over the last several quarters, our leadership team has taken the time to reflect on what makes our company great.

Mark Van Genderen: Over the last several quarters, our leadership team has taken the time to reflect on what makes our company great. Namely, the dedication and expertise of our people, the strength of our iconic brands, and the impact our products have on helping keep people safe and communities thriving. Two things really became clear during these discussions. First, we've traditionally focused our strategy and structure at the individual brand level. Second, we needed a clearer, more consistent, and inspirational way to communicate who we are, what guides our decisions, and where we're headed over the long term, not just for each of our divisions, but for Douglas Dynamics as a whole. This is why, over the last several quarters, we've shared how we're reframing and executing our strategy. First, through the three pillars of optimize, expand, and activate. A clarifying and compelling foundational framework now being used across the company.

Speaker #3: Namely, the dedication and expertise of our people, the strength of our iconic brands, and the impact our products have on helping keep people safe and communities thriving.

Speaker #3: Two things really became clear during these discussions. First, we've traditionally focused our strategy and structure at the individual brand level. And second, we needed a clearer, more consistent, and inspirational way to communicate who we are, what guides our decisions, and where we're headed over the long term.

Speaker #3: Not just for each of our divisions, but for Douglas Dynamics as a whole. This is why, over the last several quarters, we've shared how we're reframing and executing our strategy.

Speaker #3: First, through the three pillars of optimize, expand, and activate—a clarifying and compelling foundational framework now being used across the company. And second, the creation and introduction of an updated mission and vision.

Mark Van Genderen: Second, the creation and introduction of an updated mission and vision. At Douglas Dynamics, our mission is to keep people safe and communities thriving. This simple, memorable tenet underscores the importance of the work our employees do every day. In snow and ice control, our products literally help save lives and keep our communities on the road and able to function during winter weather. Across our outfitting operations, we provide the equipment and outfit the vehicles that ensure professionals across countless industries can do their jobs safely, efficiently, and productively. Just as importantly, we believe safe and thriving applies to the community we've built inside Douglas Dynamics. Our people have always been our greatest competitive advantage. Creating an environment where our people feel safe, supported, and proud of the work they do is of paramount importance.

Speaker #3: At Douglas Dynamics, our mission is to keep people safe and communities thriving. This simple, memorable tenet underscores the importance of the work our employees do every day.

Speaker #3: In snow and ice control, our products literally help save lives and keep our communities on the road and able to function during winter weather.

Speaker #3: And across our upfitting operations, we provide the equipment and upfit the vehicles that ensure professionals across countless industries can do their jobs safely, efficiently, and productively.

Speaker #3: Just as importantly, we believe "safe and thriving" applies to the community we've built inside Douglas Dynamics. Our people have always been our greatest competitive advantage, and creating an environment where our people feel safe, supported, and proud of the work they do is of paramount importance.

Speaker #3: As we look to the future, our vision is to build the most comprehensive portfolio of trusted work vehicle attachments and solutions that set the standard for safety, quality, and productivity, backed by the best team in the industry.

Mark Van Genderen: As we look to the future, our vision is to build the most comprehensive portfolio of trusted work vehicle attachments and solutions that set the standard for safety, quality, and productivity, backed by the best team in the industry. Now, we already know we have the best team in the industry, but this vision reinforces our commitment to investing in great people, delivering products that customers trust and rely on, expanding thoughtfully into adjacent markets, and continuing to build a stronger, more diversified company. Now, ultimately, this framework doesn't change who we are. It provides a clearer way to provide purpose to our teams internally, while more clearly explaining where we're headed externally. As we continue to execute our strategy and pursue future opportunities, you'll hear us reference these ideas more consistently because they represent the lens through which we're making decisions and building Douglas Dynamics for the long term.

Speaker #3: Now, we already know we have the best team in the industry. But this vision reinforces our commitment to investing in great people, delivering products that customers trust and rely on, expanding thoughtfully into adjacent markets, and continuing to build a stronger, more diversified company.

Speaker #3: Now, ultimately, this framework doesn't change who we are. It provides a clearer way to give purpose to our teams internally, while more clearly explaining where we're headed externally.

Speaker #3: As we continue to execute our strategy and pursue future opportunities, you'll hear us reference these ideas more consistently, because they represent the lens through which we're making decisions and building Douglas Dynamics for the long term.

Speaker #3: To conclude, our business is performing well, our operations are executing efficiently, and the end markets we serve support continued growth opportunities. The strength of these fundamentals is clearly reflected in our results.

Mark Van Genderen: To conclude, our business is performing well, our operations are executing efficiently, and the end markets we serve support continued growth opportunities. The strength of these fundamentals is clearly reflected in our results. To all of our employees, thank you. These record-setting results are a direct reflection of your hard work, commitment, and focus on delivering every day for our customers. To all of our stakeholders, this is an exciting time for Douglas Dynamics. As we move through Q3, we remain confident in our ability to execute our strategic priorities and continue making progress towards our long-term vision. While we are justifiably proud of what we have accomplished so far in 2026, there is a lot more we are aiming to achieve in the years ahead. On that note, I'd like to pass the call to Sarah.

Speaker #3: So, to all of our employees, thank you. These record-setting results are a direct reflection of your hard work, commitment, and focus on delivering every day for our customers.

Speaker #3: And to all of our stakeholders, this is an exciting time for Douglas Dynamics. As we move through the third quarter, we remain confident in our ability to execute our strategic priorities and continue making progress toward our long-term vision.

Speaker #3: While we are justifiably proud of what we have accomplished so far in 2026, there is a lot more we are aiming to achieve in the years ahead.

Speaker #3: And on that note, I'd like to pass the call to Sarah.

Speaker #2: Thanks, Mark. I'll start by walking through the quarter before turning to our increased guidance, and then we'll open it up to questions. Before I talk to the numbers, unless dated otherwise, all these comparisons I'll make today are between the second quarter of 2026 and the second quarter of 2025.

Sarah Lauber: Thanks, Mark. I'll start by walking through the quarter before turning to our increased guidance, and then we'll open it up to questions. Before I talk to the numbers, unless stated otherwise, all these comparisons I'll make today are between Q2 2026 and Q2 2025. As Mark noted, it was a record Q2 overall, with both segments delivering strong financial results. Combined with our excellent Q1 performance, we generated outstanding results for H1 2026, we are well-positioned as we move into H2. Based on the outperformance of the Work Truck Attachments segment, the ongoing strong performance of Work Truck Solutions, and our visibility now into Q3, we've raised our guidance ranges, which I will also discuss.

Speaker #2: As Mark noted, it was a record second quarter overall, with both segments delivering strong financial results. Combined with our excellent first quarter performance, we generated outstanding results for the first half of 2026, and we are well positioned as we move into the back half of the year.

Speaker #2: Based on the outperformance of the Attachments segment, the ongoing strong performance of Solutions, and our visibility now into the third quarter, we've raised our guidance ranges, which I will also discuss.

Speaker #2: Turning to the numbers, consolidated net sales increased 10% to a record $214.6 million, driven primarily by robust pre-season orders in work truck attachments, while gross margins remained strong at 31%, flat with last year.

Sarah Lauber: Turning to the numbers, consolidated net sales increased 10% to a record $214.6 million, driven primarily by robust pre-season orders at Work Truck Attachments, while gross margins remained strong at 31%, flat with last year. SG&A expenses increased 37% to $29.8 million as improved performance led to higher variable incentive and stock-based compensation along with increased employee costs associated with the addition of Venco Venturo. Adjusted EBITDA increased 5% to a record $44.6 million, adjusted earnings per share increased 7% to a record $1.22. We saw quite a few record consolidated numbers this quarter. Before going further, I want to remind you that the tariffs that impacted many companies recently were not material for Douglas Dynamics. As we source the vast majority of our materials in North America, we manufacture solely in the US, 95% of our sales are also in the US.

Speaker #2: SG&A expenses increased 37% to $29.8 million, as improved performance led to higher variable incentive and stock-based compensation, along with increased employee costs associated with the addition of Venco Venturo.

Speaker #2: Adjusted EBITDA increased 5% to a record $44.6 million, and adjusted earnings per share increased 7% to a record $1.22. So, we saw quite a few record consolidated numbers this quarter.

Speaker #2: Before going further, I want to remind you that the tariffs that impacted many companies recently were not material for Douglas Dynamics. As we sourced the vast majority of our materials in North America, we manufacture solely in the US, and 95% of our sales are also in the US.

Speaker #2: While we have received IEPA refunds, they are not material, and they've been accounted for in our results and in our updated outlook for the year.

Sarah Lauber: While we have received IEEPA refunds, they are not material, they've been accounted for in our results and in our updated outlooks for the year. Okay, let's look at the results for the two segments. Work Truck Attachments delivered a fantastic quarter, exceeding our initial expectations. Performance was driven primarily by strong preseason demand, particularly for parts and accessories, as well as the efficient manufacturing and shipping execution of our team. Net sales increased 20% to $129.3 million, driven by strong demand on above average snowfall and the addition of Venco Venturo. Adjusted EBITDA increased 13% to $35.8 million, with adjusted EBITDA margins of 27.7%. As Mark mentioned, the ratio of preseason shipments in 2026 is expected to be close to a 50/50 split between Q2 and Q3 compared to a 60/40 split last year.

Speaker #2: Okay, let's look at the results for the two segments. Work Truck Attachments delivered a fantastic quarter, exceeding our initial expectations. Performance was driven primarily by strong pre-season demand, particularly for parts and accessories, as well as the efficient manufacturing and shipping execution of our team.

Speaker #2: Net sales increased 20% to $129.3 million, driven by strong demand on above-average snowfall and the addition of Venco Venturo. Adjusted EBITDA increased 13% to $35.8 million, with adjusted EBITDA margins of 27.7%.

Speaker #2: As Mark mentioned, the ratio of pre-season shipments in 2026 is expected to be close to a 50/50 split between the second and third quarters, compared to a 60/40 split last year.

Speaker #2: While margins remain strong, they were impacted relative to last year by the addition of Venco Venturo, as well as the timing of pre-season shipments and changes in product mix.

Sarah Lauber: While margins remained strong, they were impacted relative to last year by the addition of Venco Venturo, as well as the timing of preseason shipments and changes in product mix. As we noted last quarter, the more balanced timing of preseason shipments between Q2 and Q3 can create some quarter-to-quarter variability in margins. Looking ahead, the outlook for attachments remains positive. We are on track to deliver improved margins for the year. We are also on track to complete our preseason shipments by the end of Q3, and we expect to enter Q4 with healthy inventory level, well-positioned for the start of the winter season. Turning to Work Truck Solutions, our net sales of $85.3 million were relatively flat compared to the record results achieved last year. While Adjusted EBITDA was $8.8 million.

Speaker #2: As we noted last quarter, the more balanced timing of pre-season shipments between the second and third quarters can create some quarter-to-quarter variability in margins.

Speaker #2: Looking ahead, the outlook for attachments remains positive. We are on track to deliver improved margins for the year. We are also on track to complete our pre-season shipments by the end of the third quarter.

Speaker #2: And we expect to enter the fourth quarter with healthy inventory levels, well positioned for the start of the winter season. Turning to Work Truck Solutions, our net sales of $85.3 million were relatively flat compared to the record results achieved last year.

Speaker #2: While adjusted EBITDA was $8.8 million, we are pleased with these results, particularly given the difficult comparisons to the record second quarters achieved in both '24 and '25.

Sarah Lauber: We are pleased with these results, particularly given the difficult comparisons to the record Q2s achieved in both 2024 and 2025. The demand trends continue with performance driven by the continued strength of our municipal operations, which help offset ongoing softness in certain areas of the commercial business that led to lower volumes and greater inefficiencies. Municipal demand remains strong. We are booking production dates well into 2027 and added approximately 10% of additional municipal capacity. At the same time, we are maintaining discipline around our cost structure in the areas of the commercial business that exhibit softness. All in all, another great quarter of positive results for solutions. With the results for the quarter covered, let's turn to the balance sheet and liquidity. Net cash used in operating activities increased $12.5 million to $25.2 million for H1 of the year.

Speaker #2: The demand trends continue, with performance driven by the continued strength of our municipal operations, which help offset ongoing softness in certain areas of the commercial business that led to lower volumes and greater inefficiencies.

Speaker #2: Municipal demand remains strong. We are booking production dates well into 2027 and have added approximately 10% of additional municipal capacity. At the same time, we are maintaining discipline around our cost structure in the areas of the commercial business that exhibit softness.

Speaker #2: All in all, another great quarter of positive results for Solutions. With the results for the quarter covered, let's turn to the balance sheet and liquidity.

Speaker #2: Net cash used in operating activities increased $12.5 million to $25.2 million for the first half of the year. Year to date, free cash flow decreased approximately $14.6 million to negative $32.5 million, compared to negative $17.8 million in the first half of 2025.

Sarah Lauber: Year-to-date, free cash flow decreased approximately $14.6 million to $-32.5 million, compared to $-17.8 million in H1 of 2025. The main factors were higher inventory, which was needed to meet demand, and increased receivables driven by higher net sales. At midyear, we maintained $69.4 million of total liquidity, comprised of $1.9 million in cash and $67.5 million of available capacity on our revolver, which is more than ample for our needs this year. Capital expenditures increased by $2.2 million to $7.3 million in H1 of the year, which is right in line with our plans. Looking at 2026 as a whole, we still expect full-year CapEx to be within our traditional, relatively modest range of 2% to 3% of net sales. Our capital allocation priorities remain consistent.

Sarah Lauber: Year-to-date, free cash flow decreased approximately $14.6 million to -$32.5 million, compared to -$17.8 million in H1 of 2025. The main factors were higher inventory, which was needed to meet demand, and increased receivables driven by higher net sales. At midyear, we maintained $69.4 million of total liquidity, comprised of $1.9 million in cash and $67.5 million of available capacity on our revolver, which is more than ample for our needs this year. Capital expenditures increased by $2.2 million to $7.3 million in H1 of the year, which is right in line with our plans. Looking at 2026 as a whole, we still expect full-year CapEx to be within our traditional, relatively modest range of 2% to 3% of net sales. Our capital allocation priorities remain consistent.

Speaker #2: The main factors were higher inventory, which was needed to meet demand, and increased receivables driven by higher net sales. At mid-year, we maintained $69.4 million of total liquidity.

Speaker #2: Comprised of $1.9 million in cash and $67.5 million of available capacity on our revolver, which is more than ample for our needs this year.

Speaker #2: Capital expenditures increased by $2.2 million to $7.3 million in the first half of the year, which is right in line with our plans. And looking at 2026 as a whole, we still expect full-year capex to be within our traditional, relatively modest range of 2 to 3% of net sales.

Speaker #2: Our capital allocation priorities remain consistent. We're committed to returning excess cash to shareholders via the strong dividend we've consistently paid for 16 years. We also repurchased around 67,500 shares, and when combined, we returned a total of $10.1 million to shareholders during the quarter.

Sarah Lauber: We're committed to returning excess cash to shareholders via the strong dividend we've consistently paid for 16 years. We also repurchased around 67,500 shares, and when combined, we returned a total of $10.1 million to shareholders during the quarter. Finally, while we are open and interested in pursuing strategic M&A opportunities as they arrive, as part of our activate strategic pillar, we will always remain prudent in our approach and have to find the right companies and products at the right valuation. Okay, let's turn to our outlook. We are raising our guidance ranges based on the strength of preseason at Attachments. We now expect 2026 net sales to be between $765 million and $805 million. Adjusted EBITDA is now predicted to range from $120 million to $135 million, which is an 8.5% increase at the midpoint compared to the previous ranges.

Speaker #2: Finally, while we are open and interested in pursuing strategic M&A opportunities as they arise, as part of our Activate Strategic Pillar, we will always remain prudent in our approach and have to find the right companies and products at the right valuation.

Speaker #2: Okay, let's turn to our outlook. We are raising our guidance ranges based on the strength of pre-season and attachments. We now expect 2026 net sales to be between $765 million and $805 million.

Speaker #2: Adjusted EBITDA is now predicted to range from $120 million to $135 million, which is an 8.5% increase at the midpoint compared to the previous range.

Speaker #2: Adjusted earnings per share are now expected to be in the range of $2.90 to $3.40, which is a 12.5% increase at the midpoint compared to the previous range.

Sarah Lauber: Adjusted earnings per share now expected to be in the range of $2.90 to $3.40, which is a 12.5% increase at the midpoint compared to the previous ranges. The effective tax rate is still expected to be approximately 24% to 25%. As always, this assumes relatively stable economic and supply chain conditions and average snowfall in Q4. Let me provide a little more context. As you've already heard, it's important to remember the timing of shipments this year versus last year at Attachments. We expect preseason to be close to 50/50 split between Q2 and Q3 versus the 60/40 split in the 2025 preseason. At Solutions, the outlook remains generally in line with our initial expectations. Our backlog provides partial visibility for the remainder of the year.

Sarah Lauber: Adjusted earnings per share now expected to be in the range of $2.90 to 3.40, which is a 12.5% increase at the midpoint compared to the previous ranges. The effective tax rate is still expected to be approximately 24% to 25%. As always, this assumes relatively stable economic and supply chain conditions and average snowfall in Q4. Let me provide a little more context. As you've already heard, it's important to remember the timing of shipments this year versus last year at Attachments. We expect preseason to be close to 50/50 split between Q2 and Q3 versus the 60/40 split in the 2025 preseason. At Solutions, the outlook remains generally in line with our initial expectations. Our backlog provides partial visibility for the remainder of the year.

Speaker #2: The effective tax rate is still expected to be approximately 24 to 25 percent. And, as always, this assumes relatively stable economic and supply chain conditions, and average snowfall in the fourth quarter.

Speaker #2: Let me provide a little more context. As you've already heard, it's important to remember the timing of shipments this year versus last year at attachments.

Speaker #2: We expect pre-season to be close to a 50/50 split between the second and third quarters, versus the 60/40 split in the 2025 pre-season. At Solutions, the outlook remains generally in line with our initial expectations.

Speaker #2: Our backlog provides partial visibility for the remainder of the year. Today, we're predicting full-year top-line growth and low double-digit margins, which encompasses the growth of municipal and the softness in commercial.

Sarah Lauber: Today, we're predicting full-year top-line growth and low double-digit margins, which encompasses the growth of municipal and the softness in commercial. While we continue to see raw material and energy-related inflation, our teams are taking the appropriate actions to mitigate these pressures, and we will remain vigilant going forward. To summarize, we're very pleased with our year-to-date performance, and our updated outlook indicates that we are on track to deliver record annual results in 2026. To put that into perspective, if we achieve the low end of our updated adjusted earnings per share guidance range, that would represent an approximate 20% increase over our previous record set in 2019. In addition, our guidance range implies that we can achieve margins in the low 20s for Attachments while maintaining low double-digit margins for Solutions.

Speaker #2: While we continue to see raw material and energy-related inflation, our teams are taking the appropriate actions to mitigate these pressures. We will remain vigilant going forward.

Speaker #2: To summarize, we're very pleased with our year-to-date performance, and our updated outlook indicates that we are on track to deliver record annual results in 2026.

Speaker #2: To put that into perspective, if we achieve the low end of our updated adjusted earnings per share guidance range, that would represent an approximate 20% increase over our previous record set in 2019.

Speaker #2: In addition, our guidance range implies that we can achieve margins in the low 20s for Attachments, while maintaining low double-digit margins for Solutions. With that said, our focus remains on the task at hand.

Sarah Lauber: With that said, our focus remains on the task at hand, continuing to manufacture and deliver equipment, increasing throughput across our work truck facilities, and positioning the business to deliver strong results. Congratulations to our dedicated teams, whose constant focus on delivering for our dealers and customers every day is highlighted by the strength of our performance this quarter. That concludes our commentary. We'd like to open the call for questions.

Speaker #2: We are continuing to manufacture and deliver equipment, increasing throughput across our work truck facilities, and positioning the business to deliver strong results. Congratulations to our dedicated teams, whose constant focus on delivering for our dealers and customers every day is highlighted by the strength of our performance this quarter.

Speaker #2: That concludes our commentary. We'd like to open the call for questions.

Speaker #1: We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble our roster. The first question today comes from Mike Shlisky with D.A. Davidson. Please go ahead.

Speaker #1: If at any time your question has been addressed and you would like to withdraw your question, please press star, then 2. At this time, we will pause momentarily to assemble our roster.

Speaker #1: The first question today comes from Mike Cholesky with D.A. Davidson. Please go ahead.

Speaker #3: Yes, hi, good morning. Thanks for taking my questions.

Michael Shlisky: Yes. Hi, good morning. Thanks for taking my questions.

Speaker #4: Good morning, Mike.

Sarah Lauber: Good morning, Mike.

Speaker #3: Good morning. I'm blanking here on attachments. Help me fill in the blanks. Maybe you mentioned this in your preparer comments. I don't think I heard it.

Michael Shlisky: Good morning. I'm blanking here on Attachments. Help me fill in the blanks. Maybe you mentioned this in your prepared comments. I don't think I heard it. The EBITDA margins were down year over year. The sales are up about 20%. Just help me bridge, and I think you beat my estimates on this, but just to make sure I know what's going on, help us bridge some of the downside in the margins over the prior year.

Michael Shlisky: Good morning. I'm blanking here on Attachments. Help me fill in the blanks. Maybe you mentioned this in your prepared comments. I don't think I heard it. The EBITDA margins were down year-over-year. The sales are up about 20%. Just help me bridge, and I think you beat my estimates on this, but just to make sure I know what's going on, help us bridge some of the downside in the margins over the prior year.

Speaker #3: The EBITDA margins were down year over year. Sales were up about 20%. Just help me bridge—and I think you beat my estimates on this, but just to make sure I know what's going on—help us bridge some of the downside in the margins over the prior year.

Speaker #4: Sure, I'd be happy to do so. So, in the second quarter, the margins were down slightly. I would say the largest impact there is the addition of Benco Venturo.

Sarah Lauber: Sure, I'd be happy to do so. The Q2, the margins were down slightly. I would say the largest impact there is the addition of Venco Venturo. In addition, when you look at what we shipped and the timing of everything, we essentially had some shifts in the mix of what we were getting out the door in Q2 versus Q3. If you take out the Venco acquisition, our margins in Q2 would have been flat to last year on higher volumes. I'll add just two more points on the Attachments margins. When you look at the total preseason and what we expect, we expect our margins to be up year over year when you just look at preseason in total. We also expect the full-year margins to get into the low 20s.

Sarah Lauber: Sure, I'd be happy to do so. The Q2, the margins were down slightly. I would say the largest impact there is the addition of Venco Venturo. In addition, when you look at what we shipped and the timing of everything, we essentially had some shifts in the mix of what we were getting out the door in Q2 versus Q3. If you take out the Venco acquisition, our margins in Q2 would have been flat to last year on higher volumes. I'll add just two more points on the Attachments margins. When you look at the total preseason and what we expect, we expect our margins to be up year-over-year when you just look at preseason in total. We also expect the full-year margins to get into the low 20s.

Speaker #4: In addition, when you look at what we shipped and the timing of everything, we essentially had some shifts in the mix of what we were getting out the door in the second quarter.

Speaker #4: Versus the third quarter, if you take out the Benco acquisition, our margins in the second quarter would have been flat to last year on higher volumes.

Speaker #4: And then I'll add just two more points on the Attachments margins. When you look at the total pre-season and what we expect, we expect our margins to be up year over year.

Speaker #4: When you just look at pre-season in total, and we also expect the full-year margins to get into the low 20s.

Michael Shlisky: Outstanding. On Attachments on the top line, I know you mentioned Q2 and Q3 being roughly 50/50. What about Q4? That could be a wild card based on actual snow activity. Given the strong orders you had in Q2, that will hopefully affect the rest of the year. Do you think we should be modeling at least a little bit of growth in Attachments in Q4?

Speaker #3: Outstanding. In an attachment on the top line, I know you mentioned Q2 and Q3 being roughly 50/50. What about Q4? That could be a wild card based on actual snow activity.

Speaker #3: But given the strong orders you had in the second quarter, that will hopefully affect the rest of the year. Do you think we should be modeling at least a little bit of growth in attachments in the fourth quarter?

Speaker #4: Yeah. So we have not really changed our expectation for the fourth quarter. I believe I spoke to it a little bit last year, and the fact that the fourth quarter was a strong parts and accessories quarter last year.

Sarah Lauber: Yeah. We have not really changed our expectations for Q4. I believe I spoke to it a little bit last year and the fact that Q4 was a strong parts and accessories quarter last year. We had a lot of snow early. Our expectation from that standpoint is From a whole unit perspective, we're being relatively conservative, I would say. That's probably all I would elaborate on.

Speaker #4: We had a lot of snow early. Our expectation, from that standpoint, is that from a whole unit perspective, we're being relatively conservative, I would say.

Speaker #4: That's probably all I would elaborate on.

Speaker #3: Yeah, and from a more anecdotal standpoint, I think Sarah's spot on. I mean, we know that fourth quarter, if you look back to the last several years, it can be great, it can be a little bit lighter.

Mark Van Genderen: Yeah. From a more anecdotal standpoint, I think Sarah's spot on. We know that Q4, if you look back the last several years, it can be great. It can be a little bit lighter. I'd say a couple things. One is, in talking with our dealers, there's a, I'd say, a sense of optimism that maybe we haven't seen as much for the few years where we didn't have as much snowfall. We're coming off a very strong year. You see the, as I mentioned, the inventory, you see the retail sales, talking with them at the various shows. There's a lot of excitement out there. We're also committed, I don't want it to be lost, that in Attachments, we're doing everything we can to ship the very strong preseason orders that we had by the end of Q3.

Speaker #3: I'd say a couple of things. One is, in talking with our dealers, there's, I'd say, a sense of optimism that maybe we haven't seen as much in the few years where we didn't have as much snowfall.

Speaker #3: We're coming off a very strong year. So, you see the—as I mentioned—the inventory, you see the retail sales. Talking with them at the various shows, there's a lot of excitement out there.

Speaker #3: We're also committed—I don't want it to be lost—that in Attachments, we're doing everything we can to ship the very strong pre-season orders that we had by the end of the third quarter.

Speaker #3: So our teams are very diligent because it's during the summer and early fall when product is actually being put on contractors' vehicles. And so we see that occurring as well.

Mark Van Genderen: Our teams are very diligent because it's during the summer and early fall where product is actually being put on contractors' vehicles. We see that occurring as well. Everything's lined up. Obviously, we have to wait and see what snowfall does, everything else that we can control, it's in a really good spot right now.

Speaker #3: So, kind of everything's lined up. Obviously, we have to wait and see what snowfall does, but everything else that we can control is in a really good spot right now.

Sarah Lauber: I'll add just a little bit, Mike. When you look at the midpoint of our guidance for the full year, that leads you to about 15% to call it 20% growth for the entire company. With our expectation of solutions with what we're seeing in municipal and the softness in commercial, just having volume up in the load in the single digits and essentially the rest of that growth then is in attachments.

Speaker #4: I'll add just a little bit, Mike. When you look at the midpoint of our guidance for the full year, that...

Speaker #1: That leads you to about 15 to call it 20% growth for the for the entire company . With our expectation of solutions , with what we're seeing in municipal and the softness in commercial , just having volume up in the low to mid single digits and essentially the rest of that growth then is in attachments

Speaker #2: Okay . Okay . Got it , I also want to throw out a quick question for you as well You know , as we look at your at your attachments , businesses that are part of the part of the snow business .

Michael Shlisky: Okay. Got it. Also want to throw out a quick Venco Venturo question for you as well. As we look at your attachment instances that are part of the snow business, you've had a great track record of innovating with new products for years and years in the snow business. Tell us a little bit about what Venco Venturo offers. Are there any new products on the horizon there? What's been their track record and their history of putting out new hoisting cranes to the market?

Speaker #2: You've had a great track record of innovating with new products for years and years in the snow business. Tell us a little bit about what Vancouver and Turo offer.

Speaker #2: Are there any new products on the horizon ? There ? And what's been their track record and their history of putting out new , , new , , hoisting cranes to the market

Speaker #3: Yeah . We talked about . Good question . We talked about in the call some of the I'd say initial efficiencies , , that were , have focused on and continue to around manufacturing , supply chain , just overall operations We have a strong product development team , as you mentioned , on the , on the snow side , you know , that's something I would say we'll continue to look at in the future .

Mark Van Genderen: Yeah, good question. We talked about on the call some of the, I'd say, initial efficiencies that we have focused on and continue to around manufacturing, supply chain, just overall operations. We have a strong product development team, as you mentioned on the snow side. That's something I would say we'll continue to look at in the future. Don't have anything to report out right now in terms of any huge changes that we've made from a product line standpoint. As we have with other functions, kind of looking at seeing, hey, where can we take our historic strength in that area and see how we can apply that to Venco?

Speaker #3: Don't have anything to report out right now in terms of any huge changes that we've made from a product line standpoint.

Speaker #3: But as we have with other functions , kind of looking and seeing , hey , where can we take our historic strength in that , in that area and see how we can apply that to then go

Speaker #2: Okay, thank you so much. I'll pass it along.

Michael Shlisky: Okay. Thank you so much. I'll pass it along.

Sarah Lauber: Thanks.

Speaker #1: Thanks .

Speaker #4: The next question comes from Tim Weiss with Baird. Please go ahead.

Operator: The next question comes from Tim Wojs with Baird. Please go ahead.

Speaker #5: Hey , everybody . Good . Good morning . Nice job . Good Hey , maybe just by the way , I like this , , I like this , , morning stuff .

Tim Wojs: Hey, everybody. Good morning. Nice job.

Sarah Lauber: Morning.

Tim Wojs: Hey. By the way, I like this morning stuff. The morning release and the morning conference call. My vote would be to keep it going.

Speaker #5: So , , morning release and the morning conference call . So , , my vote would be to keep it going , but , .

Sarah Lauber: I like that.

Speaker #5: Maybe just kind of . Yeah , maybe just kind of stepping back in the attachments business , you know , what was stronger than when we talked 90 days ago , , on the preseason because it , it still sounds like we've got kind of a 5050 mix Q2 to Q3 .

Tim Wojs: Just kind of stepping back in the Work Truck Attachments business. What was stronger than when we talked 90 days ago on the preseason? It still sounds like we've got kind of a 50/50 mix Q2 to Q3, but we're raising the guide effectively on the sales side for a stronger preseason. I'm just trying to, did you get more out in the second quarter than you thought as well? I'm just trying to think about where the upside surprise was.

Speaker #5: , you know , but we're raising the , the guide , you know , effectively on the sales side for , for a stronger preseason .

Speaker #5: So I'm just trying to Did you get more out in the second quarter than you thought as well ? I'm just trying to think about , you know , what , what where the upside surprise was

Speaker #3: Yeah . In general , I'd say kind of across the board , we saw on plows and hoppers the numbers from the preseason orders came came up , and then as Sara mentioned , I talked to it to , you know , the parts and accessories orders were extremely strong .

Mark Van Genderen: Yeah. In general, I'd say kind of across the board, we saw on plows and hoppers, the numbers from the preseason orders came up. As Sarah mentioned, I talked to it, too. The parts and accessories orders were extremely strong. Those, again, we shipped some in the second quarter. A lot of that will get shipped out in the third quarter. That's why we feel comfortable about talking about a strong Q3 and really focused on making sure the remaining preseason orders get out by the end of Q3.

Speaker #3: So , , and those , again , we shipped some in the second quarter . A lot of that will get shipped out in the third quarter .

Speaker #3: That's why we feel comfortable about talking about a strong Q3 . And , , you know , really focused on making sure the remaining preseason orders , , get out by the end of , by the end of Q3

Speaker #5: Okay . And I guess like when you're talking to the channel , I mean , I guess , you know , parts and accessories , I can understand kind of being pretty strong in the first quarter , just given the usage your understanding that that both the plows and the parts and accessory inventory levels in the channel were pretty low ?

Tim Wojs: Okay. I guess when you're talking to the channel, parts and accessories I kind of understand kind of being pretty strong in the first quarter, just given the usage. Is it your understanding that both the plows and the parts and accessory inventory levels in the channel were pretty low, and you're rebuilding both? Is that kind of what's going on there?

Speaker #5: And so you’re rebuilding both? Is that kind of what’s going on there?

Speaker #3: Yeah , I would say I would say we don't have as much visibility into the parts and accessories inventory and the channel as we do with puzzles and hoppers .

Mark Van Genderen: Yeah, I would say we don't have as much visibility into the parts and accessories inventory in the channel as we do with plows and hoppers. We're basing the belief, it's more anecdotal on parts and accessories, and certainly the fact that our dealers have ordered what they have, both for what they used and consumed last year selling to contractors and what we anticipate they're buying coming into this year. When we talk field inventory specifically, we go out and have some formal processes to get this several times a year, we're talking the plows and the hoppers on the back of the trucks. That's where we've seen our most recent inventory check, which was a month or so ago, is both plows and hoppers were lower than what we've seen the last several years.

Speaker #3: So we're basing , you know , the belief it's more anecdotal on parts and accessories . And certainly the fact that they have that our dealers have ordered what they have both for what they use and consume .

Speaker #3: Last year , selling to contractors . And then what we anticipate their buying , coming in , coming into this year , when we talk field inventory , specifically , and we go out and have some formal processes to get this several times a year .

Speaker #3: We're talking to the plows and then the hoppers on the back of the trucks, and that's where we've seen our most recent inventory check, which was a month or so ago.

Speaker #3: , is , a , both plows and hoppers were lower than what we've seen the last several years . And the dealers also reported strong , strong retail sales on those product lines

Mark Van Genderen: The dealers also reported strong retail sales on those product lines.

Speaker #5: Okay . Okay . That's helpful . And then just , , maybe just dialing in Q3 a little bit , just given some of the moving pieces historically , like , I guess just given the 5050 split , it seems like , , we should be thinking attachments will have revenue that that's well north of $100 million and margins or EBITDA margins that are , that are probably north of 20% .

Tim Wojs: Okay. That's helpful. Just maybe just dialing in Q3 a little bit, just given some of the moving pieces historically. I guess just given the 50/50 split, it seems like we should be thinking attachments will have revenue that's well north of $100 million in margins or EBITDA margins that are probably north of 20%. Does that math check out with you guys?

Speaker #5: Is that— is that math? Check out with you guys.

Speaker #1: Yes , I certainly because we have a lot more going out the door than at 40% last quarter . , I will say from a margin perspective , , because of the volume higher than last year , but sequentially , I would expect it to be lower than , than the second quarter .

Sarah Lauber: Yes. Certainly, because we have a lot more going out the door than at 40% last quarter. I will say from a margin perspective, because of the volume higher than last year, but sequentially, I would expect it to be lower than Q2.

Speaker #5: Okay . Okay . That's helpful . I'll hop back in queue . Thanks , everybody . Nice work

Tim Wojs: Okay. That's helpful. I'll hop back in queue. Thanks, everybody. Nice work.

Speaker #1: Thanks , Tim .

Mark Van Genderen: Thanks, Joe.

Sarah Lauber: Thanks, Joe.

Speaker #4: The next question goes to Greg Burns with INCO. Please go ahead.

Operator: The next question goes to Greg Burns with Sidoti & Co. Please go ahead.

Speaker #6: Good morning . , on the the municipal side of the the solutions business . Can you just characterize , you know , a little bit more color around your why you're or where you're seeing strength in that business ?

Greg Burns: Morning. On the municipal side of the solutions business, can you just characterize a little bit more color around where you're seeing strength in that business? Is it just broader market related, like a rising tide, or are you taking share within the market? I was hoping maybe you could give us a little bit more color around backlog, where that stands, lead times, and how much capacity you've brought on, and what is coming online from what you kind of detailed in your prepared remarks. Thank you.

Speaker #6: Is it just , broader market related like a rising tide or are you taking share within the market ? And then I was hoping maybe you could give us a little bit more color around backlog , where that stands , lead times and , and how much capacity you've brought on and what , , what is coming online from what you , , kind of detailed in your prepared remarks .

Speaker #6: Thank you .

Speaker #3: Yeah . I'll take the first part kind of more . The qualitative . And then Sara can handle the quantitative on backlog . You know , I the Henderson team right now is just performing very , very well , you look at the the , the deliveries , you look at the , the efforts on behalf of the sales teams , you look at some of the new contracts that we're that we've been able to to achieve .

Mark Van Genderen: Yeah, I'll take the first part, kind of more the qualitative, and then Sarah can handle the quantitative on backlog. The Henderson team right now is just performing very well. You look at the timing of the deliveries, you look at the efforts on behalf of the sales teams, you look at some of the new contracts that we've been able to achieve. A key in that market is to look out over the next several years. When we talk backlog, it's interesting. We've shared the concept before. It's not necessarily that customers want trucks right now. We've developed a relationship that says, Hey, over the next three years, we want 150 trucks, 50 trucks a year, and that's all included in our backlog.

Speaker #3: I mean , a key and a key in that market is to look out over the next several years . And when we talk backlog , it's interesting .

Speaker #3: We've shared the concept before . It's not necessarily that customers want trucks right now . You know , we develop a relationship that says , hey , over the next three years , you we want 150 trucks , 50 trucks a year .

Speaker #3: And that's all included in our backlog . So it is absolutely paramount that we deliver trucks . You know , when we say we're going to that , the quality of the vehicles is there and that our customers can come to to rely on us .

Mark Van Genderen: It is absolutely paramount that we deliver trucks when we say we're going to, that the quality of the vehicles is there, and that our customers can come to rely on us. If you look over the last two or three years with what Chad Barker and his team have been able to do in that space, it really is that it's developed, I'd say, the strongest relationships that we've ever had with current customers, with new customers, and really doing what we say we're going to do and making it happen. Again, I'm not going to provide a lot of commentary on what we see from a competitive standpoint, but I will tell you that we're really doing well right now.

Speaker #3: And if you look over the last two or three years with what Chad Barker and his team have been able to do in that space, you know, it really is.

Speaker #3: It really is that it's a development . I'd say the strongest relationships that we've ever had , you know , with with current customers , with new customers and really , you know , doing what we say we're going to do and it and it happen .

Speaker #3: So again , I'm not going to provide a lot of commentary on what we see from a competitive standpoint , but I will tell you that we're just we're we're really doing well right now .

Speaker #1: Yeah . On the backlog and capacity question . So the backlog , , we are very close to the record backlog that we had back in 2022 .

Sarah Lauber: Yeah, on the backlog and capacity question. The backlog, we are very close to the record backlog that we had back in 2022. That just shows where we're winning some orders and that's increasing. On a capacity standpoint with the Missouri facility coming online, I would call that up to 10% more capacity was added. The announcement that Mark just walked through in his script on Ohio will add, call it about the same amount next year, but the facility has room to grow. I would say more importantly, though, that the team has been very focused on their throughput in the upfit locations so that we can get these larger contracts, get the trucks out the door quicker, and they have been making very good progress on that.

Speaker #1: So , , that just shows where we're , where we're winning some , some orders and that's increasing on a capacity stand , stand front with the Missouri facility coming online .

Speaker #1: I would , I would call that up to 10% more capacity was added . , in the announcement that that mark just walked through in his script on Ohio .

Speaker #1: , will add , call it about the same amount next year , but the facility has room to grow . , I would say more importantly though , that the team has been very focused on their throughput throughput in the .

Speaker #1: Upfit locations so that we can get these larger contracts, get the trucks out the door quicker, and they have been making very good progress on that.

Speaker #6: Great . Thank you

Greg Burns: Great. Thank you.

Speaker #4: As a reminder, if you would like to ask a question, please press star then one to join the question queue.

Operator: As a reminder, if you would like to ask a question, please press star then one to join the question queue. That's star then one to ask a question. This concludes our question and answer session. I would like to turn the conference back over to Mark Van Genderen, President and CEO, for any closing remarks.

Speaker #4: That's star . Then one to ask a question This concludes our question and answer session . I would like to turn the conference back over to Mark Van Anderson , president and CEO , for any closing remarks

Speaker #3: Sheryl, I'll finish by saying thank you for your time and continued interest in Douglas Dynamics. We look forward to talking with you all soon.

Mark Van Genderen: Sure. I'll finish by saying thank you for your time and continued interest in Douglas Dynamics, and we look forward to talking with you all soon. Thank you.

Speaker #3: Thank you .

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Q2 2026 Douglas Dynamics Inc Earnings Call

Request DemoDemo

Douglas Dynamics

Earnings