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Dec 31, 2022
Douglas Dynamics Q4 2022 Earnings Report
Financial performance improved across the board, driven by continued price realization and higher volumes at Work Truck Solutions.
Key Takeaways
Douglas Dynamics reported improved fourth quarter results with increased net sales, income from operations, and net income. Both segments showed improved results, with Work Truck Solutions particularly benefiting from improved pricing and upfit velocity.
Financial performance improved across the board in the fourth quarter, driven by continued price realization at both segments and higher volumes at Work Truck Solutions.
Work Truck Attachments segment saw net sales approximately the same as the prior year with pricing actions offsetting lower volumes.
Work Truck Solutions segment experienced increased net sales due to price increase realization, ongoing positive demand, and higher truck deliveries.
Order backlog at the start of 2023 was a record $360.3 million.
Revenue by Segment
Forward Guidance
Douglas Dynamics provided its 2023 financial outlook, expecting net sales between $620 million and $680 million, adjusted EBITDA ranging from $85 million to $115 million, and adjusted earnings per share in the range of $1.55 to $2.45.
Positive Outlook
- Teams continue to see opportunities to grow and improve operations
- Positive long-term outlook on both segments overall
- Backlog and demand trends remain favorable
- Potential for a mild to moderate recession will be more than offset by the record backlog of orders
- Need to replace aging trucks and equipment
Challenges Ahead
- Assumes relatively stable economic conditions
- Assumes slightly improving supply of chassis and components
- Assumes company’s core markets will experience average snowfall levels.
- Not expecting significant near-term improvements in chassis supply
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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