Douglas Dynamics sees 70%-80% increase in adjusted EPS in 2024

Consensus $2.10. Sarah Lauber, Executive Vice President and CFO stated, “Our initial outlook for 2024 indicates the midpoint of our adjusted earnings per share guidance will be seventy to eighty percent higher than our 2023 results. The projected improvement includes continued baseline profit improvements in all of our businesses, our recently implemented 2024 Cost Savings Program, and projected higher volumes in Attachments. As a direct result of the extremely poor fourth quarter 2023 snowfall following the well below average 2022-23 snow season, we are now seeing a lengthened equipment replacement cycle. Under this scenario, we expect approximately half of the weather driven volume decline experienced this year will be recovered in 2024. While weather hasn’t been in our favor recently, 2024 is off to a better start than last year. In Attachments, we have made the tough decisions to align our fixed cost structure to more recent weather driven demand. Solutions exited 2023 with higher margins, strong demand and continued elevated backlog, which provides momentum as we enter the new year. Finally, it is worth reiterating that the dividend has been, and will remain, our top capital allocation priority.” A more detailed 2024 financial outlook will be provided in conjunction with the complete fourth quarter and full year 2023 results, which will be issued on Monday, February 26, 2024.