Free cash flow generation is highly erratic, evidenced by a peak margin of 55.0% in 2023Q4 compared to a negative 30.2% margin in 2026Q1, reflecting the company's difficulty in maintaining consistent cash conversion.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Cash from Operations | -918.27M | 74.4M | 41.13M | 12.47M | 40.03M | 60.53M | 53.37M | 77.3M | 58.18M | 67.17M | 69.92M | 56.47M | 53.75M | 32.25M | 15.62M | 47.73M | 15.78M | 25.57M | 23.41M | 20.04M |
| Operating CF Margin % | - | 11.34% | 7.23% | 2.19% | 6.5% | 11.18% | 11.11% | 13.52% | 11.1% | 14.14% | 16.8% | 14.1% | 17.71% | 16.6% | 11.15% | 22.86% | 8.92% | 14.67% | 13% | 14.31% |
| Operating CF Growth % | -74731.25% | 80.88% | 229.87% | -68.85% | -33.87% | 13.43% | -30.96% | 32.85% | -13.38% | -3.93% | 23.83% | 5.06% | 66.67% | 106.47% | -67.27% | 202.52% | -38.3% | 9.23% | 16.82% | - |
| Net Income | 6.42B | 46.9M | 56.15M | 23.72M | 38.61M | 30.69M | -86.55M | 49.17M | 43.91M | 55.32M | 39.01M | 44.18M | 39.96M | 11.64M | 6.01M | 19.04M | 1.66M | 9.84M | 11.47M | -1.06M |
| Depreciation & Amortization | 3.87B | 15.36M | 17.89M | 21.66M | 20.94M | 20.32M | 19.74M | 19.21M | 19.09M | 18.58M | 16.74M | 12.28M | 9.22M | 8.69M | 8.02M | 8.18M | 11.71M | 11.96M | 10.81M | 10.8M |
| Stock-Based Compensation | 2.54B | 6.72M | 4.86M | 953K | 6.73M | 5.79M | 2.83M | 3.24M | 4.55M | 3.5M | 2.9M | 3.27M | 2.87M | 2.59M | 2.17M | 1.87M | 4.03M | 732K | 0 | 0 |
| Deferred Taxes | 446.24M | 9.27M | -3.04M | 7.56M | -3.27M | 1.62M | -19.6M | -2.12M | 9.55M | -15.24M | 5.41M | 5.81M | -326K | 10.73M | 8.09M | 6.5M | 641K | 1.81M | 3.95M | 3.51M |
| Other Non-Cash Items | -14.17B | 9.59M | -33.29M | 5.26M | -532K | 7.46M | 131.42M | 2.16M | 1.03M | 903K | 155K | 3.6M | 4.22M | 5.68M | 1.21M | 1.55M | 9.28M | 1.31M | 33K | 2.64M |
| Working Capital Changes | -19.69M | -13.15M | -1.44M | -46.69M | -22.45M | -5.35M | 5.53M | 5.64M | -19.94M | 4.1M | 5.7M | -12.68M | -2.2M | -7.08M | -9.88M | 10.59M | -11.54M | -83K | -4M | 2.79M |
| Change in Receivables | 5.58M | -6.1M | -4.35M | 2.68M | -14.25M | 12.09M | 3.04M | -7.75M | -511K | -1.15M | 2.42M | -7.09M | -4.2M | -16.64M | 8.34M | 2.97M | -5.31M | -3.72M | -1.18M | -7.32M |
| Change in Inventory | -2.35M | -672K | 3.36M | -3.89M | -32.48M | -24.28M | -1.8M | 4.05M | -12.35M | 894K | 605K | -5.29M | -3.96M | 6.45M | -6.29M | -524K | 3.22M | 2.1M | -11.72M | 10.2M |
| Change in Payables | -10.78M | 3.39M | 991K | -17.12M | 21.52M | 10.42M | -21K | -2.56M | 3.04M | -1.67M | -113K | 4.8M | -3.2M | 1.56M | 330K | 2.19M | -2.32M | 218K | 335K | 539K |
| Cash from Investing | -4.12B | -37.46M | 56.79M | -10.52M | -12.05M | -11.21M | -14.49M | -11.53M | -9.69M | -15.77M | -191.17M | -21.83M | -90.93M | -29.51M | -1.37M | -2.31M | -2.78M | -8.2M | -3.11M | -1.04M |
| Capital Expenditures | -3.17B | -11.13M | -7.81M | -10.52M | -12.05M | -11.21M | -14.49M | -11.53M | -9.69M | -8.38M | -9.83M | -10.01M | -5.25M | -2.77M | -1.45M | -2.37M | -3.01M | -8.2M | -3.16M | -1.05M |
| CapEx % of Revenue | 467.01% | 1.7% | 1.37% | 1.85% | 1.96% | 2.07% | 3.02% | 2.02% | 1.85% | 1.76% | 2.36% | 2.5% | 1.73% | 1.43% | 1.03% | 1.14% | 1.7% | 4.7% | 1.75% | 0.75% |
| Acquisitions | -953.33M | -26.33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -7.38M | -181.34M | -11.82M | -86.69M | -26.73M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 64.6M | 0 | 0 | 0 | 0 | 0 | -9.69M | 0 | 0 | 0 | 1.02M | -26.73M | 80K | 67K | 226K | 0 | 47K | 4K |
| Cash from Financing | 1.93B | -33.76M | -116.96M | 1.54M | -44.28M | -53.39M | -33.51M | -57.92M | -57.55M | -33.14M | 103.02M | -21.99M | 41.51M | -7.01M | -29.55M | -26.14M | -61.92M | -1.85M | -2.27M | 4.08M |
| Debt Issued (Net) | 552K | 338K | -89.2M | 29.31M | -11.25M | -25.5M | -7.51M | -32.69M | -33.14M | -3.15M | 126.79M | -1.9M | 63.34M | -1.15M | -11.15M | 1.3M | -111.51M | -850K | -850K | 6.75M |
| Equity Issued (Net) | -3M | -6M | 0 | 0 | -6M | 0 | -72K | -50K | -23K | -923K | 0 | -27K | -97K | -160K | 0 | 0 | 63.76M | -1M | -1.1M | 0 |
| Dividends Paid | -28.05M | -27.94M | -27.48M | -27.44M | -27.03M | -26.52M | -25.93M | -25.18M | -24.38M | -21.97M | -21.45M | -20.17M | -19.6M | -18.7M | -18.23M | -25.79M | -8.22M | 0 | 0 | 0 |
| Share Repurchases | -3M | -6M | 0 | 0 | -6M | 0 | -72K | -50K | -23K | -923K | 0 | -27K | -97K | -160K | 0 | 0 | -166K | -1M | -1.1M | 0 |
| Other Financing | 1.97B | -161K | -279K | -334K | 0 | -1.37M | 0 | 0 | 0 | -7.09M | -2.32M | 111K | -2.13M | 13M | -168K | -1.65M | -14.17M | 0 | -314K | -2.67M |
| Net Change in Cash | -3.11B | 3.18M | -19.04M | 3.49M | -16.29M | -4.07M | 5.37M | 7.84M | -9.05M | 18.27M | -18.23M | 12.65M | 4.33M | -4.27M | -15.3M | 19.28M | -48.92M | 15.52M | 18.03M | 23.08M |
| Free Cash Flow | -4.09B | 63.56M | 33.32M | 1.95M | 27.98M | 49.33M | 38.88M | 65.76M | 48.49M | 58.79M | 60.09M | 46.46M | 48.49M | 29.47M | 14.17M | 45.35M | 12.77M | 17.37M | 20.25M | 18.99M |
| FCF Margin % | -602.29% | 9.69% | 5.86% | 0.34% | 4.54% | 9.11% | 8.1% | 11.5% | 9.25% | 12.38% | 14.44% | 11.6% | 15.98% | 15.17% | 10.12% | 21.72% | 7.22% | 9.96% | 11.24% | 13.56% |
| FCF Growth % | -7846.98% | 90.74% | 1610.52% | -93.04% | -43.27% | 26.88% | -40.88% | 35.62% | -17.52% | -2.16% | 29.35% | -4.2% | 64.53% | 107.95% | -68.75% | 255.22% | -26.5% | -14.22% | 6.63% | - |
| FCF per Share | -173.32 | 2.70 | 1.42 | 0.08 | 1.22 | 2.15 | 1.70 | 2.88 | 2.14 | 2.60 | 2.67 | 2.08 | 2.19 | 1.34 | 0.65 | 2.08 | 0.66 | 1.18 | 1.35 | 1.32 |
| FCF Conversion (FCF/Net Income) | -0.64x | 1.59x | 0.73x | 0.53x | 1.04x | 1.97x | -0.62x | 1.57x | 1.33x | 1.21x | 1.79x | 1.28x | 1.34x | 2.77x | 2.60x | 2.51x | 9.49x | 2.60x | 2.04x | -18.96x |
| Interest Paid | 0 | 0 | 18.94M | 18.18M | 11.66M | 12.31M | 16.84M | 15.78M | 15.88M | 17.22M | 14.23M | 10.52M | 7.5M | 7.6M | 7.43M | 7.77M | 16.89M | 14.41M | 16.73M | 18.45M |
| Taxes Paid | 0 | 0 | 13.6M | 14.51M | 7.03M | 9.77M | 4.28M | 13.28M | 8.46M | 6.61M | 16.44M | 21.63M | 17.01M | 2.35M | 1.56M | 2.48M | 1.66M | 1.9M | 2.83M | 4.26M |
Seasonal liquidity and working capital
According to the provided quarterly data, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio swinging from a positive 10.83 in 2023Q4 to a negative 9.03 in 2025Q1, indicating significant volatility in cash conversion quality.
The extreme variance in the OCF/NI ratio suggests that reported net income is a poor proxy for the company's actual cash-generating ability. Investors should monitor whether this divergence stems from aggressive revenue recognition during pre-season programs or timing mismatches in the upfitting segment's cost structure.
As reported in financial statements, Douglas Dynamics' FCF margins exhibit extreme cyclicality, ranging from a peak of 55.0% in 2023Q4 to a trough of -30.2% in 2026Q1, reflecting the company's inability to generate consistent free cash flow outside of peak winter-demand periods.
The negative FCF trajectory in recent quarters suggests that the company is consuming cash to support operations rather than generating surplus capital. This trend warrants further investigation into whether the current business model can sustain its dividend policy without relying on external financing during off-peak cycles.
Based on the reported figures, working capital changes are the primary driver of cash flow volatility, with a significant $71.6 million inflow in 2025Q4 contrasting sharply with the $45.2 million outflow observed in 2025Q2, highlighting the company's heavy reliance on seasonal inventory and receivable cycles.
The sharp swings in working capital suggest that the company's cash position is highly sensitive to the timing of dealer shipments and chassis availability. If the company fails to clear inventory during a mild winter, the resulting working capital drag may severely restrict its operational flexibility.
Data from recent filings indicates that Douglas Dynamics continues to prioritize dividend payments, totaling approximately $7 million per quarter, even as operating cash flow turns negative, which may indicate a rigid capital allocation strategy that does not fully account for the company's current liquidity profile.
The decision to maintain dividends while operating cash flow is deteriorating appears to be a strategic choice that may limit the company's ability to reinvest in automation or growth initiatives. Investors should monitor whether this commitment to shareholders remains sustainable if the current cash-burning trend persists.
Quick answers to the most common questions about buying PLOW stock.
Douglas Dynamics, Inc. (PLOW) generated $74.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Douglas Dynamics, Inc. (PLOW) generated $63.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Douglas Dynamics, Inc. (PLOW) spent $11.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Douglas Dynamics, Inc. (PLOW) returned $27.9M to shareholders via cash dividends and spent $6.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.