PLOWMEDIUM SIGNALFINANCIAL10-K

PLOW shows mixed financial performance with strong revenue growth and substantially higher operating cash flow, but declining profitability despite margin expansion.

The company demonstrates healthy top-line growth of 15.4% with improved gross margins, suggesting effective pricing or cost management. However, the disconnect between higher gross profits and lower operating income indicates increased operating expenses that warrant investor scrutiny, particularly given the management transition costs and other non-routine charges mentioned in the filing.

Comparing 2026-02-24 vs 2025-02-25View on EDGAR →
FINANCIAL ANALYSIS

PLOW delivered solid revenue growth of 15.4% to $656.1M with gross profit expanding 19% to $174.7M, indicating improved margins. However, operating income declined 17% to $73.6M and net income fell 16.5% to $46.9M, suggesting elevated operating expenses offset the margin gains. The balance sheet shows healthy growth with current assets up 11.7% and operating cash flow substantially higher at $74.7M versus $41.1M, though current liabilities also increased meaningfully by 36.5%.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
+81.6%
$41.1M$74.7M

Operating cash flow surged 81.6% — exceptional cash generation, highest quality earnings signal.

Capital Expenditure
Cash Flow
+39.5%
$7.8M$10.8M

Capital expenditure jumped 39.5% — major investment cycle underway; assess returns on deployment.

Current Liabilities
Balance Sheet
+36.5%
$70.2M$95.8M

Current liabilities surged 36.5% — significant near-term obligations; verify ability to meet short-term debt.

Gross Profit
P&L
+19%
$146.8M$174.7M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Operating Income
P&L
-17%
$88.7M$73.6M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

Net Income
P&L
-16.5%
$56.2M$46.9M

Net income declined 16.5% — review whether driven by operations, interest costs, or non-recurring items.

Revenue
P&L
+15.4%
$568.5M$656.1M

Revenue growing 15.4% — solid top-line momentum, watch margins for quality of growth.

Cash & Equivalents
Balance Sheet
+15%
$35.7M$41.0M

Cash grew 15% — improving liquidity position supports investment and shareholder returns.

Current Assets
Balance Sheet
+11.7%
$238.2M$266.0M

Current assets grew 11.7% — improving short-term liquidity or inventory/receivables build.

Accounts Receivable
Balance Sheet
+11.6%
$87.4M$97.6M

Receivables grew 11.6% — monitor days sales outstanding for collection efficiency.

LANGUAGE CHANGES
NEW — 2026-02-24
PRIOR — 2025-02-25
ADDED
The carrying amounts of these insurance policies approximates their fair value and is considered a Level 2 input.
The Company had outstanding loans of $427 and $546 against these Non-qualified benefit plan assets as of December 31, 2025 and December 31, 2024, respectively, included in Other long-term liabilities on the Consolidated Balance Sheets.
Interest rate swaps of $461 and $237 at December 31, 2025 are included in Prepaid and other current assets and Other long-term assets, respectively.
Health Care Cost Trend rate is assumed to be 9.5% beginning in 2025 gradually reducing to an ultimate rate of 4.5% in 2034.
State taxes in New Hampshire, New Jersey, Illinois, Iowa and Minnesota make up the majority (greater than 50%) of the tax effect in the "State and local income tax" category.
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REMOVED
Interest rate swaps of $3,174 and $859 at December 31, 2023 are included in Prepaid and other current assets and Other long-term assets, respectively.
Reflects unrelated legal and consulting fees, insurance proceeds, CEO transition costs, and, in 2022, incremental costs incurred related to the COVID-19 pandemic for the periods presented.
The carrying amounts of these insurance policies approximates their fair value.
The Company had outstanding loans of $546 and $750 against these Non-qualified benefit plan assets as of December 31, 2024 and December 31, 2023, respectively, included in Other long-term liabilities on the Consolidated Balance Sheets.
The fair value of the Company s long-term debt, including current maturities, is based on rates for instruments with comparable maturities and credit quality (Level 2 inputs), and approximates its carrying value.
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