Dorman Products, Inc. Reports Third Quarter 2025 Results

Rhea-AI Summary

Dorman Products (NASDAQ: DORM) reported Q3 2025 net sales of $543.7M, up 7.9% year-over-year, and diluted EPS of $2.48, up 38% from $1.80. Adjusted diluted EPS was $2.62, up 34% versus prior year.

Gross profit margin expanded to 44.4% from 40.5%, driven by higher Light Duty margin. The company reaffirmed full-year 2025 guidance: net sales growth 7%–9%, diluted EPS $8.05–$8.35, adjusted diluted EPS $8.60–$8.90.

Positive

• Net sales +7.9% in Q3 2025 to $543.7M
• Diluted EPS +38% in Q3 2025 to $2.48
• Adjusted diluted EPS +34% in Q3 2025 to $2.62
• Gross margin expanded to 44.4% (Q3 2025)

Negative

• Cash from operations Q3 2025 declined to $12.2M from $44.3M
• Inventories increased to $899.9M from $708.0M (~27% rise)
• Specialty Vehicle segment profit margin down 420 bps year-over-year

Insights

Equity Analyst

Dorman delivered stronger-than-year-ago results: revenue up 7.9% and diluted EPS up 38%, and it reaffirmed full-year guidance.

Dorman Products grew net sales to $543.7 million (+7.9%) and raised gross margin to 44.4%, driving diluted EPS of $2.48 (up 38%) and adjusted diluted EPS of $2.62 (up 34%). The improvement reflects higher volume in the Light Duty segment (net sales $430.3 million, margin expansion to 23.7%), cost-of-goods improvements, and stable SG&A intensity after adjusting for special items.

The business depends on continued commercialization of new products, supply‑chain diversification, and margin maintenance. Risks flagged include sensitivity to tariffs (guidance explicitly factors tariffs as of 10/27/2025), possible supply disruptions, and inventory build: inventories rose to $899.9 million. Watch near-term cash conversion: operating cash from operations for the nine months fell to $71.99 million versus $159.62 million a year earlier. Monitor quarterly working capital trends and interest expense ($7.2 million in Q3) over the next two quarters.

Concrete near-term items to watch include execution against the reaffirmed full-year guidance (net sales growth target 7%–9%, diluted EPS $8.05–$8.35, adjusted diluted EPS $8.60–$8.90), any tariff changes after 10/27/2025, and inventory reduction or improvement in cash from operations over the next two quarters.

Highlights (All comparisons are to the prior year period unless otherwise noted):

• Net sales of $543.7 million for the quarter, up 7.9% compared to $503.8 million
• Diluted earnings per share (“EPS”) of $2.48, up 38% compared to $1.80
• Adjusted diluted EPS* of $2.62, up 34% compared to $1.96
• Reaffirms its full-year guidance for 2025

COLMAR, Pa., Oct. 27, 2025 (GLOBE NEWSWIRE) -- Dorman Products, Inc. (the “Company” or “Dorman”) (NASDAQ: DORM), a leading supplier in the motor vehicle aftermarket industry, today announced its financial results for the third quarter ended September 27, 2025.

Kevin Olsen, Dorman’s President and Chief Executive Officer, stated, “I’d like to thank all our Contributors for their hard work and dedication as we delivered strong performance in the third quarter, with year-over-year net sales growth of 7.9% and diluted EPS and adjusted diluted EPS growth of 38% and 34%, respectively. During the quarter, our Contributors did an excellent job developing and deploying new, innovative products, diversifying our supply chain, and advancing commercialization, automation, and productivity initiatives across the enterprise to drive long-term growth.

“With our performance through the first nine months of the year, and our positive outlook for the fourth quarter, we are reaffirming our net sales and EPS guidance ranges.”

Third Quarter Financial Results
The Company reported third quarter 2025 net sales of $543.7 million, up 7.9% compared to net sales of $503.8 million in the third quarter of 2024.

Gross profit was $241.4 million in the third quarter of 2025, or 44.4% of net sales, compared to $203.8 million, or 40.5% of net sales, in the same quarter last year.

Selling, general, and administrative (“SG&A”) expenses were $135.7 million, or 25.0% of net sales, in the third quarter of 2025 compared to $124.5 million, or 24.7% of net sales, in the same quarter last year. Adjusted SG&A expenses* were $129.9 million, or 23.9% of net sales, in the third quarter of 2025, compared to $117.9 million, or 23.4% of net sales, in the same quarter last year.

Diluted EPS was $2.48 in the third quarter of 2025, up 38% compared to diluted EPS of $1.80 in the same quarter last year. Adjusted diluted EPS* was $2.62 in the third quarter of 2025, up 34% compared to adjusted diluted EPS* of $1.96 in the same quarter last year.

Segment results were as follows:

	Net Sales									Segment Profit Margin
($ in millions)	Q3 2025			Q3 2024			Change			Q3 2025			Q3 2024			Change
Light Duty	$	430.3		$	393.6		9	%		23.7	%		19.0	%		470 bps
Heavy Duty	$	63.0		$	59.6		6	%		4.5	%		4.5	%		0 bps
Specialty Vehicle	$	50.4		$	50.6		-0	%		12.8	%		17.0	%		-420 bps

2025 Guidance
The Company reaffirms its full-year 2025 guidance as detailed in the table below. The Company's guidance includes the expected impact of tariffs enacted as of October 27, 2025, and excludes any supply chain disruptions, trade restrictions, significant inflation, future acquisitions and divestitures, potential impacts from tariff changes after October 27, 2025, interest rate changes, and share repurchases.

	2025 Guidance
Net Sales Growth vs. 2024	7% – 9%
Diluted EPS	$8.05 – $8.35
Growth vs. 2024	31% – 36%
Adjusted Diluted EPS*	$8.60 – $8.90
Growth vs. 2024	21% – 25%
Tax Rate Estimate	23.5%

Conference Call and Webcast
The Company will hold a conference call and webcast for investors on Tuesday, October 28, 2025, beginning at 8:00 a.m. Eastern time. The conference call can be accessed by telephone at (888) 440-4182 within the U.S. or +1 (646) 960-0653 outside the U.S. When prompted, enter the conference ID number 1698878. A live audio webcast and accompanying presentation materials can be accessed on the Company’s website at Dorman Products, Inc. - Events. After the call, a replay of the session will be available on the Investor section of the Company’s website.

About Dorman Products
Dorman gives professionals, enthusiasts, and owners greater freedom to fix motor vehicles. For over 100 years, we have been driving new solutions, releasing tens of thousands of aftermarket replacement products engineered to save time and money and increase convenience and reliability.

Founded and headquartered in the United States, we are a pioneering global organization offering an always-evolving catalog of products covering cars, trucks, and specialty vehicles, from chassis to body, from underhood to undercarriage, and from hardware to complex electronics.

*Non-GAAP Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains Non-GAAP financial measures. The reasons why we believe these measures provide useful information to investors and a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these Non-GAAP measures are included in the supplemental schedules attached.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “probably,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “views,” “estimates,” and similar expressions are used to identify these forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date such statements were made. Such forward-looking statements are based on current expectations that involve known and unknown risks, uncertainties, and other factors (many of which are outside of our control). Such risks, uncertainties and other factors relate to, among other things: competition in and the evolution of the motor vehicle aftermarket industry; changes in our relationships with, or the loss of, any customers or suppliers; our ability to develop, market and sell new and existing products; our ability to anticipate and meet customer demand; our ability to purchase necessary materials from our suppliers and the impacts of any related logistics constraints; widespread public health pandemics; political and regulatory matters, such as changes in trade policy, the imposition of tariffs and climate regulation; our ability to protect our information security systems and defend against cyberattacks; our ability to protect our intellectual property and defend against any claims of infringement; and financial and economic factors, such as our level of indebtedness, fluctuations in interest rates and inflation. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company is under no obligation to, and expressly disclaims any such obligation to, update any of the information in this document, including but not limited to any situation where any forward-looking statement later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.

Investor Relations Contact
Alex Whitelam, VP, Investor Relations
awhitelam@dormanproducts.com
(445) 448-9522

Visit our website at www.dormanproducts.com. The Investor Relations section of the website contains a significant amount of information about Dorman, including financial and other information for investors. Dorman encourages investors to visit its website periodically to view new and updated information.

DORMAN PRODUCTS, INC. Consolidated Statements of Operations (in thousands, except per-share amounts)
		Three Months Ended							Three Months Ended
(unaudited)		9/27/25				Pct.*			9/28/24				Pct. *
Net sales		$	543,736			100.0			$	503,773			100.0
Cost of goods sold			302,309			55.6				299,970			59.5
Gross profit			241,427			44.4				203,803			40.5
Selling, general, and administrative expenses			135,677			25.0				124,532			24.7
Income from operations			105,750			19.4				79,271			15.7
Interest expense, net			7,207			1.3				9,762			1.9
Other income, net			(1,385	)		(0.3	)			(1,615	)		(0.3	)
Income before income taxes			99,928			18.4				71,124			14.1
Provision for income taxes			23,508			4.3				15,871			3.2
Net income		$	76,420			14.1			$	55,253			11.0
Diluted earnings per share		$	2.48						$	1.80
Weighted average diluted shares outstanding			30,782							30,739
		Nine Months Ended							Nine Months Ended
(unaudited)		9/27/25				Pct.*			9/28/24				Pct. *
Net sales		$	1,592,387			100.0			$	1,475,425			100.0
Cost of goods sold			923,739			58.0				890,775			60.4
Gross profit			668,648			42.0				584,650			39.6
Selling, general, and administrative expenses			400,343			25.1				378,489			25.7
Income from operations			268,305			16.8				206,161			14.0
Interest expense, net			21,747			1.4				30,569			2.1
Other income, net			(4,290	)		(0.3	)			(1,711	)		(0.1	)
Income before income taxes			250,848			15.8				177,303			12.0
Provision for income taxes			58,214			3.7				41,812			2.8
Net income		$	192,634			12.1			$	135,491			9.2
Diluted earnings per share		$	6.26						$	4.37
Weighted average diluted shares outstanding			30,757							31,019
* Percentage of sales. Data may not add due to rounding.

DORMAN PRODUCTS, INC. Consolidated Balance Sheets (in thousands, except share data)
(unaudited)	9/27/25				12/31/24
Assets
Current assets:
Cash and cash equivalents	$	55,505			$	57,137
Accounts receivable, less allowance for doubtful accounts of $1,775 and $1,619		520,594				573,787
Inventories		899,904				707,977
Prepaids and other current assets		40,986				30,859
Total current assets		1,516,989				1,369,760
Property, plant, and equipment, net		168,463				164,499
Operating lease right-of-use assets		114,599				118,499
Goodwill		443,840				442,886
Intangible assets, net		262,229				278,213
Deferred tax assets		—				5,786
Other assets		46,406				44,878
Total assets	$	2,552,526			$	2,424,521
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	215,088			$	231,814
Accrued compensation		25,517				44,002
Accrued customer rebates and returns		198,060				204,355
Revolving credit facility		—				13,960
Current portion of long-term debt		34,375				28,125
Other accrued liabilities		43,676				41,546
Total current liabilities		516,716				563,802
Long-term debt		421,063				439,513
Long-term operating lease liabilities		99,318				105,142
Deferred tax liabilities		12,426				3,700
Other long-term liabilities		20,422				18,894
Commitments and contingencies
Shareholders’ equity:
Common stock, $0.01 par value; 50,000,000 shares authorized; 30,561,782 and 30,565,855 shares issued and outstanding in 2025 and 2024, respectively		306				306
Additional paid-in capital		129,534				119,077
Retained earnings		1,357,951				1,180,862
Accumulated other comprehensive loss		(5,210	)			(6,775	)
Total shareholders’ equity		1,482,581				1,293,470
Total liabilities and shareholders' equity	$	2,552,526			$	2,424,521

Selected Cash Flow Information (unaudited):

	Three Months Ended						Nine Months Ended
(in thousands)	9/27/25			9/28/24			9/27/25			9/28/24
Cash provided by operating activities	$	12,205		$	44,293		$	71,990		$	159,622
Depreciation and amortization	$	14,036		$	14,812		$	41,798		$	43,015
Capital expenditures	$	10,383		$	8,555		$	29,818		$	31,245

DORMAN PRODUCTS, INC.
Non-GAAP Financial Measures
(in thousands, except per-share amounts)

Our financial results include certain financial measures not derived in accordance with generally accepted accounting principles (GAAP). Non-GAAP financial measures should not be used as a substitute for GAAP measures, or considered in isolation, for the purpose of analyzing our operating performance, financial position or cash flows. Additionally, these non-GAAP measures may not be comparable to similarly titled measures reported by other companies. However, we have presented these non-GAAP financial measures because we believe this presentation, when reconciled to the corresponding GAAP measure, provides useful information to investors by offering additional ways of viewing our results, profitability trends, and underlying growth relative to prior and future periods and to our peers. Management uses these non-GAAP financial measures in making financial, operating, and planning decisions and in evaluating our performance. Non-GAAP financial measures may reflect adjustments for charges such as fair value adjustments, amortization, transaction costs, severance, accelerated depreciation, and other similar expenses related to acquisitions as well as other items that we believe are not related to our ongoing performance.

Adjusted Net Income:

	Three Months Ended								Nine Months Ended
(unaudited)	9/27/25*				9/28/24*				9/27/25*				9/28/24*
Net income (GAAP)	$	76,420			$	55,253			$	192,634			$	135,491
Pretax acquisition-related intangible assets amortization [1]		5,442				6,173				16,319				17,138
Pretax acquisition-related transaction and other costs [2]		286				396				1,119				1,327
Pretax reduction in workforce costs [3]		—				76				147				4,926
Tax adjustment (related to above items) [4]		(1,391	)			(1,654	)			(4,268	)			(5,815	)
Adjusted net income (Non-GAAP)	$	80,757			$	60,244			$	205,951			$	153,067
Diluted earnings per share (GAAP)	$	2.48			$	1.80			$	6.26			$	4.37
Pretax acquisition-related intangible assets amortization [1]		0.18				0.20				0.53				0.55
Pretax acquisition-related transaction and other costs [2]		0.01				0.01				0.04				0.04
Pretax reduction in workforce costs [3]		—				0.00				0.00				0.16
Tax adjustment (related to above items) [4]		(0.05	)			(0.05	)			(0.14	)			(0.19	)
Adjusted diluted earnings per share (Non-GAAP)	$	2.62			$	1.96			$	6.70			$	4.93
Weighted average diluted shares outstanding		30,782				30,739				30,757				31,019
* Amounts may not add due to rounding. See accompanying notes at the end of this supplemental schedule.

Adjusted Gross Profit:

	Three Months Ended					Three Months Ended
(unaudited)	9/27/25			Pct.**		9/28/24			Pct.**
Gross profit (GAAP)	$	241,427		44.4		$	203,803		40.5
Pretax acquisition-related transaction and other costs [2]		—		—			1		0.0
Adjusted gross profit (Non-GAAP)	$	241,427		44.4		$	203,804		40.5
Net sales	$	543,736				$	503,773
	Nine Months Ended					Nine Months Ended
(unaudited)	9/27/25			Pct.**		9/28/24			Pct.**
Gross profit (GAAP)	$	668,648		42.0		$	584,650		39.6
Pretax acquisition-related transaction and other costs [2]		—		—			11		0.0
Adjusted gross profit (Non-GAAP)	$	668,648		42.0		$	584,661		39.6
Net sales	$	1,592,387				$	1,475,425

Adjusted SG&A Expenses:

	Three Months Ended							Three Months Ended
(unaudited)	9/27/25				Pct.**			9/28/24				Pct.**
SG&A expenses (GAAP)	$	135,677			25.0			$	124,532			24.7
Pretax acquisition-related intangible assets amortization [1]		(5,442	)		(1.0	)			(6,173	)		(1.2	)
Pretax acquisition-related transaction and other costs [2]		(286	)		(0.1	)			(395	)		(0.1	)
Pretax reduction in workforce costs [3]		—			—				(76	)		(0.0	)
Adjusted SG&A expenses (Non-GAAP)	$	129,949			23.9			$	117,888			23.4
Net sales	$	543,736						$	503,773
	Nine Months Ended							Nine Months Ended
(unaudited)	9/27/25				Pct.**			9/28/24				Pct.**
SG&A expenses (GAAP)	$	400,343			25.1			$	378,489			25.7
Pretax acquisition-related intangible assets amortization [1]		(16,319	)		(1.0	)			(17,138	)		(1.2	)
Pretax acquisition-related transaction and other costs [2]		(1,119	)		(0.1	)			(1,316	)		(0.1	)
Pretax reduction in workforce costs [5]		(147	)		(0.0	)			(4,926	)		(0.3	)
Adjusted SG&A expenses (Non-GAAP)	$	382,758			24.0			$	355,109			24.1
Net sales	$	1,592,387						$	1,475,425
* *  Percentage of sales. Data may not add due to rounding.

[1] – Pretax acquisition-related intangible asset amortization results from allocating the purchase price of an acquisition to the acquired tangible and intangible assets of the acquired business and recognizing the cost of the intangible asset over the period of benefit. Such costs were $5.4 million pretax (or $4.1 million after tax) and $16.3 million pretax (or $12.3 million after tax) during the three and nine months ended September 27, 2025, respectively. Such costs were $6.2 million pretax (or $4.6 million after tax) and $17.1 million pretax (or $12.9 million after tax) during the three and nine months ended September 28, 2024, respectively.

[2] – Pretax acquisition-related transaction and other costs include costs incurred to complete and integrate acquisitions. During the three and nine months ended September 27, 2025, we incurred charges included in selling, general, and administrative expenses to complete and integrate acquisitions of $0.3 million pretax (or $0.2 million after tax) and $1.1 million pretax (or $0.8 million after tax), respectively.

During both the three and nine months ended September 28, 2024, we incurred charges included in cost of goods sold for integration costs of $0.0 million pretax (or $0.0 million after tax). During the three and nine months ended September 28, 2024, we incurred charges included in selling, general, and administrative expenses to complete and integrate acquisitions of $0.4 million pretax (or $0.3 million after tax) and $1.3 million pretax (or $1.0 million after tax), respectively.

[3] – Pretax reduction in workforce costs represents costs incurred in connection with our planned workforce reduction, including severance and other payroll-related costs, insurance continuation costs, modifications of share-based compensation awards, and other costs directly attributable to the action. During the nine months ended September 27, 2025, the expenses were $0.1 million pretax (or $0.1 million after tax). During the three and nine months ended September 28, 2024, the expenses were $0.1 million pretax (or $0.1 million after tax) and $4.9 million pretax (or $3.7 million after tax), respectively.

[4] – Tax adjustments represent the aggregate tax effect of all non-GAAP adjustments reflected in the table above and totaled $(1.4) million and $(4.3) million during the three and nine months ended September 27, 2025, respectively, and $(1.7) million and $(5.8) million during the three and nine months ended September 28, 2024, respectively. Such items are estimated by applying our statutory tax rate to the pretax amount, or an actual tax amount for discrete items.

2025 Guidance:

The Company reaffirms the following guidance ranges related to its full year 2025 outlook:

	Year Ending 12/31/2025
(unaudited)	Low End*				High End*
Diluted earnings per share (GAAP)	$	8.05			$	8.35
Pretax acquisition-related intangible assets amortization		0.69				0.69
Pretax acquisition transaction and other costs		0.03				0.03
Tax adjustment (related to above items)		(0.17	)			(0.17	)
Adjusted diluted earnings per share (Non-GAAP)	$	8.60			$	8.90
Weighted average diluted shares outstanding		30,800				30,800
* Data may not add due to rounding.

FAQ

What were DORM Q3 2025 net sales and growth versus 2024?

DORM reported $543.7M in Q3 2025 net sales, up 7.9% versus Q3 2024.

How much did Dorman (DORM) report for diluted EPS in Q3 2025?

Dorman reported diluted EPS of $2.48 in Q3 2025, a 38% increase year-over-year.

Did Dorman reaffirm 2025 guidance and what are the ranges for DORM?

Yes. Dorman reaffirmed 2025 guidance: net sales growth 7%–9%, diluted EPS $8.05–$8.35, adjusted diluted EPS $8.60–$8.90.

What drove margin expansion for DORM in Q3 2025?

Gross margin expanded to 44.4%, largely driven by a higher Light Duty segment profit margin.

Are there any short-term cash or inventory concerns for Dorman (DORM)?

Q3 cash from operations fell to $12.2M from $44.3M year-ago and inventories rose to $899.9M from $708.0M, indicating working-capital pressure.

How did Dorman's Light Duty and Specialty Vehicle segments perform in Q3 2025?

Light Duty sales were $430.3M (up 9%) with margin 23.7% (+470 bps); Specialty Vehicle sales were $50.4M with margin down 420 bps year-over-year.