Highlights

  • Third quarter 2026 net sales were $561,722 thousand, compared with $543,736 thousand a year earlier, and net income was $59,175 thousand.
  • Diluted EPS was $1.98 for the third quarter, compared with $2.48, and gross profit was 39.4% of net sales, compared with 44.4%.
  • Management now expects full-year 2026 net sales growth of 2% to 3% and adjusted diluted EPS of $8.50 to $8.70.
  • Dorman recorded refunds of $98.1 million of previously paid IEEPA tariffs during the nine months ended September 26, 2026.

Dorman Products, Inc. (NASDAQ: DORM) shares were trading at USD 119.96 on October 27, 2026, down 3.83%, with a relative volume at time of 2.50. The motor vehicle aftermarket parts supplier refinanced its credit agreement and issued $450.0 million of 6.25% senior notes in June 2026, and on October 27, 2026 it filed its quarterly report for the period ended September 26, 2026 and held its third quarter earnings call, where management narrowed its 2026 guidance.

Dorman is incorporated in Pennsylvania, and its principal executive offices are in Colmar, Pennsylvania. It supplies replacement parts for passenger cars, light-, medium- and heavy-duty trucks, and specialty vehicles such as UTVs and ATVs. The company operates three segments: Light Duty, Heavy Duty and Specialty Vehicle. As of December 31, 2025, it marketed approximately 144,000 distinct parts. Its fiscal year ends December 31.

Third Quarter Results

Net sales were $561,722 thousand for the three months ended September 26, 2026, up $18.0 million, or 3.3%, from $543,736 thousand. Dorman said the change was primarily from volume increases in the Light Duty segment from new product sales and business wins, partially offset by pricing decreases in certain categories. Gross profit was $221,598 thousand, or 39.4% of net sales, compared with $241,427 thousand, or 44.4%. The company said the decrease was primarily due to higher tariff costs.

Income from operations was $82,938 thousand, compared with $105,750 thousand. Net income was $59,175 thousand, compared with $76,420 thousand, and diluted earnings per share were $1.98, compared with $2.48. Management said adjusted diluted EPS, a non-GAAP measure, was $2.08 for the quarter.

For the nine months, net sales were $1,635,090 thousand and diluted EPS was $6.33, compared with $6.26.

Segment Results

Light Duty net sales were $443,738 thousand, compared with $430,316 thousand, and segment income from operations was $82,005 thousand, compared with $102,161 thousand. Heavy Duty net sales were $66,140 thousand, compared with $63,025 thousand, and segment income from operations was a loss of $33 thousand, compared with income of $2,855 thousand. Specialty Vehicle net sales were $51,844 thousand, compared with $50,395 thousand, and segment income from operations was $6,806 thousand, compared with $6,462 thousand.

Tariffs, Cash Flow and Capital

Dorman said tariffs have impacted its business and contributed to cost increases. During the nine months, it recorded refunds of $98.1 million of previously paid IEEPA tariffs, including a $2.1 million receivable uncollected as of September 26, 2026. It described the current tariff environment as uncertain.

Cash provided by operating activities was $260,947 thousand for the nine months, compared with $71,990 thousand. Dorman said the change included $99.7 million of IEEPA refunds and related interest received. Cash and cash equivalents were $167,005 thousand at September 26, 2026, compared with $49,436 thousand at December 31, 2025.

In June 2026, Dorman entered into a new five-year revolving credit facility of $800.0 million maturing June 16, 2031, and issued $450.0 million of 6.25% senior notes due June 2034. The proceeds repaid a term loan balance of $431.3 million. Dorman had $798.9 million available under the revolver and said it was not in default under either agreement. It paid $113.8 million to repurchase 938,333 shares over the nine months and had $348.3 million available under its repurchase program.

2026 Outlook

On the third quarter call, management said it now expects full-year 2026 net sales growth of 2% to 3%, narrowed from 3% to 5%, citing soft DIY demand and the timing of additional tariff-related price reductions expected in the fourth quarter. It expects adjusted operating income margin of 16% to 16.5%, an effective tax rate of 23.5% to 24%, and adjusted diluted EPS of $8.50 to $8.70, compared with a prior range of $8.50 to $8.80. Management also said it expects fourth quarter gross margin of approximately 40% and did not give 2027 guidance.