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Dorman Products, Inc. Reports Second Quarter 2025 Results and Raises Full Year 2025 Guidance

1. Dorman reported net sales of $541 million, up 7.6% year-over-year. 2. Diluted EPS increased by 25% to $1.91; adjusted EPS rose 23% to $2.06. 3. Company raised its 2025 sales growth forecast to 7%-9% from previous 3%-5%. 4. Dorman's strong demand in light-duty segment contributed significantly to growth. 5. Cost savings initiatives led to improved profit margins despite increased SG&A expenses.

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$133.2308/05 10:49 PM EDTLatest Updated
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FAQ

Why Very Bullish?

Dorman's strong earnings growth and raised guidance show solid momentum, reminiscent of past performance during growth cycles, indicating investor confidence may rise, leading to a price increase.

How important is it?

The article highlights substantial earnings growth and an optimistic outlook, key drivers for stock price, maximizing investor interest.

Why Long Term?

The raised guidance and sustained growth trends suggest a favorable longer-term outlook, similar to trends seen in past periods of consistent earnings growth.

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Highlights (All comparisons are to the prior year period unless otherwise noted): Net sales of $541.0 million for the quarter, up 7.6% compared to $503.0 millionDiluted earnings per share (“EPS”) of $1.91, up 25% compared to $1.53Adjusted diluted EPS* of $2.06, up 23% compared to $1.67Raises its full year guidance for 2025 COLMAR, Pa., Aug. 04, 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 second quarter ended June 28, 2025. Kevin Olsen, Dorman’s President and Chief Executive Officer, stated, “We had an outstanding second quarter, with top- and bottom-line growth exceeding our expectations. Strong demand in our Light Duty business drove total net sales growth of 7.6% compared to last year’s second quarter. Additionally, we continued to drive cost savings across the enterprise through our supply chain diversification, productivity, and automation initiatives, which contributed to a 25% increase in diluted EPS and a 23% increase in adjusted diluted EPS over the same period. “With our strong performance through the first half of the year, along with our improved outlook, and the timing dynamics of when pricing and costs will be recognized from tariffs, we are raising our net sales and diluted EPS guidance ranges. For 2025, we now expect net sales growth to be in the range of 7% to 9%, diluted EPS to be in the range of $8.05 to $8.35, and adjusted diluted EPS to be in the range of $8.60 to $8.90.” Second Quarter Financial ResultsThe Company reported second quarter 2025 net sales of $541.0 million, up 7.6% compared to net sales of $503.0 million in the second quarter of 2024. Gross profit was $219.5 million in the second quarter of 2025, or 40.6% of net sales, compared to $199.4 million, or 39.6% of net sales, in the same quarter last year. Selling, general, and administrative (“SG&A”) expenses were $137.0 million, or 25.3% of net sales, in the second quarter of 2025 compared to $126.9 million, or 25.2% of net sales, in the same quarter last year. Adjusted SG&A expenses* were $131.3 million, or 24.3% of net sales, in the second quarter of 2025, compared to $120.7 million, or 24.0% of net sales, in the same quarter last year. Diluted EPS was $1.91 in the second quarter of 2025, up 25% compared to diluted EPS of $1.53 in the same quarter last year. Adjusted diluted EPS* was $2.06 in the second quarter of 2025, up 23% compared to adjusted diluted EPS* of $1.67 in the same quarter last year. Segment results were as follows:  Net Sales Segment Profit Margin($ in millions)Q2 2025 Q2 2024 Change Q2 2025 Q2 2024 ChangeLight Duty$424.4 $385.4 10% 18.5% 17.1% 140 bpsHeavy Duty$62.1 $61.2 1% 0.8% 4.4% -360 bpsSpecialty Vehicle$54.5 $56.4 -3% 17.3% 17.8% -50 bps 2025 GuidanceThe Company updates its full year 2025 guidance as detailed in the table below, which includes the expected impact of tariffs enacted as of August 4, 2025. Our guidance excludes any potential impacts from tariff changes after August 4, 2025, supply chain disruptions, trade restrictions, significant inflation, future acquisitions and divestitures, interest rate changes, and share repurchases.  Updated 2025 GuidancePrior 2025 GuidanceNet Sales Growth vs. 20247% – 9%3% – 5%Diluted EPS$8.05 – $8.35$7.00 – $7.30Growth vs. 202431% – 36%14% – 19%Adjusted Diluted EPS*$8.60 – $8.90$7.55 – $7.85Growth vs. 202421% – 25%6% – 10%Tax Rate Estimate24%24% Conference Call and WebcastThe Company will hold a conference call and webcast for investors on Tuesday, August 5, 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 ProductsDorman 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 MeasuresIn 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 StatementsThis 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 ContactAlex Whitelam, VP, Investor Relationsawhitelam@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)6/28/25 Pct.* 6/29/24 Pct. *Net sales$540,959  100.0  $502,951  100.0 Cost of goods sold 321,446  59.4   303,550  60.4 Gross profit 219,513  40.6   199,401  39.6 Selling, general, and administrative expenses 137,032  25.3   126,949  25.2 Income from operations 82,481  15.2   72,452  14.4 Interest expense, net 7,182  1.3   10,202  2.0 Other income, net (1,544) (0.3)  (136) (0.0)Income before income taxes 76,843  14.2   62,386  12.4 Provision for income taxes 18,134  3.4   14,976  3.0 Net income$58,709  10.9  $47,410  9.4         Diluted earnings per share$1.91    $1.53           Weighted average diluted shares outstanding 30,680     31,071            Six Months Ended Six Months Ended(unaudited)6/28/25 Pct.* 6/29/24 Pct. *Net sales$1,048,651  100.0  $971,652  100.0 Cost of goods sold 621,430  59.3   590,805  60.8 Gross profit 427,221  40.7   380,847  39.2 Selling, general, and administrative expenses 264,666  25.2   253,957  26.1 Income from operations 162,555  15.5   126,890  13.1 Interest expense, net 14,540  1.4   20,807  2.1 Other income, net (2,905) (0.3)  (96) (0.0)Income before income taxes 150,920  14.4   106,179  10.9 Provision for income taxes 34,706  3.3   25,941  2.7 Net income$116,214  11.1  $80,238  8.3         Diluted earnings per share$3.78    $2.58           Weighted average diluted shares outstanding 30,744     31,160    * Percentage of sales. Data may not add due to rounding. DORMAN PRODUCTS, INC. Consolidated Balance Sheets (in thousands, except share data)(unaudited)6/28/25 12/31/24Assets   Current assets:   Cash and cash equivalents$56,845  $57,137 Accounts receivable, less allowance for doubtful accounts of $2,131 and $1,619 532,121   573,787 Inventories 798,211   707,977 Prepaids and other current assets 39,554   30,859 Total current assets 1,426,731   1,369,760 Property, plant, and equipment, net 166,606   164,499 Operating lease right-of-use assets 112,024   118,499 Goodwill 444,334   442,886 Intangible assets, net 267,830   278,213 Deferred tax assets 5,865   5,786 Other assets 48,075   44,878 Total assets$2,471,465  $2,424,521 Liabilities and shareholders’ equity   Current liabilities:   Accounts payable$221,307  $231,814 Accrued compensation 24,083   44,002 Accrued customer rebates and returns 203,167   204,355 Revolving credit facility —   13,960 Current portion of long-term debt 31,250   28,125 Other accrued liabilities 40,267   41,546 Total current liabilities 520,074   563,802 Long-term debt 430,338   439,513 Long-term operating lease liabilities 97,720   105,142 Deferred tax liabilities 3,803   3,700 Other long-term liabilities 19,784   18,894 Commitments and contingencies   Shareholders’ equity:   Common stock, $0.01 par value; 50,000,000 shares authorized; 30,523,887 and 30,565,855 shares issued and outstanding in 2025 and 2024, respectively 305   306 Additional paid-in capital 121,914   119,077 Retained earnings 1,281,741   1,180,862 Accumulated other comprehensive loss (4,214)  (6,775)Total shareholders’ equity 1,399,746   1,293,470 Total liabilities and shareholders' equity$2,471,465  $2,424,521  Selected Cash Flow Information (unaudited): Three Months Ended Six Months Ended(in thousands)6/28/25 6/29/24 6/28/25 6/29/24Cash provided by operating activities$8,548 $63,349 $59,785 $115,329Depreciation and amortization$13,919 $14,352 $27,762 $28,203Capital expenditures$8,450 $11,935 $19,435 $22,690             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 Six Months Ended(unaudited)6/28/25* 6/29/24* 6/28/25* 6/29/24*Net income (GAAP)$58,709  $47,410  $116,214  $80,238 Pretax acquisition-related intangible assets amortization [1] 5,406   5,481   10,877   10,965 Pretax acquisition-related transaction and other costs [2] 341   448   833   931 Pretax reduction in workforce costs [3] 33   282   147   4,850 Tax adjustment (related to above items) [4] (1,403)  (1,644)  (2,877)  (4,161)Adjusted net income (Non-GAAP)$63,086  $51,977  $125,194  $92,823         Diluted earnings per share (GAAP)$1.91  $1.53  $3.78  $2.58 Pretax acquisition-related intangible assets amortization [1] 0.18   0.18   0.35   0.35 Pretax acquisition-related transaction and other costs [2] 0.01   0.01   0.03   0.03 Pretax reduction in workforce costs [3] 0.00   0.01   0.00   0.16 Tax adjustment (related to above items) [4] (0.05)  (0.05)  (0.09)  (0.13)Adjusted diluted earnings per share (Non-GAAP)$2.06  $1.67  $4.07  $2.98         Weighted average diluted shares outstanding 30,680   31,071   30,744   31,160  * 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)6/28/25 Pct.** 6/29/24 Pct.**Gross profit (GAAP)$219,513 40.6 $199,401 39.6Pretax acquisition-related transaction and other costs [2] — —  2 0.0Adjusted gross profit (Non-GAAP)$219,513 40.6 $199,403 39.6        Net sales$540,959   $502,951           Six Months Ended Six Months Ended(unaudited)6/28/25 Pct.** 6/29/24 Pct.**Gross profit (GAAP)$427,221 40.7 $380,847 39.2Pretax acquisition-related transaction and other costs [2] — —  10 0.0Adjusted gross profit (Non-GAAP)$427,221 40.7 $380,857 39.2        Net sales$1,048,651   $971,652   Adjusted SG&A Expenses: Three Months Ended Three Months Ended(unaudited)6/28/25 Pct.** 6/29/24 Pct.**SG&A expenses (GAAP)$137,032  25.3  $126,949  25.2 Pretax acquisition-related intangible assets amortization [1] (5,406) (1.0)  (5,481) (1.1)Pretax acquisition-related transaction and other costs [2] (341) (0.1)  (446) (0.1)Pretax reduction in workforce costs [3] (33) (0.0)  (282) (0.1)Adjusted SG&A expenses (Non-GAAP)$131,252  24.3  $120,740  24.0         Net sales$540,959    $502,951            Six Months Ended Six Months Ended(unaudited)6/28/25 Pct.** 6/29/24 Pct.**SG&A expenses (GAAP)$264,666  25.2  $253,957  26.1 Pretax acquisition-related intangible assets amortization [1] (10,877) (1.0)  (10,965) (1.1)Pretax acquisition-related transaction and other costs [2] (833) (0.1)  (921) (0.1)Pretax reduction in workforce costs [5] (147) (0.0)  (4,850) (0.5)Adjusted SG&A expenses (Non-GAAP)$252,809  24.1  $237,221  24.4         Net sales$1,048,651    $971,652    * *Percentage of sales. Data may not add due to rounding. [1] – Pretax acquisition-related intangible asset amortization results from allocating the purchase price of acquisitions 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 $10.9 million pretax (or $8.2 million after tax) during the three and six months ended June 28, 2025, respectively. Such costs were $5.5 million pretax (or $4.1 million after tax) and $11.0 million pretax (or $8.2 million after tax) during the three and six months ended June 29, 2024, respectively. [2] – Pretax acquisition-related transaction and other costs include costs incurred to complete and integrate acquisitions. During the three and six months ended June 28, 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 $0.8 million pretax (or $0.6 million after tax), respectively. During both the three and six months ended June 29, 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 six months ended June 29, 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 $0.9 million pretax (or $0.7 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 three and six months ended June 28, 2025, the expenses were $0.0 million pretax (or $0.0 million after tax) and $0.1 million pretax (or $0.1 million after tax), respectively. During the three and six months ended June 29, 2024, the expenses were $0.3 million pretax (or $0.2 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 $(2.9) million during the three and six months ended June 28, 2025, respectively, and $(1.6) million and $(4.2) million during the three and six months ended June 29, 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 provides the following updated 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.

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