Dorman Products, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the quarter ended September 26, 2026, were $561.7 million, an increase of 3.3% compared to $543.7 million in the prior-year period.
• Diluted earnings per share (EPS) were $1.98, a 20% decrease from $2.48 in the prior-year quarter.
• Adjusted diluted EPS was $2.08, a 21% decrease from $2.62 in the prior-year quarter.
• Gross profit was $221.6 million (39.4% of net sales) in Q3 2026, compared to $241.4 million (44.4% of net sales) in Q3 2025.
• Adjusted gross profit was $221.2 million (39.4% of net sales) in Q3 2026, compared to $241.4 million (44.4% of net sales) in Q3 2025.
• Selling, general, and administrative (SG&A) expenses were $138.7 million (24.7% of net sales) in Q3 2026, compared to $135.7 million (25.0% of net sales) in Q3 2025.
• Adjusted SG&A expenses were $132.4 million (23.6% of net sales) in Q3 2026, compared to $129.9 million (23.9% of net sales) in Q3 2025.
• Cash provided by operating activities was $64.6 million for the quarter.
• Year-to-date net sales were $1.635 billion, up from $1.592 billion in the same period last year.
• Year-to-date diluted EPS was $6.33, compared to $6.26 in the prior-year period.
• Year-to-date cash provided by operating activities was $260.9 million.

Guidance and Future Outlook:

• Full-year 2026 net sales growth is now expected to be 2% to 3%, narrowed from the prior guidance of 3% to 5%.
• Full-year 2026 diluted EPS is now expected to be $7.95 to $8.15, compared to the prior guidance of $7.93 to $8.23.
• Full-year 2026 adjusted diluted EPS is now expected to be $8.50 to $8.70, compared to the prior guidance of $8.50 to $8.80.
• The updated guidance includes the expected impact of tariffs enacted as of October 26, 2026.
• The guidance excludes the impact of potential tariff changes after October 26, 2026, future acquisitions and divestitures, and additional share repurchases.
• The estimated tax rate for 2026 is 23.5% to 24.0%, compared to the prior estimate of 23.5%.
• Management expects to take additional pricing actions in the fourth quarter.

Business Segments and Product Lines:

• Light Duty segment net sales were $443.7 million in Q3 2026, up 3% from $430.3 million in Q3 2025; segment profit margin was 18.5%, down 520 basis points from 23.7%.
• Heavy Duty segment net sales were $66.1 million in Q3 2026, up 5% from $63.0 million in Q3 2025; segment profit margin was 0.0%, down 450 basis points from 4.5%.
• Specialty Vehicle segment net sales were $51.9 million in Q3 2026, up 3% from $50.4 million in Q3 2025; segment profit margin was 13.1%, up 30 basis points from 12.8%.
• Top-line growth was driven by new products and business wins across all three business segments.

Market and Competitive Landscape:

• Dorman is a leading supplier in the motor vehicle aftermarket industry.
• The company maintains a diversified supplier network and an innovation engine as strategic advantages.
• The company faces risks related to competition in the motor vehicle aftermarket industry and changes in trade policy.

Risks and Challenges:

• Tariffs enacted as of October 26, 2026, have impacted the full-year guidance.
• Potential tariff changes after October 26, 2026, are excluded from guidance.
• Risks include logistics constraints, changes in trade policy, and the imposition of tariffs.
• Other risks include competition, customer/supplier relationship changes, cybersecurity threats, and intellectual property claims.

Management Commentary and Tone:

• Kevin Olsen, Chairman, President, and CEO, described the quarter's performance as "solid."
• Management noted that the year-over-year earnings comparison reflects the timing of tariff-related pricing that benefited the third quarter of 2025.
• Management expressed confidence in the long-term growth strategy, citing a strong balance sheet and liquidity position.
• Management narrowed the full-year guidance based on performance through the first nine months of the year and expected pricing actions in the fourth quarter.

Other Key Points:

• The company repurchased $15 million of common stock in the third quarter.
• Year-to-date share repurchases totaled $112 million, a company record.
• Cash and cash equivalents were $167.0 million as of September 26, 2026, compared to $49.4 million as of December 31, 2025.
• Total long-term debt was $440.7 million as of September 26, 2026, compared to $402.4 million as of December 31, 2025.
• Inventories were $787.4 million as of September 26, 2026, down from $959.0 million as of December 31, 2025.
• A bargain purchase gain of $1.5 million pretax was recorded in the third quarter related to a business combination.
• Facility consolidation costs of $0.8 million pretax were incurred in the third quarter.
• A conference call and webcast were scheduled for October 27, 2026, at 8:00 a.m. Eastern Time.