Dorman Products Inc
NASDAQ:DORM
Dorman Products Inc
Founded in 1978, Dorman Products Inc. has long cemented its place as a pivotal player in the automotive aftermarket industry. From its humble beginnings, where it was known for a modest assortment of automotive parts, Dorman has grown into a powerhouse that supplies a vast catalog of replacement parts, fasteners, and innovative repair solutions for the automotive industry. The company's prowess lies in its ability to cater to the relentless demand for high-quality, cost-effective parts that keep vehicles on the road long after their original components have worn out. With an extensive product range spanning complex electronic components, advanced control modules, to everyday replacement parts, Dorman Products strategically fills the gaps left by original equipment manufacturers.
Dorman’s success hinges on its razor-sharp focus on innovation, speed-to-market, and a keen understanding of ever-evolving consumer needs. By employing a robust research and development process, the company consistently identifies automotive components that are prone to failure and develops reliable aftermarket solutions. This proactive approach not only earns customer loyalty but also ensures a steady revenue stream. Dorman leverages its expansive distribution network and strategic partnerships with major automotive retailers and wholesalers to deliver its products efficiently. As a result, Dorman continues to drive growth by delighting end-users with practical, durable, and affordable solutions that stand the test of time, anchoring its reputation as a trusted name in the automotive aftermarket industry.
Founded in 1978, Dorman Products Inc. has long cemented its place as a pivotal player in the automotive aftermarket industry. From its humble beginnings, where it was known for a modest assortment of automotive parts, Dorman has grown into a powerhouse that supplies a vast catalog of replacement parts, fasteners, and innovative repair solutions for the automotive industry. The company's prowess lies in its ability to cater to the relentless demand for high-quality, cost-effective parts that keep vehicles on the road long after their original components have worn out. With an extensive product range spanning complex electronic components, advanced control modules, to everyday replacement parts, Dorman Products strategically fills the gaps left by original equipment manufacturers.
Dorman’s success hinges on its razor-sharp focus on innovation, speed-to-market, and a keen understanding of ever-evolving consumer needs. By employing a robust research and development process, the company consistently identifies automotive components that are prone to failure and develops reliable aftermarket solutions. This proactive approach not only earns customer loyalty but also ensures a steady revenue stream. Dorman leverages its expansive distribution network and strategic partnerships with major automotive retailers and wholesalers to deliver its products efficiently. As a result, Dorman continues to drive growth by delighting end-users with practical, durable, and affordable solutions that stand the test of time, anchoring its reputation as a trusted name in the automotive aftermarket industry.
Strong Growth: Dorman delivered 7.9% year-over-year net sales growth in Q3 2025, with Light Duty segment sales up 9%.
Margin Expansion: Adjusted operating margin reached 20.5%, up 340 basis points, and adjusted EPS grew 34% to $2.62.
Tariff Impact: Growth was primarily driven by tariff-related price increases, but management expects Q4 gross margin compression as higher-cost inventory flows through.
Cash Flow: Free cash flow remained weak at $2 million, though management expects improvement in future quarters.
Guidance Reaffirmed: Full-year 2025 net sales and EPS guidance were reaffirmed, with expected net sales growth of 7–9% and EPS of $8.60–$8.90.
Supply Chain Diversification: Dorman continues to reduce China exposure and is on track for 30–40% China sourcing by year-end.
Healthy Balance Sheet: Net leverage is low at 0.92x, supporting ongoing investment and potential M&A.
