Dorman Products Reports 4.2% Net Sales Increase to $528.8 Million in Latest Quarter

Dorman Products, Inc. reported a net sales increase of $21.1 million, or 4.2%, for the three months ended March 28, 2026, reaching $528.8 million compared to $507.7 million in the same period last year. The growth was primarily attributed to tariff-related pricing actions implemented in the latter half of 2025, although this was partially offset by lower sales volume compared to the previous year. Gross profit decreased to $190.2 million, representing a gross margin of 36.0%, down from 40.9% in the prior year, largely due to increased tariff costs. Net income for the quarter was $43.6 million, or $1.44 per share, a decline from $57.5 million, or $1.88 per share, in the same quarter of 2025.

The company's selling, general, and administrative expenses (SG&A) increased slightly as a percentage of net sales, from 25.1% to 24.8%, reflecting improved leverage from higher sales and reduced factoring costs. Interest expense decreased to $5.8 million, down from $7.4 million, due to lower outstanding debt and reduced average interest rates. The effective tax rate for the quarter was 22.5%, slightly higher than the previous year's rate of 22.4%.

Dorman's operational performance was mixed across its business segments. The Light Duty segment saw a sales increase of $14.9 million, or 3.6%, while the Heavy Duty segment experienced a more significant growth of 11.9%, with sales rising by $6.1 million. However, the Specialty Vehicle segment's sales remained flat, reflecting reduced customer demand despite tariff-related pricing actions. Segment income from operations decreased across the board, with the Light Duty segment's income dropping significantly from 19.9% to 14.1% of net sales, primarily due to higher costs.

In terms of strategic developments, Dorman introduced 936 new distinct parts during the quarter, including 229 that were new to the aftermarket. The company continues to focus on enhancing its product offerings, particularly in complex electronics for light-duty vehicles and performance parts for specialty vehicles. Dorman's cash and cash equivalents decreased to $43.1 million from $49.4 million at the end of 2025, while total assets also declined to $2.4 billion from $2.5 billion. The company has $583.9 million available under its credit facility, which it may utilize to manage liquidity needs, particularly in light of ongoing tariff impacts.

Looking ahead, Dorman Products anticipates that its growth will be supported by continued investments in new product development and potential acquisitions. However, the company remains cautious about the impact of external factors such as inflation, tariffs, and changing market conditions on its financial performance. The management believes that its current liquidity position is sufficient to meet operational needs for at least the next twelve months, although it acknowledges that higher tariffs and extended customer payment terms could pose challenges.