Dorman Products Reports 7.6% Revenue Growth in Q2 2025, Net Income Increases to $58.71 Million

Dorman Products, Inc. reported a notable increase in financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. For the three months ended June 28, 2025, the company achieved net sales of $540.96 million, a 7.6% increase from $502.95 million in the same period last year. The gross profit for the quarter rose to $219.51 million, reflecting a gross margin of 40.6%, up from 39.6% in the prior year. Net income for the quarter was $58.71 million, or $1.91 per diluted share, compared to $47.41 million, or $1.53 per diluted share, in the previous year.

For the six-month period ending June 28, 2025, Dorman's net sales reached $1.05 billion, a 7.9% increase from $971.65 million in the first half of 2024. The company reported a gross profit of $427.22 million, with a gross margin of 40.7%, up from 39.2% in the prior year. Net income for the six months was $116.21 million, translating to $3.78 per diluted share, compared to $80.24 million, or $2.58 per diluted share, in the same period last year.

The company attributed its revenue growth primarily to increased customer demand and successful sales of new products, particularly in the Light Duty segment, which saw a 10.1% increase in net sales. However, the Specialty Vehicle segment experienced a decline due to soft market conditions. Dorman's operational efficiency was enhanced by supplier diversification and productivity initiatives, which contributed to cost savings and improved margins. Selling, general, and administrative expenses increased by 10.1% in the second quarter, reflecting investments in growth initiatives.

Dorman's balance sheet as of June 28, 2025, showed total assets of $2.47 billion, up from $2.42 billion at the end of 2024. The company reported cash and cash equivalents of $56.85 million and working capital of $906.66 million. The total shareholders' equity increased to $1.40 billion, compared to $1.29 billion at the end of the previous year. The company also noted a decrease in interest expense, which fell to $7.18 million for the quarter, down from $10.20 million in the prior year, due to lower outstanding debt and interest rates.

Looking ahead, Dorman Products remains focused on growth through new product development and potential acquisitions. The company introduced 2,588 new distinct parts in the first half of 2025, including 914 "New-to-the-Aftermarket" parts. Dorman anticipates continued demand for aftermarket parts driven by an aging vehicle population and increased miles driven, despite potential challenges from inflationary pressures and market conditions. The company is committed to leveraging its operational efficiencies and expanding its product offerings to maintain its competitive position in the automotive aftermarket industry.