Dorman Products Reports 4% Increase in Net Sales and 47% Rise in Net Income for Fiscal Year 2024

Dorman Products, Inc. reported a 4% increase in net sales for the fiscal year ending December 31, 2024, reaching $2.009 billion, up from $1.930 billion in 2023. The company's net income saw a significant rise of 47%, climbing to $190 million compared to $129 million in the previous year. This growth was attributed to increased sales volume, particularly from new product introductions, and improved gross profit margins, which rose to 40.1% of net sales from 35.5% in 2023. The company also generated $231 million in cash flows from operations and repaid $94.4 million in outstanding debt during the year.

Dorman's product portfolio expanded to approximately 138,000 distinct parts by the end of 2024, an increase from 133,000 in 2023. The company introduced 5,335 new distinct parts during the year, including 1,659 that were new to the aftermarket. The Light Duty segment, which primarily serves passenger cars and light trucks, reported a 7.1% increase in net sales to $1.566 billion, while the Heavy Duty segment experienced a decline of 9.9% to $231.5 million, reflecting reduced customer demand in the freight industry. The Specialty Vehicle segment, which includes parts for UTVs and ATVs, saw a slight increase in sales to $212.1 million.

In terms of strategic developments, Dorman continues to focus on growth through acquisitions, having acquired Super ATV in October 2022, which has contributed to its specialty vehicle segment. The company also emphasized its commitment to product development, particularly in complex electronics and heavy-duty vehicle parts, to enhance its market position. As of December 31, 2024, Dorman serviced approximately 10,000 active accounts, with two customers accounting for about 39% of net sales.

Operationally, Dorman's workforce increased to 3,787 employees, with a significant portion dedicated to product development and sales. The company reported a strong liquidity position, with cash and cash equivalents totaling $57.1 million and working capital of $806 million. Looking ahead, Dorman anticipates continued growth driven by the aging vehicle population and increased demand for aftermarket parts, although it remains cautious of potential economic headwinds, including inflation and supply chain challenges. The company has also initiated a new share repurchase program, authorizing the purchase of up to $500 million of its common stock through December 31, 2027.