Dorman Products Reports 8.3% Net Sales Increase to $507.7 Million in Q1 2025

Dorman Products, Inc. reported a net sales increase of 8.3% for the first quarter of 2025, reaching $507.7 million compared to $468.7 million in the same period of 2024. The company's gross profit also saw a significant rise, amounting to $207.7 million, up from $181.4 million a year earlier. This growth was attributed to heightened customer demand and successful sales of new products, particularly in the Light Duty segment, which alone generated $408.9 million in sales, a 13.8% increase from the previous year. The company's net income for the quarter was $57.5 million, translating to earnings per share of $1.88, compared to $32.8 million and $1.05 per share in the prior year.

In terms of operational efficiency, Dorman's gross profit margin improved by 220 basis points, primarily due to the favorable sales mix and cost-saving initiatives. Selling, general, and administrative expenses remained relatively stable at $127.6 million, reflecting a slight increase but a decrease as a percentage of net sales, indicating better leverage on higher sales volumes. Interest expenses decreased significantly to $7.4 million from $10.6 million, benefiting from lower outstanding debt and reduced interest rates.

Dorman's strategic focus on product development continues to yield results, with the introduction of 1,185 new distinct parts in the first quarter, including 492 that were new to the aftermarket. The company has emphasized its complex electronics program and parts for the heavy-duty sector, which are traditionally sourced from original equipment manufacturers. The Specialty Vehicle segment, however, faced challenges, with sales declining by 8.6% to $47.2 million due to reduced customer demand.

Geographically, Dorman's sales to U.S. customers increased to $464.5 million, while international sales rose to $43.2 million. The company reported a total asset value of $2.43 billion as of March 29, 2025, with total liabilities of $1.09 billion, resulting in shareholders' equity of $1.34 billion. Dorman's liquidity position remains strong, with cash and cash equivalents totaling $60.6 million, up from $57.1 million at the end of 2024.

Looking ahead, Dorman Products anticipates continued growth driven by new product introductions and strategic acquisitions. The company remains cautious about potential market fluctuations and external factors such as tariffs and inflation, which could impact its operations. Management believes that the current operating plan and available capital are sufficient to meet ongoing cash needs for at least the next twelve months, while also planning to leverage its share repurchase program to enhance shareholder value.