Dorman narrows 2026 guidance as Q3 EPS drops 20%

Dorman Products, Inc. narrowed its full-year 2026 guidance on October 26, 2026, following a third quarter in which net sales rose 3.3% to $561.7 million while diluted earnings per share fell 20% to $1.98. The company, a supplier in the motor vehicle aftermarket industry, attributed the year-over-year decline in earnings to the timing of tariff-related pricing that benefited the third quarter of 2025.

Kevin Olsen, Dorman’s Chairman, President, and Chief Executive Officer, stated that top-line growth across each of the company’s three business segments was driven by new products and business wins. Despite the revenue increase, gross profit margins compressed significantly; gross profit fell to $221.6 million, representing 39.4% of net sales, down from $241.4 million, or 44.4% of net sales, in the prior-year period. Adjusted gross profit figures mirrored this trend at 39.4% of net sales.

Segment performance showed mixed results in profitability. The Light Duty segment generated net sales up 3%, but its segment profit margin declined by 520 basis points to 18.5%. The Heavy Duty segment saw net sales rise 5%, with a profit margin drop of 450 basis points to 0.0%. Conversely, the Specialty Vehicle segment increased net sales by 3% and expanded its profit margin by 30 basis points to 13.1%.

Dorman generated $64.6 million of cash from operating activities in the quarter and repurchased $15 million of shares, bringing year-to-date share repurchases to a company record of $112 million. The company updated its full-year 2026 guidance to expect net sales growth in the range of 2% to 3%, diluted EPS between $7.95 and $8.15, and adjusted diluted EPS between $8.50 and $8.70. These figures represent a narrowing from prior guidance of 3% to 5% net sales growth and a wider EPS range.

The updated guidance includes the expected impact of tariffs enacted as of October 26, 2026, but excludes the impact of potential tariff changes after that date, future acquisitions or divestitures, and additional share repurchases. Dorman will hold a conference call and webcast for investors on Tuesday, October 27, 2026, beginning at 8:00 a.m. Eastern Time.