COLMAR, Pa., Feb. 04, 2026 (GLOBE NEWSWIRE) -- Dorman Products, Inc. (the “Company” or “Dorman”) (NASDAQ: DORM) today announced the Company will report its financial results for the fourth quarter and full year ended December 31, 2025, after the closing of the Nasdaq Stock Market on February 25, 2026. The Company also announced that it is scheduled to conduct a conference call and webcast to discuss its fourth quarter and full year 2025 financial results on February 26, 2026, at 8:00 a.m. ET. The conference ...

COLMAR, Pa., Jan. 19, 2026 (GLOBE NEWSWIRE) -- Dorman Products, Inc. (the “Company” or “Dorman”) (NASDAQ: DORM), a leading supplier in the motor vehicle aftermarket industry, today announced several key leadership changes designed to accelerate the Company’s growth strategy. “The leadership changes announced today position Dorman for an exciting new chapter,” said Kevin Olsen, Dorman’s President and Chief Executive Officer. “Our senior leaders have the experience and expertise to drive innovation, further a ...

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Company Overview - Dorman Products, Inc. (NASDAQ:DORM) supplies replacement and upgrade parts across various automotive systems including engines, undercar systems, steering, suspension, body components, electronics, and hardware [1] Earnings Report - The company reported its earnings on October 27 and reaffirmed its guidance for 2025, expecting sales growth of 7% to 9% compared to 2024 [1] - Dorman Products provided adjusted diluted EPS guidance of $8.60 to $8.90 for 2025, indicating a growth of 21% to 25% from 2024 [1] Market Sentiment - Jim Cramer commented negatively on the automotive sector, suggesting that the current market conditions for cars are unfavorable, which may impact investor sentiment towards Dorman Products [1]

Group 1: Dorman Products, Inc. - Dorman Products reported quarterly earnings of $2.62 per share, exceeding the analyst consensus estimate of $2.50 per share [1] - The company’s quarterly sales were $543.736 million, which fell short of the analyst consensus estimate of $551.033 million [1] - Shares of Dorman Products fell 0.8% to settle at $123.77 [4] Group 2: CoreWeave, Inc. - CoreWeave has priced its $2.25 billion convertible note offering [2] - The company is performing well, but there are better investment opportunities in the data center sector [2] - CoreWeave shares gained 5.1% to close at $90.66 [4] Group 3: Alaska Air Group, Inc. - Alaska Air cut its fourth-quarter EPS outlook due to several transitory headwinds, including an IT outage, lost revenue from the government shutdown, larger fuel costs, and a greater book tax rate [3] - Alaska Air is considered a good trading vehicle only [2] - Shares of Alaska Air rose 0.2% to settle at $49.54 [4]

Group 1: Dorman Products, Inc. - Dorman Products reported quarterly earnings of $2.62 per share, exceeding the analyst consensus estimate of $2.50 per share [1] - The company’s quarterly sales were $543.736 million, which fell short of the analyst consensus estimate of $551.033 million [1] - Jim Cramer advised investors to avoid Dorman Products, stating that the automotive sector is performing poorly, similar to the housing market [1] Group 2: CoreWeave, Inc. - CoreWeave announced a $2.25 billion convertible note offering, indicating strong financial activity [2] - Jim Cramer mentioned that while CoreWeave is performing well, there are better investment opportunities in the data center sector [2] Group 3: Alaska Air Group, Inc. - Alaska Air cut its fourth-quarter EPS outlook due to several transitory headwinds, including an IT outage, lost revenue from the government shutdown, increased fuel costs, and a higher book tax rate [3] - Jim Cramer described Alaska Air as a good investment but only as a "trading vehicle" [2] - Alaska Air shares rose 0.2% to settle at $49.54 on Tuesday [4]

Core Insights - The Zacks Automotive Replacement Parts industry is facing challenges due to the increasing complexity of modern vehicles, which require specialized tools and expertise, leading to higher service costs and profitability pressures from U.S. import tariffs on parts sourced from China and Europe. However, the aging vehicle fleet in the U.S. is driving demand for maintenance and replacement components, benefiting companies like LKQ Corporation, Dorman Products, and Standard Motor Products [1][5]. Industry Overview - The industry includes companies that produce, market, and distribute replacement components for the automotive aftermarket, offering essential parts such as engine, steering, and brake components. The market is less sensitive to economic downturns as consumers prioritize vehicle maintenance over new purchases [2]. Factors Shaping Industry Prospects - Rising vehicle complexity is straining the aftermarket, requiring specialized skills and tools, which can lead to longer service times and increased costs for suppliers [3]. - Manufacturers face cost pressures due to high U.S. import tariffs, with many producing only about half of their parts domestically, leading to potential price increases for consumers [4]. - The average vehicle age in the U.S. has risen to 12.8 years in 2025, up from 12.6 years in 2024, sustaining strong demand for replacement parts as owners delay new purchases [5]. Industry Performance - The Zacks Automotive Replacement Parts industry ranks 183, placing it in the bottom 24% of around 250 Zacks industries, indicating weak near-term prospects with a significant decline in earnings estimates for 2026 and 2027 [6][7]. Market Performance - The industry has underperformed compared to the Auto, Tires, and Truck sector and the S&P 500, declining 17.6% over the past year, while the sector grew by 14.1% and the S&P 500 returned 14.2% [9]. Current Valuation - The industry is currently trading at an EV/EBITDA ratio of 7.47X, significantly lower than the S&P 500's 18.06X and the sector's 22.93X, indicating a potential undervaluation compared to historical highs of 12.15X and lows of 6.02X over the past five years [12]. Company Highlights - **Standard Motor Products (SMP)**: A leading manufacturer of automotive replacement parts, recently expanded through the acquisition of Nissens, expecting $8-$12 million in annualized cost savings. SMP has surpassed earnings estimates consistently, with a projected 20.9% growth in sales for 2025 [14][15]. - **LKQ Corporation**: A major provider of replacement parts, has strengthened its growth outlook through strategic acquisitions, including Uni-Select. The company has cut $125 million in costs and plans to reduce another $75 million [21][22]. - **Dorman Products**: A supplier of exclusive replacement parts, recently launched a revamped e-commerce platform to enhance customer experience and operational scalability. Dorman has also consistently surpassed earnings estimates, with a projected 8% growth in sales for 2025 [24][25].

Summary of Dorman Products Conference Call Company Overview - **Company**: Dorman Products - **Industry**: Aftermarket automotive parts - **Market Cap**: Approximately $4 billion - **Net Debt**: About $400 million - **Product Portfolio**: Over 138,000 unique SKUs with the ability to introduce 5,000-6,000 new products annually [1][3][4] Core Business Segments - **Segments**: - Light-duty passenger vehicles - Heavy-duty vehicles - Specialty vehicles - **Sales**: More than $2 billion in sales, with a focus on non-discretionary parts essential for vehicle operation [3][4] Innovation and Product Development - **Innovation Focus**: Dorman emphasizes its innovation capabilities, launching around 20 new products daily, many of which are new to the aftermarket [4][10] - **Ideation Process**: Utilizes feedback from a network of 40,000 technicians to identify and develop failure-prone parts [11] - **Engineering Capabilities**: Unique ability to data log and create software for electromechanical parts, enhancing product functionality [17][21] Market Position and Strategy - **Total Addressable Market (TAM)**: Expanded significantly through acquisitions, including Dayton Parts and Super ATV, allowing entry into heavy-duty and specialty vehicle markets [6][25] - **Competitive Advantage**: Strong balance sheet with leverage less than one times EBITDA, enabling resilience during market downturns [16][26] - **Supplier Diversification**: Reduced dependency on China and Taiwan from 80% to below 30%, enhancing supply chain robustness [14] Financial Performance - **Recent Results**: Reported an 8% increase in net sales and a 34% increase in adjusted diluted EPS [9] - **Gross Margin**: Achieved over 40% gross margin, with expectations for continued growth driven by new product introductions and productivity initiatives [23][24] Future Growth Opportunities - **Electric Vehicles (EVs)**: Anticipates growth in the EV market, with a focus on higher dollar content parts despite fewer components in the drivetrain [29][30] - **M&A Strategy**: Plans to pursue both bolt-on and regional expansion acquisitions, particularly in the specialty vehicle segment [27][28] Regulatory Environment - **Right to Repair**: Supports consumer rights initiatives, which may benefit Dorman by increasing access to vehicle data for aftermarket repairs [19] Conclusion Dorman Products is well-positioned in the aftermarket automotive parts industry, leveraging innovation, a strong financial profile, and strategic acquisitions to drive growth and maintain competitive advantages in a rapidly evolving market.

Financial Data and Key Metrics Changes - Consolidated net sales for Q3 2025 were $544 million, representing a 7.9% year-over-year increase, primarily driven by tariff-related pricing actions [4][15] - Adjusted operating margin for Q3 2025 was 20.5%, a 340 basis point increase compared to the same period last year [6][16] - Adjusted diluted EPS grew 34% year-over-year to $2.62, supported by growth, margin expansion, and timing dynamics related to tariffs [6][16] - Operating cash flow was $12 million, and free cash flow was $2 million, showing slight improvement over Q2 but still impacted by higher tariff costs [7][17] Business Line Data and Key Metrics Changes - Light-duty business net sales increased 9% year-over-year in Q3, driven by tariff-related pricing actions and solid POS growth [7][8] - Heavy-duty business net sales grew 6% year-over-year, although margins remained flat due to lower manufacturing productivity [10] - Specialty vehicle segment experienced flat top-line growth year-over-year, with operating margin impacted by lower manufacturing productivity [12][13] Market Data and Key Metrics Changes - Vehicle miles traveled increased year-over-year, contributing to positive macro trends in the light-duty market [8] - Mixed signals were observed in the heavy-duty market, with some signs of improvement but continued pressure on margins [10][11] - Consumer sentiment remained weak in the specialty vehicle segment due to tariffs and high-interest rates, although ridership for UTV and ATV remained strong [12][14] Company Strategy and Development Direction - The company aims to reduce overall supply from China to 30%-40% by the end of 2025, enhancing supplier diversification [15][18] - Focus on innovation and new product development across all segments, with recent launches such as an electronic power steering rack for Ram trucks [9][10] - The company is exploring M&A opportunities, particularly in light-duty and specialty vehicle segments, to enhance technology and geographic expansion [68][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive long-term growth despite tariff-related uncertainties and inflationary pressures [8][25] - The company expects a reduction in gross margin in Q4 due to the impact of tariffs on cost of goods sold [20] - Guidance for 2025 includes net sales growth of 7%-9% and adjusted diluted EPS in the range of $8.60-$8.90, reflecting a 21%-25% increase compared to the previous year [19][20] Other Important Information - The company maintained a pause on share repurchases due to tariff and trade uncertainties but remains well-positioned to fund strategic growth initiatives [17][18] - The liquidity position at the end of the quarter was $654 million, up from $642 million at the end of 2024, indicating strong financial health [18] Q&A Session Summary Question: Elasticity issues on the DIY side - Management noted solid growth in light-duty and POS, emphasizing the non-discretionary nature of their parts which typically perform well during inflationary periods [25][26] Question: Margin outlook with price increases - Management expects some margin compression in Q4 due to tariffs impacting COGS but remains optimistic about long-term margin potential [29] Question: Light-duty sales growth trajectory - Management indicated that light-duty sales growth of 9% is consistent with previous quarters, driven by new products and favorable macro conditions [34][36] Question: Supply chain diversification - Management confirmed a current supply chain mix of approximately 30%-40% from China, with a robust and diversified supply chain in place [60][61] Question: Share position across segments - Management believes they are gaining market share in light-duty and specialty vehicle segments, despite flat sales growth in specialty vehicles [66] Question: M&A appetite and pipeline - Management expressed a strong pipeline for potential acquisitions, particularly in light-duty and specialty vehicle segments, although activity has slowed due to tariff uncertainties [69][70]

Financial Data and Key Metrics Changes - Consolidated net sales for Q3 2025 were $544 million, representing a 7.9% year-over-year increase, primarily driven by tariff-related pricing actions [4][15] - Adjusted operating margin for Q3 2025 was 20.5%, a 340 basis point increase compared to the same period last year [6][16] - Adjusted diluted EPS grew 34% year-over-year to $2.62, supported by growth, margin expansion, and timing dynamics related to tariffs [6][16] - Operating cash flow was $12 million, and free cash flow was $2 million, showing slight improvement over Q2 but still impacted by higher tariff costs [7][17] Business Segment Data and Key Metrics Changes - Light-duty business net sales increased 9% year-over-year in Q3, driven by tariff-related pricing actions, with POS growth up mid-single digits [7][8] - Heavy-duty business net sales grew 6% year-over-year, although margins remained flat due to lower manufacturing productivity [10] - Specialty vehicle segment experienced flat top-line growth year-over-year, with operating margin impacted by lower manufacturing productivity [12][13] Market Data and Key Metrics Changes - Positive macro trends in the light-duty market, with vehicle miles traveled increasing year-over-year [8] - Specialty vehicle market continues to show strong UTV and ATV ridership, despite weak consumer sentiment due to tariffs and high interest rates [13][14] Company Strategy and Development Direction - The company aims to reduce overall supply from China to 30% to 40% by the end of 2025, enhancing supplier diversification [15][16] - Focus on innovation and new product development across all segments, with recent launches such as an electronic power steering rack for Ram trucks [9][10] - The company is positioning itself for future growth in the heavy-duty segment, despite current market pressures [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive long-term growth, citing the non-discretionary nature of repair parts [8][25] - Anticipated lower gross margin in Q4 due to the impact of tariffs on cost of goods sold [20] - The company reaffirmed its net sales growth guidance for 2025 in the range of 7% to 9% and adjusted diluted EPS guidance of $8.60 to $8.90, reflecting a 21% to 25% increase compared to last year [19][20] Other Important Information - The company maintained a pause on share repurchases due to tariff and trade uncertainties but remains well-positioned to fund strategic growth initiatives [17][18] - Total liquidity at the end of September was $654 million, up from $642 million at the end of 2024 [18] Q&A Session Summary Question: Elasticity issues on the DIY side - Management noted that their portfolio is largely non-discretionary, which tends to be inelastic and performs well during inflationary periods [25][26] Question: Margin outlook with price increases - Management expects some margin compression in Q4 due to tariffs impacting COGS but remains optimistic about long-term margin potential [29] Question: Light-duty sales growth trajectory - Management indicated that light-duty sales growth of 9% is solid and consistent with previous quarters, driven by new products and favorable macro conditions [34][36] Question: Supply chain diversification - Management confirmed that they are currently about 30% to 40% reliant on China, with a robust supply chain that can adapt to changes [60][61] Question: Share position across segments - Management believes they are gaining share in light-duty and specialty vehicle segments, despite flat sales growth in specialty vehicles [66] Question: M&A appetite and pipeline - Management expressed a strong interest in M&A opportunities across segments, particularly in light-duty and specialty vehicles, although the current tariff situation has slowed potential seller activity [68][70]