Dorman(US:DORM)2026-02-25 21:03Financial Performance - Fourth quarter 2025 net sales were $537.9 million, an increase of 0.8% compared to $533.8 million in Q4 2024[4] - Full year 2025 net sales reached $2.13 billion, up 6.0% from $2.01 billion in 2024[9] - Gross profit for Q4 2025 was $229.1 million, representing 42.6% of net sales, compared to 41.5% in Q4 2024[5] - Adjusted net income for the twelve months ended December 31, 2025, was $272,702 thousand, an increase of 23.6% from $220,697 thousand in 2024[27] - Gross profit margin for the twelve months ended December 31, 2025, was 42.1%, up from 40.1% in 2024, indicating improved profitability[29] - The diluted earnings per share (GAAP) for the twelve months ended December 31, 2025, was $6.64, compared to $6.14 in 2024, reflecting a year-over-year increase of 8.2%[27] Earnings Per Share - Diluted EPS for Q4 2025 was $0.38, down 79% due to a $51.1 million non-cash goodwill impairment charge[6] - Adjusted diluted EPS for Q4 2025 was $2.17, a decrease of 1% from $2.20 in Q4 2024[8] - The company reported a diluted earnings per share (GAAP) guidance range for fiscal 2026 between $7.57 and $7.97[38] - Adjusted diluted earnings per share (Non-GAAP) is projected to be between $8.10 and $8.50 for fiscal 2026[38] Expenses and Cost Management - Full year 2025 SG&A expenses were $541.5 million, or 25.4% of net sales, compared to 25.6% in 2024[10] - SG&A expenses as a percentage of net sales decreased to 24.3% for the twelve months ended December 31, 2025, compared to 24.1% in 2024, reflecting better cost management[30] Segment Performance - Light Duty segment net sales for FY 2025 were $1.69 billion, an 8% increase from $1.57 billion in FY 2024[11] - Heavy Duty segment net sales for FY 2025 were $232.6 million, remaining flat compared to $231.5 million in FY 2024[11] - Specialty Vehicle segment net sales for FY 2025 were $205.7 million, a decrease of 3% from $212.1 million in FY 2024[11] Assets and Liabilities - Total assets increased to $2,493,078 thousand as of December 31, 2025, up from $2,424,521 thousand a year earlier, representing a growth of 2.8%[24] - Total current liabilities decreased to $492,827 thousand as of December 31, 2025, from $563,802 thousand a year earlier, a reduction of 12.5%[24] - The company’s total shareholders' equity increased to $1,477,075 thousand as of December 31, 2025, up from $1,293,470 thousand in 2024, marking a growth of 14.2%[24] Cash Flow and Capital Expenditures - Cash provided by operating activities for the twelve months ended December 31, 2025, was $113,634 thousand, a decrease of 50.7% compared to $231,047 thousand for the same period in 2024[25] - Capital expenditures for the twelve months ended December 31, 2025, were $37,969 thousand, slightly down from $39,421 thousand in 2024[25] Future Projections - The company expects 2026 net sales growth of 7% to 9% year-over-year, with diluted EPS projected between $7.57 and $7.97[3] - The weighted average diluted shares outstanding is expected to remain at 30,700 for fiscal 2026[38] - The company anticipates pretax acquisition-related intangible assets amortization of $0.66 for fiscal 2026[38] - The estimated tax adjustment related to acquisition items is projected to be $(0.16) for fiscal 2026[38] Tax Adjustments - The company incurred tax adjustments of $(6.9) million and $(11.2) million for the three and twelve months ended December 31, 2025, respectively[6] - For the same periods in 2024, tax adjustments were $(1.7) million and $(7.5) million, indicating an increase in tax adjustments year-over-year[6] Goodwill Impairment - The company recorded a pretax goodwill impairment charge of $56,706 thousand during the three and twelve months ended December 31, 2025[36]