For the full year, Olsen said net sales reached $2.13 billion, up 6% year over year, driven by strong demand in light duty during the first half and execution of tariff-related pricing initiatives in the second half. He added that while heavy-duty and specialty vehicle markets faced headwinds, teams executed commercialization initiatives during the year.On operations, Olsen said Dorman advanced productivity initiatives across the organization, including deploying automation technologies in distribution cent ...

Dorman Products (NasdaqGS:DORM) Q4 2025 Earnings call February 26, 2026 08:00 AM ET Company ParticipantsAlex Whitelam - VP of Investor RelationsDavid Hession - CFOKevin Olsen - CEOTristan Thomas-Martin - Equity Research AssociateConference Call ParticipantsBret Jordan - Managing Director and Senior Equity Research AnalystDavid Lentz - Managing Director and Senior Research AnalystGary Prestopino - Senior Research AnalystJeff Lee - AnalystJustin Ages - Director and Equity Research AnalystScott Stember - Manag ...

Dorman Products (NasdaqGS:DORM) Q4 2025 Earnings call February 26, 2026 08:00 AM ET Company ParticipantsAlex Whitelam - VP of Investor RelationsDavid Hession - CFOKevin Olsen - CEOTristan Thomas-Martin - Equity Research AssociateConference Call ParticipantsBret Jordan - Managing Director and Senior Equity Research AnalystDavid Lentz - Managing Director and Senior Research AnalystGary Prestopino - Senior Research AnalystJeff Lee - AnalystJustin Ages - Director and Equity Research AnalystScott Stember - Manag ...

Dorman Products (NasdaqGS:DORM) Q4 2025 Earnings call February 26, 2026 08:00 AM ET Speaker8Good morning. Thank you for standing by. Welcome to the Dorman Products Fourth Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Please note that this conference is being recorded. I would now like to turn the conference over to Alex Whitelam, Vice President of Investor Relations. Thank you, sir. Please g ...

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][14] - Adjusted operating margin for Q3 2025 was 20.5%, a 340 basis point increase compared to the same period last year [5][15] - Adjusted diluted EPS grew 34% year-over-year to $2.62, supported by growth, margin expansion, and pricing dynamics related to tariffs [5][15] - 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 [6][16] 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 also up mid-single digits [6][14] - Heavy-duty business net sales grew 6% year-over-year, although margins remained flat due to lower manufacturing productivity [9][14] - Specialty vehicle segment saw relatively flat top-line growth year-over-year, impacted by weak consumer sentiment and lower manufacturing productivity [11][14] Market Data and Key Metrics Changes - The light-duty market continues to show positive macro trends, with vehicle miles traveled increasing year-over-year [7] - The heavy-duty market remains difficult to predict, with mixed signals across customer channels, but recent net sales growth is encouraging [10] - Specialty vehicle market shows strong UTV and ATV ridership, indicating potential for future spending increases as the economy stabilizes [12] 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] - Focus on innovation and new product development remains a priority, with recent launches such as an electronic power steering rack for Ram trucks [8] - The company is strategically positioned to capitalize on growth opportunities in light-duty, heavy-duty, and specialty vehicle segments [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive long-term growth despite tariff and trade uncertainties, emphasizing the non-discretionary nature of their products [7][22] - The company expects Q4 to see a reduced gross margin percentage compared to Q3 due to tariff impacts on cost of goods sold [18] - Management remains optimistic about the overall performance in 2025, reaffirming net sales and EPS guidance ranges for the year [18][19] Other Important Information - The company has paused share repurchases due to tariff and trade uncertainties but maintains a strong liquidity position to fund strategic growth initiatives [16][17] - The balance sheet remains healthy, with net debt at $401 million and a net leverage ratio of 0.92 times adjusted EBITDA [17] 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 [22][23] Question: Margin outlook with price increases - Management expects some margin compression in Q4 due to tariffs impacting COGS but remains confident in long-term margin targets [25] Question: Light-duty sales growth trajectory - Management indicated that the 9% sales growth in light-duty is consistent with previous quarters, driven by new products and favorable macro conditions [29][30] Question: Supply chain diversification - Management confirmed a diversified supply chain with approximately 30% to 40% reliance on China, improving resilience against tariff impacts [42][43] Question: M&A appetite and pipeline - Management expressed a strong interest in M&A opportunities across segments, particularly in light-duty and specialty vehicles, while noting a slowdown in actionable targets due to tariff uncertainties [50][52]