Third Quarter 2026
Filed Oct 26, 2026Dorman Products, Inc. Reports Third Quarter 2026 Results; Updates 2026 Guidance
Net sales increased 3.3% and all three segments grew, but gross profit margin fell to 39.4% from 44.4%, income from operations declined to $ 82,938 from $ 105,750, and diluted EPS declined 20% to $ 1.98. The company narrowed full-year net sales growth, GAAP diluted EPS, and adjusted diluted EPS guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net salesGAAP | $561.7M | – | 3.3% |
| Q3 2026 cost of goods soldGAAP | $340.1M | – | – |
| Q3 2026 gross profitGAAP | $221.6M | – | – |
| Q3 2026 gross profit marginGAAP | 39.4% | – | – |
| Q3 2026 adjusted gross profitnon-GAAP | $221.2M | – | – |
| Q3 2026 adjusted gross profit marginnon-GAAP | 39.4% | – | – |
| Q3 2026 selling, general, and administrative expensesGAAP | $138.7M | – | – |
| Q3 2026 selling, general, and administrative expenses as a percentage of salesGAAP | 24.7% | – | – |
| Q3 2026 adjusted selling, general, and administrative expensesnon-GAAP | $132.4M | – | – |
| Q3 2026 adjusted selling, general, and administrative expenses as a percentage of salesnon-GAAP | 23.6% | – | – |
| Q3 2026 income from operationsGAAP | $82.94M | – | – |
| Q3 2026 income from operations marginGAAP | 14.8% | – | – |
| Q3 2026 interest expenseGAAP | $8.02M | – | – |
| Q3 2026 interest incomeGAAP | $776K | – | – |
| Q3 2026 other income, netGAAP | $1.65M | – | – |
| Q3 2026 income before income taxesGAAP | $77.35M | – | – |
| Q3 2026 provision for income taxesGAAP | $18.18M | – | – |
| Q3 2026 net incomeGAAP | $59.17M | – | – |
| Q3 2026 net income marginGAAP | 10.5% | – | – |
| Q3 2026 adjusted net incomenon-GAAP | $62.16M | – | – |
| Q3 2026 diluted earnings per shareGAAP | $ 1.98 | – | down 20% |
| Q3 2026 adjusted diluted earnings per sharenon-GAAP | $ 2.08 | – | down 21% |
| Q3 2026 weighted average diluted shares outstandingGAAP | 29,860 | – | – |
| Q3 2026 cash provided by operating activitiesGAAP | $64.57M | – | – |
| Q3 2026 depreciation and amortizationGAAP | $13.77M | – | – |
| Q3 2026 capital expendituresGAAP | $7.68M | – | – |
| Nine months ended September 26, 2026 net salesGAAP | $1.64B | – | – |
| Nine months ended September 26, 2026 gross profitGAAP | $663.0M | – | – |
| Nine months ended September 26, 2026 gross profit marginGAAP | 40.5% | – | – |
| Nine months ended September 26, 2026 income from operationsGAAP | $257.9M | – | – |
| Nine months ended September 26, 2026 net incomeGAAP | $190.5M | – | – |
| Nine months ended September 26, 2026 diluted earnings per shareGAAP | $ 6.33 | – | – |
| Nine months ended September 26, 2026 adjusted net incomenon-GAAP | $202.4M | – | – |
| Nine months ended September 26, 2026 adjusted diluted earnings per sharenon-GAAP | $ 6.73 | – | – |
| Nine months ended September 26, 2026 cash provided by operating activitiesGAAP | $260.9M | – | – |
| Nine months ended September 26, 2026 capital expendituresGAAP | $25.21M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Light DutyNet sales growth was driven by new products and business wins; segment profit margin was 18.5% compared to 23.7%, a change of -520 bps. | $ 443.7 | – | 3 % |
| Heavy DutyNet sales growth was driven by new products and business wins; segment profit margin was 0.0% compared to 4.5%, a change of -450 bps. | $ 66.1 | – | 5 % |
| Specialty VehicleNet sales growth was driven by new products and business wins; segment profit margin was 13.1% compared to 12.8%, a change of 30 bps. | $ 51.9 | – | 3 % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Year Ending 12/31/2026 outlook
- RevenueNet Sales Growth vs. 2025: 2% – 3%
- Tax rate23.5% – 24.0%
- NoteDiluted earnings per share (GAAP): $ 7.95 – $ 8.15
- NoteGrowth vs. 2025: 20% – 23%
- NoteAdjusted diluted earnings per share (Non-GAAP): $ 8.50 – $ 8.70
- NoteGrowth vs. 2025: (4)% – (2)%
- NotePretax acquisition-related intangible assets amortization: 0.68
- NotePretax acquisition-related transaction and other costs: 0.04
- NotePretax facility consolidation costs: 0.03
- NotePretax bargain purchase gain: (0.05)
- NotePretax write-off of capitalized debt issuance costs: 0.03
- NoteTax adjustment (related to above items): (0.18)
- NoteWeighted average diluted shares outstanding: 30,000
Capital returns
- Repurchased $15 million of shares in the quarter.
- Year-to-date share repurchases were a company record of $112 million.
What drove it
- Net sales increased across each of the three business segments, driven by new products and business wins.
- The year-over-year earnings comparison reflects the timing of tariff-related pricing that benefitted the third quarter of 2025.
- The updated guidance includes the expected impact of tariffs enacted as of October 26, 2026.
- Management expects to take additional pricing actions in the fourth quarter.
Concerns
- Q3 gross profit margin declined to 39.4% from 44.4%.
- Q3 income from operations margin declined to 14.8% from 19.4%.
- Light Duty segment profit margin declined by -520 bps and Heavy Duty segment profit margin declined by -450 bps.
- Full-year net sales growth guidance was reduced to 2% – 3% from 3% – 5%.
- Guidance excludes the impact of potential tariff changes after October 26, 2026, future acquisitions and divestitures, and additional share repurchases.
What to watch
- Fourth-quarter additional pricing actions expected by management.
- The effect of tariffs enacted as of October 26, 2026 and potential tariff changes after that date.
- Whether segment profit margins recover from Light Duty's 18.5% and Heavy Duty's 0.0% levels.
- Delivery against updated full-year net sales growth guidance of 2% – 3% and adjusted diluted EPS guidance of $ 8.50 – $ 8.70.
Balance sheet and cash flow
- Cash and cash equivalents were $ 167,005 at 9/26/26, compared to $ 49,436 at 12/31/25.
- Long-term debt was $ 440,717 at 9/26/26, compared to $ 402,413 at 12/31/25.
- Current portion of long-term debt was — at 9/26/26, compared to $ 37,500 at 12/31/25.
- Inventories were $ 787,358 at 9/26/26, compared to $ 959,019 at 12/31/25.
- Q3 2026 cash provided by operating activities was $ 64,566, compared to $ 12,205 in Q3 2025.
- Nine months ended September 26, 2026 cash provided by operating activities was $ 260,947, compared to $ 71,990 in the prior-year period.
- Q3 2026 capital expenditures were $ 7,683, compared to $ 10,383 in Q3 2025.
- Nine months ended September 26, 2026 capital expenditures were $ 25,208, compared to $ 29,818 in the prior-year period.
Analysis
Dorman reported Q3 2026 net sales of $ 561,722, up 3.3% from $ 543,736. Each operating segment posted sales growth: Light Duty increased 3 %, Heavy Duty increased 5 %, and Specialty Vehicle increased 3 %. Management attributed the broad-based growth to new products and business wins. For the nine months ended September 26, 2026, net sales were $ 1,635,090, compared with $ 1,592,387 in the prior-year period.
Profitability declined materially in the quarter. Q3 gross profit was $ 221,598 and gross profit margin was 39.4%, compared with $ 241,427 and 44.4% a year earlier. Income from operations was $ 82,938, with a 14.8% operating margin, compared with $ 105,750 and 19.4%. Management said the year-over-year earnings comparison reflects tariff-related pricing timing that benefitted the third quarter of 2025. Segment profitability also weakened in Light Duty and Heavy Duty, where margins declined by -520 bps and -450 bps, respectively.
Q3 net income was $ 59,175, compared with $ 76,420, and diluted earnings per share was $ 1.98, down 20% from $ 2.48. Adjusted net income was $ 62,165, compared with $ 80,757, while adjusted diluted earnings per share was $ 2.08, down 21% from $ 2.62. Through nine months, GAAP diluted EPS was $ 6.33 versus $ 6.26, while adjusted diluted EPS was $ 6.73 versus $ 6.70. The release reported $ 64,566 of Q3 cash provided by operating activities and $ 260,947 for the nine-month period.
Capital allocation included $15 million of share repurchases during the quarter and a company-record $112 million year to date. Cash and cash equivalents were $ 167,005 at September 26, 2026, while long-term debt was $ 440,717. The company narrowed full-year 2026 guidance: net sales growth is now 2% – 3%, GAAP diluted EPS is $ 7.95 – $ 8.15, and adjusted diluted EPS is $ 8.50 – $ 8.70. The outlook incorporates tariffs enacted as of October 26, 2026, excludes potential tariff changes after that date, and assumes additional fourth-quarter pricing actions.
Management, verbatim
We delivered solid performance in the quarter. Net sales increased 3%, with top-line growth across each of our three business segments driven by new products and business wins.
Kevin Olsen, Chairman, President, and Chief Executive Officer
The year-over-year earnings comparison reflects the timing of tariff-related pricing that benefitted the third quarter of 2025.
Kevin Olsen, Chairman, President, and Chief Executive Officer
Given our performance through the first nine months of the year and additional pricing actions we expect to take in the fourth quarter, we are narrowing our full-year 2026 guidance.
Kevin Olsen, Chairman, President, and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for operating results and segment revenue were not reported.
- Free cash flow was not reported.
- Dividend information was not reported.
- Full-year 2026 gross margin guidance was not reported.
- Full-year 2026 operating expense guidance was not reported.
- A previous release outlook was not provided for actual-versus-prior-guidance comparison.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.