Dorman Products (DORM) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 reached $544 million, up 7.9% year-over-year, driven by tariff-related pricing actions, new product introductions, and strong Light Duty segment performance.

• Adjusted diluted EPS increased 34% to $2.62, and diluted EPS rose 38% to $2.48, reflecting margin expansion and favorable cost timing.

• Gross profit margin improved by 390 basis points to 44.4%, supported by supplier diversification and pricing actions.

• Operating cash flow was $12 million for the quarter and $72 million for the nine months, impacted by higher inventory and tariff costs.

• Full-year 2025 guidance reaffirmed, reflecting confidence in continued performance and margin expansion.

Financial highlights

• Net sales for Q3 2025 were $544 million, up 7.9% year-over-year, with gross margin at 44.4%.

• Adjusted operating income was $111 million, up 30% year-over-year, and adjusted operating margin reached 20.5%.

• Adjusted SG&A as a percentage of net sales was 23.9% in Q3 2025.

• Net income for Q3 2025 was $76.4 million, up 38% year-over-year.

• Free cash flow was $2 million in Q3 2025, down from $36 million in Q3 2024.

Outlook and guidance

• 2025 net sales growth expected between 7% and 9% over 2024, with adjusted diluted EPS guidance of $8.60–$8.90, up 21%–25% year-over-year.

• Full-year tax rate expected at approximately 23.5%.

• Q4 2025 expected to see margin pressure as higher tariff costs impact COGS.

• Guidance includes current tariffs but excludes future supply chain disruptions or major macroeconomic changes.