Dorman Products (DORM) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 3.3% YoY to $561.7M, with growth across all three segments driven by new products, business wins and volume.

• Adjusted diluted EPS fell 21% to $2.08; higher tariff costs and a comparison against tariff-related pricing benefits in Q3 2025 weighed on results.

Financial highlights

• Q3 adjusted operating income was $89M, down 20% YoY; adjusted operating margin was 15.8% versus 20.5%.

• Q3 gross profit was $221.6M and gross margin was 39.4%, versus $241.4M and 44.4% YoY; adjusted gross margin was also 39.4%.

• Q3 GAAP operating income was $82.9M versus $105.8M, and net income was $59.2M versus $76.4M YoY; diluted EPS was $1.98 versus $2.48.

• 9M sales rose 2.7% to $1.635B; adjusted operating income declined 4% to $275M, while adjusted diluted EPS was $6.73 versus $6.70.

Outlook and guidance

• FY2026 sales growth guidance was narrowed to 2%–3%; adjusted diluted EPS guidance was reduced to $8.50–$8.70 from $8.50–$8.80.

• FY adjusted operating margin guidance is 16%–16.5%, with an estimated effective tax rate of 23.5%–24%.

• Guidance reflects tariffs enacted through Oct. 26, 2026, and excludes subsequent tariff changes, future acquisitions or divestitures, and additional share repurchases.

• Q4 growth is expected to be largely volume-led; tariff-related price reductions and soft DIY demand are headwinds, with additional pricing actions expected.