Dorman Products, Inc. Reports First Quarter 2025 Results

Highlights (All comparisons are to the prior year period unless otherwise noted):

• Net sales of $507.7 million for the quarter, up 8.3% compared to $468.7 million
• Diluted earnings per share (“EPS”) of $1.87, up 78% compared to $1.05
• Adjusted diluted EPS* of $2.02, up 54% compared to $1.31
• Generated $51 million of cash from operating activities; repaid $20 million of debt and repurchased $12 million of its shares
• Reaffirms its full-year guidance for 2025, excluding tariffs
  
  

COLMAR, Pa., May 05, 2025 (GLOBE NEWSWIRE) -- Dorman Products, Inc. (the “Company” or “Dorman”) (NASDAQ: DORM), a leading supplier in the motor vehicle aftermarket industry, today announced its financial results for the first quarter ended March 29, 2025.

Kevin Olsen, Dorman’s President and Chief Executive Officer, stated, “We started the year with outstanding performance, including solid top- and bottom-line growth in the first quarter. Total net sales increased 8.3%, driven by strong customer demand in our Light Duty segment. This top-line growth, along with our continuing operational excellence initiatives, drove an impressive 78% increase in diluted EPS and a 54% increase in adjusted diluted EPS*. These results further support our outlook for continued growth in our underlying business in 2025.

“While the recently enacted tariffs are expected to have a significant impact on the entire motor vehicle aftermarket and its global supply chain, we believe we are well-positioned to deliver for our customers and end-users. Over the last several years, we have diversified our supply chain, built deep relationships with our suppliers and customers, invested in innovation and strong brands, and strengthened our balance sheet and liquidity position. These actions have built resiliency within our business, and we believe we have the experience and talent to navigate the economic challenges ahead.

First Quarter Financial Results

The Company reported first quarter 2025 net sales of $507.7 million, up 8.3% compared to net sales of $468.7 million in the first quarter of 2024.

Gross profit was $207.7 million in the first quarter of 2025, or 40.9% of net sales, compared to $181.4 million, or 38.7% of net sales, in the same quarter last year.

Selling, general and administrative (“SG&A”) expenses were $127.6 million, or 25.1% of net sales, in the first quarter of 2025 compared to $127.0 million, or 27.1% of net sales, in the same quarter last year. Adjusted SG&A expenses* were $121.6 million, or 23.9% of net sales, in the first quarter of 2025, compared to $116.5 million, or 24.9% of net sales, in the same quarter last year.

Diluted EPS was $1.87 in the first quarter of 2025, up 78% compared to diluted EPS of $1.05 in the same quarter last year. Adjusted diluted EPS* was $2.02 in the first quarter of 2025, up 54% compared to adjusted diluted EPS* of $1.31 in the same quarter last year.

Segment results were as follows:

2025 Guidance

The Company reaffirms its full-year 2025 guidance as detailed in the table below, which excludes any impact from U.S. tariffs enacted or proposed in 2025 or potential retaliatory measures from U.S. trade partners. Additionally, our guidance excludes any potential impacts from future acquisitions and divestitures, supply chain disruptions, significant inflation, interest rate changes, and share repurchases.

Conference Call and Webcast

The Company will hold a conference call and webcast for investors on Tuesday, May 6, 2025, beginning at 8:00 a.m. Eastern time. The conference call can be accessed by telephone at (888) 440-4182 within the U.S. or +1 (646) 960-0653 outside the U.S. When prompted, enter the conference ID number 1698878. A live audio webcast and accompanying presentation materials can be accessed on the Company’s website at . After the call, a replay of the session will be available on the Investor section of the Company’s website.

About Dorman Products

Dorman gives professionals, enthusiasts, and owners greater freedom to fix motor vehicles. For over 100 years, we have been driving new solutions, releasing tens of thousands of aftermarket replacement products engineered to save time and money and increase convenience and reliability.

Founded and headquartered in the United States, we are a pioneering global organization offering an always-evolving catalog of products covering cars, trucks, and specialty vehicles, from chassis to body, from underhood to undercarriage, and from hardware to complex electronics.

*Non-GAAP Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains Non-GAAP financial measures. The reasons why we believe these measures provide useful information to investors and a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these Non-GAAP measures are included in the supplemental schedules attached.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “probably,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “views,” “estimates” and similar expressions are used to identify these forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date such statements were made. Such forward-looking statements are based on current expectations that involve known and unknown risks, uncertainties, and other factors (many of which are outside of our control). Such risks, uncertainties and other factors relate to, among other things: competition in and the evolution of the motor vehicle aftermarket industry; changes in our relationships with, or the loss of, any customers or suppliers; our ability to develop, market and sell new and existing products; our ability to anticipate and meet customer demand; our ability to purchase necessary materials from our suppliers and the impacts of any related logistics constraints; widespread public health pandemics; political and regulatory matters, such as changes in trade policy, the imposition of tariffs and climate regulation; our ability to protect our information security systems and defend against cyberattacks; our ability to protect our intellectual property and defend against any claims of infringement; and financial and economic factors, such as our level of indebtedness, fluctuations in interest rates and inflation. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company is under no obligation to, and expressly disclaims any such obligation to, update any of the information in this document, including but not limited to any situation where any forward-looking statement later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.

Investor Relations Contact

Alex Whitelam, VP, Investor Relations

 

(445) 448-9522

Visit our website at . The Investor Relations section of the website contains a significant amount of information about Dorman, including financial and other information for investors. Dorman encourages investors to visit its website periodically to view new and updated information.

^{* Percentage of sales. Data may not add due to rounding.}

Selected Cash Flow Information (unaudited):

DORMAN PRODUCTS, INC.

Non-GAAP Financial Measures

(in thousands, except per-share amounts)

Our financial results include certain financial measures not derived in accordance with generally accepted accounting principles (GAAP). Non-GAAP financial measures should not be used as a substitute for GAAP measures, or considered in isolation, for the purpose of analyzing our operating performance, financial position or cash flows. Additionally, these non-GAAP measures may not be comparable to similarly titled measures reported by other companies. However, we have presented these non-GAAP financial measures because we believe this presentation, when reconciled to the corresponding GAAP measure, provides useful information to investors by offering additional ways of viewing our results, profitability trends, and underlying growth relative to prior and future periods and to our peers. Management uses these non-GAAP financial measures in making financial, operating, and planning decisions and in evaluating our performance. Non-GAAP financial measures may reflect adjustments for charges such as fair value adjustments, amortization, transaction costs, severance, accelerated depreciation, and other similar expenses related to acquisitions as well as other items that we believe are not related to our ongoing performance.

Adjusted Net Income:

<sup>* Amounts may not add due to rounding.

See accompanying notes at the end of this supplemental schedule.</sup>

Adjusted Gross Profit:

Adjusted SG&A Expenses:

^{** Percentage of sales. Data may not add due to rounding.}

[1] – Pretax acquisition-related intangible asset amortization results from allocating the purchase price of acquisitions to the acquired tangible and intangible assets of the acquired business and recognizing the cost of the intangible asset over the period of benefit. Such costs were $5.5 million pretax (or $4.1 million after tax) during both the three months ended March 29, 2025 and March 30, 2024.

[2] – Pretax acquisition-related transaction and other costs include costs incurred to complete and integrate acquisitions. During the three months ended March 29, 2025, we incurred charges included in selling, general and administrative expenses to complete and integrate acquisitions of $0.5 million pretax (or $0.4 million after tax).

During the three months ended March 30, 2024, we incurred charges included in cost of goods sold for integration costs of $0.0 million pretax (or $0.0 million after tax). During the three months ended March 30, 2024, we incurred charges included in selling, general and administrative expenses to complete and integrate acquisitions of $0.5 million pretax (or $0.4 million after tax).

[3] – Pretax reduction in workforce costs represents costs incurred in connection with our planned workforce reduction including severance and other payroll-related costs, insurance continuation costs, modifications of share-based compensation awards, and other costs directly attributable to the action. During the three months ended March 29, 2025 and March 30, 2024, the expenses were $0.1 million pretax (or $0.1 million after tax) and $4.6 million pretax (or $3.5 million after tax), respectively.

[4] – Tax adjustments represent the aggregate tax effect of all non-GAAP adjustments reflected in the table above and totaled $(1.5) million during the three months ended March 29, 2025, and $(2.5) million during the three months ended March 30, 2024. Such items are estimated by applying our statutory tax rate to the pretax amount, or an actual tax amount for discrete items.

2025 Guidance:

The Company provides the following guidance ranges related to their fiscal 2025 outlook:

^{*Data may not add due to rounding.}