Dorman Products, Inc. (DORM)

Price$131.30Cached quoteAs of 2026-09-05 03:17 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because solid cash generation offsets slower underlying growth.

At the observed market price, Dorman trades at about 16 times the midpoint of 2026 reported earnings guidance of $7.93-$8.23 and about 15 times the midpoint of adjusted guidance of $8.50-$8.80. Trailing cash left after operations and capital spending is roughly $214 million, about a 5.6% yield on the equity value using the latest reported share count. Those are reasonable, not bargain, levels because second-quarter profit benefited heavily from tariff refunds and full-year sales growth guidance was cut to 3%-5%. Investing.com Canada+1

Big pictureLong-term earnings improved, but 2026 shows a clear slowdown in underlying demand.

Revenue rose from $1.09 billion in 2020 to $2.13 billion in 2025, while net income climbed from $106.9 million to $204.2 million, showing meaningful long-run growth. Cash generation compared with accounting profit has been uneven: 2025 operating cash flow was only $113.6 million against $204.2 million of net income, but the latest four quarters produced about $250 million. First-half 2026 sales increased just 2.4%, with lower Light Duty and Specialty Vehicle volumes offsetting stronger Heavy Duty performance, showing demand can weaken by segment even while annual earnings remain strong. Pasted text Dorman Products, Inc.+1

Business strengthDebt is manageable, liquidity is ample, and buybacks are meaningfully reducing share count.

At June 27, 2026, cash was $132.0 million and debt was $528.3 million, leaving about $396.3 million of debt after subtracting cash, roughly 1.1 times trailing earnings before interest, taxes, depreciation and amortization. Dorman also had an $800 million revolving credit line with $798.9 million available. It repurchased 816,213 shares for $96.5 million in the first half at an average $118.19, while share-based employee compensation was about $9.5 million. Outstanding shares fell from 32.2 million in 2020 to 29.7 million, so buybacks have reduced the reported share count despite ongoing share-based compensation. Dorman Products, Inc.+1

What could change the storyFaster sales growth would create upside; fading refund benefits or weaker volumes would create downside.

The bull case needs sales growth to reaccelerate while margins and cash generation remain healthy after tariff refunds fade. That would make a valuation around fifteen to sixteen times earnings look modest, especially if buybacks continue at attractive prices. The bear case is visible now: second-quarter sales rose only 0.7%, full-year sales guidance was cut sharply, and adjusted 2026 earnings guidance still implies a slight decline from 2025. A $51.1 million Heavy Duty goodwill impairment in late 2025 also shows acquisition expectations can disappoint. The current price therefore assumes roughly $8-plus reported earnings per share is repeatable. Dorman Products, Inc.+1

AI: News

Q2 earnings and guidanceProfit beat expectations and earnings guidance rose, but slower sales guidance exposed weaker demand.

On August 3, Dorman reported second-quarter adjusted earnings of $3.08 per share versus $1.89 expected by analysts surveyed by FactSet, while revenue of $544.6 million missed the $582.2 million consensus. Management raised adjusted 2026 earnings guidance to $8.50-$8.80 per share but cut sales-growth guidance to 3%-5% from 7%-9%. Shares were up about 14% in afternoon trading on August 4. The timing suggests investors welcomed the profit surprise and guidance lift, although the report also showed softer volume expectations. Yahoo Finance+1

Tariff refund windfallA tariff refund sharply lifted quarterly profit, making the headline earnings jump less repeatable.

The August 3 results showed second-quarter gross profit margin, meaning sales left after product costs, at 46.1%, up from 40.6% a year earlier. The quarterly filing said tariff refunds added 8.2 percentage points to that margin, and the company also recorded $3.5 million of related interest income. That benefit improved both earnings and operating cash flow, so investors should separate the refund from normal operating performance. Management's guidance still assumes tariffs enacted as of August 3 and excludes future tariff changes. Dorman Products, Inc.+1

Debt refinancing completedDorman replaced bank term debt with long-dated notes and expanded unused borrowing capacity.

In June, Dorman issued $450 million of 6.25% senior notes due 2034 and used proceeds to repay a $431.3 million term loan, fees and related obligations. It also established an $800 million revolving credit line maturing in 2031; $798.9 million remained available at quarter-end. The refinancing does not reduce debt by itself, but it extends maturities and adds liquidity, which lowers near-term refinancing risk while locking in a 6.25% annual interest rate on the notes. Dorman Products, Inc.+1

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$2.13B	$2.01B	$1.93B	$1.73B	$1.35B	$1.09B	$991.3M	$973.7M	$903.2M	$859.6M	$803.0M	$751.5M	$664.5M	$570.4M	$513.4M	$438.2M	$377.4M
Gross profit	$897.7M	$806.4M	$685.4M	$564.5M	$462.9M	$383.1M	$339.8M	$373.3M	$358.6M	$338.1M	$308.1M	$287.2M	$261.0M	$215.2M	$189.3M	$168.9M	$131.8M
Gross margin	42.14%	40.13%	35.52%	32.56%	34.41%	35.06%	34.28%	38.34%	39.71%	39.33%	38.36%	38.22%	39.27%	37.73%	36.86%	38.55%	34.92%
Research & development	—	—	—	—	—	—	—	—	—	—	$16.8M	$15.8M	$13.4M	$10.5M	$8.6M	$4.6M	—
Operating expenses	$598.2M	$513.5M	$470.7M	$393.4M	$291.4M	$249.7M	$234.0M	$202.1M	$182.4M	$169.5M	$161.9M	$146.5M	$133.0M	$111.0M	$101.6M	$92.1M	$88.1M
Operating income	$299.5M	$292.9M	$214.8M	$171.0M	$171.6M	$133.4M	$105.8M	$171.1M	$176.2M	$168.6M	$146.2M	$140.7M	$127.9M	$104.2M	$87.6M	$76.8M	$43.7M
Operating margin	14.06%	14.58%	11.13%	9.87%	12.75%	12.21%	10.68%	17.58%	19.51%	19.61%	18.20%	18.73%	19.25%	18.27%	17.07%	17.53%	11.57%
EBITDA	$355.3M	$349.6M	$269.5M	$215.7M	$206.7M	$165.7M	$131.7M	$199.5M	$198.5M	$187.5M	$162.3M	$153.4M	$138.1M	$112.5M	$95.4M	$84.8M	$51.5M
EBITDA margin	16.68%	17.40%	13.96%	12.44%	15.37%	15.16%	13.29%	20.49%	21.97%	21.81%	20.22%	20.41%	20.78%	19.71%	18.58%	19.36%	13.65%
Net income	$204.2M	$190.0M	$129.3M	$121.5M	$131.5M	$106.9M	$83.8M	$133.6M	$106.6M	$106.0M	$92.3M	$90.0M	$81.9M	$71.0M	$53.3M	$46.1M	$26.5M
Net profit margin	9.59%	9.46%	6.70%	7.01%	9.78%	9.78%	8.45%	13.72%	11.80%	12.34%	11.50%	11.97%	12.33%	12.44%	10.38%	10.53%	7.02%
Basic EPSper basic share	$6.69	$6.17	$4.11	$3.87	$4.13	$3.31	$2.57	$4.04	$3.14	$3.07	$2.60	$2.50	$2.25	$1.96	$1.49	$1.29	$0.75
Diluted EPSper diluted share	$6.64	$6.14	$4.10	$3.85	$4.12	$3.30	$2.56	$4.02	$3.13	$3.07	$2.60	$2.49	$2.24	$1.94	$1.47	$1.27	$0.74

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈13.75%of listed shares

BlackRock, Inc.4.08M shares · Jun 30, 2026

View holders

Top 20 reported holders of DORM
Holder	% owned
BlackRock, Inc.	≈13.75%4.08M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈5.17%1.53M shares
MORGAN STANLEY	≈4.87%1.45M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈4.09%1.21M shares
STATE STREET CORP	≈3.86%1.14M shares
DIMENSIONAL FUND ADVISORS LP	≈3.83%1.14M shares
BERMAN STEVEN L	≈2.99%885.8K shares
KTF INVESTMENTS, LLC	≈2.94%871.46K shares
ROYCE & ASSOCIATES LP	≈2.78%824.22K shares
JENNISON ASSOCIATES LLC	≈2.75%814.86K shares
GEODE CAPITAL MANAGEMENT, LLC	≈2.51%745.12K shares
Invesco Ltd.	≈2.40%713.33K shares
REINHART PARTNERS, LLC.	≈2.31%684.38K shares
Channing Capital Management, LLC	≈2.24%665.32K shares
T. Rowe Price Investment Management, Inc.	≈1.65%490.63K shares
GW&K Investment Management, LLC	≈1.62%481.63K shares
VICTORY CAPITAL MANAGEMENT INC	≈1.59%472.39K shares
AMERIPRISE FINANCIAL INC	≈1.57%465.94K shares
GENEVA CAPITAL MANAGEMENT LLC	≈1.51%447.16K shares
BANK OF AMERICA CORP /DE/	≈1.41%419.36K shares

Percentages use 29.67M shares of this listed class outstanding on Jun 27, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)93$31.22M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Mar 12, 2026Form 4 · 10b5-1	Long Donna M.SVP, CIO	SellCommon Stock	235	$104.03	$24.4K	20.1K
Mar 12, 2026Form 4 · 10b5-1	Long Donna M.SVP, CIO	SellCommon Stock	394	$103.21	$40.7K	20.3K
Mar 12, 2026Form 4 · 10b5-1	Long Donna M.SVP, CIO	SellCommon Stock	318	$102.19	$32.5K	20.7K
Jan 2, 2026Form 4 · 10b5-1	Long Donna M.SVP, CIO	SellCommon Stock	186	$124.22	$23.1K	17.9K
Jan 2, 2026Form 4 · 10b5-1	Long Donna M.SVP, CIO	SellCommon Stock	573	$123.70	$70.9K	18.0K

Review ownership filings at SEC.gov ↗

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Dorman Products, Inc. (DORM)

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