Dorman Sales Reach $561.7 Million Despite Third-Quarter Profit and Margin Declines
Key Facts
Dorman Products reported results on October 26 for the third quarter ended September 26, 2026, posting net sales of $561.7 million, up 3.3% from $543.7 million in the year-earlier period. Revenue growth coincided with lower earnings, as diluted earnings per share fell 20% to $1.98 from $2.48. Adjusted diluted earnings per share also declined 21% to $2.08, compared with $2.62 a year earlier. The chief executive said sales growth spanned the company’s three segments, attributing it to new products and business wins. The company supplies products to the aftermarket, while results showed that higher sales did not prevent margins from falling.
Gross profit declined to $221.6 million from $241.4 million in the third quarter of 2025, despite higher net sales. Gross margin fell to 39.4% from 44.4%, a year-over-year decline of 500 basis points. The company said in its report that the drop was driven mainly by higher tariff costs in the current period. By contrast, the year-earlier period benefited from tariff-related pricing timing in the third quarter of 2025, according to management’s explanation. The chief executive said tariff-related pricing timing benefited results in the comparative quarter, contributing to a more difficult year-over-year earnings comparison.
The Light Duty segment posted sales of $443.7 million, up 3% from the year-earlier period, but its profit margin fell to 18.5% from 23.7%. Heavy Duty sales were about $66.1 million, up 5%, while the segment’s margin fell to 0.0% from 4.5% a year earlier. Specialty Vehicle sales rose 3% to $51.9 million. The segment’s profit margin improved to 13.1% from 12.8% in the third quarter of 2025. The results show diverging margins across segments: two recorded declines, while Specialty Vehicle posted a slight improvement.
The company linked sales growth in the first nine months of the year to tariff-related pricing actions implemented across its segments in the second half of 2025. It said in its report that the impact of those actions was partially offset by lower volume compared with the strong year-earlier period. In the third quarter, management said sales growth across all three segments was driven by new products and business wins. Dorman plans additional pricing actions in the fourth quarter, it said in explaining its revised outlook. The company did not provide a figure in these statements for the expected impact of those actions on sales or margins.
Dorman narrowed its sales growth outlook for fiscal 2026 to 2%–3%, from a previous range of 3%–5%. The company expects adjusted diluted earnings per share of $8.50 to $8.70 for the fiscal year. Management linked the guidance update to performance in the first nine months and additional pricing actions it expects to take in the fourth quarter. During the earnings call, the company forecast fourth-quarter gross margin of about 40%. It also cited the continuation of comparison dynamics related to pricing timing and costs during the quarter.
The company held its third-quarter earnings call on October 27, 2026, at 8:00 a.m. Eastern Time. In that day’s session, Dorman shares closed at $124.31, down 0.34%, according to Investing.com data. Price data showed the stock reached a high of $130.18 and a low of $119.39 during the session. The close came after results were announced on October 26, with the call held the following day. The fourth-quarter margin forecast of about 40%, together with the revised fiscal-year sales and earnings ranges, sets out the company’s next reported figures to track the impact of pricing actions.