Dorman Products: How Will Its Heavy-Duty Pivot Pay Off in the Next Market Cycle?

Dorman Products reported its financial results for the third quarter of 2025, highlighting a solid performance with notable top and bottom-line growth. Their consolidated net sales reached $544 million, marking a 7.9% increase compared to the same period last year. This growth has been driven primarily by tariff-related pricing adjustments that took effect during the quarter, as well as steady point-of-sale (POS) growth. Dorman expanded its adjusted operating margin significantly to 20.5%, a 340 basis point increase over the previous year. Additionally, adjusted diluted earnings per share rose by 34% year-over-year, reaching $2.62, largely owing to strong sales growth and margin expansion. The company faced challenges relating to tariff costs, which impacted free cash flow, resulting in a modest $2 million for the quarter. With expectations of lower gross margins in Q4 due to these tariff costs, Dorman’s management remains cautious.