Dorman Raises 2026 Earnings Outlook After Tariff Recovery

The Tip Desk · August 3, 2026 · 2 min read

Second-quarter diluted EPS was $2.93, up 53%, as Dorman booked a $44.4 million IEEPA recovery and lifted full-year diluted EPS guidance to $7.93–$8.23.

Dorman Products, Inc. (DORM) reversed a first-quarter earnings decline in the second quarter, posting diluted EPS of $2.93, up 53% from a year earlier, after recording a $44.4 million IEEPA tariff-cost recovery that lifted both earnings and operating cash.

The aftermarket parts supplier generated $152.6 million of cash from operating activities and repurchased $47 million of shares. Chairman, President and Chief Executive Officer Kevin Olsen said the quarter included record earnings and strong cash flow, reflecting solid operating performance and the recovery of IEEPA tariff costs recognized in prior periods.

Net sales were $544.6 million, up 0.7% from $541.0 million a year earlier. That growth rate slowed from 4.2% in the first quarter, when sales were $528.8 million. Gross profit was $251.2 million, or 46.1% of net sales. On a comparable basis that excludes the recovery, adjusted gross margin was 38.0%. The recovery added $1.18 to adjusted diluted EPS, which was $3.08, up 50%.

Light Duty, the largest reportable segment, posted net sales of $424.3 million, essentially unchanged from $424.4 million a year earlier, after 4% growth in the first quarter. Segment profit margin was 24.7%. Heavy Duty net sales were $66.3 million, up 7% from $62.1 million. Specialty Vehicle net sales were $54.0 million, down 1% from $54.5 million.

Olsen said that, given first-half performance and targeted pricing actions in a more stable tariff environment, the company is updating full-year 2026 guidance. Dorman now expects net sales growth of 3% to 5% versus 2025, diluted EPS of $7.93 to $8.23, and adjusted diluted EPS of $8.50 to $8.80. The prior ranges, reaffirmed after the first quarter, were 7% to 9% sales growth, diluted EPS of $7.57 to $7.97, and adjusted diluted EPS of $8.10 to $8.50. The tax-rate estimate remains 23.5%. Guidance includes tariffs enacted as of August 3, 2026, and excludes later tariff changes, acquisitions, divestitures, and additional buybacks.

The company remains confident in its ability to deliver differentiated solutions and shareholder value, citing a strengthened balance sheet, expanded liquidity from a recent debt refinancing, and a diversified supplier network.

Cash and cash equivalents were $132.0 million at June 27, 2026. Long-term debt was $440.5 million. Inventories were $808.0 million. Weighted average diluted shares outstanding were 30.0 million in the quarter.

Olsen said cash flow generation positions the company to make strategic investments and drive long-term growth.