Dorman Products (DORM) Q4 2025 earnings summary

Executive summary

• Achieved record sales from new products and launched thousands of new SKUs, especially in complex electronics, supporting long-term growth initiatives.

• Advanced operational excellence through automation and supply chain diversification, reducing China sourcing below 40% and targeting 30% in 2026.

• Delivered on strategic priorities in innovation, operational excellence, supply chain optimization, and channel expansion, driving growth across diverse end markets.

• Delivered solid Q4 and FY 2025 results, with strong top- and bottom-line growth and record new product sales.

• Strategic focus remains on innovation, operational excellence, and organic growth.

Financial highlights

• FY 2025 net sales reached $2.13B, up 6% year-over-year; Q4 2025 net sales were $538M, up 0.8% over Q4 2024.

• Adjusted gross margin for Q4 was 42.6%, up 90 basis points year-over-year; full-year adjusted gross margin was 42.1%.

• Adjusted operating income for FY 2025 grew 17% to $379M; adjusted diluted EPS rose 24% to $8.87.

• Q4 2025 adjusted operating margin was 17.4%; adjusted diluted EPS was $2.17.

• Operating cash flow for FY 2025 was $114M; Q4 2025 operating cash flow was $42M.

Outlook and guidance

• 2026 net sales growth expected in the 7%-9% range across all segments.

• 2026 adjusted diluted EPS guidance: $8.10–$8.50, representing a 4%–9% decrease year-over-year.

• Operating margin expected at 15%-16% for 2026, with normalization to high teens by year-end.

• Guidance assumes no net change in tariff impacts and excludes potential tariff refunds, future M&A, and share repurchases.

• Estimated 2026 tax rate: 23.5%.