Dorman Products reported third quarter 2026 net sales of $561.7 million, representing a modest increase that fell slightly below analyst expectations. While the company achieved an earnings beat on an adjusted basis, results were negatively impacted by a significant contraction in gross margins compared to the prior-year period. Consequently, management tightened its full-year 2026 guidance, lowering the upper limits for both revenue growth and earnings.
Key Highlights
- Net sales grew 3.3% to $561.7 million, missing the consensus estimate of $565.3 million.
- Adjusted diluted EPS fell 21% year-over-year to $2.08, though it remained above the forecasted $2.00.
- Gross margins compressed by 500 basis points to 39.4% due to the timing of tariff-related pricing benefits that significantly aided the 2025 comparison period.
- The company repurchased $15 million in common stock during the quarter, bringing the year-to-date total to a record $112 million.
- Full-year 2026 adjusted EPS guidance was narrowed to a range of $8.50 to $8.70, down from the previous $8.50 to $8.80.