COLMAR, PA — Dorman Products, Inc. (NASDAQ: DORM) cut its 2026 sales-growth forecast while raising its earnings outlook after second-quarter profit increased sharply, with results benefiting from the recovery of tariff costs recognized in prior periods.
The motor vehicle aftermarket supplier now expects full-year net sales growth of 3% to 5%, down from its previous forecast of 7% to 9%.
Dorman raised its forecast for diluted earnings per share to $7.93 to $8.23 from $7.57 to $7.97. The new range represents expected growth of 19% to 24% from 2025, compared with the previous forecast of 14% to 20%.
Adjusted diluted EPS is now expected to range from $8.50 to $8.80, up from the previous forecast of $8.10 to $8.50. Even at the higher range, adjusted EPS would decline between 1% and 4% from 2025.
The revised guidance incorporates the expected impact of tariffs enacted as of Aug. 3. It excludes potential tariff changes after that date, future acquisitions and divestitures, and additional share repurchases.
Dorman reported second-quarter net sales of $544.6 million, up 0.7% from $541 million a year earlier.
Diluted EPS climbed 53% to $2.93 from $1.91, while adjusted diluted EPS increased 50% to $3.08 from $2.06.
Dorman attributed the earnings and cash-flow benefit in part to the recovery of costs associated with tariffs imposed under the International Emergency Economic Powers Act, or IEEPA, that had been recognized in earlier periods.
“Our second quarter results included record earnings and strong cash flow generation, reflecting both solid operating performance and the recovery of IEEPA tariff costs recognized in prior periods,” Chairman, President and Chief Executive Officer Kevin Olsen said.
Gross profit increased to $251.2 million from $219.5 million. Gross margin expanded to 46.1% from 40.6% a year earlier.
Selling, general and administrative expenses declined to $135 million from $137 million. As a percentage of sales, SG&A fell to 24.8% from 25.3%.
Adjusted SG&A expenses declined to $129.6 million, or 23.8% of sales, from $131.3 million, or 24.3%, a year earlier.
Dorman generated $152.6 million in cash from operating activities during the quarter and repurchased $47 million of its shares.
Olsen attributed the updated full-year outlook to the company’s first-half performance and targeted pricing actions in what Dorman characterized as a more stable tariff environment.
The company maintained its estimated full-year tax rate at 23.5%.
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