Dorman Products Inc

Dorman Products reported second-quarter 2026 net sales of $544.6 million, a 0.7% increase from the prior year, and raised its full-year 2026 guidance. Diluted earnings per share surged 53% to $2.93, while adjusted diluted EPS rose 50% to $3.08, both benefiting from the recovery of IEEPA tariff costs recognized in earlier periods. The company generated $152.6 million in cash from operating activities and repurchased $47 million of shares during the quarter. Dorman now expects full-year net sales growth of 3% to 5%, diluted EPS between $7.93 and $8.23, and adjusted diluted EPS between $8.50 and $8.80, citing a more stable tariff environment and targeted pricing actions.

Dorman Products was a top contributor in the SouthernSun Small Cap Strategy during the second quarter of 2026, as its share price recovered on investor recognition that first-quarter margin compression from tariffs was temporary. The company reported first-quarter net sales of $528.8 million, up 4.2% year-over-year, with adjusted diluted earnings per share of $1.57, down 22% due to tariff-related costs peaking during the quarter. Gross margin declined to 36.0% from 40.9% a year earlier, with management estimating tariff headwinds at approximately $1.25 per share on an annualized basis. Management reaffirmed full-year 2026 guidance for net sales growth of 7% to 9% and adjusted diluted earnings per share of $8.10 to $8.50, citing confidence across all three segments and consistently mid-single-digit positive point-of-sale trends. SouthernSun believes the core Light Duty franchise benefits from a compelling new product pipeline, ongoing innovation, and the long-term tailwind of an aging vehicle fleet.