Dorman earnings fell in the third quarter of 2026 despite record sales, as the auto-parts supplier faced margin pressure and softer demand from do-it-yourself customers. The company also narrowed its full-year sales growth forecast.
Key Takeaways
- Quarterly net sales rose 3.3% to $561.7 million, while adjusted diluted earnings per share fell 21% to $2.08.
- All three business segments increased sales, but the heavy-duty segment's profit margin fell to break-even.
- Dorman now expects 2026 sales growth of 2% to 3%, down from its prior forecast of 3% to 5%.
Dorman earnings and margins
For the quarter ended September 26, 2026, Dorman reported sales of $561.7 million, up from $543.7 million a year earlier. Its third-quarter results showed diluted earnings per share falling to $1.98 from $2.48; adjusted diluted earnings per share declined to $2.08 from $2.62.
Adjusted gross margin dropped to 39.4% from 44.4%. Chief Executive Kevin Olsen said the year-over-year earnings comparison reflected the timing of tariff-related pricing that benefited the third quarter of 2025.
| Item | Details |
|---|---|
| Light-duty segment sales | $443.7 million in Q3 2026 |
| Heavy-duty segment sales | $66.1 million in Q3 2026 |
| Specialty vehicle segment sales | $51.9 million in Q3 2026 |
Sales grow across all three segments
Light-duty sales increased 3%, supported by categories and channels serving professional repair customers. Heavy-duty sales rose 5%, although higher tariff and shipping costs contributed to a break-even segment profit margin. Specialty vehicle sales increased 3%.
On the October 27 earnings call, Olsen said demand from do-it-yourself customers remained pressured, while professional repair trends were more stable.
Full-year sales guidance narrowed
Dorman reduced its 2026 sales growth outlook to 2% to 3% from 3% to 5%. Chief Financial Officer Charles Rayfield said the updated range reflected continued softness in do-it-yourself demand and tariff-related price reductions.
The company forecast full-year diluted earnings of $7.95 to $8.15 per share and adjusted diluted earnings of $8.50 to $8.70 per share. The guidance includes tariffs enacted as of October 26 but excludes potential subsequent tariff changes and additional share repurchases.
Rayfield said Dorman expected further price reductions in the fourth quarter, with some impact continuing into 2027. The company did not provide 2027 guidance.
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