Dorman Products Q3 Sales Rise 3.3% as EPS Falls; 2026 Guidance Updated

What happened

Dorman Products reported third-quarter 2026 net sales of $561.7 million, up 3.3% year over year, while diluted EPS fell to $1.98 from $2.48. The company narrowed its full-year 2026 outlook to sales growth of 2% to 3% and diluted EPS of $7.95 to $8.15.

Confirmed

Global impact / market context

Sales grew but profit per sale fell, as gross profit dropped to 39.4% of net sales from 44.4%. That means costs rose faster than revenue, leaving less profit from each sale and lower earnings per share despite higher sales.

Analyst inference

All three business segments grew sales through new products and business wins, but operating income fell to $82.9 million from $105.8 million. Dorman plans more price increases in the fourth quarter, which means charging customers more to offset cost pressure.

Analyst inference

What to watch

1. Dorman expects to take additional pricing actions in the fourth quarter, raising prices to help offset cost pressure that reduced gross profit as a share of net sales. Confirmed
2. Watch whether the narrowed 2026 outlook for 2% to 3% sales growth and diluted EPS of $7.95 to $8.15 holds if fourth-quarter pricing actions change sales volumes. Proposed
3. Watch gross profit as a share of net sales, which fell to 39.4% from 44.4%, for signs that cost pressure is easing or worsening into the fourth quarter. Analyst inference

Evidence

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