Dorman 2025 Q1 Earnings Strong Performance with Net Income Up 75%

Dorman (DORM) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company's financial results exceeded expectations with net sales of $507.7 million, a significant increase from the consensus estimate of $481.63 million. Earnings per share also surpassed projections, coming in at $1.88 compared to the anticipated $1.44. Dorman reaffirmed its full-year guidance, forecasting net sales growth of 3% to 5% and adjusted diluted EPS between $7.55 and $7.85, reflecting a cautious yet confident outlook amid trade uncertainties.

Revenue
Dorman's total revenue grew by 8.3% to $507.69 million in 2025 Q1, compared to $468.70 million in 2024 Q1. The Light Duty segment contributed $408.86 million, demonstrating robust growth, while Heavy Duty recorded $51.68 million, and Specialty Vehicle added $47.16 million to the total revenue.

Earnings/Net Income
Dorman's earnings per share surged by 79.0% to $1.88 in 2025 Q1 from $1.05 in 2024 Q1, indicating sustained earnings growth. Net income increased significantly to $57.51 million, a 75.2% rise from $32.83 million in the previous year, showcasing strong operational resilience. The EPS performance indicates a positive trend for the company.

Price Action
The stock price of Dorman has climbed 6.40% during the latest trading day, has jumped 9.72% during the most recent full trading week, and has climbed 6.60% month-to-date.

Post-Earnings Price Action Review
Over the past five years, a strategy involving purchasing Dorman shares following a quarter-over-quarter revenue decline and holding for 30 days has demonstrated strong profitability. This approach yielded a backtested return of 26.52%, outperforming the S&P 500's return of 22.38% by 4.14 percentage points annually. The success of this strategy suggests it effectively capitalizes on Dorman's ability to rebound after temporary revenue dips, leveraging the stock's mean reversion and growth potential for enhanced investment returns.

CEO Commentary
Kevin Olsen, Chief Executive Officer, highlighted Dorman Products' remarkable first-quarter performance, with net sales up 8% year-over-year, reaching $508 million. This growth was driven by new product development and improved margins. Olsen emphasized strategic supply chain diversification, reducing reliance on Chinese sourcing to 30-40%, with approximately 30% sourced in the U.S. He cited the importance of nondiscretionary parts during uncertain economic times and expressed optimism about the company’s financial strength and strategic positioning.

Guidance
Dorman Products reaffirmed its 2025 net sales growth guidance of 3% to 5% and adjusted diluted EPS guidance of $7.55 to $7.85. This guidance excludes potential impacts from enacted or proposed tariffs, reflecting cautious optimism amid ongoing trade uncertainties. The company plans to address increased tariff costs through strategic supplier negotiations and price adjustments while focusing on core business performance.

Additional News
In recent non-earnings news, Dorman Products appointed Tayfun Uner as President of its Light Duty segment, a newly-created position aimed at driving strategic growth and overseeing commercial and operational aspects. Uner joins with extensive global experience, enhancing Dorman's leadership structure across all business segments. Additionally, Sei Investments Co. increased its holdings in Dorman by 88.2% in the fourth quarter, reflecting confidence in the company's future prospects. Institutional ownership remains strong, with several hedge funds adjusting their positions, underscoring Dorman's solid market appeal.