The significant gross margin compression and lowered guidance top end suggest ongoing tariff-related cost pressures that may persist into 2027. Monitor the Q4 earnings call for details on pricing actions and any further tariff impacts. The heavy-duty segment's swing to zero margin is a particular concern.
Price Chart
Executive Summary
Dorman Products reported Q3 2026 adjusted EPS of $2.08, slightly above the $2.00 consensus, but down 21% YoY from $2.62. Revenue of $561.7M was slightly below the $565.3M consensus. The company narrowed full-year guidance, lowering the top end of the revenue growth range and adjusted EPS range, reflecting tariff headwinds and margin compression.
Key Financial Metrics
Key Facts
- Q3 2026 net sales $561.7M, up 3.3% YoY but below consensus of $565.3M
- GAAP diluted EPS $1.98, down 20% YoY from $2.48
- Adjusted diluted EPS $2.08, down 21% YoY from $2.62; consensus was $2.00
- Gross margin contracted 500 bps to 39.4% from 44.4% due to tariff-related pricing timing
- Light Duty segment profit margin fell 520 bps to 18.5%; Heavy Duty swung to 0.0% from 4.5%
- Full-year 2026 net sales growth guidance narrowed to 2%-3% from prior 3%-5%
- Full-year adjusted diluted EPS guidance narrowed to $8.50-$8.70 from $8.50-$8.80
- Generated $64.6M operating cash flow in Q3; repurchased $15M of shares in the quarter
- Year-to-date share repurchases of $112M, a company record
Financial Impact
Revenue miss of ~$3.6M vs consensus; adjusted EPS beat by $0.08 but down 21% YoY; gross margin decline of 500 bps; guidance narrowed with lower top end for revenue and adjusted EPS
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Light Duty | $443.7M | +3.0% |
| Heavy Duty | $66.1M | +5.0% |
| Specialty Vehicle | $51.9M | +3.0% |
Risk Factors
- Gross margin declined 500 bps YoY due to tariff-related pricing timing, with no clear recovery timeline
- Heavy Duty segment profit margin fell to 0.0% from 4.5%, indicating potential structural issues
- Full-year revenue growth guidance lowered to 2%-3% from 3%-5%, signaling slowing top-line momentum
- Adjusted EPS guidance top end reduced by $0.10, implying continued earnings pressure
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3388582 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 1d ago | 8-K | $124.74 | awaiting T+60 | — | $124.31 (+0.34%) |
Oct 26, 2026 1d ago | Press Release | $124.69 | awaiting T+60 | — | $124.31 (+0.30%) |
Oct 5, 2026 22d ago | Press Release | $126.58 | awaiting T+60 | — | $124.31 (−1.79%) |
Aug 3, 2026 12w ago | Press Release | $147.80 | awaiting T+60 | — | $124.31 (−15.89%) |
May 4, 2026 25w ago | Press Release | $119.52 $133.18 | ▼ −11.43% | ▼ −8.69% | $124.31 (−4.01%) |
Apr 13, 2026 28w ago | Press Release | $110.12 $136.48 | ▲ +23.94% | ▲ +15.41% | $124.31 (+12.89%) |
Feb 25, 2026 34w ago | 8-K | $116.55 $118.08 | ▲ +1.31% | ▼ −6.86% | $124.31 (+6.66%) |
US Market Status
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