Dorman Reports Q1 Revenue of $528.77M
Reports Q1 revenue $528.77M, consensus $524.51M. Kevin Olsen, Dorman's Chairman, President, and Chief Executive Officer, stated, "We started the year with solid financial performance that was in line with our expectations. Despite ongoing uncertainty in the broader economy and geopolitical environment, we delivered first quarter net sales growth of 4.2% year over year. Diluted EPS was $1.43, and adjusted diluted EPS was $1.57, down 24% and 22%, respectively, compared to the same period in 2025, driven largely by the anticipated impact of higher costs associated with tariffs implemented in 2025. In addition, we generated cash from operations of $44 million and returned capital to stockholders through $51 million of share repurchases at an average price of $118 per share."
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- New Investment Disclosure: Aurora Investment Counsel disclosed a new position in Dorman Products, acquiring 25,612 shares in the first quarter of 2026, with an estimated trade value of $3.05 million, indicating confidence in the company's prospects.
- Position Value Change: Post-trade, Aurora's stake in Dorman was valued at $2.67 million, reflecting both stock price fluctuations and increased holdings, suggesting investor expectations for future growth.
- Market Performance Comparison: As of May 5, 2026, Dorman's shares were priced at $119.52, up 4.0% over the past year, yet underperforming the S&P 500 by 24.5 percentage points, highlighting competitive pressures in the market.
- Financial Health Overview: Dorman reported a trailing twelve-month revenue of $2.15 billion and a net income of $190.24 million, facing challenges with declining gross margins, yet maintaining a strong position in the automotive parts market.
- Sales Growth Overview: Dorman Products reported Q1 net sales of $529 million, reflecting a 4% year-over-year increase primarily driven by pricing, while volumes decreased compared to the exceptionally strong Q1 2025, indicating market demand volatility.
- Margin Pressure: CEO Kevin Olsen highlighted an adjusted operating margin of 12.1%, which reflects the peak tariff-related costs expected in 2026, although the company is implementing productivity and automation measures to support margin improvement.
- Cash Flow and Buybacks: The company generated operating cash flow of $44 million in the quarter and executed $51 million in share repurchases, marking a record for the company, demonstrating strong capital return and cash performance.
- Future Outlook: Dorman reaffirmed its full-year 2026 guidance, projecting net sales growth of 7% to 9% and adjusted operating margins of 15% to 16%, with expectations for a more normalized high teens rate as the year progresses, while excluding potential impacts from IEEPA tariff refunds.
- Earnings Beat: Dorman Products reported Q1 GAAP EPS of $1.57, exceeding expectations by $0.08, indicating strong market performance that is likely to positively impact stock prices.
- Revenue Growth: The company achieved Q1 revenue of $528.8 million, a 4.2% year-over-year increase, surpassing expectations by $4.29 million, reflecting robust sales and market demand that enhances investor confidence.
- 2026 Guidance: Dorman anticipates net sales growth of 7% to 9% for 2026, with diluted EPS guidance set between $7.57 and $7.97, showcasing an optimistic outlook for future performance that may attract more investor interest.
- Tax Rate Estimate: The estimated tax rate is 23.5%, which will aid in maintaining transparency in the company's future financial planning, further bolstering market confidence in its financial health.
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- Record Sales Performance: Dorman Products achieved consolidated net sales of $2.13 billion in 2025, marking a 6% year-over-year increase, with Q4 sales at $538 million, reflecting a modest 1% growth compared to the previous year, indicating strong performance in new product launches.
- Increased Investment in Development: The company has significantly ramped up investments in complex electronic solutions, with CEO Kevin Olsen noting a robust new product pipeline that is expected to enhance competitive advantages moving forward.
- Supply Chain Strategic Shift: Dorman plans to reduce sourcing from China to approximately 30% in 2026, demonstrating a proactive approach to strengthening supply chain resilience and flexibility in global supply chain management.
- Optimistic Future Outlook: The company anticipates net sales growth of 7% to 9% for 2026, with operating margins expected to normalize to high teens by year-end, reflecting confidence in navigating future market conditions.
- Earnings Performance: Dorman Products reported a Q4 non-GAAP EPS of $2.17, exceeding market expectations by $0.05, indicating the company's resilience and stability in profitability.
- Revenue Growth Challenges: The company's revenue reached $537.9 million in Q4, reflecting a modest year-over-year growth of 0.8%, yet it fell short of the market's expectations by $35.48 million, highlighting challenges from increased competition and demand fluctuations.
- Market Outlook: Analysts maintain a cautious stance on Dorman Products, reaffirming a 'Hold' rating, suggesting that investors should focus on the company's long-term growth potential amidst short-term volatility in the current economic environment.
- Historical Performance Review: Historical financial data for Dorman Products indicates that despite facing challenges, the company has maintained relatively stable profitability over the past few quarters, showcasing its competitive position within the industry.








