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what it is
Dorman sells replacement car parts and hardware to the stores and distributors you use when something on your vehicle breaks.
how it gets paid
Last year Dorman Prod made $2.1B in revenue. Auto replacement parts was the main engine at $0.93B, or 44% of sales.
why it's growing
Revenue grew 6.0% last year. 42.0% gross margin matters most because it tells you Dorman still has pricing power even in a parts business that looks generic from the parking.
what just happened
Was huge, with revenue hitting $1.6B and EPS at $6.26.
At a glance
A balance sheet — strong enough to weather a downturn
60/100 earnings predictability — reasonably predictable
14.6x trailing p/e — the market's not buying it — or you found a deal
14.0% return on capital — nothing to write home about
xvary composite: 59/100 — below average
What they do
Dorman sells replacement car parts and hardware to the stores and distributors you use when something on your vehicle breaks.
When your car breaks, you buy what is on the shelf. Dorman sells through U.S. retailers, warehouse distributors, and specialty channels, and that reach helped produce $2.1B in annual revenue. Its 42.0% gross margin means this is not just metal in a box. The catalog, fit data, and shelf space let it keep more of each sales dollar.
How they make money
$2.1B
annual revenue · their business grew +6.0% last year
Auto replacement parts
$0.93B
+6.0%
Auto hardware
$0.47B
+5.0%
Brake products
$0.29B
+4.0%
Heavy duty
$0.27B
+8.0%
Household hardware
$0.14B
+2.0%
The products that matter
replacement auto parts catalog
Automotive Aftermarket Parts
$2.1B revenue base · 20.5% operating margin
this is the core story: a $2.1B aftermarket parts business earning a 20.5% operating margin by selling the parts people need after the original sale is long over.
core
retail hardware distribution
Household Hardware
inside the $2.1B consolidated base
the company does not break this out here, so the hard number you have is that it sits inside the $2.1B revenue base. That is useful, but not enough to underwrite it as a standalone growth engine.
unsegmented
commercial vehicle replacement parts
Heavy Duty Division
inside the $2.1B consolidated base
management commentary points to new business wins here, but the disclosed number is still the same $2.1B consolidated base. You should treat Heavy Duty as a watch item, not a separately proven profit pool.
watch
Key numbers
$2.1B
annual sales
This is the scale of the distribution machine. Bigger catalog businesses get better shelf space and better leverage on fixed costs.
21.5%
operating margin
Margin → money left after running the business → so what: Dorman keeps more profit per dollar of sales than a plain parts reseller.
14.6x
trailing p/e
P/E → price compared with last year's profit → so what: you are not paying a luxury multiple for this earnings stream.
$421M
long-term debt
Debt is just 10% of capital, which gives Dorman room if the cycle gets weird.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 70 / 100
- long-term debt $421M (10% of capital)
- net profit margin 13.2% — keeps 13 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in DORM 3 years ago → it's now worth $13,800.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Was huge, with revenue hitting $1.6B and EPS at $6.26.
EDGAR shows revenue up 193% vs. prior year and EPS up 152%, with gross margin at 42.0%. Consensus also shows the last earnings report beat estimates, with $2.17 versus $2.05.
$525M
revenue
$6.26
eps
42.0%
gross margin
the number that mattered
42.0% gross margin matters most because it tells you Dorman still has pricing power even in a parts business that looks generic from the parking lot.
-
the heavy duty division likely got a boost from new business wins.however, tariff and trade uncertainty continued to persist in the market and may well have tempered gains.
-
we believe fourth-quarter share earnings declined at a mid- to high single-digit rate relative to the prior year.the bottom line was probably pressured by tariffs and freight volatility, along with a heavy reliance on overseas manufacturing.
-
this probably more than offset favorable pricing and higher sales.
-
we expect solid top- and bottom-line growth in 2026.dorman is well positioned to benefit from some industry tailwinds, including an aging vehicle fleet which will require more repairs and replacement parts. increasing vehicle complexity, as more automobiles have specialized components, should also support the business.
-
dorman is known for availability of parts not easily sourced elsewhere.on the other hand, the rise of electric vehicles could dampen growth, as evs typically require fewer traditional engine components. earnings ought to benefit from the higher sales, favorable pricing actions, and supply-chain improvements. a reduced tariff impact could also be a positive, assuming no further escalation in global trade tensions.
source: company earnings report, 2026
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What could go wrong
the top threat is tariff and trade pressure on overseas-sourced parts.
med
tariffs and sourcing costs
Recent commentary already points to tariff and trade uncertainty plus reliance on overseas manufacturing. If input costs move the wrong way, the pressure lands directly on the 20.5% operating margin.
This is a margin risk first. It affects the full $2.1B revenue base because the whole business depends on parts getting sourced, shipped, and stocked profitably.
med
EV mix shift
EVs generally require fewer traditional engine-related components. Dorman can adapt its catalog, but the long-term shift still matters when your business is built around replacement parts demand.
If the mix changes faster than Dorman refreshes its product offering, growth pressure shows up across the same $2.1B revenue base investors treat as stable.
med
institutional demand is not helping
Institutions were net sellers for two straight quarters, with 128 buyers versus 129 sellers in 4Q2025. That is not a collapse. It is still the wrong direction.
Stock flow is not the business, but it does affect how much patience the market gives a mid-cap when revenue estimates slip from $2.1B to $2B.
If tariffs keep biting and revenue stalls around the current $2.0B–$2.1B zone, the 14.6x multiple stops looking cheap and starts looking accurate.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarterly print
Start with revenue against the current $544M quarterly run rate. Then look at whether margins still support the 20.5% operating profile investors are paying for.
metric
full-year revenue outlook
The current FY2026 revenue estimate is $2B versus a $2.1B base today. If that starts moving higher, the stock gets a cleaner growth argument.
trend
aging fleet versus EV adoption
Older cars staying on the road helps Dorman. A faster shift toward EVs chips away at demand for traditional replacement categories. That tension is the medium-term story.
risk
tariff cost pass-through
Watch whether pricing offsets freight and sourcing costs. If not, the 12.7% net margin starts doing the shrinking for you.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think near-term performance could lag most stocks.
risk profile
average
stability score 3 — this is not a bunker stock, but it is not a rollercoaster either.
chart momentum
average
technical score 3 — the chart is not flashing a big edge in either direction.
earnings predictability
60 / 100
The numbers are reasonably steady, but not steady enough for you to ignore surprises.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 128 buyers vs. 129 sellers in 4q2025. total institutional holdings: 26.9M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$105
$225
$128
current price
$165
target midpoint · +29% from current · 3-5yr high: $285 (+125% · 22% ann'l return)
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