On this page of StockholderLetter.com we present the latest annual shareholder letter from Dorman Products, Inc. — ticker symbol DORM. Reading current and past DORM letters to shareholders can bring important insights into the investment thesis.
dormanproducts.com Giving repair professionals, enthusiasts and owners greater freedom to fix motor vehicles. 2025 ANNUAL REPORT
ANNUAL REPORT LETTER TO SHAREHOLDERS To Our Fellow Shareholders: We are pleased to report that 2025 was another year of strong performance for Dorman, marked by solid top- and bottom-line growth, sustained innovation, and disciplined execution across our organization. Despite a dynamic macro environment, impacted most notably by tariffs, our Contributors once again demonstrated their resilience and commitment, delivering results that build upon the momentum we have established over the last several years. For the year, net sales reached $2.13 billion, a 6% increase over 2024, driven by strong underlying demand in our Light Duty business and the successful execution of tariff-related pricing initiatives in the back half of the year. Additionally in 2025, we delivered record new product sales, reflecting the strength of our innovation strategy. We also achieved significant margin expansion and earnings growth, with Adjusted Operating Income rising 17% and Adjusted Diluted Earnings Per Share (EPS) increasing 24% to $8.87. These results were fueled by strategic 2025 ANNUAL REPORT pricing actions and the timing of costs related to tariffs. In addition, strong sales of new products, as well as supplier diversification, productivity, and automation initiatives implemented across the organization helped drive improved profitability. Our asset-light model continues to serve us well, providing the flexibility needed to adapt with market changes and best serve our customers. While tariffs impacted inventory costs and the timing of cash flows, we remained disciplined in our capital deployment strategy. In 2025, we generated $114 million in operating cash flow, repaid $42 million of debt, and repurchased $41 million of common stock, all while maintaining a strong balance sheet and liquidity position. Despite a quieter environment in 2025, M&A continues to be a viable part of our long-term strategy. Financial Highlights: Achieved record net sales of $2.13 billion, a 6% increase over 2024 Improved Adjusted Gross Margin by 190 bps to 42.1% for the year
2025 ANNUAL REPORT Increased Adjusted Operating Income by 17% to $379 million and improved Adjusted Operating Income Margin by 170 basis points to 17.8% for the year Delivered $8.87 in Adjusted Diluted EPS, a 24% increase compared to 2024 Reduced Total Net Leverage Ratio as determined under our credit facility to 0.89x from 1.12x at the same time in 2024 Innovation remains the lifeblood of Dorman. In 2025, our Contributors launched more than 5,500 new SKUs across our Light Duty, Heavy Duty, and Specialty Vehicle segments, driving record sales from new products. With one of the largest product portfolios in the industry, we are a leading growth engine for our customers. Specifically in an area where we believe we have a competitive advantage, we advanced our capabilities in complex electronics during 2025. As an example, we recently launched an electronic power steering rack for certain Dodge Ram truck models a first-tothe aftermarket OE FIX solution that was designed with significant improvements compared to the original manufacturer s part to help ensure a long, reliable service life. This is just one of many solutions that allow us to meet the ever-changing needs of next-generation vehicles. Our innovation pipeline is stronger and deeper than ever, positioning us well to support our customers and end-users with new, innovative products. Throughout 2025, we also continued to strengthen our operational and commercialization capabilities. From automation in our distribution centers, to process improvements within our facilities, to initiatives that enhance the customer experience and expand our market reach, we ve made significant investments across the enterprise to drive sustainable growth. We also have invested in resiliency and redundancy within our supply chain, which is driving improved performance for the company and greater availability for our customers and end-users. In a year heavily shaped by tariff developments, we continued to diversify our sourcing footprint. We successfully reduced our supply from China to below 40%, with further reductions expected as we progress through 2026. These diversification efforts mitigate cost impacts and drive flexibility across our operations. As we look ahead, the fundamentals of the lightduty industry remain strong. The average age of today s used vehicle is nearly 13 years, and the number of vehicles our products serve continues to increase. Additionally, the number of miles traveled increased year-over-year and demand for high-quality aftermarket repair solutions remains robust. These long-term secular drivers, combined with increased vehicle complexity and our differentiated new product development capabilities, supply chain excellence, and strong customer partnerships, position us well for sustained growth. While tariff, trade, and geopolitical uncertainty are likely to continue to influence the broader operating environment, we have the experience, playbook, and financial strength to navigate through market challenges. We remain committed to putting our customers and end-users first in everything we do and executing on what we can control to drive our strategic priorities. As we look ahead, we enter 2026 with momentum, discipline, and an unwavering focus on driving value creation for our stakeholders. We remain committed to further advancing our innovation strategy, improving our commercial and operational execution, and investing in key initiatives and opportunities where we can win in our respective markets. None of this would be possible without our worldclass, talented team, so I d like to thank all of my fellow Contributors for their commitment to serving our customers and working tirelessly to deliver on our goals. Their dedication is the driving force behind our performance and the foundation of our long-term success. I also want to extend my sincere appreciation to our customers, suppliers, and shareholders. On behalf of our Board of Directors, we thank you for your continued partnership and trust in Dorman. Kevin M. Olsen Chairman, President & Chief Executive Officer This letter includes statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on Dorman s current expectations and assumptions. Words such as may, will, should, likely, probably, anticipates, expects, intends, plans, projects, believes, views, estimates, and similar expressions are used to identify these forward-looking statements. For a discussion identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see Dorman s filings with the US Securities and Exchange Commission, including, but not limited to, Risk Factors in the Form 10-K portion of this Annual Report. Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Diluted Earnings Per Share and Free Cash Flow are Non-GAAP financial measures. Reconciliations of these Non-GAAP financial measures to the most directly comparable GAAP financial measures are included at the end of this Annual Report. DORMANPRODUCTS.COM
ANNUAL REPORT THE STORY OF DORMAN PRODUCTS Dorman s story begins with the mass market automobile. The first moving assembly line was introduced in 1913, accelerating car manufacturing and making vehicles more affordable. Early cars offered people the newfound freedom of mobility. However, to maintain this freedom, people now needed to maintain their vehicles. Only a few years later, in 1918, Jack and Lew Dorman, two enterprising brothers from Cincinnati, discovered that many people couldn t find the basic parts they needed to repair their cars. They started a company named Dorman Products, selling hard-to-find automotive hardware sourced from salvaged vehicles. many of these vintage orange shelves, trays, bins and display stands are now highly sought-after collector items. In 1978, two other brothers, Richard and Steven Berman, started their own company selling small replacement parts outside Philadelphia. Seeing that there were many simple products that people couldn t buy from anyone else except original equipment manufacturers, they founded R&B Inc. to deliver more convenient and affordable solutions. They became best known under the brand name Motormite Manufacturing, which launched many popular product lines like HELP! and ConductTite . The Dormans soon found success manufacturing star washers, and expanded into selling other hardware, like brake adjusting screws and center spring bolts. Over time, the company s product lines grew to include dozens of different small part categories, like bearings, caps, clamps, fittings, hoses and springs. After competing for decades, Motormite acquired Dorman in 1994. In 2006, the two companies further unified under the single Dorman Products brand. Today the company is publicly listed on the Nasdaq Global Select Market under the ticker DORM. Merchandising was where Dorman really made its mark in the aftermarket. Various assortments and inventory systems revolutionized the small parts business, and Dorman is now one of the leading suppliers of replacement and upgrade parts in the motor vehicle aftermarket industry, serving passenger cars, light-, 2025 ANNUAL REPORT
2025 ANNUAL REPORT medium-, and heavy-duty trucks, as well as specialty vehicles, including utility terrain vehicles and all-terrain vehicles. Dorman has more than a dozen facilities and 3,870 employees worldwide*. Headquartered in Colmar, Pennsylvania, Dorman offers more than 144,000 distinct products.* As vehicles have evolved, so have we. Far from the early days of simple components, Dorman now delivers some of the most advanced replacement parts in the aftermarket, like ABS modules, electronic throttle bodies and VVT solenoids. Many of our OE FIX parts solve common problems customers have with the OEM alternative, reducing repair cost and installation time, and increasing reliability and serviceability. The original drive of the Dorman and Berman brothers still guides the company today. Just as both sets of brothers saw a need to give people better options for maintaining automobiles, we continue to give repair professionals and owners greater freedom to fix their vehicles. Dorman was one of the first companies to provide these solutions, and we continue to be first to market with new solutions every day. Learn more at tour.dormanproducts.com. *AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2025 SELECTED CONSOLIDATED FINANCIAL DATA Year Ended ($ in thousands, except per share data) 2025 2024 2023 2022 2021 $2,130,319 $2,009,197 $1,929,788 $1,733,749 $1,345,249 6.0% 4.1% 11.3% 28.9% 23.1% 897,737 806,359 685,423 564,450 462,916 42.1% 40.1% 35.5% 32.6% 34.4% 299,547 292,909 214,760 171,048 171,551 14.1% 14.6% 11.1% 9.9% 12.8% 204,194 190,004 129,259 121,549 131,532 Diluted $6.64 $6.14 $4.10 $3.85 $4.12 Adjusted diluted $8.87 $7.13 $4.54 $4.68 $4.64 Cash and cash equivalents $49,436 $57,137 $36,814 $46,034 $58,782 Outstanding debt under credit agreement 440,625 482,710 577,135 736,238 239,360 113,634 231,047 208,758 41,688 100,338 Capital expenditures 37,969 39,421 43,968 37,883 19,840 Free cash flow 75,665 191,626 164,790 3,805 80,498 (100) (67) 488,956 345,483 40,636 78,091 15,333 17,577 61,583 Statement of Operations Data: Net sales Sales Growth Gross profit Gross profit margin Income from operations Operating margin Net income Earnings per share: Balance Sheet and Cash Flow Data: Cash provided by operating activities Cash (provided by) used for divestitures and acquisitions, net of cash acquired Share repurchases under repurchase program Non-GAAP measures. See NOTE below. To help improve comparability, Adjusted Diluted Earnings Per Share for 2022 has been adjusted to remove the 53rd week. No other amounts shown for 2022 have been adjusted to reflect the removal of the 53rd week. NOTE: For additional information regarding the amounts presented above, see the Form 10-K portion of this Annual Report. Reconciliations of Adjusted Diluted Earnings Per Share to diluted earnings per share and Free Cash Flow to cash provided by operating activities are included at the end of this Annual Report. DORMANPRODUCTS.COM
 • shareholder letter icon 4/6/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/4/2023 DORM Stockholder Letter
 • stockholder letter icon 4/8/2024 DORM Stockholder Letter
 • stockholder letter icon 4/7/2025 DORM Stockholder Letter
 • stockholder letter icon More "Auto Parts" Category Stockholder Letters
 • Benford's Law Stocks icon DORM Benford's Law Stock Score = 99


DORM Shareholder/Stockholder Letter Transcript:

dormanproducts.com
Giving repair professionals, enthusiasts   and owners
greater freedom to fix motor vehicles.
2025
ANNUAL REPORT

ANNUAL REPORT
LETTER TO
SHAREHOLDERS
To Our Fellow Shareholders:
We are pleased to report that 2025 was another
year of strong performance for Dorman, marked
by solid top- and bottom-line growth, sustained
innovation, and disciplined execution across
our organization. Despite a dynamic macro
environment, impacted most notably by tariffs,
our Contributors once again demonstrated
their resilience and commitment, delivering
results that build upon the momentum we have
established over the last several years.
For the year, net sales reached $2.13 billion,
a 6% increase over 2024, driven by strong
underlying demand in our Light Duty business
and the successful execution of tariff-related
pricing initiatives in the back half of the year.
Additionally in 2025, we delivered record new
product sales, reflecting the strength of our
innovation strategy.
We also achieved significant margin expansion
and earnings growth, with Adjusted Operating
Income rising 17% and Adjusted Diluted
Earnings Per Share (EPS) increasing 24% to
$8.87. These results were fueled by strategic
2025 ANNUAL REPORT
pricing actions and the timing of costs related
to tariffs. In addition, strong sales of new
products, as well as supplier diversification,
productivity, and automation initiatives
implemented across the organization helped
drive improved profitability.
Our asset-light model continues to serve us
well, providing the flexibility needed to adapt
with market changes and best serve our
customers. While tariffs impacted inventory
costs and the timing of cash flows, we remained
disciplined in our capital deployment strategy.
In 2025, we generated $114 million in operating
cash flow, repaid $42 million of debt, and
repurchased $41 million of common stock, all
while maintaining a strong balance sheet and
liquidity position. Despite a quieter environment
in 2025, M&A continues to be a viable part of
our long-term strategy.
Financial Highlights:
    Achieved record net sales of $2.13 billion, a
6% increase over 2024
    Improved Adjusted Gross Margin by 190 bps
to 42.1% for the year

2025 ANNUAL REPORT
    Increased Adjusted Operating Income by 17% to
$379 million and improved Adjusted Operating
Income Margin by 170 basis points to 17.8% for the
year
    Delivered $8.87 in Adjusted Diluted EPS, a 24%
increase compared to 2024
    Reduced Total Net Leverage Ratio as determined
under our credit facility to 0.89x from 1.12x at the
same time in 2024
Innovation remains the lifeblood of Dorman. In
2025, our Contributors launched more than 5,500
new SKUs across our Light Duty, Heavy Duty, and
Specialty Vehicle segments, driving record sales
from new products. With one of the largest product
portfolios in the industry, we are a leading growth
engine for our customers.
Specifically in an area where we believe we have a
competitive advantage, we advanced our capabilities
in complex electronics during 2025. As an example,
we recently launched an electronic power steering
rack for certain Dodge Ram truck models     a first-tothe aftermarket OE FIX   solution that was designed
with significant improvements compared to the
original manufacturer   s part to help ensure a long,
reliable service life. This is just one of many solutions
that allow us to meet the ever-changing needs of
next-generation vehicles. Our innovation pipeline is
stronger and deeper than ever, positioning us well
to support our customers and end-users with new,
innovative products.
Throughout 2025, we also continued to strengthen
our operational and commercialization capabilities.
From automation in our distribution centers, to
process improvements within our facilities, to
initiatives that enhance the customer experience and
expand our market reach, we   ve made significant
investments across the enterprise to drive sustainable
growth.
We also have invested in resiliency and redundancy
within our supply chain, which is driving improved
performance for the company and greater availability
for our customers and end-users. In a year heavily
shaped by tariff developments, we continued to
diversify our sourcing footprint. We successfully
reduced our supply from China to below 40%, with
further reductions expected as we progress through
2026. These diversification efforts mitigate cost
impacts and drive flexibility across our operations.
As we look ahead, the fundamentals of the lightduty industry remain strong. The average age of
today   s used vehicle is nearly 13 years, and the
number of vehicles our products serve continues to
increase. Additionally, the number of miles traveled
increased year-over-year and demand for high-quality
aftermarket repair solutions remains robust. These
long-term secular drivers, combined with increased
vehicle complexity and our differentiated new product
development capabilities, supply chain excellence,
and strong customer partnerships, position us well for
sustained growth.
While tariff, trade, and geopolitical uncertainty are
likely to continue to influence the broader operating
environment, we have the experience, playbook,
and financial strength to navigate through market
challenges. We remain committed to putting our
customers and end-users first in everything we do
and executing on what we can control to drive our
strategic priorities.
As we look ahead, we enter 2026 with momentum,
discipline, and an unwavering focus on driving value
creation for our stakeholders. We remain committed
to further advancing our innovation strategy,
improving our commercial and operational execution,
and investing in key initiatives and opportunities
where we can win in our respective markets.
None of this would be possible without our worldclass, talented team, so I   d like to thank all of my
fellow Contributors for their commitment to serving
our customers and working tirelessly to deliver on
our goals. Their dedication is the driving force behind
our performance and the foundation of our long-term
success.
I also want to extend my sincere appreciation to our
customers, suppliers, and shareholders. On behalf
of our Board of Directors, we thank you for your
continued partnership and trust in Dorman.
Kevin M. Olsen
Chairman, President & Chief Executive Officer
This letter includes statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on Dorman   s current
expectations and assumptions. Words such as    may,       will,       should,       likely,       probably,       anticipates,       expects,       intends,       plans,       projects,       believes,       views,       estimates,    and similar expressions are used to identify these
forward-looking statements. For a discussion identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see Dorman   s filings with the US
Securities and Exchange Commission, including, but not limited to,    Risk Factors    in the Form 10-K portion of this Annual Report.
Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Diluted Earnings Per Share and Free Cash Flow are Non-GAAP financial measures. Reconciliations of
these Non-GAAP financial measures to the most directly comparable GAAP financial measures are included at the end of this Annual Report.
DORMANPRODUCTS.COM

ANNUAL REPORT
THE STORY OF
DORMAN PRODUCTS
Dorman   s story begins with the mass market automobile.
The first moving assembly line was introduced in 1913,
accelerating car manufacturing and making vehicles
more affordable. Early cars offered people the newfound
freedom of mobility. However, to maintain this freedom,
people now needed to maintain their vehicles.
Only a few years later, in 1918, Jack and Lew Dorman, two
enterprising brothers from Cincinnati, discovered that
many people couldn   t find the basic parts they needed to
repair their cars. They started a company named Dorman
Products, selling hard-to-find automotive hardware
sourced from salvaged vehicles.
many of these vintage orange shelves, trays, bins and
display stands are now highly sought-after collector
items.
In 1978, two other brothers, Richard and Steven Berman,
started their own company selling small replacement
parts outside Philadelphia. Seeing that there were
many simple products that people couldn   t buy from
anyone else except original equipment manufacturers,
they founded R&B Inc. to deliver more convenient and
affordable solutions. They became best known under the
brand name Motormite Manufacturing, which launched
many popular product lines like HELP!   and ConductTite  .
The Dormans soon found success manufacturing star
washers, and expanded into selling other hardware, like
brake adjusting screws and center spring bolts. Over
time, the company   s product lines grew to include dozens
of different small part categories, like bearings, caps,
clamps, fittings, hoses and springs.
After competing for decades, Motormite acquired
Dorman in 1994. In 2006, the two companies further
unified under the single Dorman Products brand. Today
the company is publicly listed on the Nasdaq Global
Select Market under the ticker DORM.
Merchandising was where Dorman really made its mark
in the aftermarket. Various assortments and inventory
systems revolutionized the small parts business, and
Dorman is now one of the leading suppliers of
replacement and upgrade parts in the motor vehicle
aftermarket industry, serving passenger cars, light-,
2025 ANNUAL REPORT

2025 ANNUAL REPORT
medium-, and heavy-duty trucks, as well as specialty
vehicles, including utility terrain vehicles and all-terrain
vehicles. Dorman has more than a dozen facilities and
3,870 employees worldwide*. Headquartered in Colmar,
Pennsylvania, Dorman offers more than 144,000 distinct
products.*
As vehicles have evolved, so have we. Far from the early
days of simple components, Dorman now delivers
some of the most advanced replacement parts in the
aftermarket, like ABS modules, electronic throttle
bodies and VVT solenoids. Many of our OE FIX   parts
solve common problems customers have with the OEM
alternative, reducing repair cost and installation time,
and increasing reliability and serviceability.
The original drive of the Dorman and Berman brothers
still guides the company today. Just as both sets of
brothers saw a need to give people better options for
maintaining automobiles, we continue to give repair
professionals and owners greater freedom to fix their
vehicles. Dorman was one of the first companies to
provide these solutions, and we continue to be first to
market with new solutions every day.
Learn more at tour.dormanproducts.com.
*AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2025
SELECTED CONSOLIDATED FINANCIAL DATA
Year Ended
($ in thousands, except per share data)
2025
2024
2023
2022
2021
$2,130,319
$2,009,197
$1,929,788
$1,733,749
$1,345,249
6.0%
4.1%
11.3%
28.9%
23.1%
897,737
806,359
685,423
564,450
462,916
42.1%
40.1%
35.5%
32.6%
34.4%
299,547
292,909
214,760
171,048
171,551
14.1%
14.6%
11.1%
9.9%
12.8%
204,194
190,004
129,259
121,549
131,532
Diluted
$6.64
$6.14
$4.10
$3.85
$4.12
Adjusted diluted       
$8.87
$7.13
$4.54
$4.68
$4.64
Cash and cash equivalents
$49,436
$57,137
$36,814
$46,034
$58,782
Outstanding debt under credit
agreement
440,625
482,710
577,135
736,238
239,360
113,634
231,047
208,758
41,688
100,338
Capital expenditures
37,969
39,421
43,968
37,883
19,840
Free cash flow   
75,665
191,626
164,790
3,805
80,498

(100)
(67)
488,956
345,483
40,636
78,091
15,333
17,577
61,583
Statement of Operations Data:
Net sales
Sales Growth
Gross profit
Gross profit margin
Income from operations
Operating margin
Net income
Earnings per share:
Balance Sheet and Cash Flow Data:
Cash provided by operating
activities
Cash (provided by) used for
divestitures and acquisitions,
net of cash acquired
Share repurchases under
repurchase program

Non-GAAP measures. See NOTE below.
To help improve comparability, Adjusted Diluted Earnings Per Share for 2022 has been adjusted to remove the 53rd week. No other amounts shown for 2022
have been adjusted to reflect the removal of the 53rd week.
NOTE: For additional information regarding the amounts presented above, see the Form 10-K portion of this Annual Report.
Reconciliations of Adjusted Diluted Earnings Per Share to diluted earnings per share and Free Cash Flow to cash provided by
operating activities are included at the end of this Annual Report.

DORMANPRODUCTS.COM


shareholder letter icon 4/6/2026 Letter Continued (Full PDF)
 

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