A maker of replacement and upgrade parts for cars, trucks, and specialty vehicles like ATVs, sold under brands including Dorman, Dayton Parts, SuperATV, and OE FIX to drivers and repair shops across North America. The company grew out of a business begun in 1918 by brothers Jack and Lew Dorman in Cincinnati, who hunted down hard-to-find auto hardware; in 1994 it merged with a similar Philadelphia venture founded by two other brothers. Fun fact: its HELP! line solves everyday headaches—like a missing clip or a broken plastic part—with ready-made fixes for mechanics and weekend DIYers alike.
Q2 gross margin rose to 46.1% on $98.1M in IEEPA tariff refunds, lifting EPS to $2.93
A one-time tariff refund reset the quarter's profit picture. rose 0.7% to $544.6M while climbed 5.6 points to 46.1% and rose 53.4% to $2.93, driven by $98.1M in IEEPA tariff refunds booked to cost of goods sold. The company refinanced its and repurchased $97.3M of stock, leaving it with lower variable-rate debt and a higher margin base to defend.
Key takeaways
expanded 550 to 46.1% in Q2 2026, primarily from $98.1M in IEEPA tariff refunds recognized in cost of goods sold, a non-recurring item.
increased 0.7% to $544.6M as tariff-related pricing was largely offset by lower volume and price concessions.
rose 53.4% to $2.93 and rose 49.5% to $87.8M, with up 40.9% to $116.2M.
The company issued $450M of 6.25% due 2034, repaid its $431.3M , and repurchased $97.3M in stock during the quarter.
Section summaries
Management's Discussion and Analysis
Q2 2026 net sales rose 0.7% to $544.6M; gross margin surged to 46.1% driven by $98.1M in IEEPA tariff refunds.
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Consolidated increased 0.7% to $544.6M, as tariff-related pricing actions were largely offset by lower volume and price concessions.
expanded 550 to 46.1%, primarily from $98.1M in IEEPA tariff refunds recognized in cost of goods sold.
for the first half rose to $196.4M, boosted by $81.5M in IEEPA refunds and interest received, against $59.8M a year earlier.
Heavy Duty sales grew 6.8% to $66.3M with improving to 4.2%, while Light Duty sales were flat at $424.3M with margin rising to 24.7% on lower net tariff costs.
What changed
Q2 FY2026 against the 40.6% Q2 2025 base: it rose to 46.1%, but the move came from $98.1M in IEEPA tariff refunds rather than the tariff-cost step-down flagged to watch.
Heavy Duty margin after the Q1 0.8% result and FY2025 $56.7M : it improved to 4.2% in Q2 on a 6.8% sales rise, sustaining the recovery.
Pace of buybacks under the $500M program: $50.5M was spent in Q1 and $97.3M in Q2, totaling $147.8M against the $459.4M remaining after FY2025's $40.6M.
trend after Q1 fell to $43.8M: H1 flow rose to $196.4M on the tariff refunds, reversing the prior-year H1 decline to $59.8M.
Since the FY2025 10-K, rose 9.4% to $440.5M as the company borrowed $15M in Q1 then issued $450M and repaid the $431.3M in Q2.
What to watch
Q3 FY2026 against the 44.4% Q3 2025 base to see if 46.1% holds or falls as the IEEPA refund benefit exits and higher tariff costs flow through.
Heavy Duty margin next quarter to confirm the 4.2% Q2 result is sustained after the FY2025 .
Pace of share repurchases after $147.8M spent in H1 against the remaining $500M program authorization.
Quarterly after H1 was lifted by $81.5M in IEEPA refunds, to assess the underlying working-capital trend.
Light Duty sales were flat at $424.3M; income margin rose to 24.7% on lower net tariff costs.
Heavy Duty sales grew 6.8% to $66.3M on pricing and business wins; income margin improved to 4.2%.
jumped to $196.4M for the first half, boosted by $81.5M in IEEPA refunds and interest received.
The company issued $450M of 6.25% due 2034, repaid its $431.3M , and repurchased $97.3M in stock.
Quantitative and Qualitative Disclosures About Market Risk
Interest-rate risk arises from factored receivables and variable-rate debt; a 1pp rate rise would increase costs and reduce fair value of Senior Notes.
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A one-percentage-point rise in or discount rates would have increased and reduced cash received by $2.6M in Q2 FY2026 and $5.3M in H1 FY2026.
A one-percentage-point increase in the credit agreement reference or base rate would have raised on variable-rate debt by $1.0M in Q2 FY2026 and $2.0M in H1 FY2026.
The of the company's Senior Notes would decline by approximately $27.0M under a hypothetical one-percentage-point interest rate increase, with no impact on operations or cash flows.
The company does not disclose hedging instruments for these exposures; risk is managed through the terms of customer-sponsored programs and the credit agreement.
The information set forth under Note 7, “Commitments and Contingencies,” to the Notes to Condensed Consolidated Financial Statements contained in PART I, ITEM 1 of this report is incorporated herein by reference.
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The information set forth under Note 7, “Commitments and Contingencies,” to the Notes to Condensed Consolidated Financial Statements contained in PART I, ITEM 1 of this report is incorporated herein by reference.
There have been no material changes in our risk factors from the risks previously reported in PART 1, ITEM 1A, “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2025. You should carefully consider the factors discussed in PART I, ITEM 1A, “Risk Fac…
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There have been no material changes in our risk factors from the risks previously reported in PART 1, ITEM 1A, “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2025. You should carefully consider the factors discussed in PART I, ITEM 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, which could materially affect our business, financial condition, or future results. The risks described in our Annual Report on Form 10-K are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and/or operating results.