Jack [Analyst]'s questions to Dorman Products Inc (DORM) leadership • Q2 2025
Question
Jack, on behalf of Scott Stember, inquired about the heavy-duty segment's incremental margins upon sales recovery and the expected timeline to reach normalized levels. He also asked for a breakdown of tariff impacts by segment and the relative difficulty in implementing price increases.
Answer
President, CEO & Director Kevin Olsen explained that the heavy-duty business is more manufacturing-intensive, allowing for strong leverage as volume returns, with a target of mid-teen operating profit at normalized levels. Olsen clarified that the tariff impact is modest for the heavy-duty and specialty vehicle segments. For the light-duty segment, he noted that Dorman's diversified supply chain creates a competitive advantage despite its exposure.