Net Sales Growth

FY 2025

3% to 5% "

7% " " "

raised

Adjusted Diluted EPS

FY 2025

$7.55 to $7.85 "

$8.6 to $8.9 " " "

raised

Heavy Duty Segment Performance

In Q1 2025, the segment was described as suffering from an 11% decline in net sales and slightly negative margins with vulnerability due to tariffs " " ; in Q3 2024, discussions highlighted cost savings and margin normalization with a 4.5% operating margin and expectations to return to mid-teen margins. " "

In Q2 2025, the call emphasized margin normalization with an expected mid-teen operating profit return, modest sales growth of 1%, and acknowledged ongoing vulnerability amid soft market conditions. " " "

There is a shift from a focus on deep challenges and margin pressure in Q1/Q3 to a more optimistic outlook in Q2 with normalization efforts underway, suggesting improved positioning and expected market rebound. " " " "

New Product Innovation and Robust Product Pipeline

Q1 2025 stressed strong new product development driving top-line and margin expansion with innovative solutions " " " " , while Q3 2024 emphasized that new products (including complex electronics) were key growth drivers with increasing sales and improved pricing. " " "

Q2 2025 reinforced the narrative with strong performance of new products, especially those featuring complex electronic components, and a highly robust, diverse pipeline. " " " "

The positive emphasis on innovation remains consistent across periods with reinforcement on complex electronics, bolstering competitive advantage and continued margin expansion. " " "

Tariff Impact and Uncertainty

Q1 2025 detailed the fluid nature of tariff impacts, citing diversified sourcing and cost adjustments, while Q3 2024 had limited commentary but acknowledged the improved supply chain position in case of new tariff measures. " " " "

Q2 2025 provided detailed discussion on tariff-driven price increases set for Q3 2025 and comprehensive mitigation actions, highlighting the persistent uncertainty and its impact on various segments. " " "

There is an increased focus on detailed tariff management in Q2 2025 as compared to prior periods, indicating heightened scrutiny and proactive pricing strategies to mitigate ongoing uncertainty. " " "

Customer Pricing and Demand Uncertainty

Q1 2025 explored pricing strategies, the potential for pre-buy behavior, and softening demand—especially in the heavy-duty and specialty segments " " " " —while Q3 2024 focused more on light duty’s strong performance with little detailed discussion of pre-buy trends. " "

Q2 2025 discussed surgical price increases due to tariffs with clear customer notification timelines, balanced by strong demand in light duty and modest observations on pre-buy behavior, addressing varied market pressures across segments. " " "

The narrative has evolved to present a more nuanced view: maintaining disciplined pricing despite uncertainty, with increased clarity on timing and customer response across segments. " " " "

Diversified and Resilient Supply Chain

Q1 2025 provided detailed percentages of diversification and highlighted strategic supplier relationships as a competitive advantage " " " , and Q3 2024 affirmed improvements in geographic and supplier diversity. " "

Q2 2025 continued to stress the strength of an asset‐light, diversified supply chain that supports cost savings and mitigates tariff impacts, reinforcing its competitive edge. " " "

The consistent messaging underscores that a diversified and resilient supply chain remains a cornerstone of Dorman’s strategy, with no significant change in sentiment but a continued positive outlook. " " "

Disciplined Capital Allocation Strategy

Q1 2025 emphasized managing debt, leveraging internal investments, and opportunistic share repurchases to address higher inventory costs, while Q3 2024 detailed strong free cash flow, debt reduction, and shareholder returns including a new repurchase authorization. " " "

Q2 2025 reiterated a disciplined approach focused on debt management, internal reinvestment, strategic M&A, and opportunistic share repurchases as part of overall capital allocation priorities. "

The approach remains stable over time with consistent emphasis on financial discipline, and there is continuity in balancing reinvestment with shareholder returns, reflecting ongoing financial strength. " " "

Specialty Vehicles and Nondiscretionary Repair Parts Focus

In Q1 2025, the Specialty Vehicles segment experienced a 9% decline in net sales offset by a strong emphasis on the resilience of nondiscretionary parts, while Q3 2024 noted flat sales but highlighted margin improvements and an increased share of nondiscretionary repair parts (over half the business). " " "

Q2 2025 acknowledged soft consumer spending impacting the Specialty Vehicles segment but underlined expectations for market outperformance through an expanded portfolio of nondiscretionary parts and new dealer relationships. " " "

The focus on nondiscretionary repair parts continues to be a strategic pillar; while sales pressures remain in certain segments, the sentiment is cautiously optimistic about future performance as product mix evolves. " " "

Pricing Power in a Nondiscretionary Market

Q1 2025 underscored strong pricing power derived from the inelastic nature of nondiscretionary repair parts and a proven playbook to mitigate tariff impacts " " " " ; Q3 2024 did not explicitly mention pricing power though it discussed progress in nondiscretionary repair focus. "

Q2 2025 reiterated pricing power through deliberate tariff-driven price increases designed to cover net tariff costs while minimizing customer impact, confirming continued strength in this market segment. " " "

There is an increased emphasis in Q2 2025 on leveraging pricing power to sustain margins amid tariff pressures, strengthening the narrative of market resilience in nondiscretionary products compared to the less explicit discussion in Q3 2024. " "