Dorman Products, Inc. (NASDAQ: DORM)

Dorman Products, Inc. is a leading supplier of replacement and upgrade parts in the motor vehicle aftermarket industry. The company serves passenger cars, light duty trucks, medium duty and heavy duty trucks as well as specialty vehicles such as utility terrain vehicles and all terrain vehicles. As of December 31, 2025, Dorman marketed approximately 144,000 distinct parts many of which were designed and engineered in-house. Products are sold under the Dorman, Dayton Parts and SuperATV brands, under customers private label brands or in bulk. The majority of net sales are generated in North America, primarily in the United States, with additional sales into Canada, Mexico, Europe, the Middle East and Australia. Dorman emphasizes product innovation to address evolving vehicle technologies and consumer preferences. The firm maintains a limited lifetime warranty on most light and medium duty parts and offers more limited warranties for heavy duty and specialty vehicle products.

Dorman generates revenue by selling its aftermarket parts to retailers, dealers, wholesale distributors and specialty market channels. The company also sells directly to consumers through its ecommerce platforms for certain specialty vehicle products. Approximately 76 percent of its products are sold under brands it owns while the remainder are sold for resale under private label, other brands or in bulk. In 2025 two customers each accounted for more than 10 percent of net sales and together represented about 40 percent of total revenue. The company’s sales strategy focuses on expanding its product lines, securing new customers and increasing sales to existing accounts. Dorman invests in digital advertising, social media, email campaigns, catalogs and brochures to promote its offerings.

The company operates through the following segments: light duty vehicle sector, heavy duty vehicle sector and specialty vehicle sector. Each segment is defined by the type of vehicle it serves and the corresponding customer channels it targets.

• Light Duty Vehicle Sector: This segment designs and supplies replacement and upgrade parts for passenger cars and light duty trucks, serving both do it yourself consumers and professional installers such as independent repair shops and dealership service departments.

• Heavy Duty Vehicle Sector: This segment focuses on medium and heavy duty vehicles, providing replacement parts including air disc rotors, brake shoe kits, shock absorbers, EGR coolers, fuel dosing modules, and branded air tanks to independent distributors, large buying groups, component specialists, rebuilders, and auto parts stores.

• Specialty Vehicle Sector: This segment supplies parts for utility terrain vehicles and all terrain vehicles, offering functional upgrades such as lighting, electronics, tires, and wheels as well as nondiscretionary repair parts like brake systems, engine electronics, and drivetrain components, with roughly half of its sales coming from repair parts and distribution through direct to consumer and direct to dealer channels.

Dorman Products, Inc. is recognized as one of the leading suppliers in the motor vehicle aftermarket industry. The company competes with other aftermarket parts providers, divisions of larger corporations, original equipment manufacturers and private label customers. Its competitive advantages stem from a broad product line of approximately 144,000 distinct parts, strong brand recognition, ongoing engineering innovation and a diversified global supplier network. Additionally, Dorman offers warranties on many of its products and invests heavily in new to the aftermarket solutions that address failure modes and enhance vehicle performance. The firm’s focus on time saving repair solutions and customer first product development helps it maintain a strong position among professional installers and do it yourself customers.

Dorman Products, Inc. sells its products to aftermarket retailers, dealers, wholesale distributors and specialty market channels. The company also reaches end consumers through its ecommerce websites for certain specialty vehicle parts. Its customer base includes large retail chains, automotive parts distributors and online platforms serving both professional installers and do it yourself consumers. The firm’s products are stocked in the aisles of national auto parts stores, regional warehouse distributors and local independent repair shops. Dorman’s reputation for quality, line profitability and customer service influences reseller decisions limited by shelf space.